Exam 1
A company has $1,392 in inventory, $4,845 in net fixed assets, $676 in accounts receivable, $306 in cash, $642 in accounts payable, and $5,440 in equity. What is the company's long-term debt?
$1,137
Which one of the following statements is correct? All secondary markets are dealer markets. All stock transactions are secondary market transactions. All stock trades between existing shareholders are primary market transactions. All secondary markets are broker markets. All over-the-counter sales occur in dealer markets.
All over-the-counter sales occur in dealer markets.
Security dealers:
buy and sell from their own inventory.
Nishaa has been promoted and is now in charge of all external financing. In other words, she is in charge of:
capital structure management.
The Sarbanes-Oxley Act of 2002 has:
essentially made officers of publicly traded firms personally responsible for the firm's financial statements.
An auction market:
has a physical trading floor.
The Sarbanes-Oxley Act:
requires the corporate officers to personally attest that the financial statements are a fair representation of the company's financial results.
The primary goal of financial management is to maximize:
the market value of existing stock.
Which of the following statements is false?
Acorns is a creative crowdfunding app, allowing smaller investors to join together to fund design ventures.
Which one of the following situations is most apt to create an agency conflict?
Basing management bonuses on the length of employment
Which one of the following is a capital structure decision?
Establishing the preferred debt-equity level
Which one of the following is an advantage of being a limited partner?
Losses limited to capital invested
Working capital management includes which one of the following?
Determining which customers will be granted credit
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.
When conducting a financial analysis of a firm, financial analysts:
frequently use accounting information.
A sole proprietorship:
has its profits taxed as personal income.
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.
The primary goal of financial management is most associated with increasing the:
market value of the firm.
A limited liability company (LLC):
prefers its profits be taxed as personal income to its owners.
A private placement is most apt to involve:
a life-insurance company.
The shareholders of Qiang'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.
Probably the least effective means of aligning management goals with shareholder interests is:
automatically increasing management salaries on an annual basis.
A company has $579 in inventory, $1,858 in net fixed assets, $258 in accounts receivable, $113 in cash, and $298 in accounts payable. What are the company's total current assets?
Current assets= Inventory + Account Receivable + Cash =$579+258+113 =950 $950
Vera opened a used bookstore and is both the 100 percent owner and the store's manager. Which type of business entity does Vera own if she is personally liable for all the store's debts?
Sole proprietorship
Levi had an unexpected surprise when he returned home this morning. He found that a chemical spill from a local manufacturer had spilled over onto his property. The potential claim that he has against this manufacturer is that of a(n):
Stakeholder
An employee has a claim on the cash flows of Westlake Machines. This claim is defined as a claim by one of the firm's:
Stakeholders
Corporate shareholders:
have the ability to change the corporation's bylaws.
Limited liability companies are primarily designed to:
provide limited liability while avoiding double taxation.
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.
Maria is the sole proprietor of an antique store that is located in a rented warehouse. The store has an outstanding loan with the local bank but no other debt obligations. There are no specific assets pledged as security for the loan. Due to a sudden and unexpected downturn in the economy, the store is unable to generate sufficient funds to pay the loan payments due to the bank. Which of the following options does the bank have to collect the money it is owed? 1. Sell the inventory and apply the proceeds to the debt 2. Sell the lighting fixtures from the building and apply the proceeds to the debt 3. Withdraw funds from Maria's personal account at the bank to pay the store's debt 4. Sell any assets Maria personally owns and apply the proceeds to the store's debt
1, 3, and 4 only
Which one of the following is most apt to align management's priorities with shareholders' interests?
Compensating managers with shares of stock that must be held for a minimum of three years
Jordan and Carmen 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
The Sarbanes-Oxley Act in 2002 was primarily prompted by which one of the following from the 1990s?
Corporate accounting and financial fraud
Which one of the following is a working capital decision?
How much cash should the firm keep in reserve?
