quiz 2-2 homework

Question 1 1
out of 1 elements

You should have been given the subsequent data for Corky’s
Bedding Corp.: Web product sales = $15,250,000;

Worth of merchandise purchased = $5,750,000;

Addition to retained earnings = $4,000,000;

Dividends paid to hottest and customary stockholders =
$995,000; Curiosity expense = $1,150,000.

The company’s tax value is 30 p.c. Calculate the
depreciation expense for Corky’s Bedding Corp.

Question 2

zero out of 1 elements

ABC Inc. has $100 in cash on its steadiness on the end of 2009.
All through 2010, the company issued $ 450 in widespread stock, lowered its notes payable
by $40, purchased mounted belongings inside the amount of $750 and had cash flows from
working actions of $315. How so much cash did ABC Inc. have on its steadiness
sheet on the end of 2010?

Question three

1 out of 1 elements

Firm Taxes Scuba, Inc. is anxious in regards to the taxes
paid by the company in 2010. Together with $5 million of taxable income, the
company acquired $80,000 of curiosity on state-issued bonds and $500,000 of
dividends on widespread stock it owns in Boating Adventures, Inc. What’s Scuba’s
tax obligation, widespread tax value, and marginal tax value, respectively?

Question 4

zero out of 1 elements

Stability Sheet School Books, Inc. has entire belongings of $18
million of which $6 million are current belongings. Cash makes up 10 p.c of the
current belongings and accounts receivable makes up one different 40 p.c of current
belongings. School Books’ gross plant and instruments has an distinctive value of $13
million and completely different long-term belongings have a value price of $2 million. Using this
data, what are the stability of inventory and the stability of depreciation
on School Books’ steadiness sheet?

Question 5

zero out of 1 elements

Firm Taxes Suppose that together with the $5.5 million
of taxable income from operations, Emily’s Flowers, Inc. acquired $500,000 of
curiosity on state-issued bonds and $300,000 of dividends on widespread stock it
owns in Amy’s Iris Bulbs, Inc.

Question 6

zero out of 1 elements

Assertion of Cash Flows Zoe’s Canine Biscuits, Inc. has net
cash flows from working actions for the ultimate 12 months of $226 million. The
income assertion reveals that net income is $150 million and depreciation expense
is $85 million. By means of the 12 months, the change in inventory on the stability sheet
was an increase of $14 million, change in accrued wages and taxes was an
improve of $15 million and alter in accounts payable was an increase of $ 10
million. At the beginning of the 12 months the stability of accounts receivable was
$45 million. What was the tip of 12 months steadiness for accounts receivable?

Question 7

1 out of 1 elements

Which of the subsequent statements is correct?

Question eight

All the next may very well be a outcomes of altering to the
MACRS methodology of depreciation in addition to _______.

Question 9

zero out of 1 elements

Market Price versus E-book Price Glo’s Glasses steadiness sheet
lists net mounted belongings as $20 million. The mounted belongings could in the meanwhile be purchased
for $25 million. Glo’s current steadiness sheet reveals current liabilities of $7
million and net working capital of $three million. If all the current accounts have been
liquidated within the current day, the company would receive $ 9 million cash after paying $7
million in liabilities. What is the e-book price of Glo’s belongings within the current day? What’s
the market price of these belongings?

Question 10

zero out of 1 elements

Debt versus Equity Financing You may be considering a stock
funding in thought-about certainly one of two companies (AllDebt, Inc. and AllEquity, Inc.), every of
which perform within the equivalent commerce and have equal working income of $three
million. AllDebt, Inc. funds its $6 million in belongings with $ 5 million in
debt (on which it pays 5 p.c curiosity yearly) and $ 1 million in equity.
AllEquity, Inc. funds its $6 million in belongings with no debt and $6 million
in equity. Every companies pay a tax value of 40 p.c on their taxable income.
What are the asset funders’ (the debt holders and stockholders’) ensuing
return on belongings for the two companies?

Question 11

zero out of 1 elements

Firm Taxes The AOK Firm had a 2008 taxable
income of $2,200,000 from operations in any case working costs nonetheless sooner than

(1) curiosity
prices of $90,000,

(2) dividends
acquired of $750,000,

(three) dividends
paid of $80,000, and

(4) income
taxes.

Using the tax schedule in Desk 2.three, what’s AOK’s income
tax obligation?

What are AOK’s widespread and marginal tax expenses on taxable
income from operations?

Question 12

1 out of 1 elements

Income Assertion You should have been given the subsequent
data for Halle’s Trip Retailer Corp. for the 12 months 2008:

net product sales = $50,000,000;

value of merchandise purchased = $35,000,000; addition to retained
earnings = $2,000,000;

dividends paid to hottest and customary stockholders =
$three,000,000; curiosity expense = $three,000,000.

The company’s tax value is 30 p.c.

In 2009, net product sales are anticipated to increase by $ 5 million,
value of merchandise purchased is predicted to be 65 p.c of net product sales, expensed
depreciation is predicted to be the equivalent as in 2008, curiosity expense is
anticipated to be $2,500,000,

the tax value is predicted to be 30 p.c of EBT, and

dividends paid to hottest and customary stockholders isn’t going to
change. What is the addition to retained earnings anticipated in 2009?

Question 13 zero
out of 1 elements

Which of the subsequent is an occasion of a capital building?

Question 14

1 out of 1 elements

Free Cash Flow into The 2010 income assertion for Betty’s
Barstools reveals that depreciation expense is $100 million, EBIT is $ 400
million, and taxes are $ 120 million. On the end of the 12 months, the stability of
gross mounted belongings was $510 million. The rise in net working working
capital by means of the 12 months was $94 million.

Betty’s free cash circulation for the 12 months was $625 million. What
was the beginning of 12 months steadiness for gross mounted belongings?

Question 15

1 out of 1 elements

Which financial assertion reveals the complete revenues
company earns and the complete payments the company incurs to generate these revenues
over a selected interval of time—often one 12 months?
? OK