Exhibit 19-1
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 56

Multiple Choice

Exhibit 19-1
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S) $\begin{array}{c} \text { BMC CORPORATION INCOME STATEMENT } \\ \text {FISCAL YEAR ENDING 12/31/2009 } \\ \text { (DOLLARS IN THOUSANDS') } \\\begin{array}{lr}\text { Net Sales } &\quad\quad\quad\quad\quad\quad\quad \$ 1025 \\\text { Cost of Goods Sold } & \underline {682 }\\ \text { Gross Profit Margin } & 343 \\\text { Depreciation } & 31 \\\text { Operating Expense } & 103 \\\text { Administrative Expense } & \underline {127} \\\text { Operating Profit } & 82\\\text { Interest }\\ \text {Profit Before Taxes}&\frac{27}{55} \\ \text { Taxes } \\ \text {Net Income }&\$\frac{17}{38} \\\end{array}\end{array}$ $\begin{array}{c} \text { BMC CORPORATION BALANCE SHEET } \\ \text { FISCAL YEAR ENDING 12/31/2009 } \\ \text { (DOLLARS IN THOUSANDS) } \\\begin{array}{lll}\text { ASSETS }\\\hline\text { Cash } & \$ 61 \\\text { Accounts receivables } & 286 \\\text { Inventory } & \underline { 354} \\\text { Total current assets } & 701 \\\text { Net fixed assets } & \underline { 802} \\\\\\\\\\\text { Total assets }& \$ 1503\\\end{array}\begin{array}{lll}\text { LIABILITIES }\\\hline\text { Notes payable } & \$ 223 \\\text { Accounts payable } & 152 \\\text { Accruals } & \underline { 32} \\ \text { Total current liabilities } & 407 \\\text { Long term debt } & 306 \\\text { Common stock ( } \$ 1.50 \text { par) } & 102 \\\text { Paid in surplus } & 226 \\\text { Retained earnings } & \underline { 462} \\\text { Total liabilities and } & \\\quad \text { Stockholders' equity } & \$ 1503\end{array}\end{array}$
-Refer to Exhibit 19-1. What is BMC's traditional cash flow?

• A) 69
• B) 86
• C) 38
• D) 55
• E) 701

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Definitions:

Farm Program

A government initiative designed to support farmers through subsidies, price support, and other measures.

Farm Employment

Refers to jobs and labor involved in farming operations, including cultivation, planting, and harvesting of crops, as well as raising livestock.

Capital Use

Refers to how effectively a company or economy utilizes its capital resources, including equipment and machinery, for production.