Mobius, Incorporated, has a total debt ratio of .05. What is its debt-equity ratio? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. What is its equity multiplier? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
total debt ratio=Total debt/Total assets Total debt=0.05*Total assets Total assets=debt+equity equity=Total assets-0.05*Total assets =Total assets*(1-0.05) =Total assets*0.95 Debt-equity ratio=Total debt/Total equity =(0.05*Total assets)/(0.95*Total assets) =(0.05/0.95) =0.05(Approx) Equity multiplier=Total assets/equity =Total assets/(Total assets*0.95) =(1/0.95) =1.05(Approx)
Raleigh BBQ has $48,000 in current assets and $39,000 in current liabilities. Decisions related to these accounts are referred to as:
working capital management.
The daily financial operations of a firm are primarily controlled by managing the:
working capital.
A company has net working capital of $1,969. If all its current assets were liquidated, the company would receive $5,897. What are the company's current liabilities?
$3,928
Kyra had taxable income of $130,022 last year. Her marginal tax rate was 34 percent and her average tax rate was 23.5 percent. How much did she have to pay in taxes for the year?
$30,555
Hoodoo Voodoo Company has total assets of $67,200, net working capital of $20,800, owners' equity of $32,600, and long-term debt of $24,700. What is the company's current assets?
$30,700
Deandre and Mason 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. Deandre and Mason 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
Which one of the following best describes the primary intent of the Sarbanes-Oxley Act of 2002?
Increase the protections against corporate fraud
Silvia 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 the following statements correctly applies to a sole proprietorship?
Obtaining additional equity is dependent on the owner's personal finances.
Bolton Corporation had additions to retained earnings for the year just ended of $628,000. The firm paid out $115,000 in cash dividends, and it has ending total equity of $7.23 million. If the company currently has 600,000 shares of common stock outstanding, what are earnings per share? Dividends per share? What is book value per share? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. If the stock currently sells for $29.30 per share, what is the market-to-book ratio? The price-earnings ratio? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. If total sales were $10.53 million, what is the price-sales ratio? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
Requirement 1: Earnings per share = $ 1.24 Dividends per share = 0.1917 Book value per share = $ 12.05 Requirement 2: Market-to-book ratio = 2.43 price-earnings ratio = 23.63 Requirement 3: Price-sales ratio = 1.67
Which one of the following correctly defines a common chain of command within a corporation?
The controller reports directly to the chief financial officer.
Which one of the following statements is correct?
The primary purpose of the NYSE is to match buyers with sellers.
The goal of financial management is to increase the:
current market value per share.
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.
At the beginning of the year, a firm has current assets of $316 and current liabilities of $220. At the end of the year, the current assets are $469 and the current liabilities are $260. What is the change in net working capital?
$113
Maynard Enterprises paid $1,328 in dividends and $969 in interest over the past year. The common stock account increased by $1,224 and retained earnings decreased by $333. What was the company's net income?
$995
Simon's Hot Chicken purchased its building seven years ago at a price of $139,215. The building could be sold for $179,175 today. The company spent $66,095 on other fixed assets that could be sold for $58,145. The company has accumulated depreciation of $79,275 on its fixed assets. Currently, the company has current liabilities of $36,710 and net working capital of $18,485. What is the ending book value of net fixed assets?
$126,035
At the beginning of the year, Vendors, Incorporated, had owners' equity of $51,215. During the year, net income was $7,375 and the company paid dividends of $4,915. The company also repurchased $9,365 in equity. What was the cash flow to stockholders for the year?
$14,280
HUD Company had a beginning retained earnings of $29,240. For the year, the company had net income of $6,015 and paid dividends of $2,265. The company also issued $4,015 in new stock during the year. What is the ending retained earnings balance?
$32,990
Micro, Incorporated, started the year with net fixed assets of $75,300. At the end of the year, there was $96,700 in the same account, and the company's income statement showed depreciation expense of $13,270 for the year. What was the company's net capital spending for the year?
$34,670
Peggy Grey's Cookies has net income of $400. The firm pays out 30 percent of the net income to its shareholders as dividends. During the year, the company sold $85 worth of common stock. What is the cash flow to stockholders?
