HW 1 Video Questions

From the income statement, the corporation had a net income of $724 million for the year. Total dividends were $106 million. There were 400 million shares outstanding. How much is the dividends per share?

$0.265

The Balance Sheet Identity is:

Assets = Liabilities + Owners Equity

The size of a company's tax bill is determined by the tax_________.

Code

T/F Net working capital represents current assets plus current liabilities.

False

Growth can summarize various aspects of a firm's __________ and ___________ policies.

Financial, investment

You are analyzing the Statement of Cash flows for Coffey Corporation. You have the following information: Beginning Cash: $220 Operating Activity: $497 Investment Activity $598 Financing Activity: −$212 Calculate the Net cash increase/decrease:

Increase: $883

When considering Net Working Capital, a project will generally need all of the following, except:

Only long-term assets to get the project started.

The Statement of Cash Flows has all of the following categories, except:

Standard

When evaluating financial planning steps, we must consider all of the following, except:

The project horizon for the next 30-90 Days

T/F Earnings per share can be calculated as Net Income/Total shares outstanding.

True

Cash flow from assets equals:

cash flow to creditors - cash flow to stockholders

A _________ __________ is one that has a life of less than one year, meaning they must be paid within the year.

current liability

The market value of an asset depends on:

riskiness and cash flows

Franklin Corporation just paid taxes of $152,000 on taxable income of $512,000. The marginal tax rate is 35% for the company. What is the average tax rate for the Franklin Corporation?

30%

From the income statement, the corporation had a net income of $724 million for the year. Total dividends were $106 million. There were 400 million shares outstanding. How much is the earnings per share?

$1.81

You are analyzing the Statement of Cash flows for Coffey Corporation. You have the following information: Beginning Cash: Ending Cash: $285 Net cash increase: $102 Calculate the Beginning Cash.

$183

Ferry Boat Corporation has the following financial information: Net fixed assets: Book value: $2,500, Market value: $3,000 Net working capital: $700 Current accounts liquidated: $1,500 ABC Corporation has $900 in long-term debt. What is the book value of equity?

$2,300

Ferry Boat Corporation has the following financial information: Net fixed assets: Book value: $2,500, Market value: $3,000 Net working capital: $700 Current accounts liquidated: $1,500 ABC Corporation has $900 in long-term debt. What is the market value of equity?

$3,600

An income statement prepared using GAAP will show revenue when it is:

Accrued

_________ tax rate is the amount of tax payable on the next dollar earned.

Marginal

The first thing reported on an income statement would usually be:

Revenues

T/F The Income Statement measures performance over some period of time.

True

T/F To generate a coherent plan, goals and objectives will have to be modified, and priorities will have to be established.

True