Question 1:

Mark each or the accounts listed in the following table as follows:

a. In column indicate in which statement - income statement or balance sheet -the account belongs,

b. In column indicate whether the account is a current asset (CA). current liability (CL), expense (K), fixed asset (FA), long-term debt (LTD), revenue (R), or stockholders's equity (SE).

Question 2:

(a) by comparing the financial stataments of 2012 and 2011 you find that the following accounts changed. Fill the column next to the account with the appropriate cash flow - Write IN for cash inflow and out for cash outfollow.

(b) During the year, Kitchen Supply incraised its accounts receivable by $130, decreased its inventory by $75, and decreased its accounts payable by $40. Calculate the three accounts affect the firm's cash flows tier the year?

(c) A firm generated net inclome of $878. The depreciation expense was $47 told dividends way paid in the amount of $25. Accounts payables decrcaced by $13. accounts receivables increased by $22. inventory decreased by $14, and net axed aSSeiS dread by $8, That was no juiciest txpense. What was the net cash flow from operating activity?

(d) Wises Corner Gmea had the following current account values. What effect did the change in net working, capital have on the firm's cash flows for 2009? Calculate the net outflow of cash or the net inflow of cash.

Question 3:
Refer us the financial statements bellimr and calculate the ratios as required:

• The par value of the common sunk is 51 per share.

Calculate the following ratios and provide and explanation of trends:

1. What is the current ratio for 2009

2. What is the quick ratio for 2009?

3. How mama days of sales are in receivables? (Use 2009 values)

4. What is total debt-equity ratio? (Use 2009 values)

5. What is the cash coverage talk, for 2009?

6. What is the return on equity? (Use 2009 values)

7. What is the amount the dividends paid for 2009?

8. What is the amount of the cash flow from investment activity for 2009?

Question 4:

Consider the data in the following table and calculate the value of each perpetuity ostion 5.

Question 5:

a) Calculate the value of each of the bends shown in the following table. all of which pay interest annually

(b) The value of a bond depends on the lime till maturity and the interest rate in the market. How will a change in the interest rate affect the value of the bond?