1. Calculate the cash inflows (outflows) from investing activities if total cash decreased by $40,000; cash inflows from operating activities were $14,000 and cash outflows from financing activities were $60,000.
2. CumChan Corporation had operating income (EBIT) of $2,500,000 in 2005, depreciation expenses of $500,000, and dividends paid of $400,000. What is CumChan’s operating cash flow (EBITDA) for 2005?
3. What is the present value of the following payment stream, discounted at 8 percent annually: $1,000 at the end of year 1, $2,000 at the end of year 2, and $3,000 at the end of year 3?
4. What will be the monthly payment on a car loan of $25,000 at 5 percent interest, to be amortized over 7 years? What is the total amount of interest paid?
5. How much must be saved annually, beginning one year from now, in order to accumulate $50,000 over the next 10 years, earning 9 percent annually.
6. What is the ROA of a firm with $150,000 in average receivables, which represents 60 days sales, average assets of $750,000, and a profit margin of 9 percent?
7. What rate of return is being earned on a deposit of $5,000 made ten years ago today if the deposit is worth $9,948.94 today? The deposit pays interest semi-annually.
8. XYZ Corp. has a profit margin of 7 percent, a debt burden of .8, and has financed two-thirds of its assets through equity. What asset turnover ratio is necessary to achieve an ROE of 18 percent?
9. What is the inventory turnover ratio for ABC Corp. if cost of goods sold equals $5,000, current ratio equals 3.0, quick ratio equals 1.5, and the firm has 1,800 in current assets?
10. What is the sustainable growth rate for a firm with $250,000 in net income, $20,000 in preferred stock dividends, $80,000 in common stock dividends, and an average equity balance of $1 million?