Exam 2: Financial Statements, Taxes, and Cash Flow

Michael's Bakery had $236,400 in net fixed assets at the beginning of the year.During the year, the company purchased $53,200 in new equipment.It also sold, at a price of $22,000, some old equipment that had a book value of $5,900.The depreciation expense for the year was $13,400.What is the net fixed asset balance at the end of the year?

The market value:

Outdoor Sports paid $12,500 in dividends and $9,310 in interest over the past year.Sales totaled $361,820 with costs of $267,940.The depreciation expense was $16,500 and the tax rate was35 percent.What was the amount of the operating cash flow?

Over the past year, a firm decreased its current assets and increased its current liabilities.As a result, the firm's net working capital:

On December 31, 2015, The Play House had net fixed assets of $812,650 while the December 31, 2016 balance sheet showed net fixed assets of $784,900.Depreciation for 2016 was $84,900.What was the firm's net capital spending for 2016?

A balance sheet shows beginning values of $56,300 for current liabilities and$289,200 for long-term debt.The ending values are $61,900 and $318,400, respectively.The income statement shows interest paid of $29,700 and dividends of $19,000.What is the amount of the net new borrowing?

Market values:

Given a profitable firm, depreciation:

Which one of these is correct?

Blythe Industries reports the following account balances: inventory of $417,600, equipment of $2,028,300, accounts payable of $224,700, cash of $51,900, and accounts receivable of $313,900.What is the amount of the current assets?

Net income increases when:

Six months ago, Benders Gym repurchased $140,000 of its common stock.The company pays regular dividends totaling $18,500 per quarter.What is the amount of the cash flow to stockholders for the past year if 1,200 new shares were issued and sold for $38 a share?

For Year 2016, Precision Masters had sales of $42,900, cost of goods sold of $26,800, depreciation expense of $1,900, interest expense of $1,300, and dividends paid of $1,000.At the beginning of the year, net fixed assets were $14,300, current assets were $8,700, and current liabilities were $6,600.At the end of the year, net fixed assets were $13,900, current assets were $9,200, and current liabilities were $7,400.The tax rate was 34 percent.What is the cash flow from assets for 2016?

Pier Imports has cash of $41,100 and accounts receivable of $54,200, all of which is expected to be collected.The inventory cost $82,300 and can be sold today for $116,500.The fixed assets were purchased at a total cost of $234,500 of which $118,900 has been depreciated.The fixed assets can be sold today for $138,000.What is the total book value of the firm's assets?

Daniel's Market has sales of $43,800, costs of $40,400, depreciation expense of $2,500, and interest expense of $1,100.If the tax rate is 34 percent, what is the operating cash flow, OCF? Assume tax losses can be carried forward and utilized.

Operating cash flow is defined as:

Lester's Fried Chick'n purchased its building 11 years ago at a cost of $189,000.The building is currently valued at $209,000.The firm has other fixed assets that cost $56,000 and are currently valued at $32,000.To date, the firm has recorded a total of $49,000 in depreciation on the various assets it currently owns.Current liabilities are $36,600 and net working capital is $18,400.What is the total book value of the firm's assets?

The matching principle states that:

Donut Delite has total assets of $31,300, long-term debt of $8,600, net fixed assets of $19,300, and owners' equity of $21,100.What is the value of the net working capital?

Plenti-Good Foods has ending net fixed assets of $98,700 and beginning net fixed assets of $84,900.During the year, the firm sold assets with a total book value of $13,200 and also recorded $9,800 in depreciation expense.How much did the company spend to buy new fixed assets?