Micro, Inc., started the year with net fixed assets of $76,175. At the end of the year, there was $97,925 in the same account, and the company's income statement showed depreciation expense of $13,395 for the year. What was the company's net capital spending for the year? a. $83,990 b. $35,685 c. $21,750 d. $43,580 e. $41,170

Micro, Inc., started the year with net fixed assets of $76,175. At the end of the year, there was $97,925 in the same account, and the company's income statement showed depreciation expense of $13,395 for the year. What was the company's net capital spending for the year? a. $83,990 b. $35,685 c. $21,750 d. $43,580 e. $41,170

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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Macon Mills is a division of Bolin Products, Inc. During the most recent year, Macon had a net income of $43 million. Included in the income was interestexpense of $2,500,000. The company's tax rate was 40%. Total assets were $475 million, current liabilities were $108,000,000, and $69,000,000 of thecurrent liabilities are noninterest bearing.What are the invested capital and RO1 for Macon? Enter your answer in whole dollar. Round "ROI" answer to two decimal places. Invested Capital: ?ROI: ?
baghiben
During the year, Belyk Paving Company had sales of $2,485,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,349,000, $660,000, and $462,000, respectively. In addition, the company had an interest expense of $287,000 and a tax rate of 24 percent. The company paid out $412,000 in cash dividends. Assume that net capital spending was zero, no new investments were made in net working capital, and no new stock was issued during the year. (Ignore any tax loss carryforward provision and assume interest expense is fully deductible.) Calculate the firm's net new long-term debt added during the year.
During the year, Belyk Paving Co. had sales of $2,350,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,310,000, $585,000, and $435,000, respectively. In addition, the company had an interest expense of $260,000 and a tax rate of 25 percent. The company paid out $385,000 in cash dividends. Assume that net capital spending was zero, no new investments were made in net working capital, and no new stock was issued during the year. (Ignore any tax loss or carryforward provision and assume interest expense is fully deductible.) Calculate the firm's net new long-term debt added during the year. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Net new long-term debt
TSW Inc. had the following data for last year: Net income = $800; Net operating profit after taxes (NOPAT) = $700; Total assets = $3,000; and Total operating capital = $2,000. Information for the just-completed year is as follows: Net income = $1,000; Net operating profit after taxes (NOPAT) = $925; Total assets = $2,600; and Total operating capital = $2,500. How much free cash flow did the firm generate during the just-completed year?
Use the following information to compute net investment cash flow for a firm: Net income for the year is $43,900 Account receivable increased by $10,420 Inventory increased by $1,875 Depreciation expense for the year is $8,000 Account payable decreased by $5,782 Other current liabilities increased by $3,500 Taxes payable decreased by $1,970 Old equipment with a book value of $2,200 was sold for $1,325 Old appliances were sold for $24,000 at a gain of $4,800 A new machine was purchased for $10,000 1,000 shares of common stock were issued at par value of $10 each and sold at pay (for $10 each) Declared and paid dividends of $5,000 Reimbursed $7,000 of an outstanding loan’s capital
12-7 A firm's annual revenues are $850,000. Its expenses for the year are $615,000, and it claims $135,000 in depreciation expenses. What does it pay in taxes, and what is its after-tax income?
The following information is from Lacy's Inc. $ millions Prior Fiscal Year Current Fiscal Year Net Year-End Assets Revenue Income $21,330 14,403 $18,955 $1,070 a. Compute the asset turnover ratio for the current fiscal year. b. Compute the return on assets ratio for the current fiscal year. Numerator a. Asset Turnover Ratio $ Check b. Return on Assets Ratio $ Numerator Denominator / $ Denominator / $ || Result Result
Selected data from the Carmen Company at year-end are as follows: Total assets Average total assets Net income Sales Average common stockholders' equity Net cash provided by operating activities Shares of common stock outstanding Long-term investments $2,000,000 $2,200,000 $250,000 $1,300,000 $1,000,000 $275,000 10,000 $400,000 Required: Compute the (a) asset turnover, (b) return on total assets, (c) return on common stockholders' equity, and (d) earnings per share on common stock. Assume the company had no preferred stock or interest expense. Round dol values to the nearest cent and other final answers to one decimal place. a. Asset turnover ratio b. Return on total assets c. Return on common stockholders' equity d. Earnings per share on common stock 1000 % % per share K
Denger
Assume a company had net income of $79,000 that included a gain on the sale of equipment of $4,000. It provided the following excerpts from its balance sheet: This Year Last Year Current assets: Accounts receivable $ 40,000 $ 46,000 Inventory $ 53,000 $ 50,000 Prepaid expenses $ 13,000 $ 11,000 Current liabilities: Accounts payable $ 38,000 $ 44,000 Accrued liabilities $ 18,000 $ 15,000 Income taxes payable $ 13,000 $ 10,000 If the credits to the company’s accumulated depreciation account were $21,000, then based solely on the information provided, the company’s net cash provided by (used in) operating activities would be: Multiple Choice $63,000. $55,000. $105,000. $97,000.
Inc. reported the following data for last year: Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 126,000 $ 131,000 Accounts receivable 332,000 488,000 Inventory 576,000 476,000 Plant and equipment, net 896,000 875,000 Investment in Tesla Inc. 396,000 427,000 Land (undeveloped) 253,000 246,000 Total assets $ 2,579,000 $ 2,643,000 Liabilities and Stockholders' Equity Accounts payable Long-term debt $ 380,000 1,013,000 1,186,000 $ 340,000 1,013,000 1,290,000 Stockholders' equity Total liabilities and stockholders' equity $ 2,579,000 $ 2,643,000 Inc. Income Statement Sales $ 5,265,000 4,317,300 947,700 Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 123,000 210,000 333,000 $ 614,700 Inc. paid dividends of $510,700 last year. The "Investment in Tesla Inc." item on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return is 15%. What was the company's…

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