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AC220-Unit 1 ProblemsQ1. 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