Use the Information Given Below to Answer the Following Questions

question 50

Multiple Choice

Use the information given below to answer the following questions:
During the year, Penso Ltd received $50 000 from its customers, $5000 for the sale of a motor vehicle and $20,000 for the issue of shares. It paid $27,000 to suppliers and employees, $3000 for income tax and $50,000 for new machinery. In addition, it paid out $12 000 to redeem bonds. Its cash balance at the commencement of the year was $22,000.
-What were the cash flows from operating activities?

• A) $25 000
• B) $23 000
• C) ($17 000)
• D) $20 000.

Distinguish between the various central tendency measures (mean, median, mode) and variability measures (standard deviation, variance, range).

Identify and decide when to use parameters versus statistics.

Understand the impact of sample size on statistical measures.

Recognize calculations errors specifically with variance and standard deviation.

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Definitions:

Expected Value Analysis

A statistical technique used to predict the likely outcome of a decision or series of actions by considering all possible scenarios and their probabilities.

Capital Rationing

The act of placing restrictions on the amount of new investments or projects a company may undertake, often due to limited resources such as capital.

Present Value Concepts

The idea that an amount of money today is worth more than the same amount in the future due to its potential earning capacity, often calculated through discounting future cash flows.

Capital Investment Proposal

A formal request or plan for spending on large-scale projects or purchases, intended to improve a company's assets or operations.