Ch 2 Quiz

# Ch 2 Quiz - Natasha Charles Case problem 1 Your Turn 2 2.1:...

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1. Problem 2-1 Balance Sheet (LG1) Evaluating the balance sheet for Goodman's Bees Corporation. From the balance sheet find the following balances: cash and marketable securities = \$400,000, accounts receivable = \$1,200,000, inventory = \$2,100,000, accrued wages and taxes = \$500,000, accounts payable = \$800,000, and notes payable = \$600,000. Calculate Goodman Bee's net working capital. (Omit the "\$" sign in your response.) Net working capital \$ Explanation: Net working capital = current assets − current liabilities. Goodman's Bees current assets = Cash and marketable securities \$ 400,000 Accounts receivable \$ 1,200,000 Inventory \$ 2,100,000 Total current assets \$ 3,700,000 and current liabilities = Accrued wages and taxes \$ 500,000 Accounts payable \$ 800,000 Notes payable \$ 600,000 Total \$ 1,900,000

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current liabilities So the firm's net working capital was \$1,800,000 (\$3,700,000 − \$1,900,000). 2. Problem 2-2 Balance Sheet (LG1) Zoeckler Mowing & Landscaping's year-end 2009 balance sheet lists current assets of \$256,000, fixed assets of \$324,000, current liabilities of \$245,000, and long-term debt of \$185,000. Calculate Zoeckler's total stockholders' equity. (Omit the "\$" sign in your response.) Stockholders' equity \$ Explanation: Assets = Liabilities + Equity. Rearranging this equation: Equity = Assets – Liabilities. Thus, the balance sheets would appear as follows: Book value Book value Assets Liabili ties and Equity Current assets \$256,000 Curre nt liabilities \$245,000 Fixed assets 324,000 Long- term debt 185,000 Stock holders' equity 150,000 Total \$580,000 Total \$580,000

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in your response.) Average tax rate 32.16 % 3. What is the marginal tax rate? (Omit the "%" sign in your response.) Marginal tax rate 39 % 5. Problem 2-6 Corporate Taxes (LG3)
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## This document was uploaded on 10/29/2011 for the course FIN 320 at Jackson State.

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Ch 2 Quiz - Natasha Charles Case problem 1 Your Turn 2 2.1:...

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