1. Geneva Group reports net income of $20,000 for 2011. At the beginning of 2011, Geneva Group had $100,000 in assets. By the end of 2011, assets had grown to $150,000. What is Geneva Group’s 2011 return on assets? How would you assess its performance if competitors average a 10% return on assets?
2. Indicate the section where each of the following would appear on the statement of cash flows.
A. Cash flows from operating activity
B. Cash flows from investing activity
C. Cash flows from financing activity
1. Cash paid for wages
2. Cash withdrawal by owner
3. Cash purchase of equipment
4. Cash paid for advertising
5. Cash paid on an account payable
6. Cash investment by owner
7. Cash received from clients
8. Cash paid for rent