The Following Information Is Available for Cooke Corporation What Is the Cash and Equivalents Amount at Year-End?
A)

question 27

Multiple Choice

The following information is available for Cooke Corporation: $$\begin{array} { | l | c | } \hline & \text { (in million) } \\\hline \text { Cash receipts from operating activities } & \$ 980 \\\hline \text { Cash payments from operating activities } & \$ 240 \\\hline \text { Net cash used by investing } & \$ 210 \\\hline \text { Net cash provided by financing } & \$ 750 \\\hline \text { Net increase in cash and equivalents } & ? \\\hline \text { Cash and equivalents at start of year } & \$ 550 \\\hline \text { Cash and equivalents at year-end } & ? \\\hline\end{array}$$ What is the cash and equivalents amount at year-end?

• A) $1,290
• B) $730
• C) $1,830
• D) $2,730

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Definitions:

FOB Shipping Point

A term used in shipping indicating that the buyer assumes ownership and the risk of loss of goods once the seller ships the product.

FOB Destination

A shipping term indicating that the seller is responsible for the goods and the shipping cost until the items reach the buyer's specified location.

Net Sales

Total sales revenue after deducting returns, allowances for damaged or missing goods, and discounts.

Cost of Goods Sold

An accounting term referring to the direct costs attributable to the production of the goods sold in a company.