In: Finance
A corporation's year-end 2015 balance sheet lists cash of
$36,400, accounts receivable of $98,700, inventory of $156,900,
fixed assets of $853,000, current liabilities of $218,000, and
long-term debt of $465,000. What is the amount of the corporation’s
total stockholders' equity at year-end 2015? A. less than $465,000
but more than $440,000
B. less than $490,000 but more than $465,000
C. less than $515,000 but more than $490,000
D. less than $540,000 but more than $515,000
E. more than $540,000
Which of the following is a source of cash? A. The firm buys
fixed assets. B. The firm increases inventories.
C. The firm decreases its accrued wages and taxes.
D. The firm issues bonds and other long-term liabilities.
E. Both B and C are sources of cash.
If operating profit was $892,600, interest expense was $96,400,
taxes were $219,700, depreciation was $285,000, and cost of goods
sold was $798,300, what was net income if sales were
$2,365,400?
A. less than $535,000 but more than $490,000
B. less than $580,000 but more than $535,000
C. less than $625,000 but more than $580,000
D. less than $670,000 but more than $625,000
E. more than $670,000
The 2015 income statement for Bertha’s Baskets, Inc.'s lists the
following income and expenses: Cost of goods sold (COGS) =
$825,000, operating and administrative expense = $175,000,
depreciation = $135,000 and earnings before taxes and interest
(EBIT) = $580,000. What is the amount of 2015 sales revenue for
Bertha’s Baskets, Inc.? A. $1,715,000
B. $1,600,000
C. $1,405,000
D. $1,235,000
E. less than $1,235,000
1) A. less than $465,000 but more than $440,000
total stockholders' equity at year-end 2015 :
Total Assets= total liabilities + total stockholder's equity
[$36,400 + $98,700 + $156,900+ $853,000] = [$218,000+$465,000] + total stockholder's equity
1145000 =683000 + total stockholder's equity
total stockholder's equity = $462000
2) D. The firm issues bonds and other long-term liabilities. , acquisition of new debt will bring cash into business. Other examples of buying of fixed assets , increasing inventories ,decreasing its accrued wages and taxes are use of cash
3) B. less than $580,000 but more than $535,000
sale | 2,365,400 |
less: cost of goods sold | 798,300 |
gross margin | 1567100 |
less: Depreciation | 285,000 |
less: operating expense | 389500 |
operating profit | 892,600 |
less:interest expense | 96,400 |
Earning before tax | 796200 |
less:taxes | 219,700 |
Net income | 576500 |
4) A. $1,715,000
sales | $1715000 |
less:Cost of goods sold | 825,000 |
Gross profit | $890000 |
less:depreciation | 135000 |
less:operating and administrative expense | 175,000 |
Earnings before taxes and interest (EBIT) | 580,000 |