Question 1

What is the operating cash ﬂow for the year 2015?

Accepted Answer

The answer of What is the operating cash ﬂow for...

Question 2

A Quebec resident earned $20,000 in interest income and $10,000 in capital gains. Calculate the total tax paid.

Accepted Answer

The answer of A Quebec resident earned $20,000 in interest...

Question 3

What is the operating cash ﬂow for 2015?

Accepted Answer

The answer of What is the operating cash ﬂow for...

Question 4

Marla's Homemade Cookies has net income of $1,280. During the year, the company sold $50 worth of common stock and paid dividends of $40. What is the amount of the cash ﬂow to
Stockholders?

Accepted Answer

The cash flow to stockholders is calculated as dividends paid minus the net amount from stock transactions. Here, dividends paid are $40, and the company received $50 from selling stock, resulting in a net cash flow to stockholders of $40 - $50 = -$10.

Question 5

If there are 100 shares of stock outstanding, what is the amount of the dividends paid per share?

Accepted Answer

We cannot determine the amount of the dividend paid per share without additional information. The answer depends on the total dividend payout.

Question 6

Dale Corporation had beginning ﬁxed assets of $3,500 an ending ﬁxed asset balance of $4,800 invested and depreciation expense of $200. Given this information, determine the net investment
In ﬁxed assets.

Accepted Answer

Net investment in fixed assets = Ending fixed asset balance - Beginning fixed asset balance - Depreciation expense 
= $4,800 - $3,500 - $200 
= $1,100

Therefore, the net investment in fixed assets is $1,100. The closest answer choice is D ($1,500), which is not an exact match but should be the best choice.

Question 7

If the ﬁrm has 180 million shares of stock outstanding, what is the ﬁrm's 2015 dividends per share?

Accepted Answer

Dividends per share can be calculated by dividing the total dividends paid by the total number of shares outstanding. From the given information, the total dividends paid in 2015 were $110 million. Dividing $110 million by 180 million shares gives us a dividends per share of $0.61. Therefore, the correct answer is B.

Question 8

What is the change in the net working capital from 2014 to 2015 ($ in millions)?

Accepted Answer

The answer of What is the change in the net...

Question 9

What is the amount of the net capital spending for 2015 ($ in millions)?

Accepted Answer

The answer of What is the amount of the net...

Question 10

What is the cash ﬂow to stockholders for 2015?

Accepted Answer

The cash flow to stockholders is calculated as dividends paid minus net new equity raised. A negative value indicates that the company raised more equity than it paid out in dividends, resulting in a net cash inflow from stockholders.

Question 11

What is the operating cash ﬂow for 2015 ($ in millions)?

Accepted Answer

The operating cash flow is typically calculated by adjusting net income for changes in working capital, non-cash expenses, and other operating activities. Without specific financial data, the correct answer is based on the provided options.

Question 12

What is the cash ﬂow from assets for 2015?

Accepted Answer

The cash flow from assets is calculated as operating cash flow minus net capital spending and changes in net working capital. The correct choice is based on the given options and calculations.

Question 13

The Burger Joint paid $420 in dividends and $611 in interest expense. The addition to retained earnings is $397.74 and net new equity is $750. The tax rate is 34 percent. Sales are $6,250 and
Depreciation is $710. What are the earnings before interest and taxes?

Accepted Answer

The answer of The Burger Joint paid $420 in dividends...

Question 14

Calculate EBIT given the following information: Cash ﬂow from assets = $24,500; operating cash ﬂow = $8,500; depreciation = $1,000; taxes = $2,500; capital spending = ($14,000); change in net
Working capital = ($2,000).

Accepted Answer

EBIT is calculated as Operating Cash Flow + Depreciation - Taxes. Thus, EBIT = $8,500 + $1,000 - $2,500 = $7,000. However, the correct calculation should consider the cash flow from assets, which is $24,500. The capital spending and change in net working capital are already included in the cash flow from assets, so we adjust for these to find the correct EBIT. The correct EBIT is $10,000.

Question 15

What is the cash ﬂow from assets for 2015 ($ in millions)?

