1)Penguin Pucks, Inc., has current assets of $5,200, net fixed assets of $25,200, current liabilities of $4,250, and long-term debt of $9,400. What is the value of the shareholders equity account fo

1)Penguin Pucks, Inc., has current assets of $5,200, net fixed assets of $25,200, current liabilities of $4,250, and long-term debt of $9,400.

What is the value of the shareholders’ equity account for this firm?

Shareholders’ equity______$

How much is net working capital?

Net working capital_______$

2)Billy’s Exterminators, Inc., has sales of $598,000, costs of $296,000, depreciation expense of $48,000, interest expense of $34,000, and a tax rate of 35 percent.

What is the net income for this firm?

Net income______$

3)Klingon Widgets, Inc., purchased new cloaking machinery five years ago for $5 million. The machinery can be sold to the Romulans today for $4.1 million. Klingon’s current balance sheet shows net fixed assets of $2.8 million, current liabilities of $720,000, and net working capital of $217,000. If all the current assets were liquidated today, the company would receive $0.99 million cash.

What is the book value of Klingon’s total assets today?

Book value of total assets_______$

What is the market value?

Market value of total assets_______$

4)The Anberlin Co. had $273,000 in 2011 taxable income. Use the tax rates from Table 2.3.(attached)

What is the average tax rate? (Round your answer to 2 decimal places. (e.g., 32.16))

Average tax rate________%

What is the marginal tax rate?

Marginal tax rate________%

5)Chevelle, Inc., has sales of $43,000, costs of $25,100, depreciation expense of $1,500, and interest expense of $1,500.

If the tax rate is 35 percent, what is the operating cash flow, or OCF?

Operating cash flow________$

6) You are given the following information for Calvani Pizza Co.: sales = $48,000; costs = $21,200; addition to retained earnings = $6,500; dividends paid = $1,300; interest expense = $5,200; tax rate = 35 percent. Calculate the depreciation expense. (Do not round intermediate calculations and round your final answer to nearest whole dollar amount.)

Depreciation expense______$

ATTACHMENT PREVIEW

Download attachment

Leave a Comment