1a. Chalisle Carpets has sales of $15,500, costs of $5,900, depreciation expense of $1,300, and interest expense of $600. What is the operating cash flow if the tax rate is 21 percent?

a. $4,070

b. $6,036

c. $7,983

d. $9,574

e. $11,585

1b. Which one of the following is true about Net Working Capital?

a. Net working capital >0 is equivalent to a current ratio >1

b. Net working capital >0 indicates that the firm is financially stable in the long-tern

c. An increase in short-term asset decreases net working capital

d. Net working capital is the sum of current liabilities and current assets

e. Information about net working capital is not needed in calculating cash flow from assets

1c. A firm has net working capital of $755. Long-term debt is $6,170. Total assets are $9,710, and fixed assets are $4,070. What is the amount of the total liabilities?

a. $7,020

b. $8,770

c. $9,020

d. $11,055

e. $13,150