Copy of

Below is a (partial) copy of Eureka Computing's most recent income statement and balance sheet (all numbers in millions):

Income Statement
	Current Year
Sales	2479
COGS	1203
SG&A	264
Depreciation	451
Interest Expense	185
Tax Rate	22

Balance Sheet
	Current Year	Prior Year
Assets
Cash	674	551
A/R	1212	1123
Inventory	866	855
Net PP&E	1088	878
Liabilities
A/P	606	620
Bonds Payable	1192	1236

What was Eureka Computing's free cash flows (in millinos)?

Dollar Tree recently opened a new store. Building the new store cost $670,000. The new store will be depreciated using the double declining balance method over a 10 year period. What will the depreciation expense for this new store be in its second year?

Which profit measure would be most useful if you want to determine the cash generated by a division's normal business activities?

		Net Income
		Operating Income
		Operating Cash Flows
		Free Cash Flows
		None of them

Full Moon Pizzas has just reported the following financial information (all numbers are in thousands):

Sales: 433

COGS: 158

SG&A: 49

Depreciation: 26

Interest: 17

Tax rate: 27%

What was Full Moon Pizzas' operating income (in thousands)?

Pennsylvania levys a personal income tax rate of 3.07% on all income. Thus, Pennsylvania's personal income tax is an example of a:

		Progressive Tax
		Flat Tax
		Regressive Tax
		Optional Tax
		None of the above

Whole Foods is considering opening a new store in Maplewood. Which of the following items should be considered in a free cash flow analysis of this new store? (Select all that apply)

		The cost of building the new store
		Sales at the new store
		Interest paid to bondholders from bonds issued to finance the new store
		Decrease in sales at other nearby Whole Food's locations
		The cost of the marketing study that was already completed that showed demand for a Maplewood Whole Foods