Finance Questions

Which one of the following values cannot be negative?A) Capital gainB) Total dollar returnC) Holding period returnD) Dividend yieldE) Total return

Free cash flow isA) equal to net income.B) equal to net income plus taxes.C) a term used to describe an increase in net working capital.D) cash that is available to distribute to creditors and equity holders.E) another term for operating cash flow.

________ refers to the cash flow resulting from a firm's ongoing, normal business activities.A) Cash flow from assetsB) Net working capitalC) Capital spendingD) Cash flow from operating activitiesE) Cash flow from investing activities

A change in which one of these accounts is treated as a cash flow from operating activities in an accounting statement of cash flows?A) Long-term debtB) InventoryC) DividendsD) Fixed assetsE) Depreciation

The cash flow of a firm, also referred to as cash flow from assets, must be equal to the cash flow toA) debt holders minus the cash flow to equity holders.B) equity holders plus the cash flow to debt holders.C) the government plus the cash flow to equity holders.D) equity holders minus the cash flow to debt holders.E) the government, the debt holders, and the equity holders.

Whistler's sales for this past year were $21,381. The interest expense was $248, costs of goods sold were $9,784, selling and general expenses were $1,208, depreciation was $811, and the addition to retained earnings was $325. The firm sold $500 of new stock shares and repurchased $125 of outstanding shares.What was the cash flow to stockholders if the tax rate was 34 percent?A) $725.50B) $670.25C) $202.72D) $208.28E) $235.55

Pineapple Express has selling and administrative expenses of $2,618, costs of goods sold of $24,318, depreciation of $915, and an interest expense of $520. The firm paid $150 in dividends and added $384 to retained earnings for the year. What is the firm's operating cash flow if the tax rate is 35 percent?What is the operating cash flow?A) $1,823.14B) $2,072.12C) $1,969.00D) $2,516.48E) $2,208.15

Brewster's has annual sales of $11,800, dividends of $270, interest expense of $320, cost of goods sold of $7,230, addition to retained earnings of $510, selling and administrative expenses of $1,940, and a tax rate of 34 percent. What is the amount of the depreciation expense?A) $584.18B) $1,385.82C) $1,128.18D) $1,215.00E) $1,474.24

Brad's Company has equipment with a book value of $1,380 that could be sold today at a 20 percent discount. Its inventory is valued at $360 and could be sold to a competitor for 90 percent of that value. The firm has $45 in cash and customers owe them $240, of which 97 percent is collectible. What is the accounting value of its liquid assets?A) $601.80B) $350.00C) $2,025.00D) $645.00E) $1,705.80

Nel's Place has total sales of $1,456, costs are $782, and depreciation is $115. The tax rate is 34 percent. The firm does not have any interest expense. What is the operating cash flow?A) $393.08B) $524.40C) $501.38D) $483.94E) $427.82

School House Antiques has current assets of $340 and current liabilities of $190 at the end of the year. At the beginning of the year, the current assets were $415 and the current liabilities were $210. What is the change in net working capital?A) -$95B) $0C) $55D) $95E) -$55

Atlantic Fisheries has an EBIT of $3,280, depreciation of $1,850, cost of goods sold of $6,920, dividends paid of $750, interest expense of $860, and sales of $6,500. What is the taxable income?A) $2,376B) $1,805C) $1,610D) $1,670E) $2,420

Lester's has $33,600 in sales, $17,200 in cost of goods sold, $2,300 in depreciation, $980 in interest expense, and $5,800 in selling, general, and administrative expenses. The firm owes no taxes for this year. What is the amount of the period costs that are included in the operating cash flow?A) $25,300B) $3,280C) $23,980D) $23,000E) $5,800

The Down Towner has annual costs of goods sold of $42,600, interest expense of $650, selling and administrative expenses of $7,800, dividends paid of $1,200, depreciation of $1,100, and a tax rate of 34 percent. What is the firm's taxable income if it added $2,500 to retained earnings during the year?A) $2,181.30B) $8,711.18C) $3,700.00D) $5,606.06E) $10,882.35

At the beginning of the year, Malek Farm's had long-term debt of $687 and total debt of $911. At the end of the year, the long-term debt is $579 and total debt is $898. If $58 of interest was paid during the year, what is the cash flow to the creditors?A) -$50B) -$166C) $71D) $166E) $50

Assume sales are $2,220; cost of goods sold is $1,055, general expenses are $630, depreciation expense is $210, and the tax rate is 35 percent. What is the net income amount if the firm paid $40 in interest expense?A) $171.25B) $99.75C) $185.25D) $120.25E) $270.75

Pete's Boats has beginning long-term debt of $647 and ending long-term debt of $749. The beginning and ending total debt balances are $801 and $768, respectively. The interest paid is $54. What is the amount of the cash flow to the creditors?A) -$10B) -$48C) $21D) $156E) $87

Assume sales are $1,100, cost of goods sold is $510, depreciation expense is $80, interest paid is $40, selling and general expenses are $230, dividends paid is $45, and the tax rate is 34 percent. What is the addition to retained earnings?A) $203.40B) $113.40C) $166.20D) $109.60E) $158.40

Thompson's Jet Skis has operating cash flow of $994. Depreciation is $102, taxes are $298, and interest paid is $65. A net total of $82 was paid on long-term debt. The firm spent $481 on fixed assets and increased its net working capital by $32. What is the amount of the cash flow to stockholders?A) −$104B) $334C) $464D) -$114E) $138

Peggy Grey's Cookies has net income of $2,918. The firm pays out 35 percent of the net income to its shareholders as dividends. During the year, the company sold $150 worth of common stock. What is the cash flow to the stockholders?A) $1,171.30B) $871.30C) $2,046.70D) $1,224.20E) $1,746.70