chapter 4 quiz

Given the following information, calculate earnings per share: Interest expense 40,000 Net income 335,000 Common dividends paid 100,000 Common stock outstanding 100,000

3.35

Kerney's EBT is $450,000. What is the marginal tax rate? Before-Tax Income (EBT) Tax Rate $0 - $50,000 15% $50,001 - $75,000 25% $75,001 - $100,000 34% $100,001 - $335,000 39% $335,001 - $10,000,000 34 $10,000,001 - $15,000,000 35% $15,000,001 - $18,333,333 38% Over $18,333,333 35%

34%

Which of the following is a source of cash that would appear on the statement of cash flows?

increase in accrued expenses

The income statement:

is a financial statement that summarizes a firm's revenues and expenses over a period of time.

According to accounting principles:

operating expenses during the year are tied to revenues they helped to generate

The common equity section of the balance sheet includes each of the following except:

preferred stock

Each of the following items represents a liability with the exception of:

prepaid expenses

Which of the following is a use of cash that would appear on the statement of cash flows?

purchase of marketable securities

Which of the following equations best describes net working capital?

total assets - fixed assets - current liabilities