14. In 2016, Foolad Company had cash flow from investing activities of (- $110,000), and cash flow from financing activities of (+$60,000). During 2016, Foolad had the following cash flows from operating activities: EBT = $128,333.33 ; Tax rate = 40% ; Depreciation and Amortization = $10,000 ; Accounts payable increased by $45,000 ; Inventories increased by $10,000. If the cash balance of Foolad at the end of year 2015 was $10,000. Calculate the cash balance at the end of year 2016. *

$ 82,000

$ 72,000

$ 62,000

$ 42,000

None of the above

15. For its most recent year, a company's net income is $600,000. The applicable tax rate is 40% and the average annual interest rate is 8%. The bonds outstanding portfolio is $1,500,000 and the equity outstanding portfolio is $2,500,000. Depreciation and amortization equals $150,000. What is the times interest earned ratio for the company (in times)? *

8.3

5

9.3

7.3

None of the above

16. AAA recently reported $280,000 of sales, $170,000 of operating costs other than depreciation, and $12,000 of depreciation. The company had $5,000 interest rate, and its income tax rate was 35%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to spend $25,250 to buy new fixed assets and to invest $9,500 in net working capital. What was the firm's free cash flow? *

$ 37,700

$40,950

$42,736

$47,273

None of the above