FNAN 300, ch2

cash flows to stockholders is defined as

dividends paid minus net new equity raised

The market value of a firm's fixed assets:

is equal to the estimated current cash value of those assets

given a profitable firm, depreciation:

lowers taxes

which one of the following decreases net income but does not affect the operating cash flow of a firm that owes no taxes for the current year

noncash items

the market value:

of an asset tends to provide a better guide to the actual worth of that asset than does the book value

cash flow from assets is defined as

operating cash flow minus the change in net working capital minus net capital spending.

this stmt concercing the BC is correct

assets are listed in descending order of liquidity

at the beginning of the year, a firm has current assets of $317 and current liabilities of 221. at the end of the year, the current assets are 471 and the current l are 261. what is the charge in net wokring capital?

114

donegal's has compiled the following information. what is the operating cash flow for th eyear

114,700

The Toy Store has beginning retained earnings of $318,423. For the year, the company earned net income of $11,318 and paid dividends of $7,500. The company also issued $25,000 worth of new stock. What is the value of the retained earnings account at the end of the year?

322241

Disturbed, Inc., had the following operating results for the past year: sales = $22,548; depreciation = $1,330; interest expense = $1,072; costs = $16,500. The tax rate for the year was 30 percent. What was the company's operating cash flow?

4,696

Peggy Grey's Cookies has net income of $450. The firm pays out 30 percent of the net income to its shareholders as dividends. During the year, the company sold $90 worth of common stock. What is the cash flow to stockholders?

45.00

your firm has net income of 343 on total sales of 1360. Costs are 750 and depreciation is 120. the tax rate is 30%. what is the operating cash flow?

463

At the beginning of the year, long-term debt of a firm is $288 and total debt is $329. At the end of the year, long-term debt is $259 and total debt is $339. The interest paid is $25. What is the amount of the cash flow to creditors?

54

The balance sheet of a firm shows beginning net fixed assets of $348,200 and ending net fixed assets of $371,920. The depreciation expense for the year is $46,080 and the interest expense is $11,460. What is the amount of the net capital spending

69,800

Outdoor sports paid $12,500 in dividends and $9,310 in interest over the past year. sales totaled $361,820 with costs of $267,940. the depreciation expense was $16,500 and the tax rate was35 percent. what was the amount of the operating cash flow?

70056

Rusty Antiques has a marginal tax rate of 39percent and an average tax rate of 26.9 percent. If the firm owes $37,265 in taxes, how much taxable income did it earn?

$138,532

the acctounting stmt that measures the revenues, expenses, and net income of a firm over a period of time is called the

IS

highly liquid assets:

can be sold quickly at close to full value

which of the following is an intangible fixed asset

copyright

an IS prepared according to GAAP

records expenses based on the matching principal