Calculate the shareholders’ equity from the given information:
Cash $2,450
A/R $6,850
Notes Payable $382
Long-term Debt $15,000
Net Fixed Assets $28,000
A/P $2,146
Inventory $2,450
Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Question 2

Based on the following information, Compute the transfer to Retained Earnings for Year 2006. Assume a tax rate of 34%.
Year 2006
Sales $4800
Depreciation 577
COGS 1582
Other Expenses 580
Interest 769
Cash 2107
A/R 2789
Short-term Notes Payable 407
Long-term Debt 7056
Net Fixed Assets 17669
A/P 2213
Inventory 4959
Dividends 612
Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Question 3
Culligan, Inc., has current assets of $5,000, net fixed assets of $23,000, current liabilities of $4,300, and long-term debt of $13,000. How much in net working capital?
Hint: Net Working Capital = CA – CL
Answer
$700
$10,700
$28,000
$4,300
$5,000

Question 4

ABC Inc. recently reported net income of $3,182 and depreciation of $536. What is the net cash flow?
Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Question 5
1. Donner United has total owner’s equity of $18,800. The firm has current assets of $23,100, current liabilities of $12,200, and total assets of $36,400. What is the value of the long-term debt?
Answer

$43,000
$29,800
$12,500
$13,700
$5,400

Question 6
The interest payments are tax-deductible.
Answer
True
False

Question 7
What is sales revenue, minus cost of goods sold and operating expenses, known as for income statement purposes?
Answer
Earnings before Interest and Taxes
Net Income
Net Profit
Dividends

Question 8
1. Corporate Bonds issued by ABC Corporation currently issued 14.7%. Municipal Bonds of equal risk currently yield 7.5%. At what tax rate would an investor be indifferent between these two bonds?
Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

Question 9
1. ABC Corporation had $82,239 of taxable income. Compute the tax liability.
Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Question 10
Fixed assets includes which of the below?
Answer
Land
Inventory
Accounts Receivable
Long-term Debt

Question 11
ABC corporation has operating income of $23,709. The company’s depreciation expense is $12,324. The company is all equity-financed and it faces a tax rate of 36%. What is the company’s net cash flow?
Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Question 12
JBS Inc. recently reported net income of $4,750 and depreciation of $885. How much was its net cash flow, assuming it had no amortization expense and sold none of its fixed assets.
Answer
$5916.00
$4831.31
$5353.25
$5635.00
$5085.29

Question 13
ABC company had a taxable income of $594,342 from operations after all operating costs but before interest charges of $53,502, dividends received of $40,958, dividends paid of $10,000, and income taxes. What is the firm’s income tax liability?
Hint: use the tax table to compute taxes.
Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Question 14
ABC recently reported $42,568 of sales, $14,940of operating costs other than depreciation, and $5,667 of depreciation. The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding that carry a 15% interest rate. How much was the firm’s taxable income, or earnings before taxes (EBT)?
Hint: Interest rate = Bonds outstanding * interest rate
Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.