6财务报表与现金流

-Chapter02FinancialStatementsandCashFlowAnswerKey11._____referstothechangesinnetcapitalassets.A.OperatingcashflowB.CashflowfrominvestingC.NetworkingcapitalD.CashflowfromassetsE.Cashflowtocreditors12._____referstothedifferencebetweenafirm'scurrentassetsanditscurrentliabilities.A.OperatingcashflowB.CapitalspendingC.NetworkingcapitalD.CashflowfromassetsE.Cashflowtocreditors13._____iscalculatedbyaddingbacknoncashexpensestonetincomeandadjustingforchangesincurrentassetsandliabilities.A.OperatingcashflowB.CapitalspendingC.NetworkingcapitalD.CashflowfromoperationsE.Cashflowtocreditors19.Whichofthefollowingareincludedincurrentliabilities?I.notepayabletoasupplierineighteenmonthsII.debtpayabletoamortgagecompanyinninemonthsIII.accountspayabletosuppliersIV.loanpayabletothebankinfourteenmonthsA.IandIIIonlyB.IIandIIIonlyC.IIIandIVonlyD.II,III,andIVonlyE.I,II,andIIIonly21.Whichoneofthefollowingassetsisgenerallythemostliquid?A.inventoryB.buildingsC.accountsreceivableD.equipmentE.patents2-1-22.Whichoneofthefollowingstatementsconcerningliquidityiscorrect?A.Ifyousoldanassettoday,itwasaliquidasset.B.Ifyoucansellanassetnextyearatapriceequaltoitsactualvalue,theassetishighlyliquid.C.Trademarksandpatentsarehighlyliquid.D.Thelessliquidityafirmhas,thelowertheprobabilitythefirmwillencounterfinancialdifficulties.E.Balancesheetaccountsarelistedinorderofdecreasingliquidity.Difficultylevel:MediumTopic:LIQUIDITYType:CONCEPTS23.Liquidityis:A.ameasureoftheuseofdebtinafirm'scapitalstructure.B.equaltocurrentassetsminuscurrentliabilities.C.equaltothemarketvalueofafirm'stotalassetsminusitscurrentliabilities.D.valuabletoafirmeventhoughliquidassetstendtobelessprofitabletoown.E.generallyassociatedwithintangibleassets.Difficultylevel:MediumTopic:LIQUIDITYType:CONCEPTS24.Whichofthefollowingaccountsareincludedinshareholders'equity?I.interestpaidII.retainedearningsIII.capitalsurplusIV.long-termdebtA.IandIIonlyB.IIandIVonlyC.IandIVonlyD.IIandIIIonlyE.IandIIIonlyDifficultylevel:MediumTopic:SHAREHOLDERS'EQUITYType:CONCEPTS2-2-25.Bookvalue:A.isequivalenttomarketvalueforfirmswithfixedassets.B.isbasedonhistoricalcost.C.generallytendstoexceedmarketvaluewhenfixedassetsareincluded.D.ismoreofafinancialthananaccountingvaluation.E.isadjustedtomarketvaluewheneverthemarketvalueexceedsthestatedbookvalue.Difficultylevel:MediumTopic:BOOKVALUEType:CONCEPTS26.Whenmakingfinancialdecisionsrelatedtoassets,youshould:A.alwaysconsidermarketvalues.B.placemoreemphasisonbookvaluesthanonmarketvalues.C.relyprimarilyonthevalueofassetsasshownonthebalancesheet.D.placeprimaryemphasisonhistoricalcosts.E.onlyconsidermarketvaluesiftheyarelessthanbookvalues.Difficultylevel:MediumTopic:MARKETVALUEType:CONCEPTS27.Asseenonanincomestatement:A.interestisdeductedfromincomeandincreasesthetotaltaxesincurred.B.thetaxrateisappliedtotheearningsbeforeinterestandtaxeswhenthefirmhasbothdepreciationandinterestexpenses.C.depreciationisshownasanexpensebutdoesnotaffectthetaxespayable.D.depreciationreducesboththepretaxincomeandthenetincome.E.interestexpenseisaddedtoearningsbeforeinterestandtaxestogetpretaxincome.Difficultylevel:MediumTopic:INCOMESTATEMENTType:CONCEPTS2-3-28.Theearningspersharewill:A.increaseasnetincomeincreases.B.increaseasthenumberofsharesoutstandingincrease.C.decreaseasthetotalrevenueofthefirmincreases.D.increaseasthetaxrateincreases.E.decreaseasthecostsdecrease.Difficultylevel:MediumTopic:EARNINGSPERSHAREType:CONCEPTS29.Dividendspershare:A.increaseasthenetincomeincreasesaslongasthenumberofsharesoutstandingremainsconstant.B.decreaseasthenumberofsharesoutstandingdecrease,allelseconstant.C.areinverselyrelatedtotheearningspershare.D.arebaseduponthedividendrequirementsestablishedbyGenerallyAcceptedAccountingProcedures.E.areequaltotheamountofnetincomedistributedtoshareholdersdividedbythenumberofsharesoutstanding.Difficultylevel:MediumTopic:DIVIDENDSPERSHAREType:CONCEPTS30.EarningspershareA.willincreaseifnetincomeincreasesandnumberofsharesremainsconstant.B.willincreaseifnetincomedecreasesandnumberofsharesremainsconstant.C.isnumberofsharesdividedbynetincome.D.istheamountofmoneythatgoesintoretainedearningsonapersharebasis.E.Noneoftheabove.Difficultylevel:MediumTopic:EARNINGSPERSHAREType:CONCEPTS2-4-31.AccordingtoGenerallyAcceptedAccountingPrinciples,costsare:A.recordedasincurred.B.recordedwhenpaid.C.matchedwithrevenues.D.matchedwithproductionlevels.E.expensedasmanagementdesires.Difficultylevel:MediumTopic:MATCHINGPRINCIPLEType:CONCEPTS32.Depreciation:A.isanoncashexpensethatisrecordedontheincomestatement.B.increasesthenetfixedassetsasshownonthebalancesheet.C.reducesboththenetfixedassetsandthecostsofafirm.D.isanon-cashexpensewhichincreasesthenetoperatingincome.E.decreasesnetfixedassets,netincome,andoperatingcashflows.Difficultylevel:MediumTopic:NONCASHITEMSType:CONCEPTS33.Whenyouaremakingafinancialdecision,themostrelevanttaxrateisthe_____rate.A.averageB.fixedC.marginalD.totalE.variableDifficultylevel:MediumTopic:MARGINALTAXRATEType:CONCEPTS2-5-34.Anincreaseinwhichoneofthefollowingwillcausetheoperatingcashflowtoincrease?A.depreciationB.changesintheamountofnetfixedcapitalC.networkingcapitalD.taxesE.costsDifficultylevel:MediumTopic:OPERATINGCASHFLOWType:CONCEPTS35.Afirmstartsitsyearwithapositivenetworkingcapital.Duringtheyear,thefirmacquiresmoreshort-termdebtthanitdoesshort-termassets.Thismeansthat:A.theendingnetworkingcapitalwillbenegative.B.bothaccountsreceivableandinventorydecreasedduringtheyear.C.thebeginningcurrentassetswerelessthanthebeginningcurrentliabilities.D.accountspayableincreasedandinventorydecreasedduringtheyear.E.theendingnetworkingcapitalcanbepositive,negative,orequaltozero.Difficultylevel:MediumTopic:CHANGEINNETWORKINGCAPITALType:CONCEPTS36.Thecashflowtocreditorsincludesthecash:A.receivedbythefirmwhenpaymentsarepaidtosuppliers.B.outflowofthefirmwhennewdebtisacquired.C.outflowwheninterestispaidonoutstandingdebt.D.inflowwhenaccountspayabledecreases.E.receivedwhenlong-termdebtispaidoff.Difficultylevel:MediumTopic:CASHFLOWTOCREDITORSType:CONCEPTS2-6-37.Cashflowtostockholdersmustbepositivewhen:A.thedividendspaidexceedthenetnewequityraised.B.thenetsaleofcommonstockexceedstheamountofdividendspaid.C.noincomeisdistributedbutnewsharesofstockaresold.D.boththecashflowtoassetsandthecashflowtocreditorsarenegative.E.boththecashflowtoassetsandthecashflowtocreditorsarepositive.Difficultylevel:MediumTopic:CASHFLOWTOSTOCKHOLDERSType:CONCEPTS38.Whichequalityisthebasisforthebalancesheet?A.FixedAssets=Stockholder'sEquity+CurrentAssetsB.Assets=Liabilities+Stockholder'sEquityC.Assets=CurrentLong-TermDebt+RetainedEarningsD