Exam 3: Financial Statement Analysis and Long-Term Planning

Your _____ tax rate is the amount of tax payable on the next taxable euro you earn.

The cash flow of the firm must be equal to:

Which of the following statements concerning the income statement is true?

The financial statement showing a firm's accounting value on a particular date is the:

Thompson's Jet Skis has operating cash flow of €218.Depreciation is €45 and interest paid is €35.A net total of €69 was paid on non-current liabilities.The firm spent €180 on non-current assets and increased net working capital by €38.What is the amount of the cash flow to shareholders?

Cash flow to shareholders must be positive when:

Liquidity is:

Cost of goods sold $\quad\quad\quad\quad\quad£ 3,210$ Interest $\quad\quad\quad\quad\quad\quad\quad\quad\quad£ 215$ Dividends $\quad\quad\quad\quad\quad\quad\quad\quad£ 160$ Depreciation $\quad\quad\quad\quad\quad\quad\quad£ 375$ Change in retained earnings $\quad\quad£ 360$ Tax rate $\quad\quad\quad\quad\quad\quad\quad\quad\quad35 \%$ -What is the taxable income for 2010?

Knickerdoodles NV. $\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\underline { 2009 }\quad\quad\quad\quad\quad\underline { 2010 }$ -What is the change in net working capital from 2009 to 2010?

Which of the following is not included in the computation of operating cash flow?

Teddy's Pillows has beginning net non-current assets of £480 and ending net non-current assets of £530.Assets valued at £300 were sold during the year.Depreciation was £40.What is the amount of capital spending?

_____ is calculated by adding back non-cash expenses to net income and adjusting for changes in current assets and liabilities.

When you are making a financial decision,the most relevant tax rate is the _____ rate.

Nabors plc 2010 Income Statement ( $£$ in millions) Net sales £9,610 Less: Cost of goods sold 6,310 Less: Depreciation 1,370 Eamings before interest and taxes 1,930 Less: Interest paid 630 Taxable Income £1,300 Less: Taxes 455 Net income £845 Nabors ple 2009 and 2010 Statement of financial positions ( $£$ in millions) 2009 2010 2009 2010 Cash £,310 £405 Trade payables £2,720 £2,570 Accounts rec. 2,640 3,055 Notes payable 100 0 Inventory 3,275 Total £2,820 £2,570 Total £6,225 £7,310 Non-current liabilities 7,875 8,100 Net non-current assets 10,960 10,670 Ordinary equity 5,000 5,250 Retained eamings 2,060 Total Assets £17,185 £17,980 Total liab.\& equity £17,185 £17,890 -What is the operating cash flow for 2010?

What is a liquid asset and why is it necessary for a firm to maintain a reasonable level of liquid assets?

The earnings per share will:

Knickerdoodles NV. $\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\underline { 2009 }\quad\quad\quad\quad\quad\underline { 2010 }$ -What is the operating cash flow for 2010?

An increase in which one of the following will cause the operating cash flow to increase?

Calculate net income based on the following information.Sales are £250,cost of goods sold is £160,depreciation expense is £35,interest paid is £20,and the tax rate is 34%.

Cost of goods sold $\quad\quad\quad\quad\quad£ 3,210$ Interest $\quad\quad\quad\quad\quad\quad\quad\quad\quad£ 215$ Dividends $\quad\quad\quad\quad\quad\quad\quad\quad£ 160$ Depreciation $\quad\quad\quad\quad\quad\quad\quad£ 375$ Change in retained earnings $\quad\quad£ 360$ Tax rate $\quad\quad\quad\quad\quad\quad\quad\quad\quad35 \%$ -What are the sales for 2010?