BASIC

$($Questions $1-10)$

Building a Balance Sheet Bing, Inc., has current assets of $$5,400,$ net fixed assets of $$28,100,$ current liabilities of $$4,100,$ and long$-$term debt of $$10,600.$ What is the

value of the shareholders' equity account for this firm? How much is net working capital?

Building an Income Statement Gia, Inc., has sales of $$497,000,$ costs of $$276,000,$ depreciation expense of $$43,000,$ interest expense of $$24,000,$ and a tax rate of $21$

percent. What is the net income for the firm? Suppose the company paid out $$30,000$ in cash dividends. What is the addition to retained earnings?

Market Values and Book Values Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $$6$ million. The machinery can be sold to the

Romulans today for $$5\mathrm{.}4$ million. Klingon's current balance sheet shows net fixed assets of $$3\mathrm{.}5$ million, current liabilities of $$945,000,$ and net working capital

of $$275,000.$ If the current assets and current liabilities were liquidated today, the company would receive a total of $$1\mathrm{.}25$ million cash. What is the book value of

Klingon's total assets today? What is the sum of the market value of NWC and the market value of fixed assets?

Calculating Taxes Timmy Tappan is single and had $$189,000$ in taxable income. Using the rates from Table $2\mathrm{.}3$ in the chapter, calculate his income taxes.

What is the average tax rate? What is the marginal tax rate?

Calculating OCF Graff, Inc., has sales of $$49,800,$ costs of $$23,700,$ depreciation expense of $$2,300,$ and interest expense of $$1,800.$ If the tax rate is $22$ percent, what is

the operating cash flow, or OCF?

Calculating Net Capital Spending Wallace Driving School's $2020$ balance sheet showed net fixed assets of $$2\mathrm{.}3$ million, and the $2021$ balance sheet showed net fixed

assets of $$3\mathrm{.}1$ million. The company's $2021$ income statement showed a depreciation expense of $$327,000.$ What was net capital spending for $2021?$

Building a Balance Sheet The following table presents the long$-$term liabilities and stockholders' equity of Information Control Corp. from one year ago: