Finance- Statements

At the beginning of the year, the long-term debt of a firm was $72,918 and total debt was $138,407. At the end of the year, long-term debt was $68,219 and total debt was $145,838. The interest paid was $6,430. What is the amount of the cash flow to creditors?

$11,129

A firm reported sales of $350,000, interest expense of $2,330, costs of $140,000, and depreciation expense of $17,800. The firm's average income tax rate is 21 percent. How much operating cash flow did the firm generate?

$170,127

Zeng Graphics has taxable income of $48,900 and a tax rate of 21 percent. What is the change in retained earnings if the firm pays $20,200 in dividends for the year?

$18,431

For the past year, Pellicier, Incorporated, had depreciation of $2,419, beginning total assets of $23,616, and ending total assets of $21,878. Current assets decreased by $1,356. What was the amount of net capital spending for the year?

$2,037

Pavlak Surveyors has beginning current assets of $1,360, beginning current liabilities of $940, ending current assets of $1,720, and ending current liabilities of $1,080. What is the change in net working capital?

$220

Barnett Saddlery had beginning net fixed assets of $218,470 and ending net fixed assets of $209,411. During the year, assets with a book value of $6,943 were sold. Depreciation for the year was $42,822. What is the amount of net capital spending?

$33,763

At the beginning of the year, Smidovec Plumbing had current liabilities of $15,932 and total debt of $68,847. By year end, current liabilities were $13,870 and total debt was $72,415. What is the amount of net new borrowing for the year?

$5,630

Silva Enterprises has inventory of $11,600, fixed assets of $22,400, total liabilities of $12,900, cash of $1,900, accounts receivable of $8,700, and long-term debt of $6,500. What is the net working capital?

15800

Lewis & Price Corporation paid $700 in dividends and $320 in interest this past year. Common stock remained constant at $6,800 and retained earnings decreased by $180. What is the net income for the year?

520

The Somerville Corporation has cost of goods sold of $11,518, interest expense of $315, dividends of $420, depreciation of $811, and a change in retained earnings of $296. What is the taxable income given a tax rate of 21 percent?

906.33

Which one of the following statements related to the cash flow to creditors must be correct?

A positive cash flow to creditors represents a net cash outflow from the firm.

Which one of the following accounts is the most liquid?

Accounts Receivable

For a corporation that earned positive taxable income, which one of the following statements is correct?

An increase in depreciation expense will increase the operating cash flow.

Which one of the following is a current liability?

An invoice payable to a supplier in 45 days

he value of which one of the following is excluded from the firm's book value, but is included in the market value?

Employees' collective experience level

Which one of the following determines the standards and procedures with which audited financial statements are prepared?

GAAP

Which one of the following is excluded from the cash flow from assets?

Interest expense

Which one of the following statements concerning net working capital is correct?

Net working capital may be a negative value.

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

RENT

Which one of the following is the financial statement that shows the accounting value of a firm's equity as of a particular date?

balance sheet

Assuming a firm earns taxable income, an increase in ______ will cause the cash flow from assets to increase.

depreciation expense

Cash flow from assets is also known as the firm's:

free cash flow.

For a firm that must pay income taxes, depreciation expense:

increases expenses and lowers taxes.

The ______ tax rate is the percentage of the last dollar you earned that must be paid in taxes.

marginal

As the degree of financial leverage increases, the:

probability a firm will encounter financial distress increases.

Njoku Marketing paid $1,282 in interest and $975 in dividends last year. Current assets increased by $2,700, current liabilities decreased by $420, and long-term debt increased by $2,200. What was the cash flow to creditors?

−$918

B MC Qu. 02-57 Last year, Yang Software... Last year, Yang Software had $15,900 of sales, $500 of net new equity, dividend payments of $75, addition to retained earnings of $418, depreciation of $680, and $511 of interest expense. What are the earnings before interest and taxes at a tax rate of 21 percent?

$1,135.05

Clark-Phillips Incorporated purchased $145,000 in new equipment and sold equipment with a net book value of $68,400 during the year. What is the amount of net capital spending if the depreciation was $38,600?

$76,600

Which one of the following statements related to corporate income taxes is correct?

Corporations pay the same rate of taxes regardless of the amount of taxable income.

The cash flow that is available for distribution to a corporation's creditors and stockholders is called the:

cash flow from assets.