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Cash circulation to stockholders is characterized as:

A) The complete amount of interest and dividends paid throughout the previous year.

You are watching: A positive cash flow to stockholders indicates which one of the following with certainty?

B) The readjust in full equity over the previous year.

C)Cash circulation from assets plus the cash flow to creditors.

D) Operating cash flow minus the cash flow to creditors.

E) Dividend payments less net brand-new equity raised.


Ernie’s Home Repair had actually beginning irreversible debt of $51,207 and finishing permanent debt of $36,714. The beginning and ending total debt balances were $59,513 and also $42,612, respectively. The interest passist was $2,808. What is the amount of the cash circulation to creditors?

A) -$11,685

B) -$11,272

C) 17,301

D) $17,418

E) $11,174


Which one of the complying with represents the the majority of liquid asset?

A) $100 account receivable that is discounted and built up for $96 this particular day.

B) $100 of inventory which is sold today on credit for $103.

C) $100 of inventory which is discounted and sold for $97 cash this particular day.

D) $100 of inventory that is sold this day for $100 cash.

E) $100 accounts receivable that will certainly be gathered in complete following week.


A positive cash flow to stockholders indicates which one of the complying with through certainty?

A) The dividends phelp gone beyond the net new equity increased.

B) The amount of the sale of common stock exceeded the amount of dividends paid.

C) No dividends were spread, however new shares of stock were sold.

D) Both the cash circulation to assets and also the cash circulation to creditors need to be negative.

E) Both the cash circulation to assets and also the cash circulation to creditors need to be positive.


The better the degree of financial leverage employed by a firm is, the:

A) Higher is the probcapability that the firm will encounter financial distress and anxiety.

B) Lower is the amount of debt incurred.

C) Less debt a firm has actually per dollar of full assets.

D) Higher is the number of outstanding shares of stock.

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E) Lower is the balance in accounts payable.


At the beginning of the year, a firm had present assets of $121,306 and present liabilities of $124,509. At the end of the year, the present assets were $122,418 and the present liabilities were $103,718. What is the change in net functioning capital?

A) -$19,679

B) -$11,503

C) -$9,387

D) $1,809

E) $21,903


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