|Other things held constant, which of the following actions would increase the amount of cash on a company’s balance sheet?
||The company issues new common stock.
|Which of the following items cannot be found on a firm’s balance sheet under current liabilities?
||Cost of goods sold
|Below are the 2014 and 2015 year-end balance sheets for Tran Enterprises: Assets: 20152014Cash $ 200,000$ 170,000Accounts receivable 864,000700,000Inventories 2,000,0001,400,000Total current assets $3,064,000$2,270,000Net fixed assets 6,000,0005,600,000Total assets $9,064,000$7,870,000Liabilities and equity: Accounts payable $1,400,000$1,090,000Notes payable to bank 1,600,0001,800,000Total current liabilities $3,000,000$2,890,000Long-term debt 2,400,0002,400,000Common stock 3,000,0002,000,000Retained earnings 664,000580,000Total common equity $3,664,000$2,580,000Total liabilities and equity $9,064,000$7,870,000The firm has never paid a dividend on its common stock, and it issued $2,400,000 of 10-year, non-callable, long-term debt in 2014. As of the end of 2015, none of the principal on this debt had been repaid. Assume that the company’s sales in 2014 and 2015 were the same. Which of the following statements must be CORRECT?
||The firm issued new common stock in 2015.
|On its 12/31/15 balance sheet, Barnes Inc showed $510 million of retained earnings, and exactly that same amount was shown the following year. Assuming that no earnings restatements were issued, which of the following statements is CORRECT?
||Dividends could have been paid in 2015, but they would have had to equal the earnings for the year.
|Wu Systems has the following balance sheet. How much net operating working capital does the firm have? Cash $ 100 Accounts payable $ 200Accounts receivable 650 Accruals 135Inventory 550 Notes payable 565Current assets $ 1,300 Current liabilities $ 900Net fixed assets $ 1,000 Long-term debt 600 Common equity 300 Retained earnings 500Total assets $ 2,300 Total liab. & equity $ 2,300
|Last year Almazan Software reported $10.50 million of sales, $6.25 million of operating costs other than depreciation, and $1.30 million of depreciation. The company had $5.00 million of bonds that carry a 6.5% interest rate, and its federal-plus-state income tax rate was 35%. This year’s data are expected to remain unchanged except for one item, depreciation, which is expected to increase by $0.63 million. By how much will net income change as a result of the change in depreciation? The company uses the same depreciation calculations for tax and stockholder reporting purposes. (Round your final answer to 3 decimal places.)
|On 12/31/15, Hite Industries reported retained earnings of $497,500 on its balance sheet, and it reported that it had $135,000 of net income during the year. On its previous balance sheet, at 12/31/14, the company had reported $445,000 of retained earnings. No shares were repurchased during 2015. How much in dividends did the firm pay during 2015?
|Hartzell Inc. had the following data for 2014, in millions: Net income = $600; after-tax operating income [EBIT (1-T)] = $700; and Total assets = $2,000. Information for 2015 is as follows: Net income = $825; after-tax operating income [EBIT (1-T)] = $1,175; and Total assets = $2,500. How much free cash flow did the firm generate during 2015?
|Byrd Lumber has 2 million shares of common stock outstanding that sell for $17 a share. If the company has $37 million of common equity on its balance sheet, what is the company’s Market Value Added (MVA)? Answer options are provided in whole dollar.