Finance HW Questions

Which one of the following items is classified as a current asset?

 

Accounts payable

 

Patents

 

Office furniture

 

Inventory

 

Goodwill

inventory

Which one of the following financial reports shows the accounting value of a firm's equity as of a particular date?

 

Creditor's statement

 

Statement of cash flows

 

Balance sheet

 

Dividend statement

 

Income statement

balance sheet

Net working capital is defined as:

 

total liabilities minus shareholders' equity.

 

current assets minus current liabilities.

 

total assets minus total liabilities.

 

fixed assets minus long-term liabilities.

 

current liabilities minus shareholders' equity.

current assets minus current liabilities.

Which one of the following financial reports summarizes a firm's revenue and expenses during a period of time?

 

Tax reconciliation statement

 

Balance sheet

 

Market value report

 

Statement of cash flows

 

Income statement

Income statement

The cash flow that is available for distribution to a corporation's creditors and stockholders is called the:

 

cash flow from assets.

 

net capital spending.

 

operating cash flow.

 

net working capital.

 

earnings before interest and taxes.

cash flow from assets.

The cash flow defined as interest payments less any net new borrowing is called the:

 

net working capital.

 

capital spending cash flow.

 

cash flow from assets.

 

cash flow to creditors.

 

operating cash flow.

 

cash flow to creditors.

At the beginning of the year, long-term debt of a firm is $306 and total debt is $338. At the end of the year, long-term debt is $268 and total debt is $348. The interest paid is $34. What is the amount of the cash flow to creditors?

 

$34

 

−$38

 

−$72

 

$38

 

$72

$72

Peggy Grey's Cookies has net income of $470. The firm pays out 37 percent of the net income to its shareholders as dividends. During the year, the company sold $92 worth of common stock. What is the cash flow to stockholders?

 

$139.86

 

$296.10

 

$81.90

 

$173.90

 

$265.90

$81.90

Your firm has net income of $371 on total sales of $1,340. Costs are $740 and depreciation is $130. The tax rate is 21 percent. The firm does not have interest expenses. What is the operating cash flow?

 

$600

 

$470

 

$841

 

$371

 

$501

$501

Teddy's Pillows had beginning net fixed assets of $473 and ending net fixed assets of $554. Assets valued at $321 were sold during the year. Depreciation was $46. What is the amount of net capital spending?

 

$448

 

$81

 

$127

 

$279

 

$35

$127