Questions
Question 7 The following information is available for Skysong Corporation for 2020. 1. Depreciation reported on...

Question 7

The following information is available for Skysong Corporation for 2020.
1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $124,000. This difference will reverse in equal amounts of $31,000 over the years 2021–2024.
2. Interest received on municipal bonds was $9,600.
3. Rent collected in advance on January 1, 2020, totaled $59,700 for a 3-year period. Of this amount, $39,800 was reported as unearned at December 31, 2020, for book purposes.
4. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years.
5. Income taxes of $333,000 are due per the tax return for 2020.
6. No deferred taxes existed at the beginning of 2020.

1. Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2020 and 2021. Assume taxable income was $1,063,000 in 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

2. Prepare the income tax expense section of the income statement for 2020, beginning with “Income before income taxes.” (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

In: Accounting

Rhodes Corporation’s financial statements are shown below. Rhodes Corporation: Income Statements for Year Ending December 31...

Rhodes Corporation’s financial statements are shown below.

Rhodes Corporation: Income Statements for Year Ending December 31
(Millions of Dollars)

2020 2019
Sales $ 12,000 $ 11,000
Operating costs excluding depreciation 10,570 9,716
Depreciation and amortization 390 360
    Earnings before interest and taxes $ 1,040 $ 924
Less interest 240 200
    Pre-tax income $ 800 $ 724
Taxes (25%) 200 181
Net income available to common stockholders $ 600 $ 543
Common dividends $ 201 $ 200

Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)

2020 2019
Assets
Cash $ 450 $ 400
Short-term investments 130 100
Accounts receivable 2,750 2,500
Inventories 1,750 1,600
    Total current assets $ 5,080 $ 4,600
Net plant and equipment 3,650 3,500
Total assets $ 8,730 $ 8,100
Liabilities and Equity
Accounts payable $ 900 $ 800
Accruals 450 400
Notes payable 344 200
    Total current liabilities $ 1,694 $ 1,400
Long-term debt 900 800
    Total liabilities $ 2,594 2,200
Common stock 4,937 5,100
Retained earnings 1,199 800
    Total common equity $ 6,136 $ 5,900
Total liabilities and equity $ 8,730 $ 8,100

Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions.

  1. What is the net operating profit after taxes (NOPAT) for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number.

    $   million

  2. What are the amounts of net operating working capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

    2020: $   million

    2019: $   million

  3. What are the amounts of total net operating capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

    2020: $   million

    2019: $   million

  4. What is the free cash flow for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Cash outflow, if any, should be indicated by a minus sign. Round your answer to the nearest whole number.

    $    million

  5. What is the ROIC for 2020? Round your answer to two decimal places.

      %

  6. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.
    After-tax interest payment $    million
    Reduction (increase) in debt $    million
    Payment of dividends $   million
    Repurchase (Issue) stock $   million
    Purchase (Sale) of short-term investments $   million

In: Finance

Free Cash Flows Rhodes Corporation’s financial statements are shown below. Rhodes Corporation: Income Statements for Year...

Free Cash Flows

Rhodes Corporation’s financial statements are shown below.

Rhodes Corporation: Income Statements for Year Ending December 31
(Millions of Dollars)

2020 2019
Sales $ 11,000 $ 10,000
Operating costs excluding depreciation 9,566 8,676
Depreciation and amortization 410 360
    Earnings before interest and taxes $ 1,024 $ 964
Less interest 220 200
    Pre-tax income $ 804 $ 764
Taxes (25%) 201 191
Net income available to common stockholders $ 603 $ 573
Common dividends $ 202 $ 200

Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)

2020 2019
Assets
Cash $ 450 $ 400
Short-term investments 130 100
Accounts receivable 2,750 2,500
Inventories 1,850 1,800
    Total current assets $ 5,180 $ 4,800
Net plant and equipment 3,850 3,500
Total assets $ 9,030 $ 8,300
Liabilities and Equity
Accounts payable $ 900 $ 800
Accruals 450 400
Notes payable 186 100
    Total current liabilities $ 1,536 $ 1,300
Long-term debt 900 800
    Total liabilities $ 2,436 2,100
Common stock 5,093 5,100
Retained earnings 1,501 1,100
    Total common equity $ 6,594 $ 6,200
Total liabilities and equity $ 9,030 $ 8,300

Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions.

  1. What is the net operating profit after taxes (NOPAT) for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number.

    $   million

  2. What are the amounts of net operating working capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

    2020: $   million

    2019: $   million

  3. What are the amounts of total net operating capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

    2020: $   million

    2019: $   million

  4. What is the free cash flow for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Cash outflow, if any, should be indicated by a minus sign. Round your answer to the nearest whole number.

