17) Your corporation has the following cash flows: Operating income $250,000 - Interest received 10,000 -Interest paid 45,000 - Dividends received 20,000 - Dividends paid 50,000 If the applicable income tax rate is received are exempt from taxes, what is the corporation's tax liability? 40 percent (federal and state combined), and if 70 percent of dividends a) $ 74,000 b) $ 88,400 c) $91,600 d) $100,000 e) $106,500 II. TRUE/FALSE questions No. Statement True False I a firm's net working capital is significantly negative, it is in a good position to pay its debts on time and is consequently very liquid. 2 Most assets and liabilities are reported in the firm's financial statements at historical cost 3 Cash flow statement reports cash received and cash spent by the firm over a period of time 4 The historical cost principle provides the basis for determining the dolar values the firm 5 Financial statements are used by both insiders and outsiders to monitor and control the reports in its balance sheet. firm's operations. Ending cash balance beginning cash balance + cash flow from operating activities Net change in cash = cash flow from operating activities + cash flow from investing 6Financial statement analysis allows us to assess the current financial condition of a firm. 8Net change in cash-Ending cash balance -beginning cash balance 9 activities+ cash flow from financing activities 0Financial planning models are typically built using the financial statements. ls the current market value of the assets or liabilities