47) A firm has common stock of $6,200, paid-in surplus of $9,100, total liabilities of $8,400,
current assets of $5,900, and fixed assets of $21,200. What is the amount of the shareholders’
equity?
A) $6,900
B) $15,300
C) $18,700
D) $23,700
E) $35,500
48) Your firm has total assets of $4,900, fixed assets of $3,200, long-term debt of $2,900, and
short-term debt of $1,400. What is the amount of net working capital?
A) −$100
B) $300
C) $600
D) $1,700
E) $1,800
49) Bonner Automotive has shareholders’ equity of $218,700. The firm owes a total of $141,000
of which 40 percent is payable within the next year. The firm has net fixed assets of $209,800.
What is the amount of the net working capital?
A) $149,900
B) $93,500
C) $125,600
D) −$47,500
E) $56,500
50) Four years ago, Ship Express purchased a mailing machine at a cost of $218,000. This
equipment is currently valued at $97,400 on today’s balance sheet but could actually be sold for
$92,900. This is the only fixed asset the firm owns. Net working capital is $41,300 and long-term
debt is $102,800. What is the book value of shareholders’ equity?
A) $31,400
B) $47,700
C) $35,900
D) $249,400
E) $253,900
51) The What-Not Shop owns the building in which it is located. This building initially cost
$647,000 and is currently appraised at $819,000. The fixtures originally cost $148,000 and are
currently valued at $65,000. The inventory has a book value of $319,000 and a market value
equal to 1.1 times the book value. The shop expects to collect 96 percent of the $21,700 in
accounts receivable. The shop has $26,800 in cash and total debt of $414,700. What is the
market value of the shop’s equity?
A) $867,832
B) $900,166
C) $695,832
D) $775,632
E) $1,190,332
52) The Widget Co. purchased all of its fixed assets three years ago for $4 million. These assets
can be sold today for $2 million. The current balance sheet shows net fixed assets of $2,500,000,
current liabilities of $1,375,000, and net working capital of $725,000. If all the current assets
were liquidated today, the company would receive $1.9 million in cash. The book value of the
total assets today is ________ and the market value of those assets is ________.
A) $4,600,000; $3,900,000
B) $4,600,000; $3,125,000
C) $5,000,000; $3,125,000
D) $5,000,000; $3,900,000
E) $6,500,000; $3,900,000
53) 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 the net
working capital?
A) $44,600
B) $15,700
C) $12,600
D) $15,800
E) $9,300
54) The River Side Stop has a current market value of $26,400 and owes its creditors $31,300.
What is the market value of the shareholders’ equity?
A) −$4,900
B) −$5,200
C) $0
D) $4,900
E) $5,200
55) Jensen Enterprises paid $700 in dividends and $320 in interest this past year. Common stock
remained constant at $6,800 and retained earnings decreased by $180. What is the net income for
the year?
A) $180
B) $520
C) $1,020
D) $880
E) $1,200
56) Andre’s Bakery has sales of $487,000 with costs of $263,000. Interest expense is $26,000
and depreciation is $42,000. The tax rate is 21 percent. What is the net income?
A) $142,750
B) $123,240
C) $109,000
D) $128,700
E) $134,550
57) Hayes Bakery has sales of $30,600, costs of $15,350, an addition to retained earnings of
$4,221, dividends paid of $469, interest expense of $1,300, and a tax rate of 21 percent. What is
the amount of the depreciation expense?
A) $4,820.13
B) $5,500.89
C) $8,013.29
D) $8,180.01
E) $9,500.00
58) Last year, Kaylor Equipment had $15,900 of sales, $500 of net new equity, dividend
payments of $75, an addition to retained earnings of $418, depreciation of $680, and $511 of
interest expense. What are the earnings before interest and taxes at a tax rate of 21 percent?
A) $589.46
B) $1,135.05
C) $1,331.54
D) $1,560.85
E) $949.46
59) Galaxy Interiors income statement shows depreciation of $1,611, sales of $21,415, interest
paid of $1,282, net income of $1,374, and costs of goods sold of $16,408. What is the amount of
the noncash expenses?
A) $2,893
B) $1,282
C) $740
D) $1,611
E) $2,351
60) Beach Front Industries has sales of $546,000, costs of $295,000, depreciation expense of
$37,000, interest expense of $15,000, and a tax rate of 21 percent. The firm paid $59,000 in cash
dividends. What is the addition to retained earnings?
A) $98,210
B) $81,700
C) $95,200
D) $103,460
E) $121,680
61) Keisler’s has cost of goods sold of $11,518, interest expense of $315, dividends of $420,
depreciation of $811, and a change in retained earnings of $296. What is the taxable income
given a tax rate of 21 percent?
A) $955.38
B) $967.78
C) $906.33
D) $776.41
E) $646.15
62) What is the average tax rate for a firm with taxable income of $118,740 in 2017?
Taxable Income
Tax Rate
$
0
–
50,000
15
50,001
–
75,000
25
75,001
–
100,000
34
100,001
–
335,000
39
A) 26.68 percent
B) 34.87 percent
C) 24.89 percent
D) 36.67 percent
E) 39.00 percent
63) For 2017, Nevada Mining had projected taxable income of $94,800. Its actual taxable
income exceeded this projection by $21,000. How much additional tax did the firm owe due to
the $21,000 increase in taxable income?
Taxable Income
Tax Rate
$
0
–
50,000
15
50,001
–
75,000
25
75,001
–
100,000
34
100,001
–
335,000
39
A) $7,930
B) $8,036
C) $8,150
D) $7,682
E) $8,197
64) In 2017, Boyer Enterprises had $76,700 in taxable income. What was the firm’s average tax
rate for the year?
Taxable Income
Tax Rate
$
0
–
50,000
15
50,001
–
75,000
25
75,001
–
100,000
34
100,001
–
335,000
39
A) 28.25 percent
B) 18.68 percent
C) 26.48 percent
D) 20.14 percent
E) 29.03 percent
65) Winston Industries had sales of $843,800 and costs of $609,900. The company paid $38,200
in interest and $35,000 in dividends. The depreciation was $76,400. The firm has a combined tax
rate of 24 percent. What was the addition to retained earnings for the year?
A) $55,668
B) $57,240
C) $61,060
D) $56,200
E) $68,400
66) RTF Oil has total sales of $911,400 and costs of $787,300. Depreciation is $52,600 and the
tax rate is 21 percent. The firm is all-equity financed. What is the operating cash flow?
A) $108,410
B) $108,320
C) $109,924
D) $106,417
E) $109,085
67) 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?
A) $33,763
B) $40,706
C) $58,218
D) $65,161
E) $67,408