Shell, NEC, and Procter and Gamble have been measuring their performance according to what has been called a triple bottom line. This technique involves an assessment of financial, social, and environmental performance.

21.	Shell, NEC, and Procter and Gamble have been measuring their performance according to what has been called a triple bottom line. This technique involves an assessment of financial, social, and environmental performance.    TRUE

22.	The strategic management process should be addressed only by top-level executives. Mid-level and low-level employees are best equipped to implement the strategies of the organization.    FALSE

23.	The vision of an organization is the top level of its hierarchy of organizational goals. The vision statement should be massively inspiring, overarching, and long term.    TRUE

24.	Strategic objectives are more specific than vision statements.    TRUE

25.

According to the text, a mission statement is an overarching statement that is massively inspiring, long term, and only discusses the purpose of the company.    FALSE A mission statement is a set of organizational goals that includes the purpose of the organization, its scope of operations, and the basis of its competitive advantage.

26.	A mission statement encompasses both the purpose of the organization as well as its basis of competition, and the basis of its competitive advantage.    TRUE

27.	Some excellent examples of mission statements are: To be the happiest place on earth (Disneyland) and Restoring patients to full life (Medtronic).    FALSE

28.	Strategic objectives should be measurable, specific, appropriate, and realistic, but not constrained by time deadlines.    FALSE

29.	Much research has supported the notion that individuals work much harder when they are asked to do their best rather than when they are striving toward a specific goal.    FALSE

30.	Objectives in organizations should be clear, stated, and known by employees throughout the organization.    TRUE

31.	Strategic management should only include short-term objectives. Long-term objectives are covered in the vision statement of the organization.    FALSE

32.	Organizational goals and objectives should be vague in order to allow for changes in strategy.    FALSE

The following income statement and information about changes in noncash current assets and current liabilities are reported.

The following income statement and information about changes in noncash current assets and current liabilities are reported.

    

SONAD COMPANY Income Statement For Year Ended December 31, 2015
Sales				$	1,828,000
Cost of goods sold					991,000
Gross profit					837,000
Operating expenses
Salaries expense	$	245,535
Depreciation expense		44,200
Rent expense		49,600
Amortization expenses–Patents		4,200
Utilities expense		18,125			361,660
					475,340
Gain on sale of equipment					6,200
Net income				$	481,540

  

Changes in current asset and current liability accounts for the year that relate to operations follow.

  

Accounts receivable	$	30,500	increase	Accounts payable	$	12,500	decrease
Inventory		25,000	increase	Salaries payable		3,500	decrease

  

Required:

Prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)