.FixedAssets=Liabilities+Stockholder'sEquityE.NoneoftheaboveDifficultylevel:MediumTopic:BALANCESHEETType:CONCEPTS39.Assetsarelistedonthebalancesheetinorderof:A.decreasingliquidity.B.decreasingsize.C.increasingsize.D.relativelife.E.Noneoftheabove.Difficultylevel:MediumTopic:BALANCESHEETType:CONCEPTS2-7-40.Debtisacontractualobligationthat:A.requiresthepayoutofresidualflowstotheholdersoftheseinstruments.B.requiresarepaymentofastatedamountandinterestovertheperiod.C.allowsthebondholderstosuethefirmifitdefaults.D.BothAandB.E.BothBandC.Difficultylevel:MediumTopic:DEBTType:CONCEPTS41.Thecarryingvalueorbookvalueofassets:A.isdeterminedunderGAAPandisbasedonthecostoftheasset.B.representsthetruemarketvalueaccordingtoGAAP.C.isalwaysthebestmeasureofthecompany'svaluetoaninvestor.D.isalwayshigherthanthereplacementcostoftheassets.E.Noneoftheabove.Difficultylevel:MediumTopic:CARRYINGVALUEType:CONCEPTS42.UnderGAAP,afirm'sassetsarereportedat:A.marketvalue.B.liquidationvalue.C.intrinsicvalue.D.cost.E.Noneoftheabove.Difficultylevel:MediumTopic:GAAPType:CONCEPTS2-8-43.Whichofthefollowingstatementsconcerningtheincomestatementistrue?A.Itmeasuresperformanceoveraspecificperiodoftime.B.Itdeterminesafter-taxincomeofthefirm.C.Itincludesdeferredtaxes.D.Ittreatsinterestasanexpense.E.Alloftheabove.Difficultylevel:MediumTopic:INCOMESTATEMENTType:CONCEPTS44.Accordingtogenerallyacceptedaccountingprinciples(GAAP),revenueisrecognizedasincomewhen:A.acontractissignedtoperformaserviceordeliveragood.B.thetransactioniscompleteandthegoodsorservicesaredelivered.C.paymentisrequested.D.incometaxesarepaid.E.Alloftheabove.Difficultylevel:MediumTopic:GAAPINCOMERECOGNITIONType:CONCEPTS45.Whichofthefollowingisnotincludedinthecomputationofoperatingcashflow?A.EarningsbeforeinterestandtaxesB.InterestpaidC.DepreciationD.CurrenttaxesE.AlloftheaboveareincludedDifficultylevel:MediumTopic:OPERATINGCASHFLOWType:CONCEPTS2-9-46.Netcapitalspendingisequalto:A.netadditionstonetworkingcapital.B.thenetchangeinfixedassets.C.netincomeplusdepreciation.D.totalcashflowtostockholderslessinterestanddividendspaid.E.thechangeintotalassets.Difficultylevel:MediumTopic:NETCAPITALSPENDINGType:CONCEPTS47.Cashflowtostockholdersisdefinedas:A.interestpayments.B.repurchasesofequitylesscashdividendspaidplusnewequitysold.C.cashflowfromfinancinglesscashflowtocreditors.D.cashdividendsplusrepurchasesofequityminusnewequityfinancing.E.Noneoftheabove.Difficultylevel:MediumTopic:CASHFLOWTOSTOCKHOLDERSType:CONCEPTS48.Freecashflowis:A.withoutcosttothefirm.B.netincomeplustaxes.C.anincreaseinnetworkingcapital.D.cashthatthefirmisfreetodistributetocreditorsandstockholders.E.Noneoftheabove.Difficultylevel:MediumTopic:FREECASHFLOWType:CONCEPTS-49.Thecashflowofthefirmmustbeequalto:A.cashflowtostockholdersminuscashflowtodebtholders.B.cashflowtodebtholdersminuscashflowtostockholders.C.cashflowtogovernmentspluscashflowtostockholders.D.cashflowtostockholderspluscashflowtodebtholders.E.Noneoftheabove.Difficultylevel:MediumTopic:CASHFLOWType:CONCEPTS50.Whichofthefollowingareallcomponentsofthestatementofcashflows?A.Cashflowfromoperatingactivities,cashflowfrominvestingactivities,andcashflowfromfinancingactivitiesB.Cashflowfromoperatingactivities,cashflowfrominvestingactivities,andcashflowfromdivestingactivitiesC.Cashflowfrominternalactivities,cashflowfromexternalactivities,andcashflowfromfinancingactivitiesD.Cashflowfrombrokeringactivities,cashflowfromprofitableactivities,andcashflowfromnon-profitableactivitiesE.Noneoftheabove.Difficultylevel:MediumTopic:STATEMENTOFCASHFLOWSType:CONCEPTS51.Oneofthereasonswhycashflowanalysisispopularisbecause:A.cashflowsaremoresubjectivethannetincome.B.cashflowsarehardtounderstand.C.itiseasytomanipulate,orspinthecashflows.D.itisdifficulttomanipulate,orspinthecashflows.E.Noneoftheabove.Difficultylevel:MediumTopic:CASHFLOWMANAGEMENTType:CONCEPTS-52.Afirmhas$300ininventory,$600infixedassets,$200inaccountsreceivable,$100inaccountspayable,and$50incash.Whatistheamountofthecurrentassets?A.$500B.$550C.$600D.$1,150E.$1,200Currentassets=$300+$200+$50=$550Difficultylevel:MediumTopic:CURRENTASSETSType:PROBLEMS53.Totalassetsare$900,fixedassetsare$600,long-termdebtis$500,andshort-termdebtis$200.Whatistheamountofnetworkingcapital?A.$0B.$100C.$200D.$300E.$400Networkingcapital=$900-$600-$200=$100Difficultylevel:MediumTopic:NETWORKINGCAPITALType:PROBLEMS-54.Brad'sCompanyhasequipmentwithabookvalueof$500thatcouldbesoldtodayata50%discount.Itsinventoryisvaluedat$400andcouldbesoldtoacompetitorforthatamount.Thefirmhas$50incashandcustomersoweit$300.Whatistheaccountingvalueofitsliquidassets?A.$50B.$350C.$700D.$750E.$1,000Liquidassets=$400+$50+$300=$750Difficultylevel:MediumTopic:LIQUIDITYType:PROBLEMS55.Martha'sEnterprisesspent$2,400topurchaseequipmentthreeyearsago.Thisequipmentiscurrentlyvaluedat$1,800ontoday'sbalancesheetbutcouldactuallybesoldfor$2,000.Networkingcapitalis$200andlong-termdebtis$800.Assumingtheequipmentisthefirm'sonlyfixedasset,whatisthebookvalueofshareholders'equity?A.$200B.$800C.$1,200D.$1,400E.TheanswercannotbedeterminedfromtheinformationprovidedBookvalueofshareholders'equity=$1,800+$200-$800=$1,200Difficultylevel:MediumTopic:BOOKVALUEType:PROBLEMS-56.Art'sBoutiquehassalesof$640,000andcostsof$480,000.Interestexpenseis$40,000anddepreciationis$60,000.Thetaxrateis34%.Whatisthenetincome?A.$20,400B.$39,600C.$50,400D.$79,600E.$99,600Taxableincome=$640,000-$480,000-$40,000-$60,000=$60,000;Tax=.34($60,000)=$20,400;Netincome=$60,000-$20,400=$39,600Difficultylevel:MediumTopic:NETINCOMEType:PROBLEMS57.Giventhetaxratesasshown,whatistheaveragetaxrateforafirmwithtaxableincomeof$126,500?A.21.38%B.23.88%C.25.76%D.34.64%E.39.00%Tax=.15($50,000)+.25($25,000)+.34($25,000)+.39($126,500-$100,000)=$32,585;Averagetaxrate=$32,585$126,500=.2576=25.76%Difficultylevel:MediumTopic:MARGINALTAXRATEType:PROBLEMS-58.Thetaxratesareasshown.Yourfirmcurrentlyhastaxableincomeof$79,400.Howmuchadditionaltaxwillyouoweifyouincreaseyourtaxableincomeby$21,000?A.$7,004B.$7,014C.$7,140D.$7,160E.$7,174Additionaltax=.34($100,000-$79,400)+.39($79,400+$21,000-$100,000)=$7,160Difficultylevel:MediumTopic:TAXESType:PROBLEMS59.Yourfirmhasnetincomeof$198ontotalsalesof$1,200.Costsare$715anddepreciationis$145.Thetaxrateis34%.Thefirmdoesnothaveinterestexpenses.Whatistheoperatingcashflow?A.$93B.$241C.$340D.$383E.$485Earningsbeforeinterestandtaxes=$1,200-$715-$145=$340;Tax=[$198(1-.34)]-$198=$102;Operatingcashflow=$340+$145-$102=$383Difficultylevel:MediumTopic:OPERATINGCASHFLOWType:PROBLEMS-60.Teddy'sPillowshasbeginningnetfixedassetsof$480andendingnetfixedassetsof$530.Assetsvaluedat$300weresoldduringtheyear.Depreciationwas$40.Whatistheamountofcapitalspending?A.