Fin - CH 2

Four years ago, Velvet Purses purchased a mailing machine at a cost of $160005. This equipment is currently valued at $25299 on today's balance sheet but could actually be sold for $268. This is the only fixed asset the firm owns. Net working capital is $35138. and long term debt is $75529. What is the book value of current assets?

-15092.00

A firm has net working capital of 8185. Long-term debt is 989, total assets are 157, and fixed assets are 9594. What is the amount of the total liabilities?

-16633

The cash flow of a firm which is available for distribution to the firm's creditors and stockholders is called the:

cash flow from assets

Teh cash flow related to interest payments less any net new borrowing is called the:

cash flow to creditors

The cash flow of a firm which is available for distribution to the firm's creditors and stockholders is called the:

cffa

Net working capital is defined as:

current assets minus current liabilities

Cash flow to stockholders is defined as:

dividend payments less net new equity raised

A firm has 687 in inventory, 1848 in fixed assets, 1919 in accounts receivables, 244 in accounts payable, and 352 in cash. What is the amount of the current assets?

2958

Jensen Enterprises paid 4264 in dividends and {int} in interest this past year. Common stock increased by {cs} and retained earnings decreased by -117. What is the net income for the year?

4147.00

A firm has 484 in inventory, 644 in fixed assets, 7021 in accounts receivable, 265 in accounts payable, and 89 in cash. What is the amount of the current assets?

7594

Four years ago, Velvet Purses purchased a mailing machine at a cost of $190310. This equipment is currently valued at $28824 on today's balance sheet but could actually be sold for $6796. This is the only fixed asset the firm owns. Net working capital is $91005. and long term debt is $42780. What is the book value of current assets?

77049.00

Four years ago, Velvet Purses purchased a mailing machine at a cost of $190310. This equipment is currently valued at $28824 on today's balance sheet but could actually be sold for $6796. This is the only fixed asset the firm owns. Net working capital is $91005. and long term debt is $42780. What is the book value of shareholder's equity?

77049.00

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

A decrease in the cash balance may or may not decrease net working capital

The common set of standards and procedures by which audited financial statements are prepared is known as the :

Generally Accepted Accounting Principles

Which one of the following must be true if a firm had a negative cash flow from assets?

The firm utilized outside funding

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

Net working capital increases when inventory is sold for cash at a profit

A firm has common stock of {cs}, paid-in surplus of {pds}, total liabilities of 4385. current assets of 8116, and fixed assets of 9176. What is the amount of the shareholder's equity?

The correct answer is: 12907.00

Which one of the following accounts is the most liquid?

accounts receivable

The _______ tax rate is equal to total taxes divided by total taxable income.

average

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

The book value of a firm is:

based on historical cost

Noncash items refer to:

expenses which do not directly affect cash floe

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

free cash flow

Which one of the following is included in a firm's market value but yet is excluded from the firm's accounting value?

good reputation of the company

The higher the degree of financial leverage employed by a firm, the:

higher the probability that the firm will encounter financial distress

Which one of the following is the financial statement that summarizes a firm's revenue and expenses over a period of time?

income statement

The percentage of the next dollar you earn that must be paid in taxes is referred to as the _____ tax rate.

marginal

Which term relates to the cash flow which results from a firm's ongoing, normal business activities?

ocf

Which one of these is most apt to be a fixed cost?

office salaries

Depreciation

reduces both taxes and net income

Shareholder's equity:

represents the residual value of a firm

Which one of the following will increase the value of a firm's net working capital?

selling inventory at a profit

Which one of the following is classified as an intangible fixed asset?

trademark