Chapter 2 (2)

Chapter 2 (2) - 1. Arredondo, Inc., has current assets of...

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1. Arredondo, Inc., has current assets of $2,320, net fixed assets of $10,800, current liabilities of $1,425, and long- term debt of $4,130. Requirement 1: What is the value of the shareholders’ equity account for this firm? (Do not include the dollar sign ($).) Shareholder's equity $ 7,565 Requirement 2: How much is net working capital? (Do not include the dollar sign ($).) Net working capital $ 895 2. Lifeline, Inc., has sales of $593,000, costs of $265,000, depreciation expense of $67,000, interest expense of $34,000, and a tax rate of 35 percent. Required: What is the net income for this firm? (Do not include the dollar sign ($).) Net income $ 147,550 3. Hammett, Inc., has sales of $19,730, costs of $9,300, depreciation expense of $1,970, and interest expense of $1,460. Assume the tax rate is 35 percent. Required: What is the operating cash flow? (Do not include the dollar sign ($).) Operating cash flow $ 7,980 4. Rotweiler Obedience School’s December 31, 2009, balance sheet showed net fixed assets of $1.760 million, and the December 31, 2010, balance sheet showed net fixed assets of $2.11 million. The company’s 2010 income statement showed a depreciation expense of $328,000. Required: What was Rotweiler’s net capital spending for 2010? (Do not include the dollar sign ($). Enter your answer in dollars, not millions of dollars (e.g., 1,234,567)) Net capital spending $ 678,000
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5. The December 31, 2009, balance sheet of Anna’s Tennis Shop, Inc., showed current assets of $1,115 and current liabilities of $920. The December 31, 2010, balance sheet showed current assets of $1,330 and current liabilities of $1,005. Required:
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Chapter 2 (2) - 1. Arredondo, Inc., has current assets of...

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