Questions from Corporate Finance

Q: Suppose the firm in Problem 2 paid out $95,000 in

Suppose the firm in Problem 2 paid out $95,000 in cash dividends. What is the addition to retained earnings?Data from Problem 2:Griffin’s Goat Farm, Inc., has sales of $796,000, costs of $327,000, dep...

Q: Suppose the firm in Problem 3 had 80,000 shares of

Suppose the firm in Problem 3 had 80,000 shares of common stock outstanding. What is the earnings per share, or EPS, figure? What is the dividends per share figure?Problem 3:Suppose the firm in Proble...

Q: Pompeii, Inc., has sales of $46,200, costs of $23,100, depreciation

Pompeii, Inc., has sales of $46,200, costs of $23,100, depreciation expense of $2,200, and interest expense of $1,700. If the tax rate is 22 percent, what is the operating cash flow, or OCF?

Q: Logano Driving School’s 2017 balance sheet showed net fixed assets

Logano Driving School’s 2017 balance sheet showed net fixed assets of $2.4 million, and the 2018 balance sheet showed net fixed assets of $3.3 million. The company’s 2018 income statement showed a dep...

Q: The most recent financial statements for Assouad, Inc., are shown

The most recent financial statements for Assouad, Inc., are shown here:

Q: The 2017 balance sheet of Dream, Inc., showed current assets

The 2017 balance sheet of Dream, Inc., showed current assets of $4,810 and current liabilities of $2,230. The 2018 balance sheet showed current assets of $5,360 and current liabilities of $2,970. What...

Q: The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed

The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed long-term debt of $1.87 million, and the 2018 balance sheet showed long-term debt of $2.21 million. The 2018 income statement showed an int...

Q: Return to the case of the diagnostic scanner used in

Return to the case of the diagnostic scanner used in Problems 1 through 6. Suppose the entire $4,800,000 purchase price of the scanner is borrowed. The rate on the loan is 8 percent, and the loan will...

Q: The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed

The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed $650,000 in the common stock account and $3.98 million in the additional paid-in surplus account. The 2018 balance sheet showed $805,000 an...

Q: SDJ, Inc., has net working capital of $2,170, current liabilities

SDJ, Inc., has net working capital of $2,170, current liabilities of $4,590, and inventory of $3,860. What is the current ratio? What is the quick ratio?