Use the Table for the Question(s)below

question 37

Multiple Choice

Use the table for the question(s) below.
Consider the following income statement for Kroger Inc.(all figures in $ Millions) :
-The income that would be available to equity holders in 2005 if Kroger was not levered is closest to:

• A)$290 million.
• B)$745 million.
• C)$847 million.
• D)$550 million.

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Definitions:

Direct Method

A way of presenting a cash flow statement where actual cash flows from operating activities are disclosed, as opposed to estimating them indirectly through differences in non-cash items.

Cash Flows

The aggregate sum of cash inflows and outflows in a business, significantly impacting its ability to meet short-term obligations.

Investing Activities

Financial activities related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Buying Stocks

The act of purchasing shares in a company with the expectation of earning a return on investment through dividends or stock price appreciation.