Under a defined contribution pension plan, which of the following is recognized as a pension expense?
Actuarial gains and losses.
B. Periodic contributions to the plan.
C. Service costs incurred during the period.
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Decreasing accounts payable turnover by delaying payments to suppliers is most likely to cause cash flow from financing activities to:
A. increase.
B. decrease.
C. Remain unchanged.
An analyst who is projecting a companys net income and cash flows is least likely to assume a constant relationship between the companys sales and its:
A. Interest expenses.
B. Cost of goods sold.
C. Noncash working capital.
With regard to the exercise of employee stock options, which of the following is least likely a concern to the analyst?
A. Increased operating cash flow from the tax benefits of exercise of the options.
B. Effects of exercise on investing cash flows.
Classification of the cash flow to repurchase shares.
A snowmobile manufacturer that uses LIFO begins the year with an inventory of 3,000 snowmobiles, at a carrying cost of $4,000 each. In January, the company sells 2,000 snowmobiles at a price of $10,00
A. Increase COGS by $2 million.
B. Leave ending inventory unchanged.
C. Decrease gross profit by $4 million.