Exam 2: Reviewing Financial Statements

Barnyard,Inc.'s 2018 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 2018 earnings per share?

Ted's Taco Shop has total assets of $5 million.Forty percent of these assets are financed with debt of which $400,000 is current liabilities.The firm has no preferred stock but the balance in common stock and paid-in surplus is $1 million.Using this information what is the balance for long-term debt and retained earnings on Ted's Taco Shop's balance sheet?

In 2018,Lower Case Productions had cash flows from investing activities of +$50,000 and cash flows from financing activities of +$100,000.The balance in the firm's cash account was $80,000 at the beginning of 2018 and $65,000 at the end of the year.What was Lower Case's cash flow from operations for 2018?

The Sarbanes-Oxley Act requires public companies to ensure which of the following individuals have considerable experience applying generally accepted accounting principles (GAAP)for financial statements?

Reed's Birdie Shot,Inc.'s 2018 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 2018 earnings per share.

The CEO of Tom and Sue's wants the company to earn a net income of $3.25 million in 2014.Cost of goods sold is expected to be 60 percent of net sales,depreciation expense is $2.9 million,interest expense is expected to increase to $1.050 million,and the firm's tax rate will be 30 percent.Calculate the net sales needed to produce net income of $3.25 million.

You are evaluating the balance sheet for Campus Corporation.From the balance sheet you find the following balances: cash and marketable securities = $400,000,accounts receivable = $200,000,inventory = $100,000,accrued wages and taxes = $10,000,accounts payable = $300,000,and notes payable = $600,000.What is Campus's net working capital?

In 2018,Upper Crust had cash flows from investing activities of ($250,000)and cash flows from financing activities of ($150,000).The balance in the firm's cash account was $90,000 at the beginning of 2018 and $105,000 at the end of the year.What was Upper Crust's cash flow from operations for 2018?

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?

You have been given the following information for Nicole's Neckties Corp.: Net sales = $2,500,000; Cost of goods sold = $1,300,000; Addition to retained earnings = $30,000; Dividends paid to preferred and common stockholders = $300,000; Interest expense = $50,000.The firm's tax rate is 40 percent.What is the depreciation expense for Nicole's Neckties Corp.?

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?

A firm has sales of $10,000,EBIT of $3,000,depreciation of $400,and fixed assets increased by $2,000.If the firm's tax rate is 30 percent and there were no increases in net operating working capital,what is the firm's free cash flow?

In 2018,Usher Sports Shop had cash flows from investing activities of ($2,150,000)and cash flows from financing activities of ($3,219,000).The balance in the firm's cash account was $980,000 at the beginning of 2018 and $1,025,000 at the end of the year.Calculate Usher Sports Shop's cash flow from operations for 2018.

Zoeckler Mowing & Landscaping's year-end 2011 balance sheet lists current assets of $350,000,fixed assets of $325,000,current liabilities of $145,000,and long-term debt of $185,000.Calculate Zoeckler's total stockholders' equity.

ABC Inc.has $100 in cash on its balance sheet at the end of 2017.During 2018,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 2018?

Use the following information to find dividends paid to common stockholders during 2018.

The 2018 income statement for Betty's Barstools shows that depreciation expense is $100 million,EBIT is $400 million,and taxes are $120 million.At the end of the year,the balance of gross fixed assets was $510 million.The increase in net operating working capital during the year was $94 million.Betty's free cash flow for the year was $625 million.What was the beginning of year balance for gross fixed assets?

Hunt Taxidermy,Inc.is concerned about the taxes paid by the company in 2018.In addition to $36.5 million of taxable income,the firm received $1,250,000 of interest on state-issued bonds and $400,000 of dividends on common stock it owns in Hunt Taxidermy,Inc.Calculate Hunt Taxidermy's taxable income.

Free cash flow is defined as

Rupert's Rims balance sheet lists net fixed assets as $15 million.The fixed assets could currently be sold for $17 million.Rupert's current balance sheet shows current liabilities of $5 million and net working capital of $3 million.If all the current accounts were liquidated today,the company would receive $6 million cash after paying $5 million in liabilities.What is the book value of Rupert's assets today? What is the market value of these assets?