Finance Quiz Chp. 2

A company has net working capital of $713. Long-term debt is $4,132, total assets are $6,273, and fixed assets are $4,002. What is the amount of total liabilities?

((total assets-fixed assets) + long term debt) - net working capital)) 6,273-4,002=2,271 2,271+4,132=6,403 6,403-713=5,690

Peggy Grey's Cookies has net income of $300. The firm pays out 40 percent of the net income to its shareholders as dividends. During the year, the company sold $75 worth of common stock. What is the cash flow to stockholders?

(net income x % of income to stockholders) - sold common stock: CFS = (0.40 × $300) - $75 = $45.00

The cash flow that is available for distribution to a corporation's creditors and stockholders is called the:

Cash flow from assets

Disturbed, Inc., had the following operating results for the past year: sales = $22,547; depreciation = $1,310; interest expense = $1,056; costs = $16,490. The tax rate for the year was 38 percent. What was the company's operating cash flow?

EBIT: sales- costs- dep. EBT: EBIT-interest exp. Taxes: EBT(rate) Operating cash flow= EBIT+dep-taxes 22,547-16,490-1,310=4,747 4,747-1,056=3,691 3,691(.38)=1,403 4,747+1,310-1,403=4,654

Galaxy Interiors income statement shows depreciation of $1,611, sales of $21,415, interest paid of $1,282, net income of $1,374, and costs of goods sold of $16,408. What is the amount of the noncash expenses?

Non cash expenses = Depreciation = $1,611

Webster's has beginning net fixed assets of $684,218, ending net fixed assets of $679,426, and depreciation expense of $48,859. What is the net capital spending for the year if the tax rate is 25 percent?

end. fixed assets - beg. fixed assets + dep. expense: Net capital spending = $679,426 − 684,218 + 48,859 Net capital spending = $44,067