$10B.$50C.$90D.$260E.$390Netcapitalspending=$530-$480+$40=$90Difficultylevel:MediumTopic:NETCAPITALSPENDINGType:PROBLEMS61.Atthebeginningoftheyear,afirmhascurrentassetsof$380andcurrentliabilitiesof$210.Attheendoftheyear,thecurrentassetsare$410andthecurrentliabilitiesare$250.Whatisthechangeinnetworkingcapital?A.-$30B.-$10C.$0D.$10E.$30Changeinnetworkingcapital=($410-$250)-($380-$210)=-$10Difficultylevel:MediumTopic:CHANGEINNETWORKINGCAPITALType:PROBLEMS-62.Atthebeginningoftheyear,long-termdebtofafirmis$280andtotaldebtis$340.Attheendoftheyear,long-termdebtis$260andtotaldebtis$350.Theinterestpaidis$30.Whatistheamountofthecashflowtocreditors?A.-$50B.-$20C.$20D.$30E.$50Cashflowtocreditors=$30-($260-$280)=$50Difficultylevel:MediumTopic:CASHFLOWTOCREDITORSType:PROBLEMS63.Pete'sBoatshasbeginninglong-termdebtof$180andendinglong-termdebtof$210.Thebeginningandendingtotaldebtbalancesare$340and$360,respectively.Theinterestpaidis$20.Whatistheamountofthecashflowtocreditors?A.-$10B.$0C.$10D.$40E.$50Cashflowtocreditors=$20-($210-$180)=-$10Difficultylevel:MediumTopic:CASHFLOWTOCREDITORSType:PROBLEMS-64.PeggyGrey'sCookieshasnetincomeof$360.Thefirmpaysout40%ofthenetincometoitsshareholdersasdividends.Duringtheyear,thecompanysold$80worthofcommonstock.Whatisthecashflowtostockholders?A.$64B.$136C.$144D.$224E.$296Cashflowtostockholders=.40($360)-$80=$64Difficultylevel:MediumTopic:CASHFLOWTOSTOCKHOLDERSType:PROBLEMS65.Thompson'sJetSkishasoperatingcashflowof$218.Depreciationis$45andinterestpaidis$35.Anettotalof$69waspaidonlong-termdebt.Thefirmspent$180onfixedassetsandincreasednetworkingcapitalby$38.Whatistheamountofthecashflowtostockholders?A.-$104B.-$28C.$28D.$114E.$142Cashflowofthefirm=$218-$38-$180=$0;Cashflowtocreditors=$35-(-$69)=$104;Cashflowtostockholders=$0-$104=-$104Difficultylevel:MediumTopic:CASHFLOWTOSTOCKHOLDERSType:PROBLEMS-67.Whatistheamountofthenon-cashexpensesfor2008?A.$570B.$630C.$845D.$1,370E.$2,000Thenon-cashexpenseisdepreciationintheamountof$1,370.68.Whatistheamountofthenetcapitalspendingfor2008?A.-$290B.$795C.$1,080D.$1,660E.$2,165Netcapitalspending=$10,670-$10,960+$1,370=$1,080-Difficultylevel:MediumTopic:NETCAPITALSPENDINGType:PROBLEMS69.Whatistheoperatingcashflowfor2008?A.$845B.$1,930C.$2,215D.$2,845E.$3,060Operatingcashflow=$1,930+$1,370-$455=$2,845Difficultylevel:MediumTopic:OPERATINGCASHFLOWType:PROBLEMS-70.Whatisthecashflowofthefirmfor2008?A.$430B.$485C.$1,340D.$2,590E.$3,100Operatingcashflow=$1,930+$1,370-$455=$2,845;Changeinnetworkingcapital=($7,310-$2,570)-($6,225-$2,820)=$1,335;Netcapitalspending=$10,670-$10,960+$1,370=$1,080;Cashflowofthefirm=$2,845-$1,335-$1,080=$430Difficultylevel:MediumTopic:CASHFLOWOFTHEFIRMType:PROBLEMS71.Whatistheamountofnetnewborrowingfor2008?A.-$225B.-$25C.$0D.$25E.$225Netnewborrowing=$8,100-$7,875=$225Difficultylevel:MediumTopic:NETNEWBORROWINGType:PROBLEMS72.Whatisthecashflowtocreditorsfor2008?A.-$405B.-$225C.$225D.$405E.$630Cashflowtocreditors=$630-($8,100-$7,875)=$405Difficultylevel:MediumTopic:CASHFLOWTOCREDITORSType:PROBLEMS-73.Whatisthenetworkingcapitalfor2008?A.$345B.$405C.$805D.$812E.$1,005Networkingcapital=$75+$502+$640-$405=$812Difficultylevel:MediumTopic:NETWORKINGCAPITALType:PROBLEMS-74.