FIN/571 FIN571 FIN 571 Week 2 Connect Problems

FIN/571 FIN571 FIN 571 Week 2 Connect Problems

FIN 571 Week 2 Connect Problems

Complete the Week 2 Connect Problems.
1.

The cash flow resulting from a firm's ongoing, normal business activities is referred to as the:

Which one of these is a correct definition?

.
3.

If a firm is currently profitable, then:

It is easier to evaluate a firm using its financial statements when the firm:

When you are making a financial decision, the most relevant tax rate is the ____ rate.

Sankey, Inc., has current assets of $5,400, net fixed assets of $23,700, current liabilities of $4,700, and long-term debt of $11,500. (Do not round intermediate calculations.)

What is the value of the shareholders' equity account for this firm?

Shareholders' equity $

How much is net working capital?

Net working capital $

Shelton, Inc., has sales of $394,000, costs of $182,000, depreciation expense of $47,000, interest expense of $28,000, and a tax rate of 30 percent. (Do not round intermediate calculations.)

What is the net income for the firm?

Net income $

Suppose the company paid out $37,000 in cash dividends. What is the addition to retained earnings?

Addition to retained earnings $

During the year, the Senbet Discount Tire Company had gross sales of $1.19 million. The firm- cost of goods sold and selling expenses were $538,000 and $228,000, respectively. The firm also had notes payable of $930,000. These notes carried an interest rate of 7 percent. Depreciation was $143,000. The firm- tax rate was 40 percent.

a. What was the firm- net income? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to the nearest whole number, e.g., 32.)

Net income $

b. What was the firm- operating cash flow? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to the nearest whole number, e.g., 32.)

Operating cash flow $

Use the following information for Ingersoll, Inc., (assume the tax rate is 34 percent):

2014 2015
Sales $ 9,835 $ 10,409
Depreciation 1,325 1,326
Cost of goods sold 2,896 3,260
Other expenses 839 734
Interest 725 803
Cash 4,309 5,403
Accounts receivable 5,639 6,327
Short-term notes payable 994 946
Long-term debt 15,560 18,050
Net fixed assets 36,455 37,857
Accounts payable 4,716 4,385
Inventory 9,870 10,138
Dividends 1,156 1,251
________________________________________

Prepare an income statement for this company for 2014 and 2015. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)

10.

Ratios that measure how efficiently a firm's management uses its assets and equity to generate bottom line net income are known as _______ ratios.

11.

Ratios that measure a firm's ability to pay its bills over the short run without undue stress are known as:

12.

A firm has a total debt ratio of .47. This means the firm has 47 cents in debt for every:

13.

A firm has total debt of $1,440 and a debt-equity ratio of .31. What is the value of the total assets?

14.

The total asset turnover ratio measures the amount of:

15.

The higher the inventory turnover, the:

16.

The receivables turnover ratio is measured as:

17.

Which one of the following sets of ratios would generally be of the most interest to stockholders?

18.

The inventory turnover ratio is measured as:

19.
The quick ratio is measured as:

20.
Al's Sport Store has sales of $3,160, costs of goods sold of $2,020, inventory of $524, and accounts receivable of $401. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit?

21.

Which statement expresses all accounts as a percentage of total assets?
pro forma income statement

22.
Jessica's Boutique has cash of $59, accounts receivable of $62, accounts payable of $190, and inventory of $150. What is the value of the quick ratio?

23.

Galaxy United, Inc.
2009 Income Statement
($ in millions)
Net sales $8,450
Less: Cost of goods sold 7,210
Less: Depreciation 410
Earnings before interest and taxes 830
Less: Interest paid 85
Taxable Income 745
Less: Taxes 261
Net income $ 484

Galaxy United, Inc.
2008 and 2009 Balance Sheets
($ in millions)
2008 2009 2008 2009
Cash $ 110 $ 160 Accounts payable $1,110 $1,140
Accounts rec. 940 780 Long-term debt 1,020 1,327
Inventory 1,480 1,510 Common stock $3,130 $2,930
Sub-total $2,530 $2,450 Retained earnings 510 693
Net fixed assets 3,240 3,640
Total assets $5,770 $6,090 Total liab. & equity $5,770 $6,090

What is the return on equity for 2009?
rev: 01_14_2016_QC_CS-37830

24.
If Wilkinson, Inc., has an equity multiplier of 1.48, total asset turnover of 1.8, and a profit margin of 5.8 percent, what is its ROE? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

ROE %

25.

The financial ratio measured as net income divided by sales is known as the firm's:

26.
The financial ratio that measures the accounting profit per dollar of book equity is referred to as the:

27.
Puffy's Pastries generates five cents of net income for every $1 in equity. Thus, Puffy's has _______ of 5 percent.

28.
If stockholders want to know how much profit the firm is making on their entire investment in that firm, the stockholders should refer to the:

29.
The most effective method of directly evaluating the financial performance of a firm is to compare the financial ratios of the firm to:

30.
Which one of these equations is an accurate expression of the balance sheet?

31.
The financial statement summarizing a firm's accounting performance over a period of time is the:

Answered

Other / Other

08 Sep 2016

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