20.

Hinojosa Music has projected annual net income of $272,600, of which 28 percent will be distributed as dividends. The company will sell $75,000 worth of common stock. What will be the cash flow to stockholders if the tax rate is 21 percent?

Multiple Choice

• $76,328

• $151,328

• $75,000

• $1,328

• $24,623.52

22.

AdVentures has sales of $528,700, costs of goods sold of $252,100, inventory of $43,900, accounts receivable of $78,900, and accounts payable of $32,400. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit?

Multiple Choice

• 54.47 days

• 12.04 days

• 63.56 days

• 43.96 days

• 46.91 days

2.

Herrera Corporation has total sales of $3,110,400 and costs of $2,776,000. Depreciation is $258,000 and the tax rate is 21 percent. The firm is all-equity financed. What is the operating cash flow?

Multiple Choice

• $522,176

• $264,176

• $318,356

• $334,400

• $60,356

29.

Castaneda Accounting has sales of $332,700, cost of goods sold of $221,800, inventory $13,700, accounts receivable of $22,400, and accounts payable of $11,900. How many days of sales are in receivables?

Multiple Choice

• 19.58 days

• 48.53 days

• 22.55 days

• 24.57 days

• 14.85 days