1. An income statement:
a. records revenue only when cash is received for the product or service provided.
b. reveals the net cash flows of a firm over a stated period of time.
c. reflects the financial position of a firm as of a particular date.
d. shows the revenue and expenses based upon selected accounting methods.
2. A decrease in net working capital for the period:
decreases the cash flow from assets.
indicates a firm has sold some of its long-term assets.
is a cash inflow for the firm.
is caused by a firm purchasing additional fixed assets.
3. Deer, Inc. has $16,000 in total assets, depreciation of $3,230, and interest of $2,200. The total asset turnover rate is 1.8. Earnings before interest and taxes are equal to 30 percent of sales. What is the cash coverage ratio?