Question 1

What is the cash flow of the firm for 2011?
A) $430
B) $485
C) $1,340
D) $2,590
E) $3,100

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Question 2

What is the cash flow to creditors for 2011?
A) -$405
B) -$225
C) $225
D) $405
E) $630

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Question 3

Pete's Boats has beginning long-term debt of $180 and ending long-term debt of $210. The beginning and ending total debt balances are $340 and $360,respectively. The interest paid is $20. What is the amount of the cash flow to creditors?
A) -$10
B) $0
C) $10
D) $40
E) $50

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Question 4

Thompson's Jet Skis has operating cash flow of $218. Depreciation is $45 and interest paid is $35. A net total of $69 was paid on long-term debt. The firm spent $180 on fixed assets and increased net working capital by $38. What is the amount of the cash flow to stockholders?
A) -$104
B) -$28
C) $28
D) $114
E) $142

Accepted Answer

The cash flow to stockholders is calculated as the operating cash flow minus the capital expenditures, plus the net change in debt, plus the net change in working capital. In this case, the operating cash flow is $218, the capital expenditures are $180, the net change in debt is -$69, and the net change in working capital is $38. Therefore, the cash flow to stockholders is $218 - $180 - $69 + $38 = -$104.

Question 5

Peggy Grey's Cookies has net income of $360. The firm pays out 40% of the net income to its shareholders as dividends. During the year,the company sold $80 worth of common stock. What is the cash flow to stockholders?
A) $64
B) $136
C) $144
D) $224
E) $296

Accepted Answer

The cash flow to stockholders is the sum of dividends paid and the net proceeds from the sale of common stock. Dividends paid are 40% of net income, which is $360 * 0.40 = $144. The net proceeds from the sale of common stock are $80. Therefore, the cash flow to stockholders is $144 + $80 = $224.

Question 6

What is the amount of the non-cash expenses for 2011?
A) $570
B) $630
C) $845
D) $1,370
E) $2,000

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Question 7

What is net new borrowing for 2011?
A) -$70
B) -$35
C) $35
D) $70
E) $105

Accepted Answer

Net new borrowing is calculated as the change in long-term debt from one year to the next, plus any new long-term debt issued. In this case, the long-term debt increased from $1,915 in 2010 to $1,985 in 2011, which is a change of $70. Since there was no new long-term debt issued, net new borrowing for 2011 is $70. Thus, the correct answer is D, $70.

Question 8

What is the net working capital for 2011?
A) $345
B) $405
C) $805
D) $812
E) $1,005

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Question 9

At the beginning of the year,long-term debt of a firm is $310 and total debt is $350. At the end of the year,long-term debt is $280 and total debt is $370. The interest paid is $50. What is the amount of the cash flow to creditors?
A) -$30
B) $0
C) $20
D) $30
E) $80

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Question 10

What is the operating cash flow for 2011?
A) $845
B) $1,930
C) $2,215
D) $2,845
E) $3,060

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Question 11

What is the amount of net new borrowing for 2011?
A) -$225
B) -$25
C) $0
D) $25
E) $225

Accepted Answer

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Question 12

What is the operating cash flow for 2011?
A) $143
B) $297
C) $325
D) $353
E) $367

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Question 13

At the beginning of the year,a firm has current assets of $420 and current liabilities of $380. At the end of the year,the current assets are $500 and the current liabilities are $410. What is the change in net working capital?
A) -$80
B) -$50
C) $0
D) $50
E) $80

Accepted Answer

Net working capital is calculated as current assets minus current liabilities. 
At the beginning of the year, net working capital is 420 - 380 = $40. 
At the end of the year, net working capital is 500 - 410 = $90. 
Therefore, the change in net working capital is 90 - 40 = $50 increase. 
The correct answer is D) $50.

Question 14

What is the amount of the net capital spending for 2011?
A) -$290
B) $795
C) $1,080
D) $1,660
E) $2,165

Accepted Answer

We need to find the net capital spending, which is calculated as follows:
Net capital spending = Ending net fixed assets - Beginning net fixed assets + Depreciation
For 2011,
Beginning net fixed assets = $4,410
Ending net fixed assets = $5,490
Depreciation = $1,500
Therefore, net capital spending = $5,490 - $4,410 + $1,500 = $1,080
Hence, the correct answer is option C.

Question 15

What is the change in the net working capital from 2010 to 2011?
A) $1,235
B) $1,035
C) $1,335
D) $3,405
E) $4,740

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Question 16

What is net capital spending for 2011?
A) -$250
B) -$57
C) $0
D) $57
E) $477

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Question 17

What is the cash flow to stockholders for 2011?
A) $408
B) $417
C) $452
D) $482
E) $503

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Question 18

What is the cash flow to creditors for 2011?
A) -$170
B) -$35
C) $135
D) $170
E) $205

Accepted Answer

To calculate cash flow to creditors, we need to subtract the increase in long-term debt from the operating cash flow.

Cash flow to creditors = Operating cash flow - Increase in long-term debt

From the statement, we know that operating cash flow for 2011 is $165 and the increase in long-term debt is $200.

So, cash flow to creditors = $165 - $200 = -$35

Therefore, the correct answer is B.

Question 19

What is the change in net working capital from 2010 to 2011?
A) -$93
B) -$7
C) $7
D) $85
E) $97

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Question 20

What is the cash flow of the firm for 2011?
A) $50
B) $247
C) $297
D) $447
E) $517

Accepted Answer

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Quiz 2: Financial Statements and Cash Flow

What is the cash flow of the firm for 2011?

What is the cash flow to creditors for 2011?

Pete's Boats has beginning long-term debt of $180 and ending long-term debt of $210. The beginning and ending total debt balances are $340 and $360,respectively. The interest paid is $20. What is the amount of the cash flow to creditors?

Thompson's Jet Skis has operating cash flow of $218. Depreciation is $45 and interest paid is $35. A net total of $69 was paid on long-term debt. The firm spent $180 on fixed assets and increased net working capital by $38. What is the amount of the cash flow to stockholders?

Peggy Grey's Cookies has net income of $360. The firm pays out 40% of the net income to its shareholders as dividends. During the year,the company sold $80 worth of common stock. What is the cash flow to stockholders?

What is the amount of the non-cash expenses for 2011?

What is net new borrowing for 2011?

What is the net working capital for 2011?

At the beginning of the year,long-term debt of a firm is $310 and total debt is $350. At the end of the year,long-term debt is $280 and total debt is $370. The interest paid is $50. What is the amount of the cash flow to creditors?

What is the operating cash flow for 2011?

What is the amount of net new borrowing for 2011?

What is the operating cash flow for 2011?

At the beginning of the year,a firm has current assets of $420 and current liabilities of $380. At the end of the year,the current assets are $500 and the current liabilities are $410. What is the change in net working capital?

What is the amount of the net capital spending for 2011?

What is the change in the net working capital from 2010 to 2011?

What is net capital spending for 2011?

What is the cash flow to stockholders for 2011?

What is the cash flow to creditors for 2011?

What is the change in net working capital from 2010 to 2011?

What is the cash flow of the firm for 2011?