Finance week 2

# Finance week 2

1) Your firm has the following balance sheet statement items: total liabilities of \$1,005,000; total assets of \$2,655,000; fixed and other assets of \$1,770,000; and long-term debt of \$200,000. What is the amount of the firms total stockholders equity?A) \$3,650,885B0 \$550,000C) \$1,650,000D) \$833,0002) Delta Corp. reported the following items for the current year: Sales = \$3,000,000; Cost of Goods Sold = \$1,500,000; Depreciation Expense = \$170,000; Administrative Expenses = \$150,000; Interest Expense = \$30,000; Marketing Expenses = \$80,000; and Taxes = \$300,000. Delta Corp.s gross profit is equal toA) \$770,000.B) \$1,070,000.C) \$1,100,000.D) \$1,500,000.3) Delta Corp. reported the following items for the current year: Sales = \$3,000,000; Cost of Goods Sold = \$1,500,000; Depreciation Expense = \$170,000; Administrative Expenses = \$150,000; Interest Expense = \$30,000; Marketing Expenses = \$80,000; and Taxes = \$300,000. Delta Corp. operating income is equal toA) \$770,000.B) \$1,070,000.C) \$1,100,000.D) \$1,500,000.4) Use the following information to calculate the company’s accounting net income for the year.A) \$300,000B) \$240,000C) \$125,000D) \$120,0005) Susannah Stores Inc. has sales of \$4,000,000; the firm’s cost of goods sold is \$2,500,000; and its total operating expenses are \$600,000. What is Susannah Stores Inc., EBIT?A) \$850,000B) \$875,000C) \$900,000D) \$1,300,0006) Susannah Stores Inc. has sales of \$4,000,000; the firm’s cost of goods sold is \$2,500,000; and its total operating expenses are \$600,000. The firm’s interest expense is \$250,000, and the corporate tax rate is 40%. What is Susannah Stores Inc., net income?A) \$288,000B) \$350,000C) \$377,000D) \$390,0007) Susannah Stores Inc. has sales of \$4,000,000; the firm’s cost of goods sold is \$2,500,000; and its total operating expenses are \$600,000. The firm’s interest expense is \$250,000, and the corporate tax rate is 40%. The firm paid dividends to preferred stockholders of \$40,000, and the firm distributed \$60,000 in dividend payments to common stockholders. What is Susannah Stores Inc., Addition to Retained Earnings that would be reflected per the Retained Earnings Statement Balance?A) \$650,000B) \$390,000C) \$330,000D) \$290,0008) Conglomerate, Inc. has total current assets of \$1,200,000; total current liabilities of \$500,000; and long-term assets of \$800,000. How much is the firm’s Total Liabilities & Equity?A) \$2,500,000B) \$1,300,000C) \$2,000,000D) \$1,800,0009) Conglomerate, Inc. has sales of \$4,250,000; the firm’s cost of goods sold is \$2,500,000; and its total operating expenses are \$600,000. The firm’s interest expense is \$250,000, and the corporate tax rate is 40%. What is Conglomerate, Inc.s tax liability?A) \$258,000B) \$260,000C) \$360,000D) \$600,00010) Use the following information to answer the questions below. In 2004, Bobbalee, Inc. expects operating income (earnings before interest and taxes) of \$18,000,000. In addition, the corporation has \$20,000,000 of debt outstanding with a 10 percent interest rate and will pay \$1,000,000 in dividends to its common stockholders. Assume that Bobbalee will receive no other sources of income during 2004. Bobbalees s taxable income for 2004 will be:A) \$18,000,000.B) \$17,000,000.C) \$16,000,000.D) \$15,000,000.