A firm has cash of 300,000, accounts receivable of 70,000, pre paid expenses of 12,000, accounts payable of 50,000, other current liabilities of 35,000, common stock of 375,000 and long term liabilities of 65,000. The firm also produced a profit of 20,000 during the last year calendar year. What is the firms work capital?

A firm has cash of 300,000, accounts receivable of 70,000, pre paid expenses of 12,000, accounts payable of 50,000, other current liabilities of 35,000, common stock of 375,000 and long term liabilities of 65,000. The firm also produced a profit of 20,000 during the last year calendar year. What is the firms work capital?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...

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Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectively
Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Stricklers sales last year were 3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was 1,800,000. The firm had fixed assets totaling 535,000. Stricklers payables deferral period is 45 days. a. Calculate Stricklers cash conversion cycle. b. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. c. Suppose Stricklers managers believe the annual inventory turnover can be raised to 9 times without affecting sale or profit margins. What would Stricklers cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the year?
The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, a days’ sales outstanding of 36.5 days (based on a 365-day year), total current assets of $810,000, and cash and marketable securities of $120,000. What were Kretovich’s annual sales?
This year a firm had revenues of $10,000 and total expenses of $8,000. The firm also increased their inventory by $500, accounts receivable by $300 and accounts payable by $400.The firm also purchased a new $1,000 piece of machinery. The firm recorded $200 in depreciation and paid $200 in interest. The firm’s tax rate is 21%. What is the free cash flow for the firm?
A company owns building worth £200,000, equipment worth £20,000 and Vehicle worth £30,000.At the start of the year it also has £6,000 in cash, bank balance £6,000 and stocks of materials worth £20,000. It knows that this month it will need to pay a loan amount of £6,000 and payments to creditors £8,000.The expected income from sales this month is £17,000. Complete the following table: Fixed assets Current assets Liabilities Receipts Total assets Overall wealth/ Networth As a financial manager in this organisation you have been asked to comment on thefigures.
You have gathered this information on a firm: $500,000 sales, $10,000 cash dividends, $300,000 cost of goods sold, $20,000 administrative expense, $20,000 depreciation expense, $40,000 interest expense, $40,000 purchase of productive equipment, no changes in working capital, and a tax rate of 21%. What is the free cash flow?
Papa Roach Exterminators, Inc., has sales of $659,000, costs of $275,000, depreciation expense of $43,000, interest expense of $34,000, and a tax rate of 40 percent, If the firm paid out $72,000 in cash dividends, what is the addition to retained earnings?
A firm has long-term debt of $46,400, fixed assets of $35,246, cash of $4,120, accounts payable $7,360, inventory of $21,408, and accounts receivable of $6,488. How much is the net working capital?
Consider a company with earnings before interest and taxes (EBIT) of $450,000, tax rate of 16%, depreciation and amortization expenses of $60,000, capital expenditures of $80,000, acquisition expenses of $30,000 and change in working capital of $40,000. How much is its free cash flow during that period? Round to the nearest cent.
Bonner Automotive has shareholders equity of $218,700. The firm owes a total of $141,000 of which 40% is payable within the next year. The firm has long term assets of $209,800. What is the amount of net working capital?
You have gathered this information on a firm: $500,000 sales, $10,000 cash dividends, $300,000 cost of goods sold, $20,000 administrative expense, $20,000 depreciation expense, $40,000 interest expense, $40,000 purchase of productive equipment, $600 addition to net working capital, and a tax rate of 21%. What is the free cash flow
solution star industries has published its annual account. it indicates that during the year the year the firm had sales of $3,500,000, cost of goodssold totaled $2,300,000, operating expenses of $420,000, and depreciation expenses 0f $240,000. the firm is in 30% tax bracket. determine the firm's operating cash flow?