Question 1

The Good Life Store has sales of $79,600.The cost of goods sold is $48,200 and the other costs are $18,700.Depreciation is $8,300 and the tax rate is 34 percent.What is the net income?

Accepted Answer

A)  $2,904
B)  $8,382
C)  $11,204
D)  $14,660
E)  $16,682F) D) and E)
G) B) and C)

Question 2

Morgantown Movers has net working capital of $11,300,current assets of $31,200,equity of $53,400,and long-term debt of $11,600.What is the amount of the net fixed assets?

Accepted Answer

A)  $31,800
B)  $32,900
C)  $45,500
D)  $48,100
E)  $53,700F) A) and B)
G) B) and E)

Question 3

Which one of the following relates to a negative change in net working capital?

Accepted Answer

A)  Increase in the inventory level
B)  Sale of net fixed assets
C)  Purchase of net fixed assets
D)  Increase in current assets and decrease in current liabilities for the period
E)  Increase in current liabilities with no change in current assets for the periodF) None of the above
G) B) and C)

Question 4

The Pier Import Store has cash of $34,600 and accounts receivable of $54,200.The inventory cost $92,300 and can be sold today for $146,900.The fixed assets were purchased at a cost of $234,500 of which $107,900 has been depreciated.The fixed assets can be sold today for $199,000.What is the total book value of the firm's assets?

Accepted Answer

A)  $127,800
B)  $307,700
C)  $346,800
D)  $382,300
E)  $415,600F) A) and E)
G) A) and B)

Question 5

The December 31,2013,balance sheet of Suzette's Market showed long-term debt of $638,100 and the December 31,2014,balance sheet showed long-term debt of $574,600.The 2010 income statement showed an interest expense of $42,300.What was the firm's cash flow to creditors during 2014?

Accepted Answer

A)  $21,200
B)  $26,700
C)  $54,900
D)  $102,400
E)  $105,800F) A) and E)
G) B) and D)

Question 6

The Embroidery Shoppe had beginning retained earnings of $18,670.During the year,the company reported sales of $83,490,costs of $68,407,depreciation of $8,200,dividends of $950,and interest paid of $478.The tax rate is 35 percent.What is the retained earnings balance at the end of the year?

Accepted Answer

A)  $21,883.25
B)  $22,193.95
C)  $22,833.24
D)  $23,783.24
E)  $30,393.95F) A) and D)
G) None of the above

Question 7

For the year,Movers United has net income of $31,800,net new equity of $7,500,and an addition to retained earnings of $24,200.What is the amount of the dividends paid?

Accepted Answer

A)  $100
B)  $7,500
C)  $7,600
D)  $15,100
E)  $16,700F) C) and E)
G) A) and B)

Question 8

ACE,Inc.incurred depreciation expenses of $21,900 last year.The sales were $811,400 and the addition to retained earnings was $14,680.The firm paid interest of $9,700 and dividends of $10,100.The tax rate was 40 percent.What was the amount of the costs incurred by the firm?

Accepted Answer

A)  $665,200.00
B)  $689,407.67
C)  $742,306.08
D)  $738,500.00
E)  $780,400.21F) B) and D)
G) None of the above

Question 9

Donut Delite has total assets of $31,300,long-term debt of $8,600,net fixed assets of $19,300,and owners' equity of $21,100.What is the value of the net working capital?

Accepted Answer

A)  $9,800
B)  $10,400
C)  $18,900
D)  $21,300
E)  $23,200F) A) and B)
G) A) and C)

Question 10

All else equal,an increase in which one of the following will decrease owners' equity?

Accepted Answer

A)  Increase in inventory
B)  Increase in accounts payable
C)  Increase in accounts receivable
D)  Increase in net working capital
E)  Increase in net fixed assetsF) A) and E)
G) C) and D)

Exam 2: Financial Statements, Taxes, and Cash Flow

For the year,Movers United has net income of $31,800,net new equity of $7,500,and an addition to retained earnings of $24,200.What is the amount of the dividends paid?

Correct Answer
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Correct Answer
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Morgantown Movers has net working capital of $11,300,current assets of $31,200,equity of $53,400,and long-term debt of $11,600.What is the amount of the net fixed assets?

Correct Answer
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Which one of the following relates to a negative change in net working capital?

Correct Answer
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ACE,Inc.incurred depreciation expenses of $21,900 last year.The sales were $811,400 and the addition to retained earnings was $14,680.The firm paid interest of $9,700 and dividends of $10,100.The tax rate was 40 percent.What was the amount of the costs incurred by the firm?

Correct Answer
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Donut Delite has total assets of $31,300,long-term debt of $8,600,net fixed assets of $19,300,and owners' equity of $21,100.What is the value of the net working capital?

Correct Answer
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The December 31,2013,balance sheet of Suzette's Market showed long-term debt of $638,100 and the December 31,2014,balance sheet showed long-term debt of $574,600.The 2010 income statement showed an interest expense of $42,300.What was the firm's cash flow to creditors during 2014?

Correct Answer
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All else equal,an increase in which one of the following will decrease owners' equity?

Correct Answer
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The Good Life Store has sales of $79,600.The cost of goods sold is $48,200 and the other costs are $18,700.Depreciation is $8,300 and the tax rate is 34 percent.What is the net income?

Correct Answer
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The Embroidery Shoppe had beginning retained earnings of $18,670.During the year,the company reported sales of $83,490,costs of $68,407,depreciation of $8,200,dividends of $950,and interest paid of $478.The tax rate is 35 percent.What is the retained earnings balance at the end of the year?

Correct Answer
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Exam 2: Financial Statements, Taxes, and Cash Flow

For the year,Movers United has net income of $31,800,net new equity of $7,500,and an addition to retained earnings of $24,200.What is the amount of the dividends paid?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Morgantown Movers has net working capital of $11,300,current assets of $31,200,equity of $53,400,and long-term debt of $11,600.What is the amount of the net fixed assets?

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Which one of the following relates to a negative change in net working capital?

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ACE,Inc.incurred depreciation expenses of $21,900 last year.The sales were $811,400 and the addition to retained earnings was $14,680.The firm paid interest of $9,700 and dividends of $10,100.The tax rate was 40 percent.What was the amount of the costs incurred by the firm?

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Donut Delite has total assets of $31,300,long-term debt of $8,600,net fixed assets of $19,300,and owners' equity of $21,100.What is the value of the net working capital?

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The December 31,2013,balance sheet of Suzette's Market showed long-term debt of $638,100 and the December 31,2014,balance sheet showed long-term debt of $574,600.The 2010 income statement showed an interest expense of $42,300.What was the firm's cash flow to creditors during 2014?

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All else equal,an increase in which one of the following will decrease owners' equity?

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The Good Life Store has sales of $79,600.The cost of goods sold is $48,200 and the other costs are $18,700.Depreciation is $8,300 and the tax rate is 34 percent.What is the net income?

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The Embroidery Shoppe had beginning retained earnings of $18,670.During the year,the company reported sales of $83,490,costs of $68,407,depreciation of $8,200,dividends of $950,and interest paid of $478.The tax rate is 35 percent.What is the retained earnings balance at the end of the year?

Correct AnswerverifiedShow Answer

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