1. A firm has $680 in inventory, $2,140 in fixed assets, $210 in accounts receivables, $250 in accounts payable, and $80 in cash. What is the amount of the net working capital?
2. KCCO, Inc., has current assets of $5,000, net fixed assets of $23,000, current liabilities of $3,500, and long-term debt of $7,900.
a. What is the value of the shareholders’ equity account for this firm?
b. How much is net working capital?
3. Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $6 million. The machinery can be sold to the Romulans today for $5.3 million. Klingon’s current balance sheet shows net fixed assets of $3.2 million, current liabilities of $900,000, and net working capital of $215,000. If all the current assets were liquidated today, the company would receive $1.25 million cash.
a. What is the book value of Klingon’s total assets today?
b. What is the market value?
4. 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 $80,000. How much additional tax will you owe if you increase your taxable income by $21,200?
5. A firm has sales of $4,300, net income of $320, total assets of $4,800, and total equity of $2,950. Interest expense is $65. What is the common-size statement value of the interest expense?
6. You are given the following information for Dawn Corp.:
Decrease in inventory $ 500
Decrease in accounts payable 200
Increase in notes payable 185
Increase in accounts receivable 215
a. Did cash go up or down? By how much?
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b. Classify each event as a source or use of cash.
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A decrease in inventory is a __________ .
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A decrease in accounts payable is a ___________.
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An increase in notes payable is a _____________.
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An increase in accounts receivable is a _______________.
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7. The following information pertains to Galaxy Interiors:
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What is the cash flow to creditors for 2015?
8.
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The Green Corporation has ending inventory of $476,200, and cost of goods sold for the year just ended was $4,028,652.
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a. What is the inventory turnover?
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b. What is the days’ sales in inventory?
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c. How long on average did a unit of inventory sit on the shelf before it was sold?
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9.
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Volbeat Corp. shows the following information on its 2015 income statement: sales = $206,000; costs = $123,000; other expenses = $7,900; depreciation expense = $14,000; interest expense = $13,100; taxes = $16,800; dividends = $10,000. In addition, you’re told that the firm issued $4,600 in new equity during 2015 and redeemed $3,100 in outstanding long-term debt.
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a.
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What is the 2015 operating cash flow?
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b.
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What is the 2015 cash flow to creditors?
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c.
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What is the 2015 cash flow to stockholders?
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d.
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If net fixed assets increased by $22,000 during the year, what was the addition to NWC?
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10. The following information pertains to Galaxy Interiors:
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a. What is the amount of dividends paid for 2015?
11. A firm has sales of $1,150, net income of $219, net fixed assets of $530, and current assets of $286. The firm has $94 in inventory. What is the common-size statement value of inventory?
12. You have gathered this information on JJ Enterprises:
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a. What is the cash flow from assets for 2015?
13. Jupiter Explorers has $10,400 in sales. The profit margin is 4 percent. There are 4,600 shares of stock outstanding. The market price per share is $1.80. What is the price-earnings ratio?