$35.00
Muffy's Muffins had net income of $2,640. The firm retains 65 percent of net income. During the year, the company sold $565 in common stock. What was the cash flow to shareholders?
$359
Ivan's, Incorporated, paid $482 in dividends and $586 in interest this past year. Common stock increased by $196 and retained earnings decreased by $122. What is the net income for the year?
$360
A balance sheet has total assets of $2,120, fixed assets of $1,456, long-term debt of $770, and short-term debt of $275. What is the net working capital?
$389
You are examining a company's balance sheet and find that it has total assets of $21,302, a cash balance of $2,478, inventory of $5,233, current liabilities of $6,469, and accounts receivable of $2,987. What is the company's net working capital?
$4,229
Disturbed, Incorporated, had the following operating results for the past year: sales = $22,616; depreciation = $1,480; interest expense = $1,192; costs = $16,575. The tax rate for the year was 25 percent. What was the company's operating cash flow?
$5,199
You find the following financial information about a company: net working capital = $762; fixed assets = $5,449; total assets = $8,222; and long-term debt = $4,307. What are the company's total liabilities?
$6,318
For the past year, Momsen Limited had sales of $45,407, interest expense of $3,464, cost of goods sold of $15,784, selling and administrative expense of $11,291, and depreciation of $5,690. If the tax rate was 24 percent, what was the company's net income?
$6,975
The tax rates are as shown below: Taxable Income Tax Rate $0 − 50,000 15% 50,001 − 75,000 25% 75,001 − 100,000 34% 100,001 − 335,00039% The taxable income is $80,200. How much additional tax will you owe if you increase your taxable income by $21,400?
$7,356
During the past year, a company had cash flow to creditors, an operating cash flow, and net capital spending of $29,009, $64,057, and $25,700, respectively. The net working capital at the beginning of the year was $11,134 and it was $12,550 at the end of the year. What was the company's cash flow to stockholders during the year?
$7,932
The Primus Corporation began the year with $7,451 in its long-term debt account and ended the year with $9,117 in long-term debt. The company paid $1,059 in interest during the year and issued $2,435 in new long-term debt. How much in long-term debt must the company have paid off during the year?
$769
You find the following financial information about a company: net working capital = $1,368; fixed assets = $8,001; total assets = $12,038; and long-term debt = $4,667. What is the company's total equity?
12,038=(2669+4,667)+Total equity 12,038=7336+Total equity Total equity=12,038-7336 =$4702 $4,702
The tax rates for an individual for a particular year are shown below: Taxable IncomeTax Rate $0 − 9,950 10% 9,950 − 40,525 12% 40,525 − 86,375 22% 86,375 − 164,92524% What is the average tax rate for an individual with taxable income of $103,500?
18.22%
Mariota Industries has sales of $301,160 and costs of $151,130. The company paid $23,430 in interest and $12,400 in dividends. It also increased retained earnings by $63,074 during the year. If the company's depreciation was $14,990, what was its average tax rate?
32.38%
Which one of the following parties can sell shares of ABC stock in the primary market? Any corporation, other than the ABC Company Any institutional shareholder ABC company Any private individual shareholder Only officers and directors of ABC Company
ABC company
PXG Company has total assets of $10,000,000 and a total asset turnover of 2.5 times. Assume the return on assets is 12 percent. What is its profit margin?
According to Du pont analysis Return on Assets(ROA) = Profit Margin * Total asset turnover Given Return on Assets (ROA) = 12% = 0.12 Total asset turnover = 2.5 Substituting in the Du pont formula, 0.12 = Profit Margin * 2.5 Profit Margin = 0.12/2.5 = 0.048 = 4.8% Profit Margin = 4.8%
Which of the following is not a basic area of finance as described by the text?
Accounting
The potential conflict of interest between a firm's owners and its managers is referred to as which type of conflict?
Agency
Whipporwill, Incorporated's, net income for the most recent year was $11,819. The tax rate was 24 percent. The firm paid $4,821 in total interest expense and deducted $5,276 in depreciation expense. What was the company's cash coverage ratio for the year?
