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2 Chapter Word Problems Name ___________________________ The following problems are assigned as homework. You will notice that the correct answer is highlighted; however, you must show the work to arrive at the answer. 54. Highland, Inc. has total assets of $16,200, net working capital of $3,900, owner's equity of $8,500, and long-term debt of $6,000. What is the value of the current assets? a. $2,500 B. $5,600 c. $6,300 d. $9,900 e. $10,200 60. Joe's Store has net working capital of $1,800, total assets of $12,600, and net fixed assets of $9,700. What is the value of the current liabilities? A. $1,100 b. $2,900 c. $4,700 d. $7,900 e. $10,800 66. The owners' equity in Jack's Taylor Shop was $31,300 at the beginning of the year. During the year, the company had after tax income of $4,900, of which $1,600 was paid in dividends. Also during the year, the company repurchased $2,000 of stock from one of the shareholders. What is the value of the owners' equity at year end? A. $32,600 b. $34,600 c. $35,800 d. $36,200 e. $37,800 70. The financial statements of Classic Collectables reflect cash of $15,800, accounts receivable of $31,600, accounts payable of $40,100, inventory of $54,700, long-term debt of $60,000, and net fixed assets of $99,500. The firm estimates that if it wanted to cease operations today it could sell the inventory for $39,000 and the fixed assets for $77,000. is What the market value of the assets? a. $63,300 b. $101,500 C. $163,400 d. $181,700 e. $201,600 81. Crabtree, Inc. has an operating cash flow of $164,900, depreciation expense of $93,100, and taxes paid of $80,400. A partial listing of its balance sheet accounts is as follows: What is the amount of Crabtree's cash flow from assets? a. $49,100 b. $69,800 c. $107,200 D. $120,400 e. $200,300 83. Solomon, Inc. has net sales of $745,100 and costs of $590,800. The depreciation expense is $82,600 and the interest paid is $15,500. What is the amount of the firm's operating cash flow if the tax rate is 35 percent? a. $46,605 b. $52,030 c. $71,700 d. $105,720 E. $134,630 86. The financial statements of The Equipment Outlet reflect depreciation expenses of $41,800 and interest expenses of $35,200 for the year. The current assets increased by $19,700 and the net fixed assets increased by $34,900. What is the amount of the net capital spending for the year? a. $34,900 b. $54,600 c. $61,500 D. $76,700 e. $96,400 87. Fallway, Inc. had current assets of $121,800 and current liabilities of $114,300 last year. This year, the current assets are $118,600 and the current liabilities are $100,400. The depreciation expense for the past year is $13,500 and the interest paid is $3,000. What is the amount of the change in net working capital? a. $18,200 b. $7,700 c. $5,800 D. $10,700 e. $21,200 ... View Full Document