AC 220-8B - Finance - Unit 1 Problems.xlsx - AC220-Unit 1 Problems Q1 Sam's Bakery has sales of \$576,000 with costs of \$382,000 Interest expense is

# AC 220-8B - Finance - Unit 1 Problems.xlsx - AC220-Unit 1...

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AC220-Unit 1 Problems Q1. Sam's Bakery has sales of \$576,000 with costs of \$382,000. Interest expenseis \$15,000 and depreciation is \$31,000. The tax rate is 27%. What is the net income? Q2. Bob Equipment Rental paid \$64 in dividends and \$517 in interest expense.The addition to retained earnings is \$327 and net new equity is \$400. The taxrate is 27%. Sales are \$14,900 and depreciation is \$570. What are the earnings before interest and taxes?Q3. Suppose you are given the following information for Panola Bread: sales=\$30,000; costs= \$10,000; addition to retained earnings =\$4,365; dividends paid =\$485; interest expense \$1,200; tax rate =30 percent.What is the amount of the depreciation expense?Q4. A firm has \$345 in inventory, \$942 in fixed assets, \$210 in accounts recievables, \$320 in accounts payable, and \$65 in cash. What is the amount of the current assets?Q5. Benard Auto Repair has shareholders' equity of \$121,400. The firm owes a totalof \$132,000 of which 40% is payable within the next year. The firm has net fixed assetsof \$151,620. What is the amount of the net working capital?Q6. A firm has net working capital of \$540. Long term debt is \$3,410, total assets are