Question 1

Noncash items refer to

Accepted Answer

A) the credit sales of a firm. 
B) the accounts payable of a firm. 
C) all accounts on the balance sheet other than cash on hand. 
D) the costs incurred for the purchase of intangible fixed assets. 
E) expenses charged against revenues that do not directly affect cash flow. 
A) the credit sales of a firm. 
B) the accounts payable of a firm. 
C) all accounts on the balance sheet other than cash on hand. 
D) the costs incurred for the purchase of intangible fixed assets. 
E) expenses charged against revenues that do not directly affect cash flow.

Question 2

Peggy Grey's Cookies has net income of $2,918.The firm pays out 35 percent of the net income to its shareholders as dividends.During the year,the company sold $150 worth of common stock.What is the cash flow to the stockholders?

Accepted Answer

A) $1,171.30 
B) $871.30 
C) $2,046.70 
D) $1,224.20 
E) $1,746.70 
A) $1,171.30 
B) $871.30 
C) $2,046.70 
D) $1,224.20 
E) $1,746.70

Question 3

Nel's Place has total sales of $1,456,costs are $782,and depreciation is $115.The tax rate is 34 percent.The firm does not have any interest expense.What is the operating cash flow?

Accepted Answer

A) $393.08 
B) $524.40 
C) $501.38 
D) $483.94 
E) $427.82 
A) $393.08 
B) $524.40 
C) $501.38 
D) $483.94 
E) $427.82

Question 4

Given the tax rates as shown,what is the average tax rate for a firm with taxable income of $228,610?

Accepted Answer

A) 36.38% 
B) 33.88% 
C) 31.67% 
D) 34.64% 
E) 39.00% 
A) 36.38% 
B) 33.88% 
C) 31.67% 
D) 34.64% 
E) 39.00%

Question 5

The financial information on Lazy Day,Inc.is as follows:   What is the operating cash flow for 2017?

Accepted Answer

A) $3,690 
B) $4,203 
C) $2,645 
D) $5,331 
E) $4,807 
A) $3,690 
B) $4,203 
C) $2,645 
D) $5,331 
E) $4,807

Question 6

Your ________ tax rate is the percentage of the next taxable dollar of income you earn that is payable as a tax.

Accepted Answer

A) deductible 
B) residual 
C) marginal 
D) average 
E) total 
A) deductible 
B) residual 
C) marginal 
D) average 
E) total

Question 7

Total assets are $2,630,fixed assets are $1,825,long-term debt is $1,015,and short-term debt is $530.What is the amount of net working capital?

Accepted Answer

A) $1,295 
B) $275 
C) $1,085 
D) $350 
E) $400 
A) $1,295 
B) $275 
C) $1,085 
D) $350 
E) $400

Question 8

Charter Tours has the following balance sheets:   What is the amount of net working capital for 2017?

Accepted Answer

A) $751 
B) $1,057 
C) $1,128 
D) $1,734 
E) $826 
A) $751 
B) $1,057 
C) $1,128 
D) $1,734 
E) $826

Question 9

The cash flow of a firm,also referred to as cash flow from assets,must be equal to the cash flow to

Accepted Answer

A) debt holders minus the cash flow to equity holders. 
B) equity holders plus the cash flow to debt holders. 
C) the government plus the cash flow to equity holders. 
D) equity holders minus the cash flow to debt holders. 
E) the government,the debt holders,and the equity holders. 
A) debt holders minus the cash flow to equity holders. 
B) equity holders plus the cash flow to debt holders. 
C) the government plus the cash flow to equity holders. 
D) equity holders minus the cash flow to debt holders. 
E) the government,the debt holders,and the equity holders.

Question 10

A change in which one of these accounts is treated as a cash flow from operating activities in an accounting statement of cash flows?

Accepted Answer

A) Long-term debt 
B) Inventory 
C) Dividends 
D) Fixed assets 
E) Depreciation 
A) Long-term debt 
B) Inventory 
C) Dividends 
D) Fixed assets 
E) Depreciation

Question 11

________ refers to a firm's interest payments minus any net new borrowing.

Accepted Answer

A) Operating cash flow 
B) Distributable cash flow 
C) Net working capital 
D) Cash flow to stockholders 
E) Cash flow to creditors 
A) Operating cash flow 
B) Distributable cash flow 
C) Net working capital 
D) Cash flow to stockholders 
E) Cash flow to creditors

Question 12

Pineapple Express has selling and administrative expenses of $2,618,costs of goods sold of $24,318,depreciation of $915,and an interest expense of $520.The firm paid $150 in dividends and added $384 to retained earnings for the year.What is the firm's operating cash flow if the tax rate is 35 percent? What is the operating cash flow?