    $    million

  5. What is the ROIC for 2020? Round your answer to two decimal places.

      %

  6. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.
    After-tax interest payment $    million
    Reduction (increase) in debt $    million
    Payment of dividends $   million
    Repurchase (Issue) stock $   million
    Purchase (Sale) of short-term investments $   million

In: Finance

Free Cash Flows Rhodes Corporation’s financial statements are shown below. Rhodes Corporation: Income Statements for Year...

Free Cash Flows

Rhodes Corporation’s financial statements are shown below.

Rhodes Corporation: Income Statements for Year Ending December 31
(Millions of Dollars)

2020 2019
Sales $ 13,000 $ 11,000
Operating costs excluding depreciation 11,600 9,730
Depreciation and amortization 340 330
    Earnings before interest and taxes $ 1,060 $ 940
Less interest 140 100
    Pre-tax income $ 920 $ 840
Taxes (25%) 230 210
Net income available to common stockholders $ 690 $ 630
Common dividends $ 205 $ 200

Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)

2020 2019
Assets
Cash $ 650 $ 600
Short-term investments 220 200
Accounts receivable 2,750 2,500
Inventories 1,650 1,500
    Total current assets $ 5,270 $ 4,800
Net plant and equipment 3,750 3,500
Total assets $ 9,020 $ 8,300
Liabilities and Equity
Accounts payable $ 1,300 $ 1,200
Accruals 650 600
Notes payable 368 200
    Total current liabilities $ 2,318 $ 2,000
Long-term debt 1,300 1,200
    Total liabilities $ 3,618 3,200
Common stock 3,917 4,100
Retained earnings 1,485 1,000
    Total common equity $ 5,402 $ 5,100
Total liabilities and equity $ 9,020 $ 8,300

Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions.

  1. What is the net operating profit after taxes (NOPAT) for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number.

    $   million

  2. What are the amounts of net operating working capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

    2020: $   million

    2019: $   million

  3. What are the amounts of total net operating capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

    2020: $   million

    2019: $   million

  4. What is the free cash flow for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Cash outflow, if any, should be indicated by a minus sign. Round your answer to the nearest whole number.

    $    million

  5. What is the ROIC for 2020? Round your answer to two decimal places.

      %

  6. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.
    After-tax interest payment $    million
    Reduction (increase) in debt $    million
    Payment of dividends $   million
    Repurchase (Issue) stock $   million
    Purchase (Sale) of short-term investments $   million

In: Accounting

Free Cash Flows Rhodes Corporation’s financial statements are shown below. Rhodes Corporation: Income Statements for Year...

Free Cash Flows

Rhodes Corporation’s financial statements are shown below.

Rhodes Corporation: Income Statements for Year Ending December 31
(Millions of Dollars)

2020 2019
Sales $ 12,000 $ 10,000
Operating costs excluding depreciation 10,524 8,658
Depreciation and amortization 400 370
    Earnings before interest and taxes $ 1,076 $ 972
Less interest 120 100
    Pre-tax income $ 956 $ 872
Taxes (25%) 239 218
Net income available to common stockholders $ 717 $ 654
Common dividends $ 203 $ 200

Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)

2020 2019
Assets
Cash $ 650 $ 600
Short-term investments 110 100
Accounts receivable 2,750 2,500
Inventories 1,250 1,200
    Total current assets $ 4,760 $ 4,400
Net plant and equipment 3,850 3,500
Total assets $ 8,610 $ 7,900
Liabilities and Equity
Accounts payable $ 1,300 $ 1,200
Accruals 650 600
Notes payable 172 100
    Total current liabilities $ 2,122 $ 1,900
Long-term debt 1,300 1,200
    Total liabilities $ 3,422 3,100
Common stock 3,874 4,000
Retained earnings 1,314 800
    Total common equity $ 5,188 $ 4,800
Total liabilities and equity $ 8,610 $ 7,900

Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions.

  1. What is the net operating profit after taxes (NOPAT) for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number.

    $    million

  2. What are the amounts of net operating working capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

    2020: $    million

    2019: $    million

  3. What are the amounts of total net operating capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

    2020: $    million

    2019: $    million

  4. What is the free cash flow for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Cash outflow, if any, should be indicated by a minus sign. Round your answer to the nearest whole number.

