Accounting questions
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23. Winslow Enterprises has total assets of $11,700, net working capital of $1,400, owner's equity of $5,000 and long-term debt of $3,500. What is the value of the current assets?
24. Gladstone, Inc., has net working capital of $4,300, long-term debt of $8,200, total debt of $10,100, and owners' equity of $12,000. What is the value of Gladstone's net fixed assets?
25. Fields and Flowers had beginning retained earnings of $63,100. During the year, the company reported sales of $127,800, costs of $89,900, depreciation of $11,200, dividends of $2,800, and interest paid of $3,400. The tax rate is 35%. What is the retained earnings balance at the end of the year?
26. Grunzel Potters, Inc., has net working capital of $2,100, net fixed assets of $23,600, current liabilities of $1,800, and long-term debt of $14,700. What is the value of the shareholders' equity?
27. Michaela's has cash of $900 and accounts receivable of $1,300. The inventory cost $4,200 and can be sold today for $6,100. The fixed assets were purchased at a cost of $42,800 of which $18,300 has been depreciated. The fixed assets can be sold today for $19,500. What is the total book value of the assets of Michaela's?
28. The financial statements of Bruce's Antiques reflects cash of $21,300, collectible accounts receivable of $37,700, accounts payable of $45,900, inventory of $63,300, long-term debt of $80,000, and net fixed assets of $123,400. The firm estimates that if they wanted to cease operations today that they could sell the inventory for $48,000 and the fixed assets for $99,000. What is the market value of the assets?
29. Buster's Brooms owes $36,485 in tax on a taxable income of $136,500. The company has determined that they will owe $38,435 in tax if their taxable income rises to $141,500. What is the marginal tax rate at this level of income?
30. Winston and Sons, Inc., has an operating cash flow of $141,200, depreciation expense of 89,300, and taxes paid of $76,100. A partial listing of their balance sheet accounts is as follows:
Beginning Balance Ending Balance
Current assets $146,800 $132,700
Net fixed assets $989,400 $909,400
Current liabilities $121,600 $138,700
Long-term debt $888,000 $862,500
What is the amount of Winston and Sons' cash flow from assets?
31. Bruceton Enterprises has net sales of $982,500 and costs of $789,100. The depreciation expense is $124,700 and the interest paid is $23,100. What is the amount of the firm's operating cash flow if the tax rate is 34 percent?
32. The Jones Brothers paid $123,600 in interest over the year, along with $88,000 in dividends. The company issued $130,000 of stock and $50,000 of new debt. During the year, the company reduced the balance due on the old debt by $435,000. What is the amount of the cash flow to creditors for the year?
33. Eight months ago, the ABC Co. repurchased $125,000 of its common stock. The company pays regular dividends totaling $24,000 per quarter. What is the amount of the cash flow to stockholders for the past year?
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23. Winslow Enterprises has total assets of $11,700, net working capital of $1,400, owner's equity of $5,000 and long-term debt of $3,500. What is the value of the current assets?
Total Assets = Total liabilities + Total Equity
Total liabilities = Total Assets - Total Equity
= 11,700-5,000=6,700
Total liabilities = Current Liabilities + Long term liabilities
Current Liabilities = 6,700-3,500 = 3,200
Net working capital = Current Assets - Current Liabilities
Current Assets = Net working capital + current liabilities
= 1,400+3,200
= 4,600
24. Gladstone, Inc. has net working capital of $4,300, long-term debt of $8,200, total debt of $10,100, and owners' equity of $12,000. What is the value of Gladstone's net fixed assets?
Total Assets = Total liabilities + Total Equity
= 10,100 + 12,000
= 22,100
Current liabilities = 10,100-8,200 = 1,900 (total debt - long term debt)
Net Working Capital = Current Assets - Current Liabilities
Current Assets = 4,300+1,900 = 6,200
Total assets = Current assets + Net fixed assets
Net fixed assets = 22,100-6,200 = 15,900
25. Fields and Flowers had beginning retained earnings of $63,100. During the year, the company reported sales of $127,800, costs of $89,900, depreciation of $11,200, dividends of $2,800, and interest paid of $3,400. The tax rate is 35%. What is the retained earnings balance at the end of the year?
We first calculate the net income
Sales 127,800
Costs 89,900
Depreciation 11,200
Interest 3,400
Total Expenses 104,500
Income before tax 23,300
Tax (35%) 8,155
Net Income 15,145
Ending Retained Earnings = Beginning Retained Earnings + Net ...
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