During 2010,Boogle Reported Net Income of $785 Million and Net

question 1

Multiple Choice

During 2010,Boogle reported net income of $785 million and net cash inflow from operations of $1,196 million.During 2009,their net income was $563 million and net cash inflow from operations was $1,237 million.Which of the following is incorrect about their quality of income ratios?

• A)In 2009 the ratio was 2.2 and in 2010 it was 1.5.
• B)Their ratio in 2009 was better than their ratio in 2010.
• C)Boogle's quality of income ratios indicates poor performance because net income is less than cash flow.
• D)The ratio in both years shows the company's ability to generate good cash flow from its operating activities.

Determine the impacts of business combination on tax liabilities and assets.

Understand the purpose and effects of pre-acquisition and business combination valuation entries.

Calculate the consolidated cash account and share capital in group financial statements.

Analyze and adjust for the tax effects of revaluations in business combinations.

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Definitions:

Yield To Maturity

The total return expected on a bond if held until it matures, including all interest and principal repayments.

Semiannually

Occurring twice a year or every six months.

Present Value

The current assessment of a future cash sum or cash flow streams, discounted at a defined rate of return.

Coupon

The interest payment made to bondholders, typically expressed as an annual percentage of the bond's face value.