Paint Company Following Are Selected Data from Paint Company's Financial Statements

question 144

Multiple Choice

Paint Company
Following are selected data from Paint Company's financial statements.

-Refer to the Paint Company data. The cash flow from operations to capital expenditures ratio for 2016 is an indicator that Paint Company

• A) has been effectively able to use operations to finance its acquisitions of productive assets.
• B) has increased profits by $13,000.
• C) has decreased cash, but is offset by the increase in net income.
• D) has net income that is more than it would have been had dividends of $30,000 been paid.

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Definitions:

Annually

Pertaining to an event or activity that occurs once every year.

New Home Prices

The selling prices of newly constructed homes currently on the market.

Cost

The amount of money required to purchase goods or services or the value consumed in the production of goods or services.

Discount Rate

The rate of interest applied to loans provided to commercial banks and other financial institutions by the Federal Reserve through its discount window.