Selected information from Rockway, Inc.’s U.S. GAAP financial statements for the year ended December 31, included...

Selected information from Rockway, Inc.’s U.S. GAAP financial statements for the year ended December 31, included the following (in $):

	2004	2005
Sales	17,000,000	21,000,000
Cost of Goods Sold	11,000,000	15,000,000
Interest Paid	800,000	1,000,000
Current Income Taxes Paid	700,000	1,000,000
Accounts Receivable	3,000,000	2,500,000
Inventory	2,400,000	3,000,000
Property, Plant & Equip	2,000,000	16,000,000
Accounts Payable	1,000,000	1,400,000
Long-term Debt	8,000,000	9,000,000
Common Stock	4,000,000	5,000,000

Cash provided or used by operating activities (CFO) in the year 2005 was closest to:

Group of answer choices

A. $6,300,000.

B. $5,300,000.

C. $4,300,000.

Expert Solution

C. $4,300,000

Workings:

Notes: All the figures mentioned as (b/f) has been computed by balancing the accounts after porting applicable entries in the necessary ledger accounts.

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ekkarill92 answered 1 year ago

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