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:

Present Value Factor

A factor used to calculate the present value of a future amount of money or stream of cash flows given a specific rate of return.

Straight-Line Depreciation

A process of dividing the expense of a substantial asset into identical annual portions over its useful duration.

Net Income

The net income of a firm after deducting all expenses and taxes from its gross revenue.

Cash Payback Period

A rephrased term for Payback Period, this is the duration required for an investment to generate cash flows that cover its initial expense.