Questions -

Q1 - (Cash flow analysis) Interpret the following information regarding Maness Corporation's statement of cash flows.

Net income $ 370

Depreciation expense 60

Profits before depreciation 430

Increase in accounts receivables (300)

Increase in inventories (400)

Increase in accounts payables 200

Increase in accrued expenses 40

Cash flow from operations $ (30)

Investment activity

Change in fixed assets $ (1,500)

Financing activity

Increase in short-term notes $ 100

Repayment of long-term debt (250)

Repurchase common stock (125)

Common stock dividends (75)

Total financing activities $ (350)

Change in cash $ (1,880)

Beginning cash 3,750

Ending cash $ 1,870

Q2. (Interpreting financial statements and measuring cash flows) Given the information below for Pamplin Inc.:

a. How much is the firm's net working capital and what is the debt ratio?

b. Complete a common-sized income statement, a common-sized balance sheet, and a statement of cash flows for 2010. Interpret your results.

Q3. (Corporate income tax) The William B. Waugh Corporation is a regional Toyota dealer. The firm sells new and used trucks and is actively involved in the parts business. During the most recent year, the company generated sales of $3 million. The combined cost of goods sold and the operating expenses were $2.1 million. Also, $400,000 in interest expense was paid during the year.

Calculate the corporation's tax liability.

Attachment:- Assignment.rar