BASIC (Questions 1-12) L01 LO 2 LO 2 LO2 LO 3 LO 3 1. Building a Balance Sheet Grey Wolf, Inc., has current assets of $2,090, net fixed assets of $9,830, current liabilities of $1,710, and long term debt of $4,520. What is the value of the shareholders' equity account for this firm? How much is net working capital? 2. Building an Income Statement Sidewinder, Inc., has sales of $634,000. costs of $328,000, depreciation expense of $73,000, interest expense of $38,000, and a tax rate of 21 percent. What is the net income for this firm? 3. Dividends and Retained Earnings Suppose the firm in Problem 2 paid out $68,000 in cash dividends. What is the addition to retained earnings? 4. Per-Share Earnings and Dividends Suppose the firm in Problem 3 had 35,000 shares of common stock outstanding. What is the earnings per share, or EPS, figure? What is the dividends per share figure? 5. Calculating Taxes Duela Dent is single and had $189,000 in taxable income. Using the rates from Table 2.3 in the chapter, calculate her income taxes. 6. Tax Rates In Problem 5, what is the average tax rate? What is the marginal tax rate? 44 PART 2 Understanding Financial Serenems and Cash Flow L02 LO4 L04 L04 7. Calculating OCF Benson, Inc., has sales of $38,530, costs of $12,750, depreciation expense of $2,550, and interest expense of $1,850. If the tax rate is 21 percent, what is the operating cash flow, or OCF? 8. Calculating Net Capital Spending Rottweiler Obedience School's December 31, 2018, balance sheet showed net fixed assets of $1,945,000, and the December 31, 2019, balance sheet showed net fixed assets of $2,137,000. The company's 2019 income statement showed a depreciation expense of $335,000. What was the company's net capital spending for 2019? 9. Calculating Additions to NWC The December 31, 2018, balance sheet of Justin's Golf Shop, Inc., showed current assets of $1,490 and current liabilities of $1,210. The December 31, 2019, balance sheet showed current assets of $1,675 and current liabilities of $1,290. What was the company's 2019 change in net working capital, or NWC? 10. Cash Flow to Creditors The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,350,000, and the December 31, 2019, balance sheet showed long-term debt of $1,470,000. The 2019 income statement showed an interest expense of $97,500. What was the firm's cash flow to creditors during 20197