FINN CHAP 2

The ABC Corporation has the following information. How much is the Operating Cash Flow?ABC Corporation Earnings before interest & taxes$1,588 Depreciation 130 Beginning net fixed assets 1,650 Net new equity raised 450 Taxes 424

$1,294

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

2,300 or 3,200

the balance sheet identity is

Assets = Liabilities + Shareholders' Equity

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

Current liability

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

accrued

The first thing reported on an income statement would usually be

revenues

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

standard

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

Beginning Cash: $183***Ending Cash: $285 + Net cash increase: $102

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

Net Increase in cash: $883****Explanation The Beginning cash amount is not part of the calculation.Operating Activity: $497Investment Activity$598Financing Activity: − $212497 + 598 - 212 = 883

The balance sheet of XYZ Company is shown below. What is the Net Working Capital for the company?

Net Working Capital=Current assets-Current liabilities =(300-240) which is equal to =$60