1.At the beginning of the year, a firm has current assets of 364 and current liabilities of 289. At the end of the year, the current assets were 413 and the current liabilities were 329. What is the change in net working capital?

A. 79 B.49 C. -49 D. 9 E. 89

2.Operating cash flow is defined as:

A.Pretax income + Depreciation.

B.Net income - Dividends.

C. Pretax income - Taxes.

D. Cash flow to investors + Taxes.

E .EBIT + Depreciation - Taxes.

3.Which one of these is a correct definition?

A. Long-term debt is defined as a residual claim on a firms assets.

B.Net working capital equals current assets plus current liabilities.

C.Tangible assets are fixed assets such as patents.

D.Current assets are assets with short lives, such as inventory.

E.Current liabilities are debts that must be repaid in 18 months or less.

4.Which one of these accounts is included in net working capital?

A.common stock

B. manufacturing equipment

C. long-term debt

D. inventory

E.copyright

5. Shelton, Inc., has sales of $391,000, costs of $179,000, depreciation expense of $44,000, interest expense of $25,000, and a tax rate of 40 percent. (Do not round intermediate calculations.)

What is the net income for the firm?

Net income

$

Suppose the company paid out $34,000 in cash dividends. What is the addition to retained earnings?

Addition to retained earnings

$