The Balance Sheet and Income Statement Shown Below Are for Pettijohn

question 88

Multiple Choice

The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.
-What is the firm's cash flow per share?

• A) $10.59
• B) $11.15
• C) $11.74
• D) $12.35

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Definitions:

Sales Budget

An estimate of expected sales revenue for a particular period, forming the basis of a company's revenue planning.

Cash Collections

The process or total amount of cash received from customers for goods or services.

Cost of Goods Sold

This refers to the direct costs attributable to goods produced and sold by a business, including materials, labor, and overhead expenses.

Merchandise Inventories

Goods and products that a company holds for the purpose of resale to customers.