The Most Recent Balance Sheet and Income Statement of Penaloza

question 126

Multiple Choice

The most recent balance sheet and income statement of Penaloza Corporation appear below: The company paid a cash dividend of $18.It did not dispose of any property,plant,and equipment.The company did not retire any bonds payable or repurchase any of its own common stock.The following questions pertain to the company's statement of cash flows. The net cash provided by (used in) investing activities for the year was:

• A)$72
• B)$104
• C)($104)
• D)($72)

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Definitions:

Debt-equity Ratio

An indicator of a business's debt leverage, computed by dividing the sum of its liabilities by the equity owned by its stockholders.

Financial Planning

The process of estimating the capital required and determining its competition; it is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise.

Fixed Percentage

A predetermined, unchanging fraction or rate used in various financial contexts, such as a fixed-rate mortgage.

External Financing

Funds a company seeks from outside sources, such as loans, investor equity, or bonds, to finance its activities.