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At the beginning of the year, a firm has current assets of $329 and current liabilities of $233. At the end of the year, the current assets are $495 and the current liabilities are $273. What is the change in net working capital?

$126 (495-329)-(273-233)

You are examining a company's balance sheet and find that it has total assets of $20,499, a cash balance of $2,181, inventory of $4,881, current liabilities of $5,765 and accounts receivable of $2,701. What is the company's net working capital?

$3,998

During the past year, a company had cash flow to stockholders, an operating cash flow, and net capital spending of $15,480, $36,470, and $15,760, respectively. The net working capital at the beginning of the year was $6,300 and it was $7,580 at the end of the year. What was the company's cash flow to creditors during the year?

$3950

At the beginning of the year, Vendors, Inc., had owners' equity of $48,680. During the year, net income was $5,100 and the company paid dividends of $3,680. The company also repurchased $7,480 in equity. What was the owners' equity account at the end of the year?

$42,620

Your firm has net income of $325 on total sales of $1,400. Costs are $770 and depreciation is $130. The tax rate is 35 percent. The firm does not have interest expenses. What is the operating cash flow?

$455

Peggy Grey's Cookies has net income of $380. The firm pays out 35 percent of the net income to its shareholders as dividends. During the year, the company sold $83 worth of common stock. What is the cash flow to stockholders?

$50.00

At the beginning of the year, long-term debt of a firm is $294 and total debt is $332. At the end of the year, long-term debt is $262 and total debt is $342. The interest paid is $28. What is the amount of the cash flow to creditors?

$60

Your firm currently has taxable income of $81,800. How much additional tax will you owe if you increase your taxable income by $23,000?

$8,060

Teddy's Pillows had beginning net fixed assets of $460 and ending net fixed assets of $528. Assets valued at $308 were sold during the year. Depreciation was $20. What is the amount of net capital spending?

$88

Which one of the following parties can sell shares of ABC stock in the primary market?

ABC COMPANY

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

Accrued.

The Balance Sheet Identity is:

Assets = Liabilities + Owners Equity

Which one of the following functions is generally a responsibility assigned to the corporate treasurer?

Capital expenditures

Which one of the following functions should be assigned to the corporate treasurer rather than to the controller?

Cash management

Net working capital represents current assets plus current liabilities.

False

Jamie is employed as a currency trader in the Japanese yen market. Her job falls into which one of the following areas of finance?

International finance

Which one of the following forms of business organization offers liability protection to some of its owners but not to all of its owners?

Limited partnership

Which one of these is correct?

Net income is distributed either to dividends or retained earnings.

Which one of the following statements correctly applies to a sole proprietorship?

Obtaining additional equity is dependent on the owner's personal finances.

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 first thing reported on an income statement would usually be:

Revenues.

Capital budgeting includes the evaluation of which of the following?

Size, timing, and risk of future cash flows

Which one of the following correctly defines a common chain of command within a corporation?

The controller reports directly to the corporate treasurer.

The shareholders of Weil's Markets would benefit if the firm were to be acquired by Better Foods. However, Weil's board of directors rejects the acquisition offer. This is an example of:

an agency conflict

The financial statement that summarizes a firm's accounting value as of a particular date is called the:

balance sheet.

Security dealers:

buy and sell from their own inventory.

Cash flow to stockholders is defined as:

dividends paid minus net new equity raised.

Corporate shareholders:

have the ability to change the corporation's bylaws.

The accounting statement that measures the revenues, expenses, and net income of a firm over a period of time is called the:

income statement.

The tax rate that determines the amount of tax that will be due on the next dollar of taxable income earned is called the:

marginal tax rate.

The issuer of a security must be involved in all _____ transactions involving that security.

primary market

Limited liability companies are primarily designed to:

provide limited liability while avoiding double taxation.

The market value of an asset depends on:

riskiness and cash flows.

You contacted your stock broker this morning and placed an order to sell 300 shares of a stock that trades on the NYSE. This sale will occur in the:

secondary market.

Margie opened a used bookstore and is both the 100 percent owner and the store's manager. Which type of business entity does Margie own if she is personally liable for all the store's debts?

sole proprietorship

In a general partnership, each partner is personally liable for:

the total debts of the partnership, even if he or she was unaware of those debts.

The Income Statement measures performance over some period of time.

true

Which one of the following occupations best fits into the corporate area of finance?

Chief financial officer

Matt and Alicia created a firm that is a separate legal entity and will share ownership of that firm on a 75/25 basis. Which type of entity did they create if they have no personal liability for the firm's debts?

Corporation

Will and Bill both enjoy sunshine, water, and surfboards. Thus, the two friends decided to create a business together renting surfboards, paddle boats, and inflatable devices in California. Will and Bill will equally share in the decision making and in the business profits or losses. Which type of business did they create if they both have full personal liability for the firm's debts?

General partnership

Uptown Markets is financed with 45 percent debt and 55 percent equity. This mixture of debt and equity is referred to as the firm's:

capital structure

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

current liability

If you accept a job as a domestic security analyst for a brokerage firm, you are most likely working in which one of the following financial areas?

investments

A corporation:

is a legal entity separate from its owners.

An employee has a claim on the cash flows of Martin's Machines. This claim is defined as a claim by one of the firm's:

stakeholders

An agency issue is most apt to develop when:

the control of a firm is separated from the firm's ownership.

The primary goal of financial management is to maximize:

the market value of existing stock.