ASU FIN 300 EXAM 1 CHAPTERS 1 TO 4
COMPREHENSIVE STUDY GUIDE 2026
FULL ANSWERS GRADED A+
⩥ expenses; taxes. Answer: Depreciation for a tax-paying firm increases
______ and lowers _____.
⩥ $15,800. Answer: JJ Enterprises has inventory of $11,600, fixed assets
of $22,400, total liabilities of $12,900, cash of $1,900, accounts
receivable of $8,700, and long-term debt of $6,500. What is net working
capital?
⩥ $1,611. Answer: Galaxy Interiors income statement shows
deprecation of $1,611, sales of $21,415, interest paid of $1,282, net
income of $1,374, and cost of goods sold of $16,408. What is the
amount of the noncash expenses?
⩥ $33,763. Answer: Nielsen Auto Parts had beginning net fixed assets of
$218,470 and ending net fixed assets of $209,411. During the year,
assets with a book value of $6,943 were sold. Depreciation for the year
was $42,822. What is the amount of net capital spending?
⩥ $1,328. Answer: The Daily News has projected annual net income of
$272,600, of which 28 percent will be distributed as dividends. Assume
,the company will have net sales of $75,000 worth of common stock.
What will be the cash flow to stockholders if the tax rate is 21 percent?
⩥ $1,732. Answer: Williamsburg Markets has an operating cash flow of
$4,267 and depreciation of $1,611. Current assets decreased by $1,356
while current liabilities decreased by $2,662, and net fixed assets
decreased by $382 during the year. What is free cash flow for the year?
⩥ $5,630. Answer: At the beginning of the year, Trees Galore had
current liabilities of $15,932 and total debt of $68,847. By year end,
current liabilities were $13,870 and total debt was $72,415. What is the
amount of net new borrowing for the year?
⩥ $6,574. Answer: Webster World has sales of $13,800, costs of $5,800,
depreciation expense of $1,100, and interest expense of $700. What is
the operating cash flow if the tax rate is 23 percent?
⩥ $139. Answer: Teddy's Pillows had beginning net fixed assets of $477
and ending net fixed assets of $562. Assets valued at $325 were sold
during the year. Depreciation was $54. What is the amount of net capital
spending?
⩥ $14,844. Answer: For the past year, Kayla, Inc., has sales of $45,407,
interest expense of $3,464, cost of goods sold of $15,784, selling and
administrative expense of $11,291, and depreciation of $5,690. If the tax
rate is 38 percent, what is the operating cash flow?
, ⩥ $11,880. Answer: At the beginning of the year, Vendors, Inc. had
owners' equity of $49,265. During the year, net income was $5,625 and
the company paid dividends of $3,965. The company also repurchased
$7,915 in equity. What was the cash flow to stockholders for the year?
⩥ $1,700. Answer: Smashed Pumpkins Co. paid $176 in dividends and
$603 in interest over the past year. The company increased retained
earnings by $504 and had accounts payable of $654. Sales for the year
were $16,440 and depreciation was $740. The tax rate was 38 percent.
What was the company's EBIT?
⩥ -$1,156. Answer: Adison Winery had beginning long-term debt of
$37,761 and ending long-term debt of $43,118. The beginning and
ending total debt balances were $46,693 and $51,620, respectively. The
company paid interest of $4,201 during the year. What was the
company's cash flow to creditors?
⩥ $317. Answer: A balance sheet has total assets of $1,664, fixed assets
of $1,156, long-term debt of $614, and short-term debt of $191. What is
the net working capital?
⩥ $7,355. Answer: Rousey, Inc., had a cash flow to creditors of $16,695
and a cash flow to stockholders of $7,181 over the past year. The
company also had net fixed assets of $49,555 at the beginning of the
year and $56,950 at the end of the year. Additionally, the company had a
COMPREHENSIVE STUDY GUIDE 2026
FULL ANSWERS GRADED A+
⩥ expenses; taxes. Answer: Depreciation for a tax-paying firm increases
______ and lowers _____.
⩥ $15,800. Answer: JJ Enterprises has inventory of $11,600, fixed assets
of $22,400, total liabilities of $12,900, cash of $1,900, accounts
receivable of $8,700, and long-term debt of $6,500. What is net working
capital?
⩥ $1,611. Answer: Galaxy Interiors income statement shows
deprecation of $1,611, sales of $21,415, interest paid of $1,282, net
income of $1,374, and cost of goods sold of $16,408. What is the
amount of the noncash expenses?
⩥ $33,763. Answer: Nielsen Auto Parts had beginning net fixed assets of
$218,470 and ending net fixed assets of $209,411. During the year,
assets with a book value of $6,943 were sold. Depreciation for the year
was $42,822. What is the amount of net capital spending?
⩥ $1,328. Answer: The Daily News has projected annual net income of
$272,600, of which 28 percent will be distributed as dividends. Assume
,the company will have net sales of $75,000 worth of common stock.
What will be the cash flow to stockholders if the tax rate is 21 percent?
⩥ $1,732. Answer: Williamsburg Markets has an operating cash flow of
$4,267 and depreciation of $1,611. Current assets decreased by $1,356
while current liabilities decreased by $2,662, and net fixed assets
decreased by $382 during the year. What is free cash flow for the year?
⩥ $5,630. Answer: At the beginning of the year, Trees Galore had
current liabilities of $15,932 and total debt of $68,847. By year end,
current liabilities were $13,870 and total debt was $72,415. What is the
amount of net new borrowing for the year?
⩥ $6,574. Answer: Webster World has sales of $13,800, costs of $5,800,
depreciation expense of $1,100, and interest expense of $700. What is
the operating cash flow if the tax rate is 23 percent?
⩥ $139. Answer: Teddy's Pillows had beginning net fixed assets of $477
and ending net fixed assets of $562. Assets valued at $325 were sold
during the year. Depreciation was $54. What is the amount of net capital
spending?
⩥ $14,844. Answer: For the past year, Kayla, Inc., has sales of $45,407,
interest expense of $3,464, cost of goods sold of $15,784, selling and
administrative expense of $11,291, and depreciation of $5,690. If the tax
rate is 38 percent, what is the operating cash flow?
, ⩥ $11,880. Answer: At the beginning of the year, Vendors, Inc. had
owners' equity of $49,265. During the year, net income was $5,625 and
the company paid dividends of $3,965. The company also repurchased
$7,915 in equity. What was the cash flow to stockholders for the year?
⩥ $1,700. Answer: Smashed Pumpkins Co. paid $176 in dividends and
$603 in interest over the past year. The company increased retained
earnings by $504 and had accounts payable of $654. Sales for the year
were $16,440 and depreciation was $740. The tax rate was 38 percent.
What was the company's EBIT?
⩥ -$1,156. Answer: Adison Winery had beginning long-term debt of
$37,761 and ending long-term debt of $43,118. The beginning and
ending total debt balances were $46,693 and $51,620, respectively. The
company paid interest of $4,201 during the year. What was the
company's cash flow to creditors?
⩥ $317. Answer: A balance sheet has total assets of $1,664, fixed assets
of $1,156, long-term debt of $614, and short-term debt of $191. What is
the net working capital?
⩥ $7,355. Answer: Rousey, Inc., had a cash flow to creditors of $16,695
and a cash flow to stockholders of $7,181 over the past year. The
company also had net fixed assets of $49,555 at the beginning of the
year and $56,950 at the end of the year. Additionally, the company had a
