AMP Students Inc has sales of R980 000, costs of R530 000, depreciation expense of R120 000, interest expenses R 43 000 an and a tax rate of 40 %.

What is the net income for this firm? (2)

1. Suppose the firm in Problem 1 paid out R60 000 in cash dividends.

What is the addition to retained earnings? (2)

1. Suppose the firm in Problem 2 had 40000 shares in common stock outstanding. What is the earnings per share (EPS)?

What is the dividend per share? (2)

1. PBS Potch has sales of R133 000, costs of R74 000, depreciation expense of R32 000, and interest received of R3200. If the tax rate is 35%,

what is the operating cash flow? (2)

1. MBA (Pty) Ltd had additions to retained earnings for the year just ended of R940 000. The firm paid out R210 000 in cash dividends and it has a total equity of R1.7 million. If MBA has 190 000 shares of common stock outstanding, what are earnings per share? Dividends per share? What is book value per share? If the stock currently sells for R59 per share, what is the market-to-book ratio? The price-earnings ratio? If total sales were R11,2 million,

what is the price-sales ratio? (4)

6.Du Plessis and Associates shows the following information on its 2010 income statement:

Sales =R138 000

Cost of Sales = 71 500

Taxes = 17 760

Depreciation = 10 100

Interest = 7 900

Dividends = 5 400

Other expenses = 4 100

New Equity issued = 2 500

Long term debt paid = 3 800

Calculate the following:

a) Operating Cash Flow?

b) Cash Flow to Creditors?

c) Cash Flow to Stock Holders?

d) If net Fixed assets increased by R17 400 during the year, what was the addition to NWC?