Everyone thought that Martha Mathy was trying to start a new fashion trend when she started wearing socks that did not match. her "look" started to catch on, and pretty soon all the kids at her school were wearing mixed-up socks, too. Rita Writer, a reporter for the school paper, interviewed Martha about the new sock trend. " Wat gave you the idea to wear mismatched socks?" Rita Asked.

"Its simple mathematics," Martha replied. "you see, I have 18 socks at home but no two are the same. with just these 18 socks, I can create over 100 unique pairs of mismatched socks." Rita found this hard to believe, so she checked it out. Was Martha correct?

Answer:

There are 153 combinations

Combinations - any two from eighteen is given by the formula 18C2 or 18! / (2!*16!)

= 18 * 17 / 2 = 153

OK that is the maths - now the explanation

The first sock can be any of 18

The second sock can be any of 17 (one already been selected and they must be mismatched)

Therefore there are 18*17 = 306 permutations she could make

However the question asks for "combinations" not "permutations"

A green sock on the right foot and a yellow sock on the left foot is deemed to be a different "permutation" to a yellow sock on the right foot and a green sock on the left foot. HOWEVER, they are regarded as the same "combination" in both cases you have one green and one yellow sock.

Therefore for combinations we must divide the 306 permutations calculated above by 2 = 153

FYI Walton has incorrectly given you the value of 18!. That would only apply if Martha Mathy had 18 feet!

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Presented below are the financial statements for the Amphlett Corporation, as of year-end 2012 and 2013.
AMPHLETT CORPORATION
Consolidated Balance Sheets
As of Year-End ($ thousands) 2013 2012
Assets
Current
Cash $18,000 $108,000
Marketable securities 240,000 -
Accounts receivable (net) 708,000 528,000
Inventory 720,000 738,000
Total current assets 1,686,000 1,374,000
Noncurrent
Long-term investments 372,000 468,000
Property & equipment 2,160,000 1,320,000
Less: Accumulated depreciation (600,000) (600,000)
Property & equipment (net) 1,560,000 720,000
Intangibles (net) 114,000 126,000
Total noncurrent assets 2,046,000 1,314,000
Total assets $3,732,000 $2,688,000
Liabilities & Shareholders' Equity
Accounts payable $1,080,000 $1,020,000
Short-term bank debt 228,000 -
Total liabilities 1,308,000 1,020,000
Shareholders' equity
Common stock, $10 par value 930,000 810,000
Additional paid-in-capital 456,000 360,000
Retained earnings 1,038,000 498,000
Total shareholders' equity 2,424,000 1,668,000
Total liabilities & shareholders' equity $3,732,000 $2,688,000
AMPHLETT CORPORATION
Consolidated Income Statement
For Year Ended ($ thousands)
2013
2012
Revenues
$1,716,000
$1,440,000
Less: Cost of goods sold
600,000
504,000
Gross margin
1,116,000
936,000
Less: Selling, general & administrative expenses
180,000
144,000
Operating income
936,000
792,000
Gain on sale of investments
84,000
-
Net income before taxes
1,020,000
792,000
Less: Income taxes
60,000
13,200
Net income after taxes
$960,000
$778,800
The footnotes to the Amphlett Corporation's financial statements revealed the following additional information:
Property and equipment costing $540 million was sold for its book value of $240 million.
Long-term investments were sold for $180 million, which included a gain of $84 million.
Required
Using the above financial data for the Amphlett Corporation, prepare the firm's statement of cash flow for 2013 using the indirect method.
Use a negative sign with answers to indicate a decrease in cash.
Amphlett Corporation
Statement of Cash Flows
For Year Ended 2013
(in thousands)
Cash flow From Operations BLANK
Net Income $Answer
Add:
Depression Expense Answer
Amortization expense Answer
Less:
Gain on Sale of Investments Answer
Accounts receivable (net) Answer
Inventory Answer
Accountable Payable Answer
Cash Flow From Operations Answer
Cash Flow for Investing BLANK
Marketable securities Answer
Long-term investments Answer
Purchase of property and equipment Answer
Sale of Property and Equipment Answer
Cash Flow for Investing Answer
Cash From Financing BLANK
Short-term bank debt Answer
Common stock + additional paid in capital Answer
Dividends Paid Answer
Cash From Financing Answer
Decrease in Cash Answer
Cash, beginning of year Answer
Cash, end of year $Answer