    $     million

  5. What is the ROIC for 2020? Round your answer to two decimal places.

      %

  6. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.
    After-tax interest payment $    million
    Reduction (increase) in debt $    million
    Payment of dividends $    million
    Repurchase (Issue) stock $    million
    Purchase (Sale) of short-term investments $    million

In: Finance

Free Cash Flows Rhodes Corporation’s financial statements are shown below. Rhodes Corporation: Income Statements for Year...

Free Cash Flows

Rhodes Corporation’s financial statements are shown below.

Rhodes Corporation: Income Statements for Year Ending December 31
(Millions of Dollars)

2020 2019
Sales $ 11,000 $ 10,000
Operating costs excluding depreciation 9,618 8,742
Depreciation and amortization 350 330
    Earnings before interest and taxes $ 1,032 $ 928
Less interest 240 200
    Pre-tax income $ 792 $ 728
Taxes (25%) 198 182
Net income available to common stockholders $ 594 $ 546
Common dividends $ 205 $ 200

Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)

2020 2019
Assets
Cash $ 550 $ 500
Short-term investments 120 100
Accounts receivable 2,750 2,500
Inventories 1,650 1,600
    Total current assets $ 5,070 $ 4,700
Net plant and equipment 3,750 3,500
Total assets $ 8,820 $ 8,200
Liabilities and Equity
Accounts payable $ 1,100 $ 1,000
Accruals 550 500
Notes payable 186 100
    Total current liabilities $ 1,836 $ 1,600
Long-term debt 1,100 1,000
    Total liabilities $ 2,936 2,600
Common stock 4,195 4,300
Retained earnings 1,689 1,300
    Total common equity $ 5,884 $ 5,600
Total liabilities and equity $ 8,820 $ 8,200

Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions.

  1. What is the net operating profit after taxes (NOPAT) for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number.

    $   million

  2. What are the amounts of net operating working capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

    2020: $   million

    2019: $   million

  3. What are the amounts of total net operating capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

    2020: $   million

    2019: $   million

  4. What is the free cash flow for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Cash outflow, if any, should be indicated by a minus sign. Round your answer to the nearest whole number.

    $    million

  5. What is the ROIC for 2020? Round your answer to two decimal places.

      %

  6. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.
    After-tax interest payment $    million
    Reduction (increase) in debt $    million
    Payment of dividends $   million
    Repurchase (Issue) stock $   million
    Purchase (Sale) of short-term investments $   million

In: Finance

Free Cash Flows Rhodes Corporation’s financial statements are shown below. Rhodes Corporation: Income Statements for Year...

Free Cash Flows

Rhodes Corporation’s financial statements are shown below.

Rhodes Corporation: Income Statements for Year Ending December 31
(Millions of Dollars)

2020 2019
Sales $ 11,000 $ 10,000
Operating costs excluding depreciation 9,550 8,718
Depreciation and amortization 390 350
    Earnings before interest and taxes $ 1,060 $ 932
Less interest 220 200
    Pre-tax income $ 840 $ 732
Taxes (25%) 210 183
Net income available to common stockholders $ 630 $ 549
Common dividends $ 203 $ 200

Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)

2020 2019
Assets
Cash $ 450 $ 400
Short-term investments 110 100
Accounts receivable 2,750 2,500
Inventories 1,450 1,300
    Total current assets $ 4,760 $ 4,300
Net plant and equipment 3,650 3,500
Total assets $ 8,410 $ 7,800
Liabilities and Equity
Accounts payable $ 900 $ 800
Accruals 450 400
Notes payable 380 200
    Total current liabilities $ 1,730 $ 1,400
Long-term debt 900 800
    Total liabilities $ 2,630 2,200
Common stock 4,653 4,900
Retained earnings 1,127 700
    Total common equity $ 5,780 $ 5,600
Total liabilities and equity $ 8,410 $ 7,800

Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions.

  1. What is the net operating profit after taxes (NOPAT) for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number.

    $   million

  2. What are the amounts of net operating working capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

    2020: $   million

    2019: $   million

  3. What are the amounts of total net operating capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

    2020: $   million

    2019: $   million

  4. What is the free cash flow for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Cash outflow, if any, should be indicated by a minus sign. Round your answer to the nearest whole number.

    $    million

  5. What is the ROIC for 2020? Round your answer to two decimal places.

      %

  6. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.
    After-tax interest payment $    million
    Reduction (increase) in debt $    million
    Payment of dividends $   million
    Repurchase (Issue) stock $   million
    Purchase (Sale) of short-term investments $   million

In: Finance

Free Cash Flows Rhodes Corporation’s financial statements are shown below. Rhodes Corporation: Income Statements for Year...

