W. C. Cycling had $55,000 in cash at the year-end 2011 and a $25,000 en cash at year end 2012. The firm invested in property, plant, and equipment totaling $250,000. Cash flow from financing activities totaled $170,000. a. What was the cash flow from operating activities?

a. 55,000-25,000=30,000
b. Decrease in cash flows: -250,000+170,000+Operating incoming cash=-30,000
c. Operating cash flow = 50,000

b. If accruals increased by $25,000, receivables and inventories increased by $100,000, and depreciation and amortization totaled $10,000, what was the firm’s net income?

a. Net income + 25,000 – 100,000+10,000=50,000
b. Net income=$115,000

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business.true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.