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finance ch.3 - operating working capital By how much did...

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5.  Hybrid Battery Systems recently reported $9,000 of sales, $6,000 of operating costs other than depreciation, and $500 of depreciation. The company had no amortization charges, it had $4,000 of bonds that carry a 7% interest rate, and its federal-plus-state income tax rate was 40%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $800 of capital expenditures on new fixed assets and to invest $500 in net
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Unformatted text preview: operating working capital. By how much did the firm's net income exceed its free cash flow ? A) $620 B) $596 C) $608 D) $644 E) $632 Points Earned: 5.0/5.0 Correct Answer(s): E 6. Which of the following items is NOT included in current assets? A) Accounts payable. B) Accounts receivable. C) Cash. D) Inventory. E) Short-term, highly liquid, marketable securities. Points Earned: 5.0/5.0 Correct Answer(s): A...
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