1. The Moore Corporation had operating income (EBIT) of $850,000. The company's depreciation expense is $255,000. Moore is 100% equity financed, and it faces a 35% tax rate.
What is the company's net income?
2. Comprehensive Ratio Calculations
The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, a days sales outstanding of 28.0 days (based on a 365-day year), total current assets of $810,000, and cash and marketable securities of $100,000.
What were Kretovich's annual sales? Round your answer to the nearest cent.
Assuming no changes to any of the Balance Sheet accounts, what is its net cash flow?
3. Find the present value of $550 due in the future under each of the following conditions. Round your answers to the nearest cent.
4% nominal rate, semiannual compounding, discounted back 5 years
4% nominal rate, quarterly compounding, discounted back 5 years
4% nominal rate, monthly compounding, discounted back 1 year