Exam 17: Projecting Cash Flow and Earnings

A firm has net income of $22,500 and a book value per share of $3.10.The firm has 30,000 shares of stock outstanding and a price-earnings ratio of 15.9.What is the price-book ratio?

Which of the following are classified as equity accounts on a balance sheet? I.goodwill II.paid in capital III.net income IV.retained earnings

Return on equity is equal to which one of the following?

Which one of the following provides information on a firm's assets and liabilities as of a particular date?

Which one of the following is NOT included in operating income?

Which one of the following statements is correct?

A firm has earnings per share of $3.50 and cash flow per share of $3.84.The price-earnings ratio is 24.1.What is the price-cash flow ratio?

What is the investment cash flow?

Sales minus cost of goods sold are equal to which one of the following?

Bay Marina,Inc.has net income of $53,700 and has 30,000 shares of stock outstanding.Similar firms have a price-earnings ratio of 20.Given this,what should the market price of Bay Marina,Inc.stock be per share?

Income and expense items NOT realized in cash form are called which one of the following?

Glassmakers,Inc.purchased $137,600 of new equipment this year and also increased the inventory by $36,800.Thirty-three thousand dollars worth of old equipment was sold.What is the investment cash flow for the year?

Whole Wheat Farms,Inc.has a net income of $20,000 and a dividend payout ratio of 30 percent.The firm issued $12,000 worth of common stock during the period.The firm has no long-term debt.What is the financing cash flow for the period?

What is the operating cash flow,given the following information?

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?

A firm has $4,200 of cash,equipment worth $46,300,inventory of $38,400,a building worth $130,500,and $21,500 of accounts receivable.What is the value of the total fixed assets?

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

Young Industries has a 3-year bank loan of $85,000,a 6-month note payable of $6,000,a $67,300 mortgage,and accounts payable of $22,500.What is the amount of the total current liabilities? (Ignore the current portion of any long-term debt.)

Which one of the following accounts is least likely to vary directly with the level of sales?

The DeSoto Container Company has sales of $3.6 million and operating expenses of $225,000.The firm uses the percentage of sales approach and estimates next year's sales at $3.8 million.What are the operating expenses expected to be next year?