Fin 300 Exam 2 || Acknowledged Answers 100%.
The December 31, 2018, balance sheet of Whelan, Inc., showed $146,000 in the common stock
account and $2,710,000 in the additional paid-in surplus account. The December 31, 2019,
balance sheet showed $156,000 and $3,010,000 in the same two accounts, respectively. The
company paid out $151,000 in cash dividends during 2019.
What was the cash flow to stockholders for the year? correct answers $-159,000
The December 31, 2018, balance sheet of Justin's Golf Shop, Inc., showed current assets of
$1,125 and current liabilities of $925. The December 31, 2019, balance sheet showed current
assets of $1,340 and current liabilities of $1,015.
What was the company's 2019 change in net working capital, or NWC? correct answers $125
Grey Wolf, Inc., has current assets of $2,360, net fixed assets of $11,200, current liabilities of
$1,445, and long-term debt of $4,170.
a. What is the value of the shareholders' equity account for this firm?
b.How much is the company's net working capital? correct answers a) $7945
b) $915
Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $4.8 million. The
machinery can be sold to the Romulans today for $7 million. Klingon's current balance sheet
shows net fixed assets of $3.6 million, current liabilities of $790,000, and net working capital of
$138,000. If all the current accounts were liquidated today, the company would receive $905,000
cash.
a) What is the book value of Klingon's total assets today?
,b) What is the sum of the market value of NWC and the market value of fixed assets? correct
answers a) $4,528,000
b) 7,905,000
Weiland Co. shows the following information on its 2019 income statement: sales = $161,000;
costs = $80,300; other expenses = $3,600; depreciation expense = $9,300; interest expense =
$6,800; taxes = $21,350; dividends = $8,000. In addition, you're told that the firm issued $4,200
in new equity during 2019 and redeemed $7,100 in outstanding long-term debt.
a.What is the 2019 operating cash flow?
b.What is the 2019 cash flow to creditors?
c.What is the 2019 cash flow to stockholders?
d.If net fixed assets increased by $21,050 during the year, what was the addition to NWC?
correct answers a) $55,750
b)$13,900
c) $3,800
d)$7,700
The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,420,000
and the December 31, 2019, balance sheet showed long-term debt of $1,620,000. The 2019
income statement showed an interest expense of $96,000.
What was the firm's cash flow to creditors during 2019? correct answers $-104,000
The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,435,000,
$147,000 in the common stock account, and $2,720,000 in the additional paid-in surplus account.
The December 31, 2019, balance sheet showed long-term debt of $1,650,000, $157,000 in the
common stock account and $3,020,000 in the additional paid-in surplus account. The 2019
income statement showed an interest expense of $97,500 and the company paid out $152,000 in
, cash dividends during 2019. The firm's net capital spending for 2019 was $1,030,000, and the
firm reduced its net working capital investment by $132,000.
What was the firm's 2019 operating cash flow, or OCF? correct answers $622,500
Rotweiler Obedience School's December 31, 2018, balance sheet showed net fixed assets of
$1,760,000, and the December 31, 2019, balance sheet showed net fixed assets of $2,110,000.
The company's 2019 income statement showed a depreciation expense of $328,000.
What was the company's net capital spending for 2019? correct answers $678,000
Sidewinder, Inc., has sales of $702,000, costs of $345,000, depreciation expense of $90,000,
interest expense of $55,000, and a tax rate of 22 percent. The firm paid out $85,000 in cash
dividends.
What is the addition to retained earnings? correct answers $80,360
Benson, Inc., has sales of $41,680, costs of $13,560, depreciation expense of $2,910, and interest
expense of $2,120. The tax rate is 24 percent.
What is the operating cash flow, or OCF? correct answers $22,578
What is the principal amount of a bond that is repaid at the end of the loan term called? correct
answers Face Value
A bond's annual interest divided by its face value is referred to as the: correct answers Coupon
Rate
On which one of the following dates is the principal amount of a semiannual coupon bond
repaid? correct answers The entire bond is repaid on the maturity date.
