Marketing
1. Building a balance sheet
Wow Dat, Inc., has current assets for $3,840, net fixed assets of $10,190, current liabilities of $2,470, and long-term debt of $3,980. What is the value of the shareholders equity account for this firm? How much is net working capital?
Balance sheet
Current assets 3840 Current liabilities 2470
Net fixed assets 10190 long-term depts 3980 Owners equity 7580
Total assets 14030 total liabilities & equity 14030
Owners equity = total liabilities – Current liabilities – long – term debt
=14030 – 2470 – 3980
= 7580
Net working capital = current assest – current liabilities
NWC = 3840 – 2470
NWC = 1370
2. Building an income statement
Lifetime, Inc., has sales of $585,000, cost of $273,000, depreciation expense of $71,000, interest expense of $38,000, and tax rate of 40%. What is the net income for this firm?
Income statement
Sales 585000
Costs 273000
Deprectiation 71000
EBIT 241000
Interest 38000
Taxable income 203000
Taxes 81200 Net Income 121800
6. Calculating Taxes
The SGS Co. Had $274,000 in taxable income. Using the rates from Table 2.3 in the chapter, calculate the company’s income taxes.
0.15(50000)+0.25(25000)+0.34(25000)+0.39(173000)=89720
9. Calculating Net Capital Spending
Rotweiler Obedienece School’s December 31, 2009, balance sheet showed net fixed assets of $1.725 million, and the December 31,2010, balance sheet showed net fixed assets of $2.04 million. The company’s 2010 income statement showed a depreciation expense of $321,000. What was Rotweiler net capital spending for 2010?
Net Capital spending = NFA Ending – NFA Beginning + Depreciation
= 1725000 – 2040000 + 321000
636000
14. Calculating Total Cash Flows.
Sheffield Co. Shows the following information on its 2010 income statement: sales = $153,000; costs $81,900; other
Wow Dat, Inc., has current assets for $3,840, net fixed assets of $10,190, current liabilities of $2,470, and long-term debt of $3,980. What is the value of the shareholders equity account for this firm? How much is net working capital?
Balance sheet
Current assets 3840 Current liabilities 2470
Net fixed assets 10190 long-term depts 3980 Owners equity 7580
Total assets 14030 total liabilities & equity 14030
Owners equity = total liabilities – Current liabilities – long – term debt
=14030 – 2470 – 3980
= 7580
Net working capital = current assest – current liabilities
NWC = 3840 – 2470
NWC = 1370
2. Building an income statement
Lifetime, Inc., has sales of $585,000, cost of $273,000, depreciation expense of $71,000, interest expense of $38,000, and tax rate of 40%. What is the net income for this firm?
Income statement
Sales 585000
Costs 273000
Deprectiation 71000
EBIT 241000
Interest 38000
Taxable income 203000
Taxes 81200 Net Income 121800
6. Calculating Taxes
The SGS Co. Had $274,000 in taxable income. Using the rates from Table 2.3 in the chapter, calculate the company’s income taxes.
0.15(50000)+0.25(25000)+0.34(25000)+0.39(173000)=89720
9. Calculating Net Capital Spending
Rotweiler Obedienece School’s December 31, 2009, balance sheet showed net fixed assets of $1.725 million, and the December 31,2010, balance sheet showed net fixed assets of $2.04 million. The company’s 2010 income statement showed a depreciation expense of $321,000. What was Rotweiler net capital spending for 2010?
Net Capital spending = NFA Ending – NFA Beginning + Depreciation
= 1725000 – 2040000 + 321000
636000
14. Calculating Total Cash Flows.
Sheffield Co. Shows the following information on its 2010 income statement: sales = $153,000; costs $81,900; other