Tri-City Installations Company Uses the Direct Method to Prepare Its

question 86

True/False

Tri-City Installations Company uses the direct method to prepare its statement of cash flows.Tri-City has reported sales revenues of $200,000 on its income statement for 2018.If the balance in Accounts Receivable has increased by $10,000 during the year,then $10,000 needs to be added to $200,000 to calculate collections from customers.

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Definitions:

Financial Ratios

Quantitative measures derived from financial statement analysis used to gauge a company's performance, liquidity, leverage, and profitability.

Marketing Metrics

Quantitative measures used by marketers to evaluate, compare, and track the effectiveness or performance of marketing strategies, campaigns, or activities.

Premise Control

A security or management concept ensuring that the base assumptions underlying strategies or plans remain valid over time and are monitored for changes.

Fixed-Charge Obligations

Financial commitments that a company must pay on a regular basis, such as loans, leases, and other fixed expenditures, irrespective of its business performance.