Solved

Baton Rouge Corporation Presented Here Are Cash Flows (In

Question 95

Multiple Choice

Baton Rouge Corporation Presented here are cash flows (in $ Millions) for Baton Rouge Corporation's most recent fiscal year:
 Cash received from:  Customers $3,600 Interest on investments 700 Sale of old equipment 4,100 Sale of company’s capital stock 490 Long-term debt proceeds2,200\begin{array}{lrr}\underline{\text { Cash received from: }}\\ \text { Customers } &\$3,600\\ \text { Interest on investments } &700\\ \text { Sale of old equipment } &4,100\\ \text { Sale of company's capital stock } &490\\ \text { Long-term debt proceeds} &2,200\\\end{array}


 Cash paid for:  Interest on debt $395 Income tax 210 Principal payments on debt 1,400 Purchase of building 1,100 Purchase of inventory 1,400 Dividends on capital stock 350 Operating expenses 770\begin{array}{lr}\underline{\text { Cash paid for: }}\\\text { Interest on debt } & \$ 395 \\\text { Income tax } &210 \\\text { Principal payments on debt } & 1,400 \\\text { Purchase of building } &1,100 \\\text { Purchase of inventory } & 1,400 \\\text { Dividends on capital stock } & 350 \\\text { Operating expenses } &770\end{array}
Net cash flows from operating activities (direct method) are ________.


A) $825
B) $1,525
C) $1,735
D) $1,920

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents