FIN 300 Study Guide - Midterm Guide: Financial Statement, Accounts Payable, Current Liability

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brownwhale811

11 Apr 2017

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Capital markets: financial markets where long-term debt and equity securities are bought and sold. Money markets: financial markets where short-term debt securities are bought and sold. Cash flow from assets: the total of cash flow to bondholders and cash flow to shareholders, consisting of: operating cash flow, capital spending, and additions to net working capital. Half-year rule: cra"s requirement to figure cca on only one-half of an asset"s installed cost for its first year of use. Operating cash flow: cash generated from a firm"s normal business activities. Statement of financial position: financial statement showing a firm"s accounting value on a particular date. Non-cash items: expenses charged against revenues that do not directly affect cash flow, such as depreciation. Statement of comprehensive income: financial statement summarizing a firm"s performance over a period of time. Capital cost allowance (cca): depreciation for tax purposes, not necessarily the same as depreciation under.

Related Questions

Zigs Industries had the following operating results for 2011: sales = $30,780; cost of goods sold = $20,110; depreciation expense = $5,540; interest expense = $2,940; dividends paid = $1,800. At the beginning of the year, net fixed assets were $17,390, current assets were $5,930, and current liabilities were $3,500. At the end of the year, net fixed assets were $21,010, current assets were $7,390, and current liabilities were $4,060. The tax rate for 2011 was 30 percent.

a.	What is net income for 2011?

Net income

b.	What is the operating cash flow for 2011?

Operating cash flow

c.	What is the cash flow from assets for 2011? (Negative amount should be indicated by a minus sign.)

Cash flow from assets

d-1

If no new debt was issued during the year, what is the cash flow to creditors?

Cash flow to creditors

d-2

If no new debt was issued during the year, what is the cash flow to stockholders? (Negative amount should be indicated by a minus sign.)

Cash flow to stockholders

carminesalmon837

Dennis Co. shows the following information on its 2016 incomestatement: sales = $157,000; costs = $81,100; other expenses =$4,400; depreciation expense = $10,100; interest expense = $7,600;taxes = $18,830; dividends = $7,600. In addition, you're told thatthe firm issued $3,400 in new equity during 2016 and redeemed$5,500 in outstanding long-term debt.

a. What is the 2016 operating cash flow?(Do not round intermediate calculations and round youranswer to the nearest whole number, e.g., 32.)

Operating cash flow $

b. What is the 2016 cash flow to creditors?(Do not round intermediate calculations and round youranswer to the nearest whole number, e.g., 32.)

Cash flow to creditors $

c. What is the 2016 cash flow to stockholders?(Do not round intermediate calculations and round youranswer to the nearest whole number, e.g., 32.)

Cash flow to stockholders $

d. If net fixed assets increased by $20,650 duringthe year, what was the addition to NWC? (Do not roundintermediate calculations and round your answer to the nearestwhole number, e.g., 32.)

Addition to net working capital $

oliveotter780

Volbeat Corp. shows the following information on its 2015 income statement: sales = $380,000; costs = $300,000; other expenses = $7,900; depreciation expense = $15,000; interest expense = $13,000; taxes = $15,435; dividends = $10,000. In addition, youâre told that the firm issued $4,500 in new equity during 2015 and redeemed $3,000 in outstanding long-term debt.

a.	What is the 2015 operating cash flow? (Do not round intermediate calculations.)

Operating cash flow

b.	What is the 2015 cash flow to creditors? (Do not round intermediate calculations.)

Cash flow to creditors

c.	What is the 2015 cash flow to stockholders? (Do not round intermediate calculations.)

Cash flow to stockholders

d.	If net fixed assets increased by $20,000 during the year, what was the addition to NWC? (Do not round intermediate calculations.)

Addition to NWC

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FIN 300 Study Guide - Midterm Guide: Financial Statement, Accounts Payable, Current Liability

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