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NEW QUESTION: 1
The following data are taken from the Ultimate Omega's financial statements ending Dec 31, 1985:
Increase in inventories 220
Stock's repurchased 135
Provision for warranty expenses 15
Depreciation 90
Interest paid 35
Outstanding bonds retired 225
After-tax gain on bond retirement 25
Net Income 430
Tax rate 40%
What was Ultimate Omega's operating cash flow in 1985?
A. 0
B. 1
C. 2
D. 3
Answer: C
Explanation:
Explanation/Reference:
Explanation:
In this case, OCF = 430 - 220 + 15 + 90 - 25 = 290. Note a few important things: Warranty provision is a non-cash expense and must be added back to net income. Gain on bond retirement is an extraordinary item and is part of financing cash flow. Hence, it must be subtracted from net income to obtain income from continuing operations. Stock repurchase and bond retirement are financing cash flows. Note that tax rate is not relevant in the indirect method since it has already been factored in the net income figure.

NEW QUESTION: 2
When you are meeting with a customer who is comparing your solutions against the competition, what is the best way to convince them that HPE is the best solution?
A. Compare and contrast HPE solutions and their competitors.
B. Emphasize the services component of the solution rather than doing a hardware comparison.
C. Match the solution to the critical KPIs they use as determining factors.
D. Present a solution that is cheaper than the competition.
Answer: B

NEW QUESTION: 3
To clean the system of all SmartEvent events, you should delete the files in which folder(s)?
A. $FWDIR/distrib_db and $FWDIR/events
B. $RTDIR/distrib and $RTDIR/events_db
C. $RTDIR/events_db
D. $FWDIR/distrib
Answer: B