The Balance Sheet of Tech Track Reports Total Assets of $400,000

question 96

Multiple Choice

The balance sheet of Tech Track reports total assets of $400,000 and $500,000 at the beginning and end of the year, respectively. Sales revenues are $1.1 million ($0.8 million in the previous year) , net income is $40,000, and net cash flows from operating activities are $50,000. How does Tech Track's cash flow to sales ratio compare to the industry average of 5%?

• A) Better.
• B) Worse.
• C) Same as.
• D) Cannot be determined with the data provideD.

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Definitions:

First-Order Autocorrelation

The correlation between sequential observations in a time series, specifically between each observation and its immediate predecessor.

Durbin-Watson Statistic

A measure used in statistics to detect the presence of autocorrelation in the residuals from a linear regression analysis.

Hypotheses

Proposed explanations for a phenomenon, set forth as a basis for empirical testing.

First-Order Autocorrelation

A statistical measure of the relationship between a variable's current value and its immediate past value.