Given the following selected information on Cicalese's Chocolate Inc., calculate the cash flow from operating activities for the year 20X1,
Dec 31, 20X0 Dec 31, 20X1
EAT: $600,000 $750,000
DepreExpe: $100,000 $120,000
Dividends: $400,000 $500,000
Acc. Receiv: $1,500,000 $2,000,000
Inventory: $3,500,000 2,000,000
Acc. Payable: $350,000 $500,000
Long-Term Debt: $2,300,000 $3,000,000
Co. Stock: $2,200,000 $2,500,000
Retained Earn: $6,150,000 $6,350,000
2. Cameron's balance sheet:
Acc. Payable 34
Acc. Receivables 61
Accruals 29
Accumulated Depreciation (175)
Cash 33
Common Stock 120
Fixed Assets (gross) 390
Inventory 133
Long-Term Debt 200
Retained Earnings 65
What is Cameron's Net Working Capital?
3. A firm's current ratio is 1.33, and its quick ratio is 1.0. If its current liabilities are $13,900, what are its inventories?
4. Iris Inc. balance sheet:
Acc. Payable 35
Acc. Receivable 55
Accruals 30
Acc. Depreciation (175)
Cash 32
Common Stock 120
Fixed Assets (gross) 390
Inventory 135
Long-Term Debt 200
Retained Earnings 65
What is Iris Inc. total assets?
5. If firm A has a higher debt-to-equity ratio than firm B, then
a. firm A has a lower equity multiplier than firm B
b. firm B has a lower financial leverage than firm A
c. firm B has a lower equity multiplier than firm A
d. none of the above
6. You purchase a piece of property for 30,000 nine years ago and sold it today for 83,190. What was the annual rate of return on your investment?
7. The First National Bank has agree to lend you 30,000 today, but you must repay 42,135 in three years. What rate is the bank charging you?