Exam 3: Understanding Financial Statements,taxes and Cash Flows

Your firm has the following balance sheet statement items: total current liabilities of $805,000;total assets of $2,655,000;fixed and other assets of $1,770,000;and long-term debt of $200,000.What is the amount of the firm's total current assets?

On the income statement,sales revenue,minus cost of goods sold and operating expenses,equals which of the following?

Which one of the following statements provides a snapshot at a point of time rather than flows over time?

Grass Gadgets had sales of $30 million and net income of $2 million in 2008.Grass paid a dividend of $1.5 million.Assuming that their beginning balance for retained earnings was $3 million,calculate their ending balance for retained earnings.

Your firm has the following balance sheet statement items: total current liabilities of $805,000;total assets of $2,655,000;fixed and other assets of $1,770,000;and long-term debt of $200,000.What is the amount of the firm's net working capital?

Which of the following best represents operating income?

An advantage of balance sheet numbers is that assets reflect current market values.

When a company pays a dividend on ordinary shares,it appears as

In Australia company income is usually taxed at a rate of 35%.

The change between a firm's beginning cash balance and ending cash balance would equal

A firm's balance sheet provides a representation of the current market value of the company.

Total equity on the balance sheet increases as dividends paid increases.

A corporation's average tax rate will always be lower than or equal to its marginal tax rate.

Which of the following represents an attempt to measure the earnings of the firm's operations over a given time period?

The interest payments on corporate bonds are tax-deductible.

Operating cash flow will increase with a decrease in

Which of the basic financial statements is best used to answer the question,"How profitable is the business?"

The ratio of ________ to ________ is an indicator of the quality of a firm's earnings.

The practice of shifting income from good years to poor years in order to show a record of steady growth is

Beginning cash balance + cash flow from operations + cash flow from investing activities + cash flow from financing activities = ending cash balance.