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1- which one of the following is not included in net workingcapital?

A) account receivable , B) retained earnings, C) cash and cashequivalent , D) prepaid expenses, E) Account payable.

2- Depreciation does which one of the following for a profitablefirm?

A) has no effect on net income, B) decrease net working capital,C) decrease net income, D) increase net income, E) increasetaxes

3- a firm has a current ratio 0.9, given this you know forcertain that the firm.

A) has more current liabilities than it does current assets, B)has positive net working capital, C) has negative net workingcapital D) pays cash for its inventory, E) has more cash thaninventory.

4- all else equal, an increase in which one of the followingwill increase owner's equity?

A) increase in accounts payable, B) decrease in net fixedassets, C) decrease in accounts receivable , D) increase ininventory, E) decrease in net working capital

5- a firm with inventory of $130, total current assets of $511and current liabilities of $412 has a quick ratio (acidtest) of?

6- During the latest year, xyz corporation has total sales of$200,000, net income of $10000 and its year-end total assets were$250,000, the firm's total debt to total assets ratiowas 30%

what is firm's total assets turnover?

7- During the latest year, xyz corporation has total sales of$200,000 net income $20,000, its year-end total assets were230,000, the firm's total debt to total assets ratio was30%,

what is firm's return on assets (ROA)

8- Company x has profits margin of 5%, total assets turnover of1.8 and total debt to total assets ratio of 30%,, what is thecompany's ROE?

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Sixta Kovacek
Sixta KovacekLv2
28 Sep 2019

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The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided below.

GREAT ADVENTURES, INC.
Income Statement
For the year ended December 31, 2014
Revenues:
Service revenue (clinic, racing, TEAM) $ 568,000
Sales revenue (MU watches) 124,000


Total revenues $ 692,000
Expenses:
Cost of goods sold (watches) 69,400
Operating expenses 289,276
Depreciation expense 48,900
Interest expense 29,556
Income tax expense 56,500


Total expenses 493,632

Net income $ 198,368

GREAT ADVENTURES, INC.
Balance Sheet
December 31, 2014 and 2013
2014 2013 Increase (I)
or
Decrease (D)
Assets
Current assets:
Cash $ 394,496 $ 150,400 $ 244,096 (I)
Accounts receivable 43,900 33,300 10,600 (I)
Inventory 16,800 12,300 4,500 (I)
Other current assets 12,200 10,000 2,200 (I)
Long-term assets:
Land 480,000 0 480,000 (I)
Buildings 1,000,000 0 1,000,000 (I)
Equipment 63,300 63,300
Accumulated depreciation (74,850) (25,950) 48,900 (I)



Total assets $ 1,935,846 $ 243,350



Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 13,700 $ 10,400 $ 3,300 (I)
Interest payable 850 850
Income tax payable 57,900 39,400 18,500 (I)
Long-term liabilities:
Notes payable 503,528 31,900 471,628 (I)
Stockholders' Equity:
Common stock 116,000 19,000 97,000 (I)
Paid-in capital 1,072,900 0 1,072,900 (I)
Retained earnings 227,968 141,800 86,168 (I)
Treasury stock (57,000) 0 (57,000) (I)



Total liabilities and stockholders’ equity $ 1,935,846 $ 243,350


Additional Information for 2014:

1.

Borrowed $510,000 in January 2014. Made 12 monthly payments during the year, reducing the balance of the loan by $38,372.

2. Issued common stock for $1.164 million.
3. Purchased 9,700 shares of treasury stock for $15 per share.
4. Reissued 5,900 shares of treasury stock at $16 per share.
5. Declared and paid a cash dividend of $112,200.

Required:

Prepare the statement of cash flows for the year ended December 31, 2014, using the indirect method.(Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response.)

