Exam 3: Understanding Financial Statements, taxes, and Cash Flows

Your firm has the following balance sheet statement items: total current liabilities of $805,000;total assets of $2,655,000;fixed and other assets of $1,770,000;and long-term debt of $200,000.What is the amount of the firm's net working capital?

Your firm has the following income statement items: sales of $50,250,000;income tax of $1,744,000;operating expenses of $8,750,000;cost of goods sold of $35,025,000;depreciation and amortization of $1,365,000;and interest expense of $750,000.For purposes of determining free cash flow,what is the amount of the firm's after-tax cash flow from operations?

Which of the following items is part of the computation of net operating working capital for purposes of determining free cash flow?

You are about to determine your corporation's taxable income.Which of the below would NOT be included as a tax-deductible expense?

The marginal tax rate would equal the average tax rate for firms with earnings less than $50,000.

The income statement describes the financial position of a firm on a given date.

The interest payments on corporate bonds are tax-deductible.

-Based on the information contained in Table 2,what was the total amount of Bird Industries' common stock dividend for 1996?

On an accrual basis income statement,revenues and expenses always match the firm's cash flow.

-Based on the information contained in Table 2,what was Bird Industries' cash balance as of December 31,1996?

Which of the following is NOT considered a fixed asset?

Which of the following does NOT represent cash outflows to the firm?

Which of the following best describes a balance sheet?

Your firm has the following income statement items: sales of $50,250,000;income tax of $1,744,000;operating expenses of $10,115,000;cost of goods sold of $35,025,000;and interest expense of $750,000.What is the amount of the firm's EBIT?

-Based on the information contained in Table 3,what is Snark Enterprise's cash balance as of December 31,1996?

An income statement reports a firm's profit relative to its total investment in plant and equipment.

Which of the following best represents operating income?

A balance sheet is a statement of the financial position of the firm on a given date,including its asset holdings,liabilities,and equity.

Use the following information to answer the following question(s). In 2004,A & K,Inc.expects operating income (earnings before interest and taxes)of $18,000,000.In addition,the corporation has $20,000,000 of debt outstanding with a 10 percent interest rate and will pay $1,000,000 in dividends to its common stockholders. -A & K's total tax liability for 2004 will be:

Your firm has the following income statement items: sales of $50,250,000;income tax of $1,744,000;operating expenses of $10,115,000;cost of goods sold of $35,025,000;and interest expense of $750,000.What is the amount of the firm's income before tax?