A firm has $300 in inventory, $600 in fixed

current assets = 1+3+5

assets, $200 in accounts receivables, $100 in

accounts payable, and $50 in cash. What is
the amount of the current assets?

A firm has net working capital of $350. Long-

total liabilities = -1+2+3-4

term debt is $600, total assets are $950 and

fixed assets are $400. What is the amount of
the total liabilities?

A firm has common stock of $100, paid-in

shareholders equity = -3+4+5

surplus of $300, total liabilities of $400,

current assets of $400, and fixed assets of
$600. What is the amount of the
shareholders equity?

The total assets are $900, the fixed assets are

net working capital = 1-2-4

$600, long-term debt is $500, and short-term

debt is $200. What is the amount of net
working capital?

Shareholders equity in a firm is $500. The

Net working capital = 1+2-4-2*3

firm owes a total of $400 of which 75 percent

is payable within the next year. The firm has
net fixed assets of $600. What is the amount
of the net working capital?

Brads Co. has equipment with a book value of $500

liquid assets = 3+4+5

that could be sold today at a 50 percent

discount. Their inventory is valued at $400 and
could be sold to a competitor for that amount.
The firm has $50 in cash and customers owe
them $300. What is the accounting value of
their liquid assets?

Marthas Enterprises spent $2,400 to purchase

equipment three years ago. This equipment is
currently valued at $1,800 on todays balance
sheet but could actually be sold for $2,000.
Net working capital is $200 and long-term
debt is $800. What is the book value of
shareholders equity?

Shareholders equity = 2+45

Recently, the owner of Marthas Wares encountered

severe legal problems and is trying to sell her
business. The company built a building at a
cost of $1.2 million that is currently appraised
at $1.4 million. The equipment originally cost
$700,000 and is currently valued at $400,000.
The inventory is valued on the balance sheet at
$350,000 but has market value of only onehalf of that amount. The owner expects to
collect 95 percent of the $200,000 in accounts
receivable. The firm has $10,000 in cash and
owes a total of $1.4 million. The legal
problems are personal and unrelated to the
actual business. What is the market value of
this firm?

Ivans, Inc. paid $500 in dividends and $600 in

market value =
2+4+5*6+7*8
+9-10

netincome=1+(+/4)

interest this past year. Common stock

increased by $200 and retained earnings
decreased by $100. What is the net income
for the year?

Arts Boutique has sales of $640,000 and costs of

$480,000. Interest expense is $40,000 and
depreciation is $60,000. The tax rate is 34%.
What is the net income?

Tims Playhouse paid $155 in dividends and $220

in interest expense. The addition to retained
earnings is $325 and net new equity is $50.
The tax rate is 25 percent. Sales are $1,600 and
depreciation is $160. What are the earnings
before interest and taxes?

Your firm has net income of $198 on total sales

of $1,200. Costs are $715 and depreciation is
$145. The tax rate is 34 percent. The firm does
not have interest expenses. What is the
operating cash flow?

Teddys Pillows has beginning net fixed assets of

$480 and ending net fixed assets of $530.
Assets valued at $300 were sold during the
year. Depreciation was $40. What is the
amount of net capital spending?

net income = (1-2-3-4) - (1-2-34)*5

earnings before interest and

taxes = (1+3)/(100%-5) + 2

operating cash flow = (2-3)

- (1/(100%-5) -1)

net capital spending = -1+2+4

At the beginning of the year, a firm has

current assets of $380 and current liabilities of
$210. At the end of the year, the current assets
are $410 and the current liabilities are $250.
What is the change in net working capital?

At the beginning of the year, long-term

change in net working capital =

-1+2+3-4

cash flow to creditors = 1 - 3 + 5

debt of a firm is $280 and total debt is $340.

At the end of the year, long-term debt is $260
and total debt is $350. The interest paid is $30.
What is the amount of the cash flow to
creditors?

Petes Boats has beginning long-term debt of $180

and ending long-term debt of $210. The
beginning and ending total debt balances are
$340 and $360, respectively. The interest paid
is $20. What is the amount of the cash flow
to creditors?

Peggy Greys Cookies has net income of

$360. The firm pays out 40 percent
of the net income to its shareholders
as dividends. During the year, the
company sold $80 worth of common
stock. What is the cash flow to
stockholders?

Thompsons Jet Skis has operating cash flow of

$218. Depreciation is $45 and interest paid is
$35. A net total of $69 was paid on long-term
debt. The firm spent $180 on fixed assets and
increased net working capital by $38. What is
the amount of the cash flow to
stockholders?

cashflowtocreditors=1
2+5

cashflowtostockholders=
(1*2)3

cashflowtostockholders
=13456