Tuffet Corporation Had the Following Information Available from Its 2011

question 26

Multiple Choice

Tuffet Corporation had the following information available from its 2011 balance sheet and income statement: What amount would be reported as cash outflows for interest on the statement of cash flows for 2011 using the direct method?

• A) $27,000
• B) $29,000
• C) $21,000
• D) $23,000

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Definitions:

Debt Ratio

A financial metric comparing the total debt of a company to its total assets, indicating the proportion of a company's assets that are financed by debt.