Zoe\'s Dog Biscuits, inc, has net cash flows from operating activities for the l

Question

Zoe's Dog Biscuits, inc, has net cash flows from operating activities for the last year of $226 million. The income statement shows that net income in $150 million and depreciation expense is $85 million. During the year, the change in inventory on the balance sheet was an increase of $14 million, change in accrued wages and taxes was an increase of $15 million and change in accounts payable was an increase of $10 million. At the beginning of the year the balance of accounts receivable was $45 million. What was the end of year balance for accounts receivable? $20 million $25 million $45 million $65 million Approximately how many years does it take to double a $500 investment when interest rates are 4% per year? .06 years 6 years 6.94 years 18 years Determine the interest rate earned on a $1,500 deposit when $1,680 is back in one year. 0.89% 1.12% 12.00% 89.00% These can be used by interested parties to identify changes in corporate performance. Common-size financial statements industrialized financial statements sanitized financial statements None of these Compute the future value in year 4 of a $500 deposit in year 1 and another $1, 000 deposit at the end of year 3 using a 5% interest rate. $1,625.00 $1,628.01 $1,800.00 $1,823.26

Explanation / Answer

19. Time required to double the amount as per Rule of 72 = 72/Interest rate
=> 72/4 = 18 Years

So, option 4 is correct.

20. A = P*(1+r)n
Where, A = Current amount, P = Principal amount, r = interest rate and n = number of years

=>$1,680 = $1,500*(1+r)1
=> r = ($1,680 - $1,500) / $1,500 = 0.12 or 12%

So, option 3 is correct.

21. Common-size financial statements.

So, option 1 is correct.

22. FV = [$500*(1+.05)3] + [$1,000 * 1.05)
=> $578.81 + $1,050 = $1,628.81

So, option 2 is correct

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