Exam 17: Projecting Cash Flow and Earnings

Which two of the following are generally used to fund the external financing need? I.sale of fixed assets II.increase in accounts payable III.issuance of long-term debt IV.sale of equity securities

Zonvier,Inc.has sales of $53,800,a profit margin of 10.5 percent,and a plowback ratio of 40 percent.The company has 15,000 shares of stock outstanding.The firm uses the percentage of sales method for pro forma statements and estimates next year's sales will increase by 15 percent. What is the dividend per share expected to be next year?

Children's Books,Inc.has net income of $48,000 and a plowback ratio of 85 percent.There are 25,000 shares of stock outstanding at a market price of $18.64 a share.What is the price-earnings 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

GH Enterprises has annual sales of $5.2 million,depreciation of $350,000,operating expenses of $390,000,and cost of goods sold of $3.1 million.What is the gross profit?

Which one of the following is NOT a financing cash flow according to standard accounting practice?

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

Green Recycling,Inc.has 150,000 shares of stock outstanding.The firm has total assets of $568,000 and total liabilities of $415,000.The firm's stock is selling for $31 a share.What is the price-book ratio?

The Cruise Ship Co.has taxable income of $4,000,000.The company paid out $550,000 in interest expense.The tax rate is 35 percent and the dividend payout ratio is 30 percent.What is the amount that was paid out in dividends?

Pro forma financial statements are statements based on which one of the following?

Which one of the following ratios tells you the amount of assets a firm needs to generate $1 in sales?

Which one of the following is the definition of operating cash flow?

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?

What value does the Statement of Cash Flows add to the financial statements of a firm?

HNW Manufacturing,Inc.has 255,000 shares of stock outstanding.The firm paid out $255,000 in dividends,$195,000 in interest,and added $193,700 to retained earnings for the year.What is the amount of the earnings per share?

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?

The management of the Uptown Bikes 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?

A firm has the following account balances for this year.Sales for the year are $500,000.Projected sales for next year are $545,000.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 $5,000 next year.Retained earnings is expected to increase by $3,500 next year.What is the projected external financing need?

Explain the role the external financing need plays in the future growth outlook for a firm.

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 percent.What is the return on equity?