|Review Problems for Exams -- FINA 6301 – Dr. Park |
Chapters 2 and 3
In 2004, TimeNow Corporation had fixed assets of $1,345, current assets of $260, current liabilities of $180 and shareholders' equity of $775. What was the net working capital for TimeNow in 2004?
During 2004, the Abel Co. had gross sales of $1 million. The firm’s cost of goods sold and selling expenses were $300,000 and $200,000, respectively. These figures do not include depreciation. Abel also had notes payable of $1 million. These notes carried an interest rate of 10 percent. Depreciation was $100,000. Abel’s tax rate in 2004 was 35%. What was Abel’s net income?
In the above question, what was Abel’s operating cash flow?
For the next 7 questions suppose the following data for MBM Co. for 2007 holds: |Sales |45000 | |COGS |25000 | |Depreciation |3000 | |Earnings Before Interest and Taxes (EBIT) |17000 | |Interest |1000 | |Taxable Income |16000 | |Taxes (34%) |5440 | |Net Income |10560 |
| |Beginning |Ending | |Current Assets |6000 |8500 | |Current Liabilities |5500 |6000 | |Net Working Capital |500 |2500 | |Net Fixed Assets |32000 |40000 |
Assume that MBM Co. issued $1000 new debt and paid off no old debt in 2007. It paid $2000 dividends in 2007. It did not repurchase any of its common stock in 2007. [iv].
What is the operating cash flow of the firm for 2007?
What is the change in net working capital of the firm for 2007?
What is the capital spending of the firm for 2007?
What is the cash flows from the firm’s assets for 2007?
What is the cash flow paid to debt-holders in 2007?
What is the cash flow paid to stockholders in 2007?
How much new common stock was issued in 2007?
ABC Corp. had an ROA of 8%. ABC’s profit margin was 4% on sales of $150. What were total assets?
ACD has a profit margin on sales of 4% and ROE of 18%. If ACD’s debt-to-equity ratio is 0.8, what is the total asset turnover ratio?
Dell Inc. has a days in inventory (based on 365 days) of 5. Costs of goods sold were $4,526. Net working capital was $70 and total current assets were $400. What is Dell’s quick ratio? [xiv].
Lory Company stock sells for $28.00 per share. The total market value of the equity is $40 million. The market-to-book ratio is 7. What is the book value per share?
Tan Co. had total operating revenues of $720 over the past year. During that time, average receivables were $90. What was the average collection period (ACP) given a 365-day year?
Microtronic Co. has an average collection period of 91.25 days. Sales are $20,000. What is the average investment in receivables? What is the receivables turnover?
For the next 2 questions suppose the following relationships for the ABC Corporation: |Sales/total assets |2.5x | |Return on assets |10% | |Return on equity |15% |
What is ABC's profit margin?
What is ABC's debt ratio?
What is the future value of $80,000...
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