Answer: Calculation of the cash coverage ratio for the year: Cash converage ratio = (EBIT + Non cash expense) / Interest expense EBIT = Net income /(1-Tax rate) + Interest expense = $11,819 / (1-0.24) + $4,821 = $15,551.32 + $4,821 = $20,372.32 Cash converage ratio = ($20,372.32 + $5,276) / $4,821 = $25,648.32 / $4,821 = 5.32 (Answer)
Which one of the following applies to a general partnership?
Any one of the partners can be held solely liable for all of the partnership's debt.
Which one of the following functions is generally a responsibility assigned to the corporate treasurer?
Capital expenditures
Which one of the following functions should be assigned to the corporate treasurer rather than to the controller?
Cash management
Bethesda Mining Company reports the following balance sheet information for 2021 and 2022. Prepare the 2021 and 2022 common-size balance sheets for Bethesda Mining. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.
Check photo #2
Which one of the following occupations best fits into the corporate area of finance?
Chief financial officer
You've collected the following information about Caccamisse, Incorporated: Sales=$ 260,000Net income=$ 17,300Dividends=$ 6,100Total debt=$ 56,000Total equity=$ 87,000 What is the sustainable growth rate for the company? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Assuming it grows at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. What growth rate could be supported with no outside financing at all? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Formula for Sustainable growth rate is: Sustainable growth rate = (ROE × b) / [1 - (ROE × b)] Where, ROE = Return on equity b = Retention ratio b = 1 - Dividends / Net Income = 1 - $ 6,100 / $ 17,300 = 1 - 0.352601 = 0.647399 ROE = Net Income / Equity = $ 17,300 / 87,000 = 0.198851 Sustainable growth rate = (0.198851 × 0.647399) / [1 - (0.198851 × 0.647399)] = (0.128736) / (1 - 0.128736) = 0.128736 / 0.871264 = 0.147757 or 14.78 % New total assets of company can be calculated using the Sustainable growth rate as : New total assets = Growth rate x (Total debt + Total equity) = (1 + 0.147757) x ($ 56,000 + $ 87,000) = (1.147757) x ($ 143,000) = $ 164,129.3 New label of debt can be calculated with respect to new total asset as: New total debt = (old debt/total asset) (New total asset) = [old debt / (debt + equity)] (New total asset) = [$ 56,000/ ($ 56,000 + $ 87,000)] x $ 164,129.3 = ($ 56,000 / $ 143,000) x $ 164,129.3 = 0.391608 x $ 164,129.3 = $ 64,274.41 Additional borrowing is the difference between old and new debt. Additional borrowing = $ 64,274.41 - $ 56,000 = $ 8274.41 The growth rate supported without outside financing is the internal growth rate. Internal growth rate = (ROA x b)/ (1 - ROA x b) Return on asset, ROA = Net Income/Total asset = $ 17,300 / ($ 56,000 + $ 87,000) = $ 17,300/ $ 143,000 = 0.120979 Retention ratio b = 0.647399 Internal growth rate = (0.120979 x 0.647399)/ [1 - (0.120979 x 0.647399] = 0.078322/ (1 - 0.078322) = 0.078322/ (0.921678) = 0.084977 or 8.50 % Answer: Sustainable growth rate = 14.78 % Assuming it grows at this rate, $ 8274.41 of debt will need in the coming year for a constant debt-equity ratio. Growth rate of 8.5 % can be supported with no outside financing at all.
