The 2011 Income Statement for Duffy's Pest Control Shows That

question 37

Multiple Choice

The 2011 income statement for Duffy's Pest Control shows that depreciation expense is $180 million, EBIT is $420 million, EBT is $240 million, and the tax rate is 30 percent. At the beginning of the year, the balance of gross fixed assets was $1,500 million and net operating working capital was $500 million. At the end of the year gross fixed assets was $1,803 million. Duffy's free cash flow for the year was $425 million. Calculate the end of year balance for net operating working capital.

• A) $403 million
• B) $300 million
• C) $203 million
• D) $103 million

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Definitions:

Pretest-Posttest Nonequivalent Groups Design

A quasi-experimental research design where one group is tested before and after an intervention and compared to a control group not receiving the intervention.

Interpretable Nonequivalent Groups Design

A research design involving comparison between groups that are not randomly assigned but are compared on outcomes to assess treatment effects.

History

A field of study concerned with the analysis and interpretation of past events.

Internal Validity

The extent to which a study can establish a cause-and-effect relationship free from external influences or confounding variables.