Chapter 1 example #43537

A firm has current assets of $330, stockholders' equity of $1,850, net fixed assets of $4,200, and current liabilities of $230. How much long-term debt does this firm have? a.$330 b.$2,350 c.$2120 d.$2,450

Which one of the following accounts is the most liquid? a. accounts receivable b. inventory c. building d. delivery truck

Which one of the following is a non-cash expense? a. interest paid b. depreciation c. taxes d. costs of goods sold

The marginal tax rate is the tax rate which: a. applies to all taxable income. b. is computed as the total tax divided by the total taxable income. c. applies to the next dollar of taxable income. d. is computed as the total tax divided by the net income.

Which one of the following accounts is included in net working capital? a. accounts receivable b. retained earnings c. long-term debt d. equipment

Which one of the following statements related to the cash flow to creditors is correct? a. An increase in accounts payable will decrease the cash flow to creditors. b. A negative cash flow to creditors indicates that a firm borrowed money. c. A loan repayment decreases the cash flow to creditors. d. Cash flow to creditors will increase whenever a firm borrows money.

A firm has sales of $20,000, costs of $8,100, interest expense of $580, depreciation of $1,900, and a tax rate of 34 percent. What is the firm's earnings before interest and taxes (EBIT)? a. $11,900 b. $11,320 c. $10,400 d. $10,000

Which one of the following will decrease the operating cash flow? a. increase in the tax rate b. decrease in costs of goods sold c. increase in sales d. increase in interest expense

Which one of the following sets of expenses generally accounts for the difference between net income and operating cash flow? a. depreciation and fixed costs b. interest expense and depreciation c. interest expense and taxes paid d. depreciation and taxes paid

Given the following tax table, what is the amount of tax due if the taxable income is $287,000? a. $111,930 b. $82,330 c. $75,920 d. $95,180