Exam 19: Projecting Cash Flow and Earnings

Belmont, Inc., has annual sales of $3.2 million and a gross profit margin of 65%. The operating expenses are $478,000 and depreciation is $150,900. Interest expense is $60,000 and the tax rate is 21%. What is the net income?

Baker Jewelry, Inc., has annual sales of $5.2 million and a gross profit margin of 60%. The operating expenses are $489,000 and depreciation is $155,000. Interest expense is $70,000 and the tax rate is 21%. What is the net income?

A firm has the following account balances for this year. Sales for the year are $420,000. Projected sales for next year are $441,000. The percentage of sales approach is used for pro forma purposes. All balance sheet accounts, except long-term debt and common stock, change according to that approach. The firm plans to decrease the long-term debt balance by $23,500 next year. Retained earnings is expected to increase by $5,400 next year. What is the projected external financing need? Current assets \4 8,000 Net fixed assets \2 70,000 Current liabilities \5 6,000 Long-term debt \1 54,000 Common stock \5 0,000 Retained earnings \9 1,000

A company has net income of $66,000, a price-earnings ratio of 24.1, and 26,000 shares of stock outstanding. If the price-cash flow ratio is 19, what is the cash flow per share?

Which one of the following is the primary difference between operating cash flow and net income?

A company has the following account balances. How much cash does the firm have assuming there are no other accounts? Inventory \ 22,500 Total Equity \ 98,800 Accounts Receivable \ 20,200 Fixed assets \ 78,300 Accounts payable \ 19,100 Long-term debt \ 34,000

HBB Manufacturing, Inc., has 275,000 shares of stock outstanding. The firm paid out $275,000 in dividends, $195,000 in interest, and added $150,000 to retained earnings for the year. What is the amount of the earnings per share?

A firm has total equity of $88,700 and total liabilities of $20,300. Current assets are $66,300 and current liabilities are $15,200. What is the value of the net fixed assets?

Which one of the following is generally used as the basis for computing the cash flow per share?

Which one of the following is an analysis of a firm's sources and uses of cash over a period of time?

Handy Man Services, Inc., has net income of $555,000. What is the addition to retained earnings if the dividend payout ratio is 42%?

The costs of materials used in the production of a product are recorded in which one of the following accounts?

The management of Downtown Athletics recently voted to limit any future borrowing or sales of company stock. By taking this action, management has effectively done which one of the following?

Wholesale Grocer's has total assets of $580,000 and total liabilities of $375,000. Net sales for the year are $523,000 and the profit margin is 10.5%. What is the return on equity?

A firm has net sales of $65,000, operating expenses of $21,300, depreciation of $5,000, cost of goods sold of $36,500, and interest expense of $4,500. What is the operating margin?

A firm has $4,500 of cash, equipment worth $42,000, inventory of $16,700, patents worth $12,200, and $15,600 of accounts receivable. What is the value of the total current assets?

The Erie Bay Liner Company has sales of $2.4 million and operating expenses of $180,000. The firm uses the percentage of sales approach and estimates next year's sales at $2.5 million. What are the operating expenses expected to be next year?

GH Enterprises has annual sales of $3.4 million, depreciation of $260,000, operating expenses of $500,000, and cost of goods sold of $2.2 million. What is the gross profit?

Glassmakers, Inc., purchased $137,600 of new equipment this year and also increased the inventory by $36,800. The company also sold $340,000 worth of old equipment. What is the investment cash flow for the year?

The Starck company has net income of $660,000, a price-earnings ratio of 22.2, and 57,000 shares of stock outstanding. If the price-cash flow ratio is 18, what is the cash flow per share?