65.
Statement of Cash Flows Crispy Corporation has net cash flow from financing activities
for the last year of $20 million. The company paid $5 million in dividends last year. During
the year, the change in notes payable on the balance sheet was an increase of $2 million,
and change in common and preferred stock was an increase of $3 million. The end of year
balance for long-term debt was $45 million. What was their beginning of year balance for
long-term debt?
66.
Statement of Cash Flows Full Moon Productions Inc. has net cash flow from financing
activities for the last year of $105 million. The company paid $15 million in dividends last
year. During the year, the change in notes payable on the balance sheet was an increase
of $40 million, and change in common and preferred stock was an increase of $50 million.
The end of year balance for long-term debt was $50 million. What was their beginning of
year balance for long-term debt?
67.
Statement of Cash Flows Café Creations Inc. has net cash flow from financing activities
for the last year of $25 million. The company paid $15 million in dividends last year. During
the year, the change in notes payable on the balance sheet was a decrease of $40 million,
and change in common and preferred stock was an increase of $50 million. The end of
year balance for long-term debt was $40 million. What was their beginning of year balance
for long-term debt?
68.
Free Cash Flow The 2010 income statement for Pete’s Pumpkins shows that depreciation
expense is $250 million, EBIT is $500 million, EBT is $320 million, and the tax rate is 30
percent. At the beginning of the year, the balance of gross fixed assets was $1,600 million
and net operating working capital was $640 million. At the end of the year gross fixed
assets was $2,000 million. Pete’s free cash flow for the year was $630 million. What is
their end of year balance for net operating working capital?
69.
Free Cash Flow The 2013 income statement for Lou’s Shoes shows that depreciation
expense is $2 million, EBIT is $5 million, EBT is $3 million, and the tax rate is 40 percent.
At the beginning of the year, the balance of gross fixed assets was $16 million and net
operating working capital was $6 million. At the end of the year gross fixed assets was $20
million. Lou’s free cash flow for the year was $4 million. What is their end of year balance
for net operating working capital?
70.
Free Cash Flow The 2013 income statement for Paige’s Purses shows that depreciation
expense is $10 million, EBIT is $25 million, EBT is $15 million, and the tax rate is 30
percent. At the beginning of the year, the balance of gross fixed assets was $80 million
and net operating working capital was $30 million. At the end of the year gross fixed
assets was $100 million. Paige’s free cash flow for the year was $20 million. What is their
end of year balance for net operating working capital?
71.
Free Cash Flow The 2013 income statement for Betty’s Barstools shows that depreciation
expense is $100 million, EBIT is $400 million, and taxes are $120 million. At the end of the
year, the balance of gross fixed assets was $510 million. The increase in net operating
working capital during the year was $94 million. Betty’s free cash flow for the year was
$625 million. What was the beginning of year balance for gross fixed assets?
72.
Free Cash Flow The 2013 income statement for John’s Gym shows that depreciation
expense is $20 million, EBIT is $80 million, and taxes are $24 million. At the end of the
year, the balance of gross fixed assets was $102 million. The increase in net operating
working capital during the year was $18 million. John’s free cash flow for the year was $41
million. What was the beginning of year balance for gross fixed assets?
73.
Statement of Retained Earnings Bike and Hike, Inc. started the year with a balance of
retained earnings of $100 million and ended the year with retained earnings of $128
million. The company paid dividends of $9 million to the preferred stock holders and $22
million to common stock holders. What was Bike and Hike’s net income for the year?
74.
Statement of Retained Earnings Soccer Starz, Inc. started the year with a balance of
retained earnings of $25 million and ended the year with retained earnings of $32 million.
The company paid dividends of $2 million to the preferred stock holders and $6 million to
common stock holders. What was Soccer Starz’s net income for the year?
75.
Statement of Retained Earnings Jamaican Ice Cream Corp. started the year with a
balance of retained earnings of $100 million. The company reported net income for the
year of $45 million, paid dividends of $2 million to the preferred stock holders and $15
million to common stock holders. What is Jamaican Ice Cream’s end of year balance in
retained earnings?
76.
Income Statement The following is the 2013 income statement for Lamps, Inc.
The CEO of Lamps wants the company to earn a net income of $12 million in 2014. Cost of
goods sold is expected to be 75 percent of net sales, depreciation expense is not expected
to change, interest expense is expected to increase to $4 million, and the firm’s tax rate
will be 40 percent. What is the net sales needed to produce net income of $12 million?
77.
Income Statement You have been given the following information for Halle’s Holiday
Store Corp. for the year 2013:
Net sales = $50,000,000;
Cost of goods sold = $35,000,000;
Addition to retained earnings = $2,000,000;
Dividends paid to preferred and common stockholders = $3,000,000;
Interest expense = $3,000,000.
The firm’s tax rate is 30 percent.
In 2014, net sales are expected to increase by $5 million,
cost of goods sold is expected to be 65 percent of net sales,
expensed depreciation is expected to be the same as in 2013,
interest expense is expected to be $2,500,000,
the tax rate is expected to be 30 percent of EBT, and
dividends paid to preferred and common stockholders will not change.
What is the addition to retained earnings expected in 2014?
78.
Free Cash Flow Martha’s Moving Van 4U, Inc. had free cash flow during 2013 of $1
million, EBIT of $30 million, tax expense of $8 million, and depreciation of $4 million. Using
this information, what was Martha’s Accounts Payable ending balance in 2013?
79.
You are evaluating the balance sheet for Goodman’s Bees Corporation. From the balance
sheet you find the following balances: cash and marketable securities = $200,000,
accounts receivable = $1,100,000, inventory = $2,000,000, accrued wages and taxes =
$500,000, accounts payable = $600,000, and notes payable = $100,000. Calculate
Goodman’s Bees’ net working capital.
80.
Zoeckler Mowing & Landscaping’s year-end 2011 balance sheet lists current assets of
$350,000, fixed assets of $325,000, current liabilities of $145,000, and long-term debt of
$185,000. Calculate Zoeckler’s total stockholders’ equity.
81.
Reed’s Birdie Shot, Inc.’s 2013 income statement lists the following income and expenses:
EBIT = $550,000, interest expense = $43,000, and net income = $300,000. Calculate the
2013 taxes reported on the income statement.
82.
Reed’s Birdie Shot, Inc.’s 2013 income statement lists the following income and expenses:
EBIT = $555,000, interest expense = $178,000, and taxes = $148,000. Reed’s has no
preferred stock outstanding and 100,000 shares of common stock outstanding. Calculate
the 2013 earnings per share.
83.
Oakdale Fashions Inc. had $255,000 in 2013 taxable income. If the firm paid $82,100 in
taxes, what is the firm’s average tax rate?