Wednesday, November 13, 2019

Beach Front Industries has sales of $546,000, costs of $295,000, depreciation expense of $37,000, interest expense of $15,000


   

   

What is the amount of the net capital spending for 2011? 
 
A. 
-$382

B. 
$1,229

C. 
$1,804

D. 
$2,375

E. 
$2,516
Net capital spending = $17,107 - $17,489 + $1,611 = $1,229



69.
   

   

What is the operating cash flow for 2011? 
 
A. 
$2,114

B. 
$2,900

C. 
$2,985

D. 
$3,536

E. 
$4,267
Operating cash flow = $3,396 + $1,611 - $740 = $4,267



70.
   

   

What is the cash flow from assets for 2011? 
 
A. 
$1,732

B. 
$2,247

C. 
$2,961

D. 
$3,915

E. 
$4,267
Change in net working capital = ($4,771 - $1,532) - ($6,127 - $4,194) = $1,306
Net capital spending = $17,107 - $17,489 + $1,611 = $1,229
Operating cash flow = $3,396 + $1,611 - $740 = $4,267
Cash flow from assets = $4,267 - $1,229 - $1,306 = $1,732



71.
   

   

What is the amount of net new borrowing for 2011? 
 
A. 
-$1,812

B. 
$-1,738

C. 
$240

D. 
$662

E. 
$850
Net new borrowing = $10,650 - $9,800 = $850



72.
   

   

What is the cash flow to creditors for 2011? 
 
A. 
-$353

B. 
-$210

C. 
$300

D. 
$432

E. 
$527
Cash flow to creditors = $1,282 - ($10,650 - $9,800) = $432



73.
   

   

What is the amount of dividends paid in 2011? 
 
A. 
$0

B. 
$574

C. 
$800

D. 
$2,013

E. 
$2,174
Dividends paid = $1,374 - ($2,696 - $2,122) = $800



74.
   

   

What is the cash flow to stockholders for 2011? 
 
A. 
-$500

B. 
-$800

C. 
$500

D. 
$1,300

E. 
$2,100
Cash flow to stockholders = [$1,374 - ($2,696 - $2,122)] - ($7,000 - $7,500) = $1,300



75.
   

What is the net working capital for 2011? 
 
A. 
-$175

B. 
$338

C. 
$1,262

D. 
$1,945

E. 
$4,941
Net working capital = $313 + $1,162 + $1,521 - $1,051 = $1,945



76.
   

What is the change in net working capital from 2010 to 2011? 
 
A. 
-$175

B. 
-$70

C. 
$125

D. 
$240

E. 
$315
Change in net working capital = ($313 + $1,162 + $1,521 - $1,051) - ($250 + $1,092 + $1,495 - $717) = -$175



77.
   

What is the net capital spending for 2011? 
 
A. 
$117

B. 
$239

C. 
$257

D. 
$338

E. 
$421
Net capital spending = $4,123 - $4,006 + $122 = $239



78.
   

What is the operating cash flow for 2011? 
 
A. 
$1,226

B. 
$1,367

C. 
$1,644

D. 
$1,766

E. 
$1,823
Operating cash flow = ($6,423 - $4,109 - $122) + $122 - $670 = $1,644



79.
   

What is the cash flow from assets for 2011? 
 
A. 
$1,230

B. 
$1,580

C. 
$1,770

D. 
$1,810

E. 
$1,980
Operating cash flow = ($6,423 - $4,109 - $122) + $122 - $670 = $1,644
Net capital spending = $4,123 - $4,006 + $122 = $239
Change in net working capital = ($313 + $1,162 + $1,521 - $1,051) - ($250 + $1,092 + $1,495 - $717) = -$175
Cash flow from assets = $1,644 - $239 - (-$175) = $1,580



80.
   

What is net new borrowing for 2011? 
 
A. 
-$1,300

B. 
-$1,020

C. 
$880

D. 
$1,020

E. 
$1,300
Net new borrowing = $1,100 - $2,400 = -$1,300



81.
   

What is the cash flow to creditors for 2011? 
 
A. 
-$1,020

B. 
-$1,100

C. 
$280

D. 
$1,580

E. 
$1,760
Net new borrowing = $1,100 - $2,400= -$1,300
Cash flow to creditors = 280 - (-$1,300) = $1,580



82.
   

What is the cash flow to stockholders for 2011? 
 
A. 
$0

B. 
$133

C. 
$268

D. 
$1,709

E. 
$1,515
Operating cash flow = ($6,423 - $4,109 - $122) + $122 - $670 = $1,644
Net capital spending = $4,123 - $4,006 + $122 = $239
Change in net working capital = ($313 + $1,162 + $1,521 - $1,051) - ($250 + $1,092 + $1,495 - $717) = -$175
Cash flow from assets = $1,644 - $239 - (-$175) = $1,580
Net new borrowing = $1,100 - $2,400= -$1,300
Cash flow to creditors = 280 - (-$1,300) = $1,580
Cash flow to stockholders = $1,580 - $1,580 = $0



83.
   

What is the taxable income for 2011? 
 
A. 
$1,051.00

B. 
$1,367.78

C. 
$1,592.42

D. 
$2,776.41

E. 
$3,091.18
Net income = $420 + $631 = $1,051
Taxable income = $1,051/(1 - .34) = $1,592.42



 

84.
   

What is the operating cash flow for 2011? 
 
A. 
$2,078.00

B. 
$2,122.42

C. 
$2,462.58

D. 
$2,662.00

E. 
$2,741.42
Net income = $420 + $631 = $1,051
Taxable income = $1,051/(1 - .34) = $1,592.42
Earnings before interest and taxes = $1,592.42 + $238 = $1,830.42
Operating cash flow = $1,830.42 + $789 - .34($1,592.42) = $2,078.00


85.
Beach Front Industries has sales of $546,000, costs of $295,000, depreciation expense of $37,000, interest expense of $15,000, and a tax rate of 32 percent. The firm paid $59,000 in cash dividends. What is the addition to retained earnings? 
 
A. 
$76,320

B. 
$81,700

C. 
$95,200

D. 
$103,460

E. 
$121,680
Net income = ($546,000 - $295,000 - $37,000 - $15,000) (1 - .32) = $135,320
Addition to retained earnings = $135,320 - $59,000 = $76,320

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