Free Cash Flows

Rhodes Corporation’s financial statements are shown below.

Rhodes Corporation: Income Statements for Year Ending December 31
(Millions of Dollars)

2020

2019

Sales

$

12,000

$

10,000

Operating costs excluding depreciation

10,642

8,734

Depreciation and amortization

390

350

    Earnings before interest and taxes

$

968

$

916

Less interest

240

200

    Pre-tax income

$

728

$

716

Taxes (25%)

182

179

Net income available to common stockholders

$

546

$

537

Common dividends

$

204

$

200

Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)

2020

2019

Assets

Cash

$

550

$

500

Short-term investments

220

200

Accounts receivable

2,750

2,500

Inventories

1,850

1,700

    Total current assets

$

5,370

$

4,900

Net plant and equipment

3,650

3,500

Total assets

$

9,020

$

8,400

Liabilities and Equity

Accounts payable

$

1,100

$

1,000

Accruals

550

500

Notes payable

384

200

    Total current liabilities

$

2,034

$

1,700

Long-term debt

1,100

1,000

    Total liabilities

$

3,134

2,700

Common stock

4,344

4,500

Retained earnings

1,542

1,200

    Total common equity

$

5,886

$

5,700

Total liabilities and equity

$

9,020

$

8,400

Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions.

  1. What is the net operating profit after taxes (NOPAT) for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number.

$    million

  1. What are the amounts of net operating working capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

2020: $    million

2019: $    million

  1. What are the amounts of total net operating capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

2020: $    million

2019: $    million

  1. What is the free cash flow for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Cash outflow, if any, should be indicated by a minus sign. Round your answer to the nearest whole number.

$     million

  1. What is the ROIC for 2020? Round your answer to two decimal places.

  %

  1. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

After-tax interest payment

$    million

Reduction (increase) in debt

$    million

Payment of dividends

$    million

Repurchase (Issue) stock

$    million

Purchase (Sale) of short-term investments

$    million

In: Accounting

Free Cash Flows Rhodes Corporation’s financial statements are shown below. Rhodes Corporation: Income Statements for Year...

Free Cash Flows

Rhodes Corporation’s financial statements are shown below.

Rhodes Corporation: Income Statements for Year Ending December 31
(Millions of Dollars)

2020 2019
Sales $ 12,000 $ 11,000
Operating costs excluding depreciation 10,550 9,674
Depreciation and amortization 370 330
    Earnings before interest and taxes $ 1,080 $ 996
Less interest 120 100
    Pre-tax income $ 960 $ 896
Taxes (25%) 240 224
Net income available to common stockholders $ 720 $ 672
Common dividends $ 205 $ 200

Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)

2020 2019
Assets
Cash $ 550 $ 500
Short-term investments 210 200
Accounts receivable 2,750 2,500
Inventories 1,550 1,400
    Total current assets $ 5,060 $ 4,600
Net plant and equipment 3,750 3,500
Total assets $ 8,810 $ 8,100
Liabilities and Equity
Accounts payable $ 1,100 $ 1,000
Accruals 550 500
Notes payable 348 200
    Total current liabilities $ 1,998 $ 1,700
Long-term debt 1,100 1,000
    Total liabilities $ 3,098 2,700
Common stock 4,097 4,300
Retained earnings 1,615 1,100
    Total common equity $ 5,712 $ 5,400
Total liabilities and equity $ 8,810 $ 8,100

Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions.

  1. What is the net operating profit after taxes (NOPAT) for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number.

    $   million

  2. What are the amounts of net operating working capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

    2020: $   million

    2019: $   million

  3. What are the amounts of total net operating capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

    2020: $   million

    2019: $   million

  4. What is the free cash flow for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Cash outflow, if any, should be indicated by a minus sign. Round your answer to the nearest whole number.

    $    million

  5. What is the ROIC for 2020? Round your answer to two decimal places.

      %

  6. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.
    After-tax interest payment $    million
    Reduction (increase) in debt $    million
    Payment of dividends $   million
    Repurchase (Issue) stock $   million
    Purchase (Sale) of short-term investments $   million

In: Accounting

Lui Company's 2010 income statement reported total sales revenue of $350,000.


Lui Company's 2010 income statement reported total sales revenue of $350,000. The 2009-2010 comparative balance sheets showed that accounts receivable increased by $20,000. The 2010 "cash receipts from customers" would be: (2 points) a. $270,000 b. $250,000 c. $330,000 d. $40,000

In: Finance