The Following Information Should Be Used According to the Provisions

question 67

Multiple Choice

The following information should be used according to the provisions of GAAP (Statement of Cash flows) and using the following data.
$\begin{array}{lr}\text { Net income } & \$ 80,000 \\\text { Amortization of goodwill } & 2,000 \\\text { Decrease in accounts receivable } & 2,000 \\\text { Increase in inventory } & 3,000 \\\text { Purchase of marketable securities } & 13,000 \\\text { Sale of land for } \$ 10,000 \text { gain } & 11,000 \\\text { Depreciation expense } & 4,000 \\\text { Repayment of debt } & 8,000 \\\text { Payment of dividend } & 3,000 \\\text { Interest payment } & 2,000\end{array}$


-What is net cash flow from investing?

• A)$11,000
• B)$7,000
• C)($2,000)
• D)($12,000)

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Definitions:

Par Value

The face value of a bond or stock, representing the amount that the issuer agrees to pay at maturity or the value assigned to a stock for accounting purposes, respectively.

Matures

Refers to the final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.

Par-value

The par value of a bond, share of stock, or coupon as declared by the issuer.

Yield To Maturity

The total return anticipated on a bond if held until it matures, including all interest payments and the repayment of principal.