Please show logic and calculation for each problem, and provide the answer for all 10 problems !

1. In the current year, a company reported cash flow from operating activities of $120,000, cash flow from investing activities of ($65,000), and cash flow from financing activities of $70,000. In addition, the company paid interest of $16,000, had net capital expenditures of $90,000, and issued net new debt of $25,000. The marginal tax rate is 35%. Compute the free cash flow to equity for the current year.

$220,400

$210,000

$55,000

$40,400

2. Marketing expense was 10.5% of sales this year. If sales this year are $1,300,000 and are forecasted to be $1,500,000 next year, what is forecasted marketing expense next year if all expenses maintain a constant percent of sales?

$157,500

$136,500

$162,500

$187,500

3. A firms existing asset base can support total sales of up to $2,500,000. Current sales are at $2,200,000. What is the firms current utilization rate of its assets?

76%

80%

84%

88%

92%

4. Using the information below, compute the net income of the company:

Interest expense	$ 2,000
Operating expenses	22,000
Tax expense	3,000
Cash	7,000
Sales revenue	125,000
Cost of goods sold	85,000

$47,000

$40,000

$20,000

$18,000

$13,000

5. A company had beginning retained earnings of $126,000. The company paid dividends of $17,300, generated total sales of $845,000, and incurred total expenses of $792,000 in the current year. What is ending retained earnings?

$53,000

$35,700

$179,000

$161,700

6.

A company has the following information for the current year:

Current assets	$42,500	Current liabilities	$24,650
Noncurrent assets	224,000	Noncurrent liabilities	173,200
Total assets	$266,500	Retained earnings	19,475
		All other equity	49,175
		Total liabilities and equity	$266,500

Sales revenue is forecasted to grow by 11% next year, forecasted net income is expected to be $30,000, and all current assets and current liabilities vary proportionally with sales. If $45,000 worth of net noncurrent assets are required to be purchased next year, what is the external financing needed? Assume that the company does not pay dividends, and that all noncurrent liabilities and equity (except retained earnings) will be the same level as the current year.

A company has the following information for the current year:

Current assets	$42,500	Current liabilities	$24,650
Noncurrent assets	224,000	Noncurrent liabilities	173,200
Total assets	$266,500	Retained earnings	19,475
		All other equity	49,175
		Total liabilities and equity	$266,500

Sales revenue is forecasted to grow by 11% next year, forecasted net income is expected to be $30,000, and all current assets and current liabilities vary proportionally with sales. If $45,000 worth of net noncurrent assets are required to be purchased next year, what is the external financing needed? Assume that the company does not pay dividends, and that all noncurrent liabilities and equity (except retained earnings) will be the same level as the current year.

$16,785

$16,964

$17,142

$17,32

$17,499

7. Long-term investments decreased during the year. This is a ___________ of cash reported in the _____________ section of the statement of cash flows.

Use; operating

Source; operating

Use; investing

Source; investing

Use; financing

Source; financing

8. For the current year sales are $1,400,000, current assets are $101,524, and current liabilities are $85,265. If sales are forecasted to increase 15% next year, and all current assets and current liabilities vary proportionally with sales (i.e. they are spontaneous items), what is the forecasted amount of net working capital next year?

$18,698

$18,210

$18,373

$18,535

9. A company has forecasted net income to be $320,000. Net income was $250,000 in the prior year, when they also paid dividends of $100,000. What are forecasted dividends if the company wants to keep the payout ratio constant?

$192,000 $128,000 $78,125 $100,000

10. Using the tax table provided in Figure 10.3, determine the average and marginal tax rates for a company that earned $11 million in taxable income.

Average rate = 34.00%; Marginal rate = 35.00%

Average rate = 34.09%; Marginal rate = 35.00%

Average rate = 34.00%; Marginal rate = 34.00%

Average rate = 35.00%; Marginal rate = 34.09%