Description The exercise questions cover the main learning outcomes of chapter 2. The main topics covered include net-working capital, operating income, cashflow from assets, and the CCA value. Exercise Questions 1)Carly Inc. reports stockholders' equity of $136,900. The firm carries current liabilities of $71,400 of which 30 percent is payable within the next year. The firms shows net fixed assets of $152,800. Calculate the amount of net-working capital. (20 marks) 2) Mercer Inc. reported $620 in dividends and $649 in interest expense. There is an increase of retained earnings by $404 and net new equity is $850. The tax rate is 34 percent. Revenues are $7100 and depreciation is $625. Compute EBIT for the company (15 marks) 3) Salima Limited Co. reports the operating cash flow of $40,100. Depreciation is $5,000 and interest paid is $987. A net total of $4,165 was paid on long-term debt. The firm spent $20,000 on fixed assets and increased net working capital by $2,695. What is the amount of the cash flow to stockholders? (15 marks) 4) Fedor Customs reports the Operating cashflows of $400, ending fixed asset value of $300, change in net working capital of $80, depreciation of $80, cash flow from assets of $190. Based on the given information, compute the beginning value of fixed assets. (25 marks) 5) Metrotown manpower Inc. bought a fixed asset for $100,000. The asset has a 30% CCA rate. At the end of year 5 , the company sold the asset for 25% of its original value. A per the information, calculate the value of the terminal loss or recapture at the end of year 5. (Show detailed steps of calculations) (25 marks)