A Business Entity Reports,for a Complete Accounting Period,a Cash Flow

question 19

Multiple Choice

A business entity reports,for a complete accounting period,a cash flow from operations at 12% of sales revenue,a cash flow from investing representing an outflow of 50% of cash flow from operations and a cash inflow from financing is equal to half the absolute value of the cash flow from investing.The gross margin ratio is 40%,net profit at 100 CU represents a quarter of the gross margin.If the beginning cash balance was 45 CU,what is the ending cash balance.

• A) 145 CU
• B) 135 CU
• C) 120 CU
• D) 90 CU

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Definitions:

Commission Payment Plans

A method of remuneration where employees or agents are paid based on the sales they generate, usually as a percentage of the sale price.

Monthly Salary

Regular payment from an employer to an employee, typically spread over a month, for performing agreed-upon professional tasks.

Commission

A fee or percentage of a transaction value paid to agents or employees for conducting a piece of business or a service.

Sales

The exchange of goods or services for money, representing the primary source of revenue for most businesses.