Assignment
1. During the quarter ended 3/31/2015, Clarke Biscuits Inc. collected $100 of cash from customers, paid $60 of cash to suppliers, paid $20 of cash to employees and other creditors, and recorded $10 of depreciation expense. There were no other cash flows related to operating activities.
What was Clarke's Cash Flow from Operations during the quarter ended 3/31/2015?
$(20)
$10
$20
$30
$100
2. During 2015, Rindal Vinyards Inc. had EBITDA of $1000, Depreciation and Amortization Expense of $200, Interest Expense of $100, and Tax Expense of $50. What was Rindal Vinyards' Net Income in 2015?
$1250
$950
$1000
$650
$750
3. Geller Florist Inc. had the following transactions during 2015:
Purchased a $200,000 warehouse with $50,000 cash and a $150,000 mortgage from a bank.
Raised $100,000 from selling new shares of stock to investors. The cash was used to buy land to grow tulips.
Sold an old building for $50,000 (and suffered a loss on sale of $5,000) and used the cash to buy a new truck.
What is the net impact of these transactions on Geller's Cash from Investing Activities during 2015?
$(50,000)
$(150,000)
$(295,000)
$(145,000)
$(300,000)
4. Stewart Export Co. had the following Statement of Cash Flows for the year ended 03/31/15:
|
($ millions)
|
Year ended 3/13/15
|
|
Net Income
|
1100
|
|
Depreciation
|
200
|
|
Gain on sale of equipment
|
(400)
|
|
Chg in Accounts Receivable
|
350
|
|
Chg in Inventory
|
(200)
|
|
Chg in Other Current Assets
|
100
|
|
Chg in Accounts Payable
|
(50)
|
|
Net Cash from Operations
|
1250
|
|
Capital Expenditures
|
(1200)
|
|
Sale of Equipment
|
700
|
|
Net Cash from Investing
|
(500)
|
What was the book value of the equipment Stewart sold during the year ended 03/31/15?
$300
$500
$1,100
$700
$900
5. Little Scuba Pty had the following line item on its 12/31/2014 Balance Sheet:
12/31/2014
Inventory $20,000
Little Scuba's Statement of Cash Flows had the following line item:
2014
Change in Inventory $6,000
Assume that the company made no acquisitions or divestitures and that all operations are in Australia. How much Inventory did Little Scuba have on 12/31/2013?
$26,000
$0
$6,000
$14,000
$20,000
6. A new accountant, Costa Goodsold, put together a preliminary version of Medina Co.'s financial statements. Medina's Net Income was $500, its Depreciation Expense was $100, and its Cash Flow from Operations was $70. The CEO found an error that Costa made in computing straight-line Depreciation Expense, which should have been $50. What is Medina's Cash Flow from Operations after fixing this mistake? (you can ignore taxes)
$70
$20
$120
$170
$450
7. Joe Doakes was reading the balance sheet of Gogoldze Inc. when he spilled coffee on it. After the coffee spill, the balance sheet looked like this:
|
($ millions)
|
12/31/2015
|
|
Cash
|
100
|
|
Accounts Receivable
|
245
|
|
Inventory
|
450
|
|
Other Current Assets
|
60
|
|
Current Assets
|
855
|
|
Net Property, Plant, & Equipment
|
1,160
|
|
Total Assets
|
2,015
|
|
Accounts Payable
|
160
|
|
Other Current Liabilities
|
250
|
|
Current Liabilities
|
410
|
|
Long-term Liabilities
|
900
|
|
Common Stock
|
50
|
|
Additional Paid-in Capital
|
300
|
|
Retained Earnings
|
coffee
|
|
Total Liabilities and SE
|
coffee
|
What was Gogoldze Inc.'s Retained Earnings at 12/31/2015?
$550
$355
($55)
$3,675
$960
8. Alejandro Alvera of Alvear Corp was reading the financial statements of Olivas Medical Supply Company to decide whether he wanted to try to acquire the company. He noticed some mistakes in the Olivas Income Statement:
|
($ millions)
|
Year ended 12/31/2015
|
|
Sales revenue
|
$1600
|
|
Interest Revenue
|
50
|
|
Total Revenue
|
1650
|
|
Cost of Goods Sold
|
(800)
|
|
Gross Profit
|
850
|
|
SG&A Expense
|
(400)
|
|
Interest Expense
|
(50)
|
|
Operating Income
|
400
|
|
Gain on sale of equipment
|
200
|
|
Pre-tax income
|
600
|
|
Income Tax Expense
|
(216)
|
|
Net Income
|
384
|
What is Olivas' Operating Income for the year ended 12/31/2015 after correcting the mistakes?
$400
$600
$550
$350
$450.