During 2017, Loda Corporation's long-term investments account (at cost)increased $30,000, which was the net result of purchasing stocks costing S160,000 and selling stocks costing $130,000 at a $12,000 loss. Also, its bondspayable account decreased $80,000, the net result of issuing $200,000 of bondsat $206,000 and retiring bonds with a face value (and book value) of $280,000at an $18,000 gain. Calculate Loda's net cash flow from investing activities for2017. Select one: A. ($ 42,000) B. $160,000 C. ($ 98,000) D. ($ 30,000)

Cash flow from investing activities refers to the inflows and outflows of cash resulting from the…

Answered: During 2017, Loda Corporation's…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $2.2 million in long-term debt, $800,000 in the Equity and the Equity in the 2009 balance sheet was $4.1 million. The 2009 income statement showed an interest expense of $220,000. Further, the company paid out $650,000 in cash dividends during 2009. If the firm's net capital spending for 2009 was $850,000, and the firm reduced its net working capital investment by $115,000, the firm's 2009 operating cash flow, or OCF?
In 2018, Caterpillar Inc. had about 710 million shares outstanding. Their book value was $38.0 per share, and the market price was $85.00 per share. The company's balance sheet shows that the company had $29.50 billion of long-term debt, which was currently selling near par value. a. What was Caterpillar's book debt-to-value ratio? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.) b. What was its market debt-to-value ratio? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.) c. Which measure should you use to calculate the company's cost of capital? a. Book debt-to-value ratio b. C. Markeet debt-to-value ratio Measure
Shamrock Inc. reported income from continuing operations before taxes during 2017 of $ 2,175,000. Additional transactions occurring in 2017 but not considered in the $ 2,175,000 are as follows. 1. A gain of $ 109,000 (pretax) as a result of selling securities from its investment portfolio. 2. A $ 27,000 loss before taxes as a result of operating the discontinued clothing division during 2017. 3. A loss of $ 88,000 before taxes as a result of disposing of its clothing division. Assume that this transaction meets the criteria for discontinued operations. 4. An uninsured $ 128,000 loss due to a fire. 5. At the beginning of 2015, the corporation purchased a machine for $ 220,000 (salvage value of $ 40,000) that had a useful life of 10 years. The bookkeeper used straight-line depreciation for 2015, 2016, and 2017, but failed to deduct the salvage value in computing the depreciation base. 6. The corporation decided to change its method of inventory pricing from…
In 2016, the Allen Corporation had sales of $62 million, total assets of $47 million, and total liabilities of $19 million. The interest rate on the company's debt is 5.9 percent, and its tax rate is 35 percent. The operating profit margin is 14 percent. a) Compute the firm's 2016 net operating income and net income. b) Calculate the firm's operating return on assets and return on equity.
The 2017 balance sheet of Kerber's Tennis Shop , Incorporated, showed $2.4 million long-term debt, $760,000 in the common stock account, and $5.95 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.95 million $985,000, and $8.05 million in the same three accounts , respectively . The 2018 income statement showed an interest expense of $ 310,000 . The company paid out $590,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $690,000 , and the firm reduced its net working capital Investment by $185,000 , what was the firm's 2018 operating cash flow , or OCF ? Typed solution
Lauryn's Doll Company had EBIT last year of $58 million, which is net of a depreciation expense of $5.8 million. In addition, Lauryn's made $6.3 million in capital expenditures and increased net working capital by $2.5 million. Assume that Lauryn's has a reported equity beta of 1.9, a debt-to-equity ratio of 0.6, and a tax rate of 21 percent. What is Lauryn's FCF for the year? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. FCF million
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In 2014, Angela Corporation has a net capital loss of $80,000. Angela Corp. also had net capital gains in the prior years. 2010: net capital gain $30,000 2011: net capital gain $20,000 2012: net capital gain $60,000 2013: net capital gain $10,000 (a) What is the capital loss carryback in 2012? (b) What is the capital loss carryback in 2011?
Café Creations Incorporated has net cash flow from financing activities for the last year of $25 million. The company paid $15 million in dividends last year. During the year, the change in notes payable on the balance sheet was a decrease of $40 million, and change in common and preferred stock was an increase of $50 million. The end of year balance for long-term debt was $40 million. What was their beginning of year balance for long-term debt? Multiple Choice $20 million $30 million $40 million $10 million
For the year ended December 31, 2022, Settles Incorporated earned an ROI of 10.5%. Sales for the year were $9 million, and average asset turnover was 2.1. Average stockholders' equity was $2.8 million. Required: Calculate Settles Incorporated's margin and net income. Note: Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000. Calculate Settles Incorporated's return on equity. Note: Round your answer to 1 decimal place.
Onshore Bank has $31 million in assets, with risk-adjusted assets of $21 million. Core Equity Tier 1 (CET1) capital is $1,050,000, additional Tier I capital is $270,000, and Tier II capital is $422,000. The current value of the CET1 ratio is 5 percent, the Tier I ratio is 6.29 percent, and the total capital ratio is 8.3 percent. Calculate the new value of CET1, Tier I, and total capital ratios for the following transactions. b. The bank issues $3.1 million of CDs and uses the proceeds to issue category 1 mortgage loans with a loan-to-value ratio of 70 percent. d. The bank issues $811,000 in common stock and lends it to help finance a new shopping mall. The developer has an A+ credit rating. f. Homeowners pay back $5.1 million of mortgages with loan-to-value ratios of 50 percent and the bank uses the proceeds to build new ATMs. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E The bank issues $811,000 in common…

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