Financial Statements, Cash Flow, and Taxes5

Financial Statements, Cash Flow, and Taxes5 - Tot al assets...

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Old Exam Questions - Financial Statements, Cash Flow, and Taxes Page 23 of 44 Pages Total assets $19,500.00 Liabilities and equity: Long-term Debt $8,500.00 Total liabilities $8,500.00 Common stock (1 million shares) $7,000.00 Retained earnings $4,000.00 Total common equity $11,000.00 Total liabilities and equity $19,500.00 A. - $350.00 B. - $275.00 C. - $325.00 D. - $300.00 E. - $250.00
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Old Exam Questions - Financial Statements, Cash Flow, and Taxes Page 24 of 44 Pages YOU ARE GIVEN THE FOLLOWING INFORMATION FOR QUESTIONS 34: 34. Based on the information above, determine the free cash flow for 2004. A. $185.71 B. $197.24 C. $173.83 D. $161.85 E. $149.49 Income Statement (In Millions) 2003 2004 Sales (all on credit; 360-day year) 4,000.00 4,500.00 Operating costs -3,400.00 -3,825.00 EBITDA 600.00 675.00 Depreciation and amortization -100.00 -120.00 Earnings before interest and taxes 500.00 555.00 Interest (10%) -110.82 -123.34 Earnings before taxes 389.18 431.66 Taxes (40%) -155.67 -172.66 Net income 233.51 259.00 Common dividends 225.00 225.00 Balance Sheet (In Millions) 2003 2004 Assets: Cash 400.00 450.00 Accounts receivable 333.33 375.00 Inventories 600.00 675.00 Total current assets 1,333.33 1,500.00 Net plant and equipment 1,000.00 1,080.00 Total assets 2,333.33 2,580.00 Liabilities and equity: Accounts payable 500.00 562.50 Notes payable 658.23 783.40 Accruals 200.00 225.00 Total current liabilities 1,358.23 1,570.90 Long-term bonds 450.00 450.00 Total debt 1,808.23 2,020.90 Common stock (50 million shares) 400.00 400.00 Retained earnings 125.10 159.10 Total common equity 525.10 559.10 Total liabilities and equity 2,333.33 2,580.00
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Old Exam Questions - Financial Statements, Cash Flow, and Taxes Page 25 of 44 Pages 35. Assume that single individuals face the following tax schedule: Taxable Income ($) Tax on Base Tax Rate (on the amount above the base) $ 0 - $ 26,250 $ 0.00 15.0% $ 26,250 - $ 63,550 $ 3,937.50 28.0% $ 63,550 - $132,600 $14,381.50
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This note was uploaded on 07/13/2011 for the course FIN 4414 taught by Professor Staff during the Spring '08 term at University of Florida.

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Financial Statements, Cash Flow, and Taxes5 - Tot al assets...

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