Question

please answer the below

Which of the following is not an adjustment to net income when deriving cash from operating activities?

		Depreciation
		Change in investments
		Gains/losses from selling investments or PP&E
		Change in current assets

Please use the following information extracted from the financial statements of Fun, Inc., for 2010, 2009, and 2008.

	2010	2009
Net sales	$233,000	$204,000
Cost of sales	(124,000)	(110,000)
Selling and administrative expenses	(95,000)	(81,500)
Other income:
Interest	(3,700)	(3,050)
Other	100	1,175
Earnings before tax and extraordinary items	$ 10,400	$ 10,625
Provision for income tax	(4,800)	(4,740)
Earnings before extraordinary items	5,600	5,885
Extraordinary items	—	1,510
	$  5,600	$  7,395
Total assets	$202,000	$173,000

What is operating profit margin in 2010?

6.00%

2.88%

2.40%

4.95%

3.63%

Which of the following is incorrect about comprehensive income?

		It is reported as a separate component of shareholders’ equity
		Some firms prepare statements of comprehensive income
		It usually arises from complex transactions such as foreign currency translations adjustments.
		It is part of net income

Answer 1