FIN 571 NERD Education Specialist /fin571nerd.com FIN 571 NERD Education Specialist /fin571nerd.com | Page 30

FIN 571 Week 2 Connect Problems 1. Sankey, Inc., has current
assets of $4,230, net fixed assets of $25,700, current liabilities of
$3,500, and long-term debt of $14,400. (Do not round intermediate
calculations.) What is the value of the shareholders' equity account for
this firm? How much is net working capital? 2. Which one of the
following assets is generally the most liquid? 3. Which one of the
following accounts is included in stockholders' equity? Operating
cash flow is defined as: 4. It is easier to evaluate a firm using its
financial statements when the firm: If a firm is currently profitable,
then: 5.
Which one of these accounts is classified as a
current asset on the balance sheet? During 2015, Rainbow Umbrella
Corp. had sales of $720,000. Cost of goods sold, administrative and
selling expenses, and depreciation expenses were $500,000, $90,000,
and $85,000, respectively. In addition, the company had an interest
expense of $90,000 and a tax rate of 35 percent. (Ignore any tax loss
carryback or carryforward provisions.) a.
What is the company's
net income for 2015? (Do not round intermediate calculations. A
negative answer should be indicated by a minus sign.) Net income $
b.
What is its operating cash flow? (Do not round
intermediate calculations.) Operating cash flow $ 6. Please use
excel sheet in case the values changes Sankey, Inc., has current assets
of $4,500, net fixed assets of $23,500, current liabilities of $2,750,
and long-term debt of $12,900. (Do not round intermediate
calculations.) What is the value of the shareholders' equity account for
this firm? Shareholders' equity $ How much is net working capital?
Net working capital $ 7. Please use excel sheet in case the values
changes Shelton, Inc., has sales of $396,000, costs of $184,000,
depreciation expense of $49,000, interest expense of $30,000, and a
tax rate of 35 percent. (Do not round intermediate calculations.) What
is the net income for the firm? Suppose the company paid out $39,000
in cash dividends. What is the addition to retained earnings? 8.
Please use excel sheet in case the values changes
During the year, the Senbet Discount Tire Company had gross sales
of $1.12 million. The firm’s cost of goods sold and selling expenses
were $531,000 and $221,000, respectively. The firm also had notes
payable of $860,000. These notes carried an interest rate of 6 percent.
Depreciation was $136,000. The firm’s tax rate was 40 percent. a.