During the Year,Clarendon Corporation Had Net Sales of $500,000,net Income

question 35

Multiple Choice

During the year,Clarendon Corporation had net sales of $500,000,net income of $50,000,average total assets of $700,000,dividend payments of $35,000,net cash flows from operating activities of $86,000,purchases of plant assets of $75,000,and sales of plant assets of $90,000.Cash flows to sales equals (Round amounts to one decimal place)

• A) 12.3 percent.
• B) 14.3 percent.
• C) 21.5 percent.
• D) 17.2 percent.

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Definitions:

Stock Dividend

Distribution of additional shares of a company's stock to shareholders instead of cash, usually determined as a percentage of the shares already owned.

Total Stockholders' Equity

The total amount of assets remaining in a business after all liabilities are paid off, representing the owners' claim on assets.

Diluted Earnings Per Share

A performance metric that shows the quality of earnings per share if all convertible securities were exercised.

Complex Capital Structures

Refers to corporate financial structures that feature a mix of simple and intricate financial instruments, such as multiple classes of stock or convertible bonds.