-What Amount Should Be Reported for Consolidated Net Income

question 32

Multiple Choice

-What amount should be reported for consolidated net income?

• A) $1,285,000.
• B) $1,331,700.
• C) $1,349,000.
• D) $1,315,000.
• E) $1,314,900.

---

Definitions:

Statement of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company.

Quick Ratio

A liquidity indicator that measures a company's ability to meet short-term obligations with its most liquid assets.

Fixed Charge Coverage

A financial ratio that measures a firm's ability to cover its fixed charges, such as interest and leases, with its earnings before interest and taxes (EBIT).

Quick Asset Ratio

A liquidity measure that indicates a company's capacity to pay its short-term liabilities with its quick assets, excluding inventories.