The December 31, 2018, balance sheet of Whelan, Inc., showed $146,000 in the common stock
account and $2,710,000 in the additional paid-in surplus account. The December 31, 2019,
balance sheet showed $156,000 and $3,010,000 in the same two accounts, respectively. The
company paid out $151,000 in cash dividends during 2019.
What was the cash flow to stockholders for the year? correct answers $-159,000
The December 31, 2018, balance sheet of Justin's Golf Shop, Inc., showed current assets of
$1,125 and current liabilities of $925. The December 31, 2019, balance sheet showed current
assets of $1,340 and current liabilities of $1,015.
What was the company's 2019 change in net working capital, or NWC? correct answers $125
Grey Wolf, Inc., has current assets of $2,360, net fixed assets of $11,200, current liabilities of
$1,445, and long-term debt of $4,170.
a. What is the value of the shareholders' equity account for this firm?
b.How much is the company's net working capital? correct answers a) $7945
b) $915
Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $4.8 million. The
machinery can be sold to the Romulans today for $7 million. Klingon's current balance sheet
shows net fixed assets of $3.6 million, current liabilities of $790,000, and net working capital of
$138,000. If all the current accounts were liquidated today, the company would receive $905,000
cash.
a) What is the book value of Klingon's total assets today?
,b) What is the sum of the market value of NWC and the market value of fixed assets? correct
answers a) $4,528,000
b) 7,905,000
Weiland Co. shows the following information on its 2019 income statement: sales = $161,000;
costs = $80,300; other expenses = $3,600; depreciation expense = $9,300; interest expense =
$6,800; taxes = $21,350; dividends = $8,000. In addition, you're told that the firm issued $4,200
in new equity during 2019 and redeemed $7,100 in outstanding long-term debt.
a.What is the 2019 operating cash flow?
b.What is the 2019 cash flow to creditors?
c.What is the 2019 cash flow to stockholders?
d.If net fixed assets increased by $21,050 during the year, what was the addition to NWC?
correct answers a) $55,750
b)$13,900
c) $3,800
d)$7,700
The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,420,000
and the December 31, 2019, balance sheet showed long-term debt of $1,620,000. The 2019
income statement showed an interest expense of $96,000.
What was the firm's cash flow to creditors during 2019? correct answers $-104,000
The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,435,000,
$147,000 in the common stock account, and $2,720,000 in the additional paid-in surplus account.
The December 31, 2019, balance sheet showed long-term debt of $1,650,000, $157,000 in the
common stock account and $3,020,000 in the additional paid-in surplus account. The 2019
income statement showed an interest expense of $97,500 and the company paid out $152,000 in
, cash dividends during 2019. The firm's net capital spending for 2019 was $1,030,000, and the
firm reduced its net working capital investment by $132,000.
What was the firm's 2019 operating cash flow, or OCF? correct answers $622,500
Rotweiler Obedience School's December 31, 2018, balance sheet showed net fixed assets of
$1,760,000, and the December 31, 2019, balance sheet showed net fixed assets of $2,110,000.
The company's 2019 income statement showed a depreciation expense of $328,000.
What was the company's net capital spending for 2019? correct answers $678,000
Sidewinder, Inc., has sales of $702,000, costs of $345,000, depreciation expense of $90,000,
interest expense of $55,000, and a tax rate of 22 percent. The firm paid out $85,000 in cash
dividends.
What is the addition to retained earnings? correct answers $80,360
Benson, Inc., has sales of $41,680, costs of $13,560, depreciation expense of $2,910, and interest
expense of $2,120. The tax rate is 24 percent.
What is the operating cash flow, or OCF? correct answers $22,578
What is the principal amount of a bond that is repaid at the end of the loan term called? correct
answers Face Value
A bond's annual interest divided by its face value is referred to as the: correct answers Coupon
Rate
On which one of the following dates is the principal amount of a semiannual coupon bond
repaid? correct answers The entire bond is repaid on the maturity date.