Accepted Answer

A) $1,823.14 
B) $2,072.12 
C) $1,969.00 
D) $2,516.48 
E) $2,208.15 
A) $1,823.14 
B) $2,072.12 
C) $1,969.00 
D) $2,516.48 
E) $2,208.15

Question 13

Which one of these is both a product cost and a fixed cost in the short run?

Accepted Answer

A) Monthly electric bill for manufacturing facility 
B) Salary for company CEO 
C) Overtime pay for production employees 
D) Sales commission paid based on monthly sales 
E) Monthly lease payment for production equipment 
A) Monthly electric bill for manufacturing facility 
B) Salary for company CEO 
C) Overtime pay for production employees 
D) Sales commission paid based on monthly sales 
E) Monthly lease payment for production equipment

Question 14

The financial information on Lazy Day,Inc.is as follows:   What is the cash flow to creditors,CF(B),for 2017?

Accepted Answer

A) $400 
B) -$915 
C) $720 
D) -$80 
E) $915 
A) $400 
B) -$915 
C) $720 
D) -$80 
E) $915

Question 15

Book value is

Accepted Answer

A) based on historical cost. 
B) equivalent to market value for firms with fixed assets. 
C) more of a financial than an accounting valuation. 
D) the amount a willing buyer will pay for an asset. 
E) adjusted to market value whenever the market value exceeds the stated book value. 
A) based on historical cost. 
B) equivalent to market value for firms with fixed assets. 
C) more of a financial than an accounting valuation. 
D) the amount a willing buyer will pay for an asset. 
E) adjusted to market value whenever the market value exceeds the stated book value.

Question 16

Liquidity is

Accepted Answer

A) a measure of the use of debt in a firm's capital structure. 
B) equal to current assets minus current liabilities. 
C) equal to the market value of a firm's total assets minus its current liabilities. 
D) generally associated with intangible assets. 
E) valuable to a firm even though liquid assets tend to be less profitable to own. 
A) a measure of the use of debt in a firm's capital structure. 
B) equal to current assets minus current liabilities. 
C) equal to the market value of a firm's total assets minus its current liabilities. 
D) generally associated with intangible assets. 
E) valuable to a firm even though liquid assets tend to be less profitable to own.

Question 17

At the beginning of the year,Malek Farm's had long-term debt of $687 and total debt of $911.At the end of the year,the long-term debt is $579 and total debt is $898.If $58 of interest was paid during the year,what is the cash flow to the creditors?

Accepted Answer

A) -$50 
B) -$166 
C) $71 
D) $166 
E) $50 
A) -$50 
B) -$166 
C) $71 
D) $166 
E) $50

Question 18

A firm has total equity of $2,011,net working capital of $175,long-term debt of $890,and current liabilities of $420.What is the amount of the net fixed assets?

Accepted Answer

A) $2,325 
B) $2,974 
C) $2,726 
D) $3,075 
E) $2,825 
A) $2,325 
B) $2,974 
C) $2,726 
D) $3,075 
E) $2,825

Question 19

Cash flow to stockholders must be positive when

Accepted Answer

A) the net sale of common stock exceeds the amount of dividends paid. 
B) no income is distributed but new shares of stock are sold. 
C) both the cash flow to assets and the cash flow to creditors are negative. 
D) both the cash flow to assets and the cash flow to creditors are positive. 
E) the dividends paid exceed the net new equity raised. 
A) the net sale of common stock exceeds the amount of dividends paid. 
B) no income is distributed but new shares of stock are sold. 
C) both the cash flow to assets and the cash flow to creditors are negative. 
D) both the cash flow to assets and the cash flow to creditors are positive. 
E) the dividends paid exceed the net new equity raised.

Question 20

A firm has beginning retained earnings of $4,200 and ending retained earnings of $4,150.What is the amount of dividends paid if the firm earned a net income of $1,950?

Accepted Answer

A) $1,500 
B) $1,950 
C) $1,900 
D) $2,000 
E) $2,100 
A) $1,500 
B) $1,950 
C) $1,900 
D) $2,000 
E) $2,100

Noncash items refer to

Peggy Grey's Cookies has net income of $2,918.The firm pays out 35 percent of the net income to its shareholders as dividends.During the year,the company sold $150 worth of common stock.What is the cash flow to the stockholders?

Nel's Place has total sales of $1,456,costs are $782,and depreciation is $115.The tax rate is 34 percent.The firm does not have any interest expense.What is the operating cash flow?

Given the tax rates as shown,what is the average tax rate for a firm with taxable income of $228,610?

The financial information on Lazy Day,Inc.is as follows: What is the operating cash flow for 2017?

Your ________ tax rate is the percentage of the next taxable dollar of income you earn that is payable as a tax.

Total assets are $2,630,fixed assets are $1,825,long-term debt is $1,015,and short-term debt is $530.What is the amount of net working capital?

