FI 311 Connect homework #2

FI 311 Connect homework #2 - 1) Jensen Enterprises paid...

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1) Jensen Enterprises paid $460 in dividends and $595 in interest this past year. Common stock increased by $185 and retained earnings decreased by $96. What is the net income for the year? $364 $460 $595 $780 $959 Net income = $460 + (-$96) = $364 2) Crandall Oil has total sales of $1,120 and costs of $745. Depreciation is $153 and the tax rate is 32 percent. The firm does not have any interest expense. What is the operating cash flow? $329 $304 $294 $279 $309 Earnings before interest and taxes = $1,120 - $745 - $153 = $222 Tax = $222 × .32 = $71 Operating cash flow = $222 + $153 - $71 = $304 3) Nielsen Auto Parts had beginning net fixed assets of $487 and ending net fixed assets of $546. Assets valued at $254 were sold. Depreciation for the year was $36. What is the amount of net capital spending? $23 $59 $328 $349 $95 Net capital spending = $546 - $487 + $36 = $95 4) The Daily News had net income of $376 of which 39 percent was distributed to the shareholders as dividends. During the year, the company sold $79 worth of common stock. What is the cash flow to stockholders? $147 $293 $68 $226 $116 Cash flow to stockholders = .39($376) - $79 = $68
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5) Penguin Pucks, Inc., has current assets of $5,100, net fixed assets of $23,800, current liabilities of $4,300, and long-term debt of $7,400. (a ) What is the value of the shareholders' equity account for this firm? $17,200
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FI 311 Connect homework #2 - 1) Jensen Enterprises paid...

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