Reference sheet
Liquidity Ratios: Current Ratio = Current Assets / Current Liabilities Quick Ratio = (Current Assets - Inventory) / Current Liabilities Cash Ratio = Cash / Current Liabilities Debt Ratios: Total Debt Ratio = (Total Assets - Total Equity) / Total Assets (or Total Debt / Total Assets) Long-term Debt Ratio = Long-term Debt / (Long-term Debt + Total Equity) Debt Equity Ratio = Total Debt / Total Equity Equity Ratio = 1 - Debt Ratio (or 1 - Debt Equity Ratio) Total Equity = Debt-Equity Ratio x Total Assets Equity Multiplier = Total Assets / Total Equity (also equals 1 + Debt Equity Ratio) Total Asset Turnover = Sales / Total Assets (can also be calculated as 1 divided by the ratio of total assets to sales) Profitability Ratios: Profit Margin = Net Income / Sales Return on Assets (ROA) = Net Income / Total Assets Return on Equity (ROE) = Net Income / Total Equity Efficiency Ratios: Inventory Turnover = Cost of Goods Sold / Inventory Days' Sales in Inventory = 365 days / Inventory Turnover Receivables Turnover = Sales / Accounts Receivable Payables Turnover = Cost of Goods Sold / Accounts Payable Days' Sales in Receivables = 365 days / Receivables Turnover Days' Costs in Payables = 365 days / Payables Turnover Market Ratios: Earnings per Share = Net Income / Shares Outstanding Price Earnings Ratio = Price per Share / Earnings per Share Sales per Share = Sales / Shares Outstanding Price Sales Ratio = Price per Share / Sales per Share Book Value per Share = Total Equity / Shares Outstanding Market Value per Share = Price per Share Market to Book Ratio = Market Value per Share / Book Value per Share Other Ratios: Enterprise Value = Total market value of the stock + Book value of all liabilities - Cash EBITDA = EBIT + Depreciation and Amortization EBITDA Ratio = Enterprise Value / EBITDA Times Interest Earned Ratio = EBIT / Interest Cash Coverage Ratio = (EBIT + Depreciation) / Interest Dividend Ratios: Dividend Payout Ratio = DPS / EPS (Cash Dividends / Net Income) Retention or Plowback Ratio = (EPS - DPS) / EPS (Addition to Retained Earnings / Net Income) Growth Rates: Internal Growth Rate = (ROA x Retention Ratio) / (1 - ROA x Retention Ratio)
What is the primary goal of financial management for a sole proprietorship?
Maximize the market value of the equity
Which one of the following statements is correct?
Nasdaq has more listed stocks than does the NYSE.
Rottweiler Obedience School's December 31, 2021, balance sheet showed net fixed assets of $2.3 million, and the December 31, 2022, balance sheet showed net fixed assets of $3.1 million. The company's 2022 income statement showed a depreciation expense of $327,000. What was the company's net capital spending for 2022?
Net Capital Spending-1,127,000
Weiland Company shows the following information on its 2022 income statement: sales = $336,000; costs = $194,700; other expenses = $9,800; depreciation expense = $20,600; interest expense = $14,200; taxes = $21,275; dividends = $21,450. In addition, you're told that the firm issued $7,100 in new equity during 2022 and redeemed $5,400 in outstanding long-term debt.
Operating cash flow- 110,225 Cash flow to creditors-19,600 Cash flow to stockholders-14,350 Addition to net working capital-2,475
The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1.38 million, $130,000 in the common stock account, and $2.34 million in the additional paid-in surplus account. The December 31, 2022, balance sheet showed long-term debt of $1.52 million, $147,000 in the common stock account, and $2.65 million in the additional paid-in surplus account. The 2022 income statement showed an interest expense of $104,500 and the company paid out $168,500 in cash dividends during 2022. The firm's net capital spending for 2022 was $750,000 and the firm reduced its net working capital investment by $94,300.
Operating cash flow-461,700
The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1.38 million, and the December 31, 2022, balance sheet showed long-term debt of $1.52 million. The 2022 income statement showed an interest expense of $104,500. What was the firm's cash flow to creditors during 2022?
Photo 24 Cash flow to creditors = Interest paid - Increase in borrowings
Prepare a balance sheet for Alaskan Peach Corporation as of December 31, 2022, based on the following information: cash = $186,000; patents and copyrights = $784,000; accounts payable = $264,000; accounts receivable = $239,000; tangible net fixed assets = $4,743,000; inventory = $521,000; notes payable = $181,000; accumulated retained earnings = $4,209,000; long-term debt = $1,512,000.
