Use the Following Information on Dylan Enterprises for Questions 20

question 10

Multiple Choice

Use the following information on Dylan Enterprises for questions 20 - 26.
$\begin{array}{lr}\text { Income statement }\\\text { Net Sales } & \$ 320,000,000 \\\text { Less: Cost of Goods Sold } & \$ 162,000,000\\\text { Gross Profit } & \$ 158,000,000 \\\text { Less: Operating Expenses } & \$ 120,000,000 \\\text { Less: Depreciation } & \$ 11,000,000\\\text { Operating Profit } & \$ 27,000,000 \\\text { Less: Interest Expense } & \$ 8,500,000\\\text { Net Profit Before Taxes } & \$ 18,500,000 \\\text { Less: Taxes } & \$ 6,290,000\\\text { Net Income }&\$12,210,000\\\\\text { Earnings Available to Common } & \$ 12,210,000 \\\text { Dividends Paid (60\% of EAC) } & \$ 7,326,000\\\text { Addition to Retained Earnings }&\$4,884,000\\\\\text { Earnings Per Share }&\$6.11\end{array}$ $\begin{array}{lrrr}&\text { Balance sheet }\\\text { Assets } & \text { Current Year } & \text { Prior Year } & \text { Change } \\\text { Cash } & \$ 1,500,000 & \$ 3,000,000 & (\$ 1,500,000) \\\text { Marketable Securities } & \$ 1,500,000 & \$ 3,200,000 & (\$ 1,700,000) \\\text { Accounts Receivable } & \$ 57,000,000 & \$ 44,000,000 & \$ 13,000,000 \\\text { Inventory } & \$ 106,000,000 & \$ 99,000,000 & \$ 7,000,000 \\\text { Pre-Paid Expenses } & \$ 8,400,000 & \$ 11,000,000 & (\$ 2,600,000) \\\text { Total Current Assets } & \$ 174,400,000 & \$ 160,200,000 & \$ 14,200,000 \\\text { Long-Term Assets } & \$ 148,000,000 & \$ 154,000,000 & (\$ 6,000,000) \\\text { Total Assets }&\$322,400,000&\$314,200,000&\$8,200,000\\\\\text { Liabilities } & \text { Current Year } & \text { Prior Year } & \text { Change } \\\text { Accounts Payable } & \$ 8,716,000 & \$ 6,400,000 & \$ 2,316,000\\\text { Short-Term Debt } & \$ 102,000,000 & \$ 105,000,000 & (\$ 3,000,000) \\ \text { Total Current Liabilities } & \$ 110,716,000 & \$ 111,400,000 & (\$ 684,000) \\\text { Long-Term Debt }(8 \%) & \$ 115,000,000 & \$ 111,000,000 & \$ 4,000,000\\\text { Total Liabilities } & \$ 225,716,000 & \$ 222,400,000 & \$ 3,316,000 \\\text { Common Stock (\$1 Par) } & \$ 2,000,000 & \$ 2,000,000 & \$ 0 \\\text { Paid-In Capital } & \$ 65,000,000 & \$ 65,000,000 & \$ 0 \\\text { Retained Earnings } & \$ 29,684,000 & \$ 24,800,000 & \$ 4,884,000\\\text { Total Equity }&\$96,684,000&\$91,800,000&\$4,884,000\\\text { Total Liabilities and Equity }&\$322,400,000&\$314,200,000&\$8,200,000\end{array}$
-What is Dylan's cash flow from operations?

• A) -$2,874,000
• B) $8,126,000
• C) $12,210,000
• D) $19,126,000
• E) $23,210,000

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Definitions:

Insomnia

A sleep disorder characterized by trouble falling or staying asleep.

Sleep Deprivation

The condition of not having enough sleep, leading to a range of cognitive, emotional, and physical impairments.

Sleep Apnea

A sleep disorder characterized by temporary cessations of breathing during sleep and repeated momentary awakenings.

Sleep Loss

The condition of not obtaining an adequate amount of sleep, either chronically or acutely, which can impair cognitive function and physical health.