Island Angler Fishing Team

Balance Sheet

Assets

Current Assest

Liabilities and Owner's Equity

Fixed Assets

You are to refer to the Island Angler Fishing Team, Inc. financial statements to answer the next

four questions. For the income statement, all expenses will be proportional to the increase in

sales. For the balance sheet, all assets are affected proportionally by the increase in sales and

only the accounts payable on the liability side will be affected by the increase in sales. Assume

the Island Angler Fishing Team, Inc, wants to maintain a constant dividend payout ratio.

Referring to the Island Angler Fishing Team, the company is

currently operating at $90\%$ of capacity. If the company were to

operate at $100\%$ capacity, what would be the capital intensity

ratio?

$1\mathrm{.}87$

$1\mathrm{.}55$

None of the answer provided are correct

$2\mathrm{.}00$

$2\mathrm{.}40$

Island Angler Fishing Team

Balance Sheet

You are to refer to the Island Angler Fishing Team, Inc. financial statements to answer the next

four questions. For the income statement, all expenses will be proportional to the increase in

sales. For the balance sheet, all assets are affected proportionally by the increase in sales and

only the accounts payable on the liability side will be affected by the increase in sales. Assume

the Island Angler Fishing Team, Inc, wants to maintain a constant dividend payout ratio.

The $2022$ balance sheet of Fast Auto Manufacturers, showed $$1\mathrm{.}4$ million in long$-$term debt, $$470,000$ in

the common stock account, and $$4\mathrm{.}15$ million in the additional paid$-$in surplus account. The $2023$

balance sheet showed $$3\mathrm{.}15$ million, $$755,000,$ and $$6\mathrm{.}2$ million in the same three accounts, respectively.

The $2023$ income statement showed an interest expense of $$280,000.$ The company paid out $$500,000$ in

cash dividends during $2023.$

If the firm's net capital spending for $2023$ was $$330,000,$ and the firm reduced its net working capital

investment by $$265,000,$ what was the firm's $2023$ operating cash flow, or OCF?

$$-3,240,000$

$$-4,130,000$

$$4,530,000$

$$-3,400,000$

$$5,155,000$