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68) At the beginning of the year, a firm had current assets of $121,306 and current liabilities of
$124,509. At the end of the year, the current assets were $122,418 and the current liabilities were
$103,718. What is the change in net working capital?
A) −$19,679
B) −$11,503
C) $19,387
D) $15,497
E) $21,903
69) At the beginning of the year, the long-term debt of a firm was $72,918 and total debt was
$138,407. At the end of the year, long-term debt was $68,219 and total debt was $145,838. The
interest paid was $6,430. What is the amount of the cash flow to creditors?
A) $1,731
B) −$1,001
C) $11,129
D) $13,861
E) $19,172
70) Ernie's Home Repair had beginning long-term debt of $51,207 and ending long-term debt of
$36,714. The beginning and ending total debt balances were $59,513 and $42,612, respectively.
The interest paid was $2,808. What is the amount of the cash flow to creditors?
A) −$11,685
B) −$11,272
C) $17,301
D) $17,418
E) $11,174
71) 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?
A) −$75,000
B) $1,328
C) $24,623.52
D) $76,328
E) $151,328
72) The Lakeside Inn had operating cash flow of $48,450. Depreciation was $6,700 and interest
paid was $2,480. A net total of $2,620 was paid on long-term debt. The firm spent $24,000 on
fixed assets and decreased net working capital by $1,330. What was the amount of the cash flow
to stockholders?
A) $5,100
B) $7,830
C) $18,020
D) $19,998
E) $20,680
73) For the past year, Galaxy Interiors had depreciation of $2,419, beginning total assets of
$23,616, and ending total assets of $21,878. Current assets decreased by $1,356. What was the
amount of net capital spending for the year?
A) −$382
B) $2,037
C) $2,801
D) $1,993
E) $1,172
74) Carlisle Express paid $1,282 in interest and $975 in dividends last year. Current assets
increased by $2,700, current liabilities decreased by $420, and long-term debt increased by
$2,200. What was the cash flow to creditors?
A) −$530
B) −$918
C) $1,839
D) 2,132
E) $3,094
75) CBC Industries has sales of $21,415, interest paid of $1,282, costs of $9,740, and
depreciation of $1,480. What is the operating cash flow if the tax rate is 22 percent?
A) $10,114.14
B) $9,900.86
C) $8,985.86
D) $8,536.67
E) $9,714.14
76) 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?
A) $1,732
B) $2,247
C) $2,961
D) $3,915
E) $4,267
77) Up Towne Cleaners has taxable income of $48,900 and a tax rate of 21 percent. What is the
change in retained earnings if the firm pays $20,200 in dividends for the year?
A) $18,942
B) $19,948
C) $19,374
D) $18,431
E) $18,574
78) For the year, B&K United increased current liabilities by $1,400, decreased cash by $1,200,
increased net fixed assets by $340, increased accounts receivable by $200, and decreased
inventory by $150. What is the annual change in net working capital?
A) −$2,550
B) −$70
C) $590
D) $550
E) −$2,210
79) TJH, Inc. purchased $145,000 in new equipment and sold equipment with a net book value
of $68,400 during the year. What is the amount of net capital spending if the depreciation was
$38,600?
A) $115,200
B) $76,600
C) $94,200
D) $38,000
E) −$38,000
80) Nu Furniture has sales of $241,000, depreciation of $32,200, interest expense of $35,700,
costs of $103,400, and taxes of $14,637. What is the operating cash flow for the year?
A) $108,229
B) $121,367
C) $122,963
D) $117,766
E) $128,037
81) HiWay Furniture has sales of $316,000, depreciation of $47,200, interest expense of
$41,400, costs of $148,200, and taxes of $16,632. The firm has net capital spending of $36,400
and a decrease in net working capital of $14,300. What is the cash flow from assets for the year?
A) $145,985
B) $129,068
C) $119,655
D) $120,810
E) $134,585
82) 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?
A) $5,630
B) −$2,480
C) $3,568
D) $4,677
E) −$2,062
83) JJ Enterprises has current assets of $10,406, long-term debt of $4,780, and current liabilities
of $9,822 at the beginning of the year. At year end, current assets are $11,318, long-term debt is
$5,010, and current liabilities are $9,741. The firm paid $277 in interest and $320 in dividends
during the year. What is the cash flow to creditors for the year?
A) −$47
B) −$507
C) −$97
D) $47
E) $507
84) BK Enterprises neither sold nor repurchased any shares of stock during the year. The firm
had annual sales of $7,202, depreciation of $1,196, cost of goods sold of $4,509, interest expense
of $318, taxes of $248, beginning-of-year shareholders' equity of $4,808, and end-of-year
shareholders' equity of $4,922. What is the amount of dividends paid during the year?
A) $817
B) $1,009
C) $864
D) $709
E) $515
85) Carlisle Carpets has cost of goods sold of $92,511, interest expense of $4,608, dividends
paid of $3,200, depreciation of $14,568, an increase in retained earnings of $11,920, and a tax
rate of 21 percent. What is the operating cash flow?
A) $34,296.00
B) $42,122.42
C) $36,462.58
D) $31,543.10
E) $36,741.42
86) 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?
A) $6,016
B) $5,969
C) $6,574
D) $7,036
E) $7,100
87) Webster's has beginning net fixed assets of $684,218, ending net fixed assets of $679,426,
and depreciation expense of $48,859. What is the net capital spending for the year if the tax rate
is 25 percent?
A) $42,920
B) $53,651
C) $44,067
D) $35,255
E) $48,600
88) Global Tours has beginning current assets of $1,360, beginning current liabilities of $940,
ending current assets of $1,720, and ending current liabilities of $1,080. What is the change in
net working capital?
A) $220
B) $170
C) $190
D) $940
E) $1,060
89) The Beach Shoppe has beginning total debt of $682,400 and ending total debt of $697,413.
Current liabilities increased by $18,915 during the year. What was the cash flow to creditors if
the firm paid $34,215 in interest during the year?
A) $384
B) $287
C) $38,117
D) $20,228
E) $19,202
90) The Outlet started the year with $650,000 in the common stock account and $1,318,407 in
the additional paid-in surplus account. The end-of-year balance sheet showed $720,000 and
$1,299,310 in the same two accounts, respectively. What is the cash flow to stockholders if the
firm paid $68,500 in dividends?
A) −$17,597
B) $17,597
C) −$1,500
D) $1,500
E) $68,500
91) During the year, RIT Corp. had sales of $565,600. Costs of goods sold, administrative and
selling expenses, and depreciation expenses were $476,000, $58,800, and $42,800, respectively.
In addition, the company had an interest expense of $112,000 and a tax rate of 22 percent. What
is the operating cash flow for the year? Ignore any tax loss carry-forward provisions.
A) $17,920
B) $21,840
C) $30,800
D) $52,600
E) $77,840
