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When the indirect method is used to prepare the operating activities section of the statement of cash flows, adjustments to net income include both income statement items and balance sheet items.

The stockholders’ equity section of the balance sheet shows how each equity account changed during the year.

Which of the following is an example of horizontal analysis?

Stock splits are issued primarily to:

King Sporting Goods reports net income of $100,000, net sales of $500,000, and average assets of $1,000,000. The asset turnover is:

Which of the following income statement items is least likely to persist into future periods?

_____________ is an investing cash flow and _____________ is a financing cash flow, as reported in the statement of cash flows.

We can find most financing activities by examining changes in long-term liabilities and stockholders’ equity accounts.

Excerpts from Nationwide Company’s December 31, 2024 and 2023, financial statements are presented below: 20242023Accounts receivable$ 89,000$ 77,000Inventory94,00078,000Net sales450,000383,000Cost of goods sold256,000217,000Total assets810,000755,000Total stockholders’ equity505,000430,000Net income75,00053,000 What is the return on assets for 2024?Note: Round your answer to one decimal place.

Which of the following statements is (are) correct?