Which of the following accounts belongs on the asset side of a balance sheet?

1. Small firm common stocks, Common stocks, Long-term corporate bonds, Treasury bills

2. What information does a firm's balance sheet provide to the viewing public?

3. Net working capital is equal to

4. Gross profit is equal to

5. Jones Finance Company had a cash balance of $3 million at the beginning of 2010. During 2010, Sales were $8 million and expenses were $7 million. Therefore,

6. Examples of uses of cash include

7. Wheeler Corporation had retained earnings as of 12/31/10 of $15 million. During 2011, Wheeler's net income was $7 million. The retained earnings balance at the end of 2011 was equal to $20 million. Therefore,

8. Which of the following accounts belongs in the equity section of a balance sheet?

9. All of the following statements about balance sheets are true except:

10. What information does a firm's statement of cash flows provide to the viewing public?

11. PDQ Corp. has sales of $4,000,000; the firm's cost of goods sold is $2,500,000; and its total operating expenses are $600,000. The firm's interest expense is $250,000, and the corporate tax rate is 40%. The firm paid dividends to preferred stockholders of $40,000, and the firm distributed $60,000 in dividend payments to common stockholders. What is PDQ's "Addition to Retained Earnings"?

12. Based on the information in Table 3-1, assuming that no common stock was repurchased during the year, the firm issued how much new common stock during 2010?

13. Based on the information in Table 3-1, calculate the after tax cash flow from operations for 2008 (no assets were disposed of during the year, and there was no change in interest payable or taxes payable).

14. A firm has after-tax cash flow from operations equal to $100,000. Operating working capital increased by $20,000, and the firm purchased $30,000 of fixed assets. The firm's free cash flow was:

15. PDQ Corp. has sales of $4,000,000; the firm's cost of goods sold is $2,500,000; and its total operating expenses are $600,000. The firm's interest expense is $250,000, and the corporate tax rate is 40%. What is PDQ's tax liability?

16. What information does a firm's income statement provide to the viewing public?

17. Which of the following represents an attempt to measure the net results of the firm's operations (revenues versus expenses) over a given time period?

18. What financial statement explains the changes that took place in the firm's cash balance over a period?

19. Which of the following accounts belongs on the asset side of a balance sheet?

20. All of the following are income statement items except:

21. All of the following are equity accounts on a balance sheet except:

22. The income statement for Brit, Inc. indicates that tax expense was $20,000. The balance sheet indicates that taxes payable for the same year increased by $5,000. What amount did Brit, Inc. actually pay in taxes during this year?

23. A firm's financing costs include

24. Which of the following statements concerning net income is most correct?

25. Which of the following accounts does not belong in the equity section of a balance sheet?

26. Li Retailing reported the following items for the current year: Sales = $3,000,000; Cost of Goods Sold = $1,500,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000; Interest Expense = $30,000; Marketing Expenses = $80,000; and Taxes = $300,000. Li's gross profit is equal to

27. The increase in owners equity for a given period is equal to

28. Two companies have identical assets and operating activities. Which of the follow statements is true?

29. The A corporation has an operating profit margin of 20%, operating expenses of $500,000, and financing costs of $15,000. Therefore,

Given the following financial statements for ACME Corporation, what amount did the company pay in dividends for 2010?

30. Which of the following accounts does not belong on the asset side of a balance sheet?

31. A company borrows $2,000,000 and uses the money to purchase high technology machinery for its operations. These are examples of

32. The December 31, 2009 balance sheet shows net fixed assets of $150,000 and the December 31, 2010 balance sheet shows net fixed assets of $250,000. Depreciation expense for 2009 is $25,000 and depreciation expense for 2010 is $35,000. Based on this information, the cost of fixed assets purchased during 2010 is

33. A firm paid dividends of $10,000, paid interest of $20,000, reduced debt principal outstanding (paid off debt) in the amount of $100,000, and sold new stock for $150,000. What was the firm's cash flow from financing activities?

34. Company A and Company B both report the same level of sales and net income. Therefore,

35. Which of the following accounts belong in the liability section of a balance sheet?

36. The income statement for Brit, Inc. indicates that tax expense was $20,000. The balance sheet indicates that taxes payable for the same year increased by $5,000. What amount did Brit, Inc. actually pay in taxes during this year?

37. Net working capital is equal to

38. Baron, Inc. has total current assets of $1,200,000; total current liabilities of $500,000; and long-term assets of $800,000. How much is the firm's Total Liabilities & Equity?

39. Global.Com has cash of $75,000; short-term notes payable of $100,000; accounts receivables of $275,000; accounts payable of $135,000: inventories of $350,000; and accrued expenses of $75,000. What is Global's net working capital?

40. Which of the following accounts does not belong in the liability section of a balance sheet

41. Which of the following best describes cash flow from financing activities

42. A corporation's operating profit margin is equal to

43. The two principal sources of financing for corporations are

44. Corporation B reported earnings per share of $10. Corporation B has 100,000 shares of common stock outstanding and reported an increase in owners equity of $400,000 for the period. Corporation B paid $50,000 in interest expense during the period. Corporation B paid dividends per share of

45. Racing Horse Corporation reported net income for 2010 of $200,000, sales of $540,000, expenses (excluding depreciation) of $180,000, and depreciation expense of $60,000. The company's accounts receivable balance increased by $40,000 during the year and its accounts payable balance remained the same. The company's change in cash for the year is estimated to be

46. Baron, Inc. has total current assets of $1,200,000; long-term debt of $600,000; total current liabilities of $500,000; and long-term assets of $800,000. How much is the firm's net working capital?

47. The basic format of an income statement is

48. All of the following would result in an increase in stockholders equity except:

49. An income statement may be represented as follows:

50. PDQ Corp. has sales of $4,000,000; the firm's cost of goods sold is $2,500,000; and its total operating expenses are $600,000. What is PDQ's EBIT?

51. Which of the following accounts does not belong on the asset side of a balance sheet?

52. Li Retailing reported the following items for the current year: Sales = $3,000,000; Cost of Goods Sold = $1,500,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000; Interest Expense = $30,000; Marketing Expenses = $80,000; and Taxes = $300,000. Li's net profit margin is equal to

53. A firm has after-tax cash flow from operations equal to $100,000. Operating working capital increased by $20,000, and the firm purchased $30,000 of fixed assets. The firm's free cash flow was:

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