Question 1

Operating cash flow is defined as:

Accepted Answer

A)  a firm's net profit over a specified period of time.
B)  the cash that a firm generates from its normal business activities.
C)  a firm's operating margin.
D)  the change in the net working capital over a stated period of time.
E)  the cash that is generated and added to retained earnings.F) A) and D)
G) All of the above

Question 2

Which one of the following statements concerning the balance sheet is correct?

Accepted Answer

A)  Total assets equal total liabilities minus total equity.
B)  Net working capital is equal total assets minus total liabilities.
C)  Assets are listed in descending order of liquidity.
D)  Current assets are equal to total assets minus net working capital.
E)  Shareholders' equity is equal to net working capital minus net fixed assets plus long-term debt.F) A) and B)
G) C) and E)

Question 3

Last year,The Pizza Joint added $6,230 to retained earnings from sales of $104,650.The company had costs of $87,300,dividends of $2,500,and interest paid of $1,620.Given a tax rate of 34 percent,what was the amount of the depreciation expense?

Accepted Answer

A)  $2,407
B)  $1,908
C)  $2,503
D)  $3,102
E)  $3,414F) A) and C)
G) C) and D)

Question 4

For the year,Uptowne Furniture had sales of $818,790,costs of $748,330,and interest paid of $24,450.The depreciation expense was $56,100 and the tax rate was 34 percent.At the beginning of the year,the firm had retained earnings of $172,270 and common stock of $260,000.At the end of the year,retained earnings was $158,713 and common stock was $280,000.Any tax losses can be used.What is the amount of the dividends paid for the year?

Accepted Answer

A)  $5,266
B)  $6,466
C)  $7,566
D)  $7,066
E)  $6,898F) A) and E)
G) C) and E)

Question 5

For the year,Movers United has net income of $31,800,net new equity of $7,500,and an addition to retained earnings of $24,200.What is the amount of the dividends paid?

Accepted Answer

A)  $100
B)  $7,500
C)  $7,600
D)  $15,100
E)  $16,700F) B) and D)
G) B) and E)

Question 6

Given a profitable firm,depreciation:

Accepted Answer

A)  increases net income.
B)  increases net fixed assets.
C)  decreases net working capital.
D)  lowers taxes.
E)  has no effect on net incomeF) A) and E)
G) A) and B)

Exam 2: Financial Statements,Taxes,and Cash Flow

Which one of the following statements concerning the balance sheet is correct?

Correct Answer
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Operating cash flow is defined as:

Correct Answer
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For the year,Movers United has net income of $31,800,net new equity of $7,500,and an addition to retained earnings of $24,200.What is the amount of the dividends paid?

Correct Answer
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Correct Answer
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Given a profitable firm,depreciation:

Correct Answer
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Last year,The Pizza Joint added $6,230 to retained earnings from sales of $104,650.The company had costs of $87,300,dividends of $2,500,and interest paid of $1,620.Given a tax rate of 34 percent,what was the amount of the depreciation expense?

Correct Answer
verified

Exam 2: Financial Statements,Taxes,and Cash Flow

Which one of the following statements concerning the balance sheet is correct?

Correct AnswerverifiedShow Answer

Operating cash flow is defined as:

Correct AnswerverifiedShow Answer

For the year,Movers United has net income of $31,800,net new equity of $7,500,and an addition to retained earnings of $24,200.What is the amount of the dividends paid?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Given a profitable firm,depreciation:

Correct AnswerverifiedShow Answer

Last year,The Pizza Joint added $6,230 to retained earnings from sales of $104,650.The company had costs of $87,300,dividends of $2,500,and interest paid of $1,620.Given a tax rate of 34 percent,what was the amount of the depreciation expense?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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