Unit 2 Questions Flashcards
Net working capital is defined as
current assets minus current liabilities
the financial statement that summarizes a firms accounting value as of a particular date is called
balance sheet
what is an intangible fixed asset
copyright
Gino’s Winery has net working capital of $29,800, net fixed
assets of $64,800, current liabilities of $34,700, and long-term
debt of $23,000. What is the value of the owners’ equity?
Owners’ equity = $29,800 + 64,800 -23,000 = $71,600
Wes Motors has total assets of $98,300, net working capital
of $11,300, owners’ equity of $41,600, and long-term debt of
$38,600. What is the value of the current assets?
Current liabilities = $98,300-38,600 -41,600 = $18,100
Current assets = $11,300 + 18,100 = $29,400
ANC Plastics has net working capital of $15,400, current
assets of $39,200, equity of $46,600, and long-term debt of
$22,100. What is the amount of the net fixed assets
Net fixed assets = $22,100 + 46,600- 15,400 = $53,300
Rooster’s currently has $5,200 in cash. The company owes
$31,700 to suppliers for merchandise and $41,500 to the bank
for a long-term loan. Customers owe the company $26,400 for
their purchases. The inventory has a book value of $53,300 and
an estimated market value of $56,500. If the store compiled a
balance sheet as of today, what would be the book value of the
current assets?
Current assets = $5,200 + 26,400 + 53,300 = $84,900
Donut Delite has total assets of $31,300, long-term debt of
$8,600, net fixed assets of $19,300, and owners’ equity of
$21,100. What is the value of the net working capital?
Net working capital = $21,100 + 8,600 -19,300 = $10,400
Dockside Warehouse has net working capital of $42,400,
total assets of $519,300, and net fixed assets of $380,200. What
is the value of the current liabilities?
Current liabilities = $519,300 -380,200 -42,400 = $96,700
Donner United has total owners’ 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?
Long-term debt = $36,400 -18,800 -12,200 = $5,400
Marcie’s has sales of $179,600,depreciation of $14,900,
costs of goods sold of $138,200, and other costs of $28,400. The
tax rate is 35 percent. What is the net income?
Net income = ($179,600 -138,200 -28,400 -14,900)(1 -.35) = -
$1,235
Revenues is a stock variable
False
Equitable Sales has total owner’s equity of $14,500. The
firm has current assets of $4,900, current liabilities of $1,200,
and total assets of $20,100. What is the value of the long-term
debt?
20100-1200-14500=4,400
GAAP is
a common set of standards and procedures for preparing
audited financial statements
Precious Gems Jewelry has sales of $267,400 and costs of
$200,800. The depreciation expense is $36,100. Interest paid
equals $19,700 and dividends paid equal $4,500. The tax rate is
34 percent. What is the amount of the addition to retained
earnings?
Earnings before taxes = 267400-200800-36100-19700=10800
Net income=10800-(108000.34)=10800(1-0.34)=7128
Addition to retained earnings=7128-4500=2628
