Answered step by step
Verified Expert Solution
Question
1 Approved Answer
LTIPLE CHOICE. Choose the one alternative that best answer the queste 12) Given the following financial statements for ACME Corporation, what did not pay in
LTIPLE CHOICE. Choose the one alternative that best answer the queste 12) Given the following financial statements for ACME Corporation, what did not pay in dividends for 2018? Income Statement 1 Balance Sheet Year Ended 12/31/18 12/31/18) 12/31/17 Sales $1,300,000 Current Assets $50,000 || $45.000 Cost of Goods Sold 750,000 Gross Fixed Assets 880,000 650.000 Operating Expenses 200.000 Less Accumulated 450,000 350,000 Depreciation Depreciation Expense 100,000 Fixed Assets 430,000 350,000 EBIT 250.000 Total Assets $480.000|| $395.000 Interest Expense 50,000 200,000 Current Liabilities $35.000 $35,000 S50.000 Taxes 80,000 Long-term Debt 330,000 270.000 Net Income $120,000 Common Stock 5,000 3.000 Retained Earnings 110,000 70,000 Total Liabilities & 5480,000 $395,000 Equity A) $80,000 B) $100,000 C) $25,000 D) $45,000 13) Johnson's Nursery has net income of $42,500, depreciation expense of $1,800, interest expense of $900, taxes of $1,600, additions to networking capital of $2,300, and capital expenditures of $11,700. What is the amount of the free cash flow? A) $31,200 B) $28,700 C) $34,400 D) $30,300 14) Which one of the following measures account for the opportunity cost of capital? A) Increase in sales B) Current ratio C) Economic Value Added (EVA) D) Net income 15) Which of the basic financial statements is best used to answer the questions "What does the company own and how is it financed?" A) Statement of shareholder's equity B) Cash flow statement C) Income statement D) Balance sheet 16) The primary goal of corporate management should be to: A) maximize the shareholders' wealth B) maximize the number of shareholders. C) maximize the firm's profits. D) none of the above
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started