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Trails and Paths Inc

question 161

Multiple Choice

Trails and Paths Inc. had average operating assets of $6000000 and sales of $3000000 in 2016. If the controllable margin was $600000 the ROI was


Definitions:

Indirect Method

A way of reporting net cash flows from operating activities in a cash flow statement by starting with net income and adjusting it for changes in balance sheet items.

Operating Activities

Business activities related to the core functions of a company including production, sales, and delivery of the company’s products and services.

Gain

A financial gain occurs when the selling price of an asset exceeds its purchase price, resulting in a positive difference.

Indirect Method

The indirect method is a way of calculating cash flow from operating activities for the cash flow statement by adjusting net income for changes in non-cash accounts.

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