Exam 2: Reviewing Financial Statements

Common stockholders' equity divided by number of shares of common stock outstanding is the formula for calculating

Net operating profit after taxes (NOPAT)is defined as which of the following?

Brenda's Bar and Grill has total assets of $17 million of which $5 million are current assets.Cash makes up 12 percent of the current assets and accounts receivable makes up another 40 percent of current assets.Brenda's gross plant and equipment has a cost value of $12 million and other long-term assets have a cost value of $1,000,000.Using this information,what are the balance of inventory and the balance of depreciation on Brenda's Bar and Grill's balance sheet?

Reed's Birdie Shot,Inc.'s 2013 income statement lists the following income and expenses: EBIT = $555,000,interest expense = $178,000,and taxes = $148,000.Reed's has no preferred stock outstanding and 100,000 shares of common stock outstanding.Calculate the 2013 earnings per share.

Dogs 4 U Corporation has net cash flow from financing activities for the last year of $10 million.The company paid $8 million in dividends last year.During the year,the change in notes payable on the balance was $9 million,and change in common and preferred stock was $0 million.The end of year balance for long-term debt was $44 million.Calculate the beginning of year balance for long-term debt.

Free Cash Flow Martha's Moving Van 4U,Inc.had free cash flow during 2013 of $1 million,EBIT of $30 million,tax expense of $8 million,and depreciation of $4 million.Using this information,what was Martha's Accounts Payable ending balance in 2013?

Income Statement You have been given the following information for Kaye's Krumpet Corp.: Net sales = $150,000; Gross profit = $100,000; Addition to retained earnings = $20,000; Dividends paid to preferred and common stockholders = $8,000; Depreciation expense = $50,000. The firm's tax rate is 30 percent.What are the cost of goods sold and the interest expense for Kaye's Krumpet Corp.?

Financial statements of publicly traded firms can be found in a number of places.Which of the following is NOT an option for finding publicly traded firms' financial statements?

GW Inc.had $800 million in retained earnings at the beginning of the year.During the year,the firm paid $0.75 per share dividend and generated $1.92 earnings per share.The firm has 100 million shares outstanding.At the end of year,what was the level of retained earnings for GW?

Muffin's Masonry,Inc.'s balance sheet lists net fixed assets as $16 million.The fixed assets could currently be sold for $17 million.Muffin's current balance sheet shows current liabilities of $5.5 million and net working capital of $6.5 million.If all the current accounts were liquidated today,the company would receive $10.25 million cash after paying $5.5 million in liabilities.What is the book value of Muffin's Masonry's assets today? What is the market value of these assets?

For which of the following would one expect the book value of the asset to differ widely from its market value?

When might earnings management become an ethical consideration?

Which of the following activities result in an increase in a firm's cash?

Investment in operating capital is:

How do taxes influence how corporate managers and investors structure transactions and capitalize their companies?

ABC Inc.has $100 in cash on its balance sheet at the end of 2009.During 2010,the firm issued $450 in common stock,reduced its notes payable by $40,purchased fixed assets in the amount of $750,and had cash flows from operating activities of $315.How much cash did ABC Inc.have on its balance sheet at the end of 2010?

Statement of Cash Flows Crispy Corporation has net cash flow from financing activities for the last year of $20 million.The company paid $5 million in dividends last year.During the year,the change in notes payable on the balance sheet was an increase of $2 million,and change in common and preferred stock was an increase of $3 million.The end of year balance for long-term debt was $45 million.What was their beginning of year balance for long-term debt?

Income Statement Barnyard,Inc.'s 2013 income statement lists the following income and expenses: EBIT = $500,000,interest expense = $45,000,and taxes = $152,000.Barnyard's has no preferred stock outstanding and 200,000 shares of common stock outstanding.What are its 2013 earnings per share?

Statement of Retained Earnings TriCycle,Corp.began the year 2013 with $25 million in retained earnings.The firm earned net income of $7 million in 2008 and paid $1 million to its preferred stockholders and $3 million to its common stockholders.What is the year-end 2013 balance in retained earnings for TriCycle?

LLV Inc.originally forecasted the following financial data for next year: sales = $1,000,cost of goods sold = $675,and interest expense = $90.The firm believes that COGS will always be 67.5 percent of sales.Due to increased global demand,the firm is now projecting that sales will be 20 percent higher than the original forecast.What is the additional net income (as compared to the original forecast)the firm can expect assuming a 35 percent tax rate?