Question: B&B reported the following amounts on its balance sheet for Year 1 and Year 2: Year End Assets Liabilities Shareholders' Equity (Net Assets) Year 1
1. B&B reported the following amounts on its balance sheet for Year 1 and Year 2: Year End Year 1 Assets $100,000 Liabilities $35,000 Shareholders' Equity (Net Assets) $65,000 Year 2 108,000 28,000 80,000 No dividends were declared and no additional investments of capital were made at Boeing during Year 2. What is the company's net income for Year 2? A $15,000 B. $25,000 C. $43,000 D. Not enough information is provided to determine the answer. 2. Houston Electric reported the following amounts on its statement of cash flow for the year: Net cash provided by operating activities $2,000,000 Net cash provided by financing activities 1,400,000 Net cash flow for the year 8,000,000 Retained earnings at December 31 1,000,000 How much is Houston's net cash provided by investing activities? A. $4,600,000 B. $4,100,000 C. $3,300,000 D. $3,600,000 3. Which of the financial statements provides amounts as of a particular point in time? A. Income statement B. Statement of shareholders' equity C. Statement of cash flow D. Balance sheet E. All of the statements provide amounts as of a point in tim 2 4. B&B of North Carolina, reported the following account balances, along with Cash of $75,000: Administrative expenses Accounts receivable Revenue Selling & General expenses Salaries, wages & benefits Cash dividends paid $ 166,000 140,000 800,000 44,000 425,000 80,000 How much is net income for B&B of North Carolina? A. $135,500 B. $172,500 C. $157,500 D. $165,000 5. B&B Pharmaceutical had net income of $210 million and sales totaling $44,600 million. Its assets at the end of the year totaled $2,000 million. Interest expense was $120 million and the income tax rate was 30 percent. What is B&Bs return on assets? A. 14.70% B. 16.20% C. 18.71% D. 12.06% 6. B&B reported total assets at December 31 totaling $300,000. The following selected amounts were taken from its financial statements for its year ending December 31: $340,000 Retained earnings (Fund Balance) Accounts receivable Inventory Notes payable $50,000 7,000 21,000 16,000 Sales Common stock Net income Dividends paid 150,000 115,000 12,000 How much is the company's return on equity as of December 31? A. 10.35% B. 67.99% C. 57.50% D. 60.25% 7. B&B financial results are presented below for all Divisions: Operating profit $435,000 Cash flow from: Operations 285,000 Investing (125,600) Financing (54,000) What cash management actions most likely occurred during the year? A. B&B used cash from operations and from selling long-term assets to pay dividends. B. B&B used cash from bank loans or from selling stock and from operations to buy long- term assets. C. B&B used cash from bank loans or from selling stock to fund operations and to buy long-term assets. D. B&B used cash from operations to buy long-term assets and to repay debt. 8. The following information is taken from the annual report of B&B: (in thousands) Year 2 Year 1 Net sales $200,000 $145,200 Accounts receivable, net 20,000 16,400 How much is the accounts receivable turnover ratio for Year 2? A. 8.0 B. 13.1 C. 11.8 D. 10.0 9. The following information is taken from the annual report of B&B: (in thousands) Net sales Accounts receivable, net Year 2 Year 1 $160,000 $105,200 20,000 15,000 What is the receivable collection period for Year 2? A. 46 days B. 12 days C. 8. days D. 50 days
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