Use the Table for the Question(s)below

question 84

Multiple Choice

Use the table for the question(s) below.
AOS Industries Statement of Cash Flows for 2015

-Consider the above statement of cash flows.Which of the following is TRUE of AOS Industries' operating cash flows?

• A)It collected more cash from its customers than they charged.
• B)It sold more inventory than it bought.
• C)It charged more on its accounts payable than it paid back.
• D)It charged less on its accounts payable than it paid back.
• E)It used $1.4 million of its cash on depreciation and amortization.

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Definitions:

Short-term Financing

This refers to financial obligations or loans that are due for repayment within a period of one year or less, often used for managing daily business operations.

Yield Curve

A graphical representation showing the relationship between the yield on securities with differing terms to maturity, typically for government bonds.

Working Capital

The difference between a company’s current assets and current liabilities, indicating short-term financial health.

Financing Policy

The strategies and guidelines that a company adopts to manage its financial affairs, including decisions on debt, equity, and capital structure.