Exam 3: The Financial System and the Level of Interest Rates

Tumbling Haven, a gymnastic equipment manufacturer, provided the following information to its accountant. The company had net fixed assets of $356,190, and other assets of $4,176. The firm has current liabilities of $94,792, long-term debt of $76,445, common stock of $200,000, and retained earnings of $134,461. What amount of current assets did this firm have?

The net cash provided by operating activities is another term used for net income.

What is the difference between FIFO (first in, first out) and LIFO (last in, first out) accounting?

Arco Steel, Inc. generated total sales of $45,565,200 during fiscal 2010. Depreciation and amortization for the year totaled $2,278,260, and cost of goods sold was $27,339,120. Interest expense for the year was $9,641,300 and selling, general, and administrative expenses totaled $4,556,520 for the year. What is Arco's EBIT for 2010?

A firm's annual report contains audited financial statements (balance sheet, income statement, statement of cash flows, and statement of retained earnings).

Any shares repurchased by the company in the open market are recorded as treasury stock in the shareholders' equity account in the balance sheet.

Identify and explain the five fundamental principles that form the basis of accounting standards in United States.

Trident Manufacturing Company's treasurer identified the following cash flows during this year as significant. The company repaid existing debt of $425,110, while raising additional debt capital of $750,000. It also repurchased stock in the open markets for a total of $63,250 and paid $233,144 in dividends to its shareholders. What is the net cash provided by (used in) financing activities?

The cost principle states that an asset should be recognized on the balance sheet:

Which of the following is NOT a cash flow from investing activities?

Depreciation and amortization are examples of prepaid expenses.

Teakap, Inc., has current assets of $1,456,312 and total assets of $4,812,369 for the year ending September 30, 2006. It also has current liabilities of $1,041,012, common equity of $1,500,000, and retained earnings of $1,468,347. What is the value of long term debt?

The most common reason for firms to repurchase stock is to increase the number of shares outstanding in the market when the management believes that its firm's stock is undervalued.

Which of the following is an income statement item?