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 .)