Card Sharks, Inc.
Card Sharks, Inc.sells baseball cards and other memorabilia.The company tries to maintain a cash balance equivalent to approximately 30 days of sales.Sales in 2011 amounted to $352,412 and the company expects growth in 2012 of 30% and in 2013 of 35%.
-All of the following are the fundamental bases for future payoffs to equity shareholders and share value except:
A) earnings
B) cash flows
C) dividends
D) depreciation

Question

Quizplus · Accepted Answer

Depreciation is a non-cash expense and, therefore, does not directly contribute to the fundamental bases for future payoffs to equity shareholders and share value. The fundamental bases for future payoffs are earnings, cash flows, and dividends.

Card Sharks, Inc. Card Sharks, Inc.sells Baseball Cards and Other Memorabilia.The Company Tries