Photo on phone
The issuer of a security must be involved in all _____________ transactions involving that security.
Primary market
Which one of the following is contained in the corporate bylaws?
Procedures for electing corporate directors
Fairlane Company has an ROA of 9.5 percent and a payout ratio of 37 percent. What is its internal growth rate?
Retention ratio=1-payout ratio =(1-0.37)=0.63 Internal growth rate=(ROA*Retention ratio)/[1-(ROA*Retention ratio)] =(0.095*0.63)/[1-(0.095*0.63)] which is equal to =6.37%(Approx).
Capital budgeting includes the evaluation of which of the following?
Size, timing, and risk of future cash flows
Reference sheet
Sustainable Growth Rate = (ROE x Retention Ratio) / (1 - ROE x Retention Ratio) Chapter 2: Cash Flow from Assets (CFFA) Cash Flow from Assets (CFFA) = Cash Flow to Creditor (CF/CR) + Cash Flow to Stockholders (CF/SH) Cash Flow to Stockholders (CF/SH): CF/SH = Dividends Paid - Net New Equity Raised (End Common Stock & Paid-in Surplus - Beginning ...) CF/CR = Interest Paid - Net New Borrowing (End Long-term Debt - Beginning Long-term Debt) Components of CFFA: CFFA = Operating Cash Flow (OCF) - Net Capital Spending - Change in Net Working Capital Operating Cash Flow (OCF): OCF = Earnings Before Interest & Taxes (EBIT) + Depreciation - Taxes Net Capital Spending (NCS): NCS = Ending Net Fixed Asset - Beginning Net Fixed Asset + Depreciation Change in Net Working Capital (ΔNWC): ΔNWC = Ending NWC - Beginning NWC (can also be calculated as Current Assets - Current Liabilities) Free Cash Flow (FCF): FCF = (EBIT x (1 - Tax Rate) + Depreciation and Amortization) - (Capital Expenditures + Change in Net Operating Working Capital) Net Operating Working Capital (NOWC): NOWC = (Current Assets - "Excess" cash) - (Current Liabilities - Notes payable)
Graffiti Advertising, Incorporated, reported the following financial statements for the last two years. 2022 Income StatementSales$ 825,420Costs of goods sold473,903Selling & administrative182,244Depreciation79,738EBIT$ 89,535Interest28,193EBT$ 61,342Taxes14,722Net income$ 46,620Dividends$ 15,600Addition to retained earnings31,020 GRAFFITI ADVERTISING, INCORPORATEDBalance Sheet as of December 31, 2021Cash$ 19,460Accounts payable$ 13,993Accounts receivable27,751Notes payable21,064Inventory20,153Current liabilities$ 35,057Current assets$ 67,364Long-term debt$ 199,100Net fixed assets$ 503,199Owners' equity$ 336,406Total assets$ 570,563Total liabilities and owners' equity$ 570,563 GRAFFITI ADVERTISING, INCORPORATEDBalance Sheet as of December 31, 2022Cash$ 20,903Accounts payable$ 15,358Accounts receivable30,828Notes payable24,059Inventory33,244Current liabilities$ 39,417Current assets$ 84,975Long-term debt$ 222,400Net fixed assets$ 593,119Owners' equity$ 416,277Total assets$ 678,094Total liabilities and owners' equity$ 678,094 Calculate the operating cash flow. Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. Calculate the change in ne
The operating cash flow is $154,551. The change in net working capital is $13,251. The net capital spending is $169,658.' The cash flow from assets is -$28,358. The cash flow to creditors is $4,893. The cash flow to stockholders is -$33,251.
Which one of the following statements about a limited partnership is correct?
There must be at least one general partner.
One advantage of the corporate form of organization is the:
ability to raise larger sums of equity capital than other organizational forms.
One example of a primary market transaction would be the:
sale of 1,000 shares of newly issued stock by Alt Company to Miquel.
An agency issue is most apt to develop when:
the control of a firm is separated from the firm's ownership.
