FIN 300 CH 2

The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $2.55 million in long-term debt, $730,000 in the common stock account, and $6.5 million in the additional paid-in surplus account. The 2009 balance sheet showed $4 million, $905,000, and $8.1 million in the same three accounts, respectively. The 2009 income statement showed an interest expense of $240,000. The company paid out $540,000 in cash dividends during 2009. If the firm's net capital spending for 2009 was $790,000, and the firm reduced its net working capital investment by $135,000, the firm's 2009 operating cash flow, or OCF

$-1,790,000

Dimeback, Inc., is obligated to pay its creditors $8,400 during the year. What is the market value of the shareholders' equity if assets have a market value of $10,900 What if assets equal $5,900

2500 0

Billy's Exterminators, Inc., has sales of $649,000, costs of $292,000, depreciation expense of $44,000, interest expense of $32,000, and a tax rate of 35 percent. What is the net income for this firm?

Net income $ 182,650

Ridiculousness, Inc., has sales of $40,500, costs of $23,500, depreciation expense of $1,600, and interest expense of $1,200. If the tax rate is 35 percent, what is the operating cash flow, or OCF?

Operating cash flow $ 12,030 OCF = EBIT + Depreciation - Taxes OCF = $15,400 + 1,600 - 4,970 OCF = $12,030

Shareholders' equity

Represents the residual value of a firm

KCCO, Inc., has current assets of $5,000, net fixed assets of $23,300, current liabilities of $4,450, and long-term debt of $11,000. What is the value of the shareholders' equity account for this firm? How much is net working capital?

Shareholders' equity $ 12,850 OE = $28,300 - 11,000 - 4,450 = $12,850 Net working capital $ 550 NWC = CA - CL = $5,000 - 4,450 = $550

The Dyrdek Co. had $309,000 in 2014 taxable income. Use the tax rates from Table 2.3. Calculate the company's 2014 income taxes

Taxes $ 103,759