FIN 3311 Study Guide - Tax Rate, Operating Cash Flow, Accounts Payable

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aa666

28 Jul 2022

School

St. John's University

Department

FIN - FINANCE

Course

FIN 3311

Professor

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Document Summary

Inventories: list 2 examples of current liabilities. Interest payable: balance sheets are arranged in terms of (term): Assets and liabilities in terms of liquidity: describe a "noncash" item. A noncash item such as depreciation, does not affect the cash inflows or outflows, as they are only accounting entries. With depreciation, the recorded amount is the reduction in the value of the firm"s assets. A fixed asset that is depreciated, does not have the same value 10 years from now. A marginal tax rate is the highest rate at which someone will pay taxed on their income. Whereas, the average tax rate is the total amount of tax divided by total income. The average tax rate determines how taxes affects the ability for a household to consume goods and services. When a firm invests in more liquid assets, they sacrifice their net profit gain: book value is based on: The accounting value of the firm"s assets.

Related Questions

Balance Sheet

ASSETS:

Cash and Marketable Securities: $75.00

Accounts Receivable: $100.00

Inventories: $200.00

TOTAL CURRENT ASSETS: $375.00

Gross Property, Plant and Equipment: (blank)

less Accumulated Depreciation: $50.00

NET FIXED ASSETS: (blank)

TOTAL ASSETS: (blank)

LIABILITIES AND EQUITY:

Accounts Payable: $75.00

Notes Payable: (blank)

Accruals: $75.00

TOTAL CURRENT LIABILITIES: $300.00

Long Term Debt: $350.00

TOTAL LIABILITIES: $650.00

PREFERRED STOCK: (blank)

Common Stock: $50.00

Accumulated Retained Earnings: $125.00

COMMON EQUITY: $175.00

TOTAL LIABILITIES AND EQUITY: $875.00

1. Consider the balance sheet above:

A. What is the value for total assets?

B. What is the value for net fixed assets?

C. What is the value for gross, property, plant andequipment?

D. What is the value for notes payable?

E. What is the value for preferred stock?

Thank you in advance!!

greyotter602

Use the following information for Taco Swell, Inc., (assume the tax rate is 30 percent):

	2010		2011
Sales	$	20,573	$	18,336
Depreciation		1,841		1,916
Cost of goods sold		4,879		4,887
Other expenses		1,036		914
Interest		885		1,016
Cash		6,337		7,006
Accounts receivable		8,220		9,967
Short-term notes payable		1,350		1,327
Long-term debt		20,860		25,086
Net fixed assets		51,284		54,813
Accounts payable		4,672		5,184
Inventory		14,589		15,468
Dividends		1,850		1,798

Prepare a balance sheet of this company for 2010 and 2011. (Be sure to list the accounts in order of their liquidity.)

TACO SWELL, INC., Balance Sheet as of Dec. 31
	2010	2011
Assets
(Click to select)Accounts payableInventoryCashAccounts receivableNotes payable	$	$
(Click to select)Accounts payableLong-term debtAccounts receivableOwners' equityNotes payable
(Click to select)InventoryNotes receivableAccounts receivableNet fixed assetsAccounts payable

Current assets
(Click to select)Accounts payableNet fixed assetsAccounts receivableNotes receivableLong-term debt

Total assets	$	$

Liabilities
(Click to select)Cost of goods soldNet fixed aseetsAccounts receivableAccounts payableLong-term debt	$	$
(Click to select)Accounts receivableNotes receivableAccounts payableCashNotes payable

Current liabilities
(Click to select)Owners' equityCashLong-term debtCost of goods soldAccounts receivable
(Click to select)Accounts receivableCashOwners' equityCost of goods soldNotes receivable

Total liabilities & owners' equity	$	$

Prepare an income statement for this company for 2010 and 2011. (Round your answers to 2 decimal places. (e.g., 32.16))

TACO SWELL, INC., Income Statement
	2010	2011
Sales	$	$
COGS
Other expenses
Depreciation

EBIT	$	$
Interest

EBT
Taxes (30%)

Net income

Dividends	$	$
Additions to RE

peachwhale713

1.)Company ABC has sales of $1,650,000, cost of goods sold of$600,000, EBIT of $450,000, interest expense of $70,000, and a taxrate of 27%. If the company paid $57,000 in dividends what is theaddition to retained earnings.

2.)At the beginning of the year, a firm had current assets of$121,306 and current liabilities of $124,509. At the end of theyear, the current assets were $122,418 and the current liabilitieswere $103,718. What is the change in net working capital?

3.)

Use the Income Statement and Balance Sheet below to calculatethe companies free cash flow.

Income Statement	2017
Net Sales	675
Cost of goods sold	210
Depreciation	50
EBIT	415
Interest Paid	15
EBT	400
Taxes (30%)	120
Net Income	280
Dividends	105
Addition to Retained Earnings	175

Assets	2016	2017	Liabilities and Shareholders equity	2016	2017
Current Assets			Current Liabilities
Cash	100	125	Accounts Payable	200	250
Accounts Receivable	250	350	Notes Payable	150	225
Inventory	400	375
Total Current Assets	750	850	Total Current Liabilities	350	475
			Long term debt	300	250
Fixed Assets			Stockholders equity
PPE	1500	1700	Common stock	300	300
Accumulated Depreciation	400	450	Retained earnings	900	1075
Net PPE	1100	1250	Total Shareholderâs Equity	1200	1375
Total Assets	1850	2100	Total Liabilities & Equity	1850	2100

4.)A firm has net working capital of $900. Long-term debt is$4,200, total assets are $8,000, and fixed assets are $4,300. Whatis the amount of the total liabilities?

beigedeer979

FIN 3311 Study Guide - Tax Rate, Operating Cash Flow, Accounts Payable

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