Exam 2: Financial Statements, Taxes, and Cash Flow

Beach Front Industries has sales of $546,000,costs of $295,000,depreciation expense of $37,000,interest expense of $15,000,and a tax rate of 32 percent.The firm paid $59,000 in cash dividends.What is the addition to retained earnings?

Which one of the following will increase the value of a firm's net working capital?

You recently purchased a grocery store.At the time of the purchase,the store's market value equaled its book value.The purchase included the building,the fixtures,and the inventory.Which one of the following is most apt to cause the market value of this store to be lower than the book value?

The cash flow of a firm which is available for distribution to the firm's creditors and stockholders is called the:

Which one of the following must be true if a firm had a negative cash flow from assets?

Which of the following are current assets? I.patent II.inventory III.accounts payable IV.cash

A firm has net working capital of $640.Long-term debt is $4,180,total assets are $6,230,and fixed assets are $3,910.What is the amount of the total liabilities?

Which one of the following is included in a firm's market value but yet is excluded from the firm's accounting value?

Which one of the following statements related to liquidity is correct?

Which one of the following accounts is the most liquid?

The cash flow related to interest payments less any net new borrowing is called the:

Jake owns The Corner Market which he is trying to sell so that he can retire and travel.The Corner Market owns the building in which it is located.This building was built at a cost of $647,000 and is currently appraised at $819,000.The counters and fixtures originally cost $148,000 and are currently valued at $65,000.The inventory is valued on the balance sheet at $319,000 and has a retail market value equal to 1.2 times its cost.Jake expects the store to collect 98 percent of the $21,700 in accounts receivable.The firm has $26,800 in cash and has total debt of $414,700.What is the market value of this firm?

The Daily News had net income of $121,600 of which 40 percent was distributed to the shareholders as dividends.During the year,the company sold $75,000 worth of common stock.What is the cash flow to stockholders?

Depreciation:

Which one of the following costs is most apt to be a fixed cost?

Which one of the following is classified as an intangible fixed asset?

Which one of the following will increase the cash flow from assets,all else equal?

The tax rates are as shown.Nevada Mining currently has taxable income of $97,800.How much additional tax will the firm owe if taxable income increases by $21,000?

Which one of these is most apt to be a fixed cost?

The _____ tax rate is equal to total taxes divided by total taxable income.