Activities of a firm which require the spending of cash are known as:
Correct answer(s):
- uses of cash.
Subject
Corporate Finance
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Quizzes in Corporate Finance
During 2009, RIT Corp. had sales of $565,600. Costs of goods sold, administrative and selling expenses, and depreciation expenses were $476,000, $58,800, and $58,800, respectively. In addition, the company had an interest expense of $112,000 and a tax rate of 32 percent. What is the operating cash flow for 2009? Ignore any tax loss carry-back or carry-forward provisions.
Correct answer(s):
- $30,800
Dee Dee’s Marina is obligated to pay its creditors $6,400 today. The firm’s assets have a current market value of $5,900. What is the current market value of the shareholders’ equity?
Correct answer(s):
- $0
Suppose you are given the following information for Bayside Bakery: sales = $30,000; costs = $15,000; addition to retained earnings = $4,221; dividends paid = $469; interest expense = $1,300; tax rate = 30 percent. What is the amount of the depreciation expense?
Correct answer(s):
- $7,000
The 2008 balance sheet of The Sports Store showed $800,000 in the common stock account and $6.7 million in the additional paid-in surplus account. The 2009 balance sheet showed $872,000 and $8 million in the same two accounts, respectively. The company paid out $600,000 in cash dividends during 2009. What is the cash flow to stockholders for 2009?
Correct answer(s):
- -$772,000
The 2008 balance sheet of The Beach Shoppe showed long-term debt of $2.1 million, and the 2009 balance sheet showed long-term debt of $2.3 million. The 2009 income statement showed an interest expense of $250,000. What was the cash flow to creditors for 2009?
Correct answer(s):
- $50,000
The 2008 balance sheet of Global Tours showed current assets of $1,360 and current liabilities of $940. The 2009 balance sheet showed current assets of $1,640 and current liabilities of $1,140. What was the change in net working capital for 2009?
Correct answer(s):
- $80
The Blue Bonnet’s 2008 balance sheet showed net fixed assets of $2.2 million, and the 2009 balance sheet showed net fixed assets of $2.6 million. The company’s income statement showed a depreciation expense of $900,000. What was the amount of the net capital spending for 2009?
Correct answer(s):
- $1,300,000
Webster World has sales of $12,900, costs of $5,800, depreciation expense of $1,100, and interest expense of $700. What is the operating cash flow if the tax rate is 32 percent?
Correct answer(s):
- $5,404
The Widget Co. purchased new machinery three years ago for $4 million. The machinery can be sold to the Roman Co. today for $2 million. The Widget Co.’s current balance sheet shows net fixed assets of $2,500,000, current liabilities of $1,375,000, and net working capital of $725,000. If all the current assets were liquidated today, the company would receive $1.9 million in cash. The book value of the Widget Co.’s assets today is _____ and the market value of those assets is _____.
Correct answer(s):
- $4,600,000; $3,900,000
Beach Front Industries has sales of $546,000, costs of $295,000, depreciation expense of $37,000, interest expense of $15,000, and a tax rate of 32 percent. The firm paid $59,000 in cash dividends. What is the addition to retained earnings?
Correct answer(s):
- $76,320
What is the net capital spending for 2009?
Correct answer(s):
- $239
What is the change in net working capital from 2008 to 2009?
Correct answer(s):
- -$175
What is the cash flow to stockholders for 2009?
Correct answer(s):
- $1,300
What is the amount of dividends paid in 2009?
Correct answer(s):
- $800
What is the cash flow to creditors for 2009?
Correct answer(s):
- $432
What is the amount of net new borrowing for 2009?
Correct answer(s):
- $850
What is the cash flow from assets for 2009?
Correct answer(s):
- $1,732
What is the operating cash flow for 2009?
Correct answer(s):
- $4,267
What is the amount of the net capital spending for 2009?
Correct answer(s):
- $1,229