The Statement of Cash Flows for Georgey Company for 2004

question 21

Multiple Choice

The statement of cash flows for Georgey Company for 2004 and 2005 is as follows:
$$\begin{array} { | l | c | c | } \hline & \mathbf { 2 0 0 4 } & \mathbf { 2 0 0 5 } \\\hline \text { Net income } & \$ 189 & \$ 170 \\\hline \begin{array} { l } \text { Adjustments to reconcile net } \\\text { income to net cash provided by } \\\text { operating activities: }\end{array} & & \\\hline \text { Depreciation and amortization } & 201 & 173 \\\hline \text { Deferred income taxes } & 14 & ( 20 ) \\\hline \text { Restructuring charges } & 80 & 90 \\\hline \text { Accounts receivable } & 30 & 20 \\\hline \text { Inventory } & ( 30 ) & 50 \\\hline \text { Current liabilities } & 10 & 30 \\\hline \text { Cash flow from operations } & 494 & 513 \\\hline & & \\ \text { Sale of equipment } & 200 & 300 \\\hline \text { Purchase of equipment } & ( 130 ) & ( 120 ) \\\hline \text { Cash flow from investing } & 70 & 180 \\\hline & & \\ \text { Dividends } & ( 120 ) & ( 130 ) \\\hline \text { Long-term debt } & ( 440 ) & ( 440 ) \\\hline \text { Cash flow from financing } & ( 560 ) & ( 570 ) \\\hline\end{array}$$
-Which of the following statements is correct?

• A) Restructuring is a major source of cash for Georgey
• B) Accounts receivable increased in 2005
• C) Depreciation is a major source of cash for Georgey
• D) Major use of cash resulted in decreased leverage

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Definitions:

Interrole Conflict

Occurs when the expectations from different roles that an individual plays (e.g., parent, employee) clash, leading to stress or difficulty in performing those roles.

IntraRole Conflict

The conflict experienced by an individual when the expectations or demands of a single role clash with each other.

Work Demands

The physical, mental, emotional, and time requirements placed on an employee by their job role and work environment.

Interpersonal Demands

Refers to the expectations and pressures that arise from interactions between individuals in a work environment.