homework chapter 2 flash card

homework chapter 2 flash card - A firm has common stock of...

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A firm has common stock of $115, paid-in surplus of $345, total liabilities of $380, current assets of $370, and fixed assets of $560. What is the amount of the shareholders' equity? (Chapter 2) $550 $930 $790 Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a building at a cost of $1,200,000 that is currently appraised at $1,400,000. The equipment originally cost $659,000 and is currently valued at $446,000. The inventory is valued on the balance sheet at $367,000 but has a market value of only one-half of that amount. The owner expects to collect 99 percent of the $197,500 in accounts receivable. The firm has $9,100 in cash and owes a total of $1,400,000. The legal problems are personal and unrelated to the actual business. What is the market value of this firm? (Chapter 2) $1,017,625 $834,125 $1,215,125 $1,582,125 Ivan's, Inc. paid $470 in dividends and $675 in interest this past year. Common stock increased by $215 and retained earnings decreased by $115. What is the net income for the year? (Chapter 2) $675 $355 $890 The tax rates are as shown. Taxable Income Tax Rate $0 - 50,000 15% 50,001 - 75,000 25% 75,001 - 100,000 34% 100,001 - 335,000 39% What is the average tax rate for a firm with taxable income of $118,842? (Chapter 2) 20.00% 36.66% 24.91% 28.25% The tax rates are as shown. Taxable Income Tax Rate $0 - 50,000 15% 50,001 - 75,000 25% 75,001 - 100,000 34% 100,001 - 335,000 39% Your firm currently has taxable income of $81,300. How much additional tax will you owe if you increase your taxable income by $22,200? (Chapter 2) $6,358 $7,723 $7,738 $6,367 Your firm has net income of $312 on total sales of $1,280. Costs are $670 and depreciation is $130. The tax rate is 35 percent. The firm does not have interest expenses. What is the operating cash flow? (Chapter 2) $84 $442 $610 Teddy's Pillows has beginning net fixed assets of $472 and ending net fixed assets of $560. Assets valued at $259 were sold during the year. Depreciation was $37. What is the amount of net capital spending? (Chapter 2) $51 $384 $88 $125 At the beginning of the year, a firm has current assets of $321 and current liabilities of $238. At the end of the year, the current assets are $452 and the current liabilities are $278. What is the change in net working capital? (Chapter 2)
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$131 $-91 $278 $91 Peggy Grey's Cookies has net income of $370. The firm pays out 35 percent of the net income to its shareholders as dividends. During the year, the company sold $77 worth of common stock. What is the cash flow to stockholders? (Chapter 2) $129.50 $259.00 $206.50 52.50 Use the following information to answer this question: ? (Chapter 2) Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $8,500 Less: Cost of goods sold 7,200 Less: Depreciation 420 Earnings before interest and taxes 880 Less: Interest paid 82 Taxable Income 798 Less: Taxes 279 Net income $ 519 Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions)
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homework chapter 2 flash card - A firm has common stock of...

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