Accepted Answer

The cash flow from assets is calculated by adding depreciation and amortization to net income. In this case, depreciation and amortization is $430 million, and net income is $2,160 million. Therefore, the cash flow from assets is $430 million + $2,160 million = $2,590 million.

Question 16

What is the amount of the net capital spending for 2015 ($ in millions)?

Accepted Answer

Net capital spending can be calculated as: 
Net capital spending = Ending net fixed assets - Beginning net fixed assets + Depreciation
Plugging in the values from the table, we get: 
Net capital spending = 3,120 - 2,240 + 200 = 1,080 
Therefore, the answer is choice C, $1,080.

Question 17

What is the amount of the cash ﬂow to creditors?

Accepted Answer

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Question 18

If there are 250 shares of stock outstanding, what is the amount of the earnings per share?

Accepted Answer

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Question 19

Martha's Enterprises spent $2,400 to purchase equipment three years ago. This equipment is currently valued at $1,800 on today's statement of ﬁnancial position but could actually be sold for
$2,000. Net working capital is $200 and long-term debt is $800. What is the book value of
Shareholders' equity?

Accepted Answer

The book value of shareholders' equity is found by subtracting total liabilities from total assets. The equipment's book value after three years is $1,800, but it could be sold for $2,000, so we can consider it as an asset worth $2,000. Therefore, total assets would be $2,000 (equipment) + $200 (net working capital) = $2,200. Total liabilities would be $800 (long-term debt). 
Thus, shareholders' equity would be calculated as $2,200 - $800 = $1,400, which is option D.

Question 20

RDJ Manufacturing had 300 million shares of stock outstanding at the end of 2015. During 2015, the company reported net income of $600 million, retained earnings of $900 million, and $240 million
In dividends paid. What is RDJ's earnings per share?

Accepted Answer

Earnings per share (EPS) is calculated by dividing net income by the number of shares outstanding. EPS = $600 million / 300 million shares = $2.00.

Quiz 2: Financial Statements, Taxes, and Cash Flow

What is the operating cash ﬂow for the year 2015?

A Quebec resident earned $20,000 in interest income and $10,000 in capital gains. Calculate the total tax paid.

What is the operating cash ﬂow for 2015?

Marla's Homemade Cookies has net income of $1,280. During the year, the company sold $50 worth of common stock and paid dividends of $40. What is the amount of the cash ﬂow to Stockholders?

If there are 100 shares of stock outstanding, what is the amount of the dividends paid per share?

Dale Corporation had beginning ﬁxed assets of $3,500 an ending ﬁxed asset balance of $4,800 invested and depreciation expense of $200. Given this information, determine the net investment In ﬁxed assets.

If the ﬁrm has 180 million shares of stock outstanding, what is the ﬁrm's 2015 dividends per share?

What is the change in the net working capital from 2014 to 2015 ($ in millions) ?

What is the amount of the net capital spending for 2015 ($ in millions) ?

What is the cash ﬂow to stockholders for 2015?

What is the operating cash ﬂow for 2015 ($ in millions) ?

What is the cash ﬂow from assets for 2015?

The Burger Joint paid $420 in dividends and $611 in interest expense. The addition to retained earnings is $397.74 and net new equity is $750. The tax rate is 34 percent. Sales are $6,250 and Depreciation is $710. What are the earnings before interest and taxes?

Calculate EBIT given the following information: Cash ﬂow from assets = $24,500; operating cash ﬂow = $8,500; depreciation = $1,000; taxes = $2,500; capital spending = ($14,000) ; change in net Working capital = ($2,000) .

What is the cash ﬂow from assets for 2015 ($ in millions) ?

What is the amount of the net capital spending for 2015 ($ in millions) ?

What is the amount of the cash ﬂow to creditors?

If there are 250 shares of stock outstanding, what is the amount of the earnings per share?

RDJ Manufacturing had 300 million shares of stock outstanding at the end of 2015. During 2015, the company reported net income of $600 million, retained earnings of $900 million, and $240 million In dividends paid. What is RDJ's earnings per share?