Charter Tours has the following balance sheets: What is the amount of net working capital for 2017?

The cash flow of a firm,also referred to as cash flow from assets,must be equal to the cash flow to

A change in which one of these accounts is treated as a cash flow from operating activities in an accounting statement of cash flows?

________ refers to a firm's interest payments minus any net new borrowing.

Which one of these is both a product cost and a fixed cost in the short run?

The financial information on Lazy Day,Inc.is as follows: What is the cash flow to creditors,CF(B),for 2017?

Book value is

Liquidity is

At the beginning of the year,Malek Farm's had long-term debt of $687 and total debt of $911.At the end of the year,the long-term debt is $579 and total debt is $898.If $58 of interest was paid during the year,what is the cash flow to the creditors?

A firm has total equity of $2,011,net working capital of $175,long-term debt of $890,and current liabilities of $420.What is the amount of the net fixed assets?

Cash flow to stockholders must be positive when

A firm has beginning retained earnings of $4,200 and ending retained earnings of $4,150.What is the amount of dividends paid if the firm earned a net income of $1,950?

Introduction to Corporate Finance

Financial Statements Analysis Amcq Financial Models

Discounted Cash Flow Valuation

Interest Rates AMCQ Bomcq Valuation

Stock Valuation

Net Present Value AMCQ Other Investment Rules

Making Capital Investment Decisions

Risk Analysis, Real Options, AMCQ Capital Budgeting

Risk Amcq Return: Lessons From Market History

Return Amcq Risk: the Capital Asset Pricing Model Capm

Risk, cost of Capital, AMCQ Valuation

Efficient Capital Markets Amcq Behavioral Challenges

Capital Structure: Basic Concepts

Capital Structure: Limits to the Use of Debt

Dividemcqs AMCQ Other Payouts

Options Amcq Corporate Finance

Short-Term Finance Amcq Planning

Raising Capital

International Corporate Finance

Mergers Amcq Acquisitions Web Only

Filters

Exam 2: Financial Statements AMCQ Cash Flow

Noncash items refer to

Peggy Grey's Cookies has net income of $2,918.The firm pays out 35 percent of the net income to its shareholders as dividends.During the year,the company sold $150 worth of common stock.What is the cash flow to the stockholders?

Nel's Place has total sales of $1,456,costs are $782,and depreciation is $115.The tax rate is 34 percent.The firm does not have any interest expense.What is the operating cash flow?

Given the tax rates as shown,what is the average tax rate for a firm with taxable income of $228,610?

The financial information on Lazy Day,Inc.is as follows: What is the operating cash flow for 2017?

Your ________ tax rate is the percentage of the next taxable dollar of income you earn that is payable as a tax.

Total assets are $2,630,fixed assets are $1,825,long-term debt is $1,015,and short-term debt is $530.What is the amount of net working capital?

Charter Tours has the following balance sheets: What is the amount of net working capital for 2017?

The cash flow of a firm,also referred to as cash flow from assets,must be equal to the cash flow to

A change in which one of these accounts is treated as a cash flow from operating activities in an accounting statement of cash flows?

________ refers to a firm's interest payments minus any net new borrowing.

Which one of these is both a product cost and a fixed cost in the short run?

The financial information on Lazy Day,Inc.is as follows: What is the cash flow to creditors,CF(B),for 2017?

Book value is

Liquidity is

At the beginning of the year,Malek Farm's had long-term debt of $687 and total debt of $911.At the end of the year,the long-term debt is $579 and total debt is $898.If $58 of interest was paid during the year,what is the cash flow to the creditors?

A firm has total equity of $2,011,net working capital of $175,long-term debt of $890,and current liabilities of $420.What is the amount of the net fixed assets?

Cash flow to stockholders must be positive when

A firm has beginning retained earnings of $4,200 and ending retained earnings of $4,150.What is the amount of dividends paid if the firm earned a net income of $1,950?

Introduction to Corporate Finance

Financial Statements Analysis Amcq Financial Models

Discounted Cash Flow Valuation

Interest Rates AMCQ Bomcq Valuation

Stock Valuation

Net Present Value AMCQ Other Investment Rules

Making Capital Investment Decisions

Risk Analysis, Real Options, AMCQ Capital Budgeting

Risk Amcq Return: Lessons From Market History

Return Amcq Risk: the Capital Asset Pricing Model Capm

Risk, cost of Capital, AMCQ Valuation

Efficient Capital Markets Amcq Behavioral Challenges

Capital Structure: Basic Concepts

Capital Structure: Limits to the Use of Debt

Dividemcqs AMCQ Other Payouts

Options Amcq Corporate Finance

Short-Term Finance Amcq Planning

Raising Capital

International Corporate Finance

Mergers Amcq Acquisitions Web Only

Filters