GREAT ADVENTURES, INC.
Statement of Cash Flows
For the year ended December 31, 2012
Cash Flows from Operating Activities

(Click to select)
Net loss
Net income
$
Adjustments for noncash effects:

(Click to select)
Increase in accounts payable
Purchase of buildings
Payment of dividends
Increase in other current assets
Increase in inventory
Depreciation expense
Purchase of land
Increase in accounts receivable


Changes in current assets and current liabilities:

(Click to select)
Decrease in accounts payable
Depreciation expense
Decrease in inventory
Increase in accounts receivable
Increase in income tax payable
Increase in inventory
Increase in other current assets
Increase in accounts payable


(Click to select)
Decrease in inventory
Increase in accounts receivable
Decrease in accounts payable
Increase in accounts payable
Depreciation expense
Increase in other current assets
Increase in inventory
Increase in income tax payable


(Click to select)
Decrease in inventory
Depreciation expense
Increase in income tax payable
Increase in other current assets
Increase in inventory
Increase in accounts receivable
Decrease in accounts payable
Increase in accounts payable


(Click to select)
Decrease in inventory
Increase in accounts receivable
Increase in income tax payable
Increase in accounts payable
Increase in inventory
Depreciation expense
Increase in other current assets
Decrease in accounts payable


(Click to select)
Decrease in accounts payable
Increase in accounts payable
Increase in inventory
Increase in accounts receivable
Increase in income tax payable
Increase in other current assets
Decrease in inventory
Depreciation expense



Net cash flows from operating activities $

Cash Flows from Investing Activities

(Click to select)
Purchase of buildings
Decrease in accounts payable
Increase in inventory
Purchase of furniture
Cash
Increase in accounts payable
Decrease in inventory
Purchase of land


(Click to select)
Purchase of furniture
Purchase of buildings
Purchase of land
Decrease in accounts payable
Cash
Decrease in inventory
Increase in accounts payable
Increase in inventory

Net cash flows from investing activities
Cash Flows from Financing Activities

(Click to select)
Payment of dividends
Decrease in accounts payable
Repayment of notes payable
Purchased treasury stock
Issued common stock
Reissued treasury stock
Increase in accounts payable
Issued note payable


(Click to select)
Decrease in accounts payable
Purchased treasury stock
Increase in accounts payable
Repayment of notes payable
Issued common stock
Issued note payable
Reissued treasury stock
Payment of dividends


(Click to select)
Increase in accounts payable
Issued note payable
Repayment of notes payable
Decrease in accounts payable
Payment of dividends
Purchased treasury stock
Issued common stock
Reissued treasury stock


(Click to select)
Repayment of notes payable
Issued common stock
Purchased treasury stock
Reissued treasury stock
Decrease in accounts payable
Issued note payable
Payment of dividends
Increase in accounts payable


(Click to select)
Decrease in accounts payable
Purchased treasury stock
Issued common stock
Reissued treasury stock
Repayment of notes payable
Payment of dividends
Issued note payable
Increase in accounts payable


(Click to select)
Decrease in accounts payable
Repayment of notes payable
Payment of dividends
Issued common stock
Increase in accounts payable
Reissued treasury stock
Purchased treasury stock
Issued note payable



Net cash flows from financing activities


(Click to select)
Net decrease in cash
Net increase in cash

Cash at the beginning of the period

Cash at the end of the period $

References

Junior's has a new project in mind that will increase accounts receivable by $34,000, increase accounts payable by $18,000, increase fixed assets by $56,000, and decrease inventory by $20,000. What is the amount the firm should use as the initial cash flow attributable to net working capital when it analyzes this project?

BK Metals is currently operating at full capacity. The profitmargin and the dividend payout ratio are held constant. Net workingcapital and fixed assets vary directly with sales. The companycurrently has current liabilities of $3,950, long-term debt of$14,700, net working capital of $7,850, net fixed assets of$27,600, owners' equity of $20,750, net income of $2,900, anddividends paid of $870. What is the external financing need ifsales increase by 11 percent?

A -768

B. -145

C.972

D. 896

E. 1646

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