Question

1. Sterling Rope has Net Working Capital of 640, long term debt of 4,180, total assets of 6,230, and fixed assets of 3,910. What are its total liabilities? 2. HOLY SHIP!!! Inc. has sales of 52,000, costs of 27,300, a change in retained earnings of 5,300, dividends of 1,800, and interest expense of 4,900. They have a tax rate of 34%. What is their depreciation expense? *hint work backwards up the income statement 3. Which of the following are included in current liabilities? I note payable to a supplier in eight months II. Amount due from a customer in 30 days III. Account payable to a supplier that is due next week IV. Loan payable to the bank in sixteen months A. I and III only B. II and III only C. I, II, and III only D. I, III, and IV only E I. II. III, and IV 4. Alphabet Inc. has net working capital of $360, and current liabilities of $190. What is the current ratio?

Answer 1

1 1 2 net workign capital 640.00 3 long term debt 4,180.00 4 total assets 6,230.00 5 fixed assets 3,910.00 7 current assets 8 current assets =+total assets-fixed assets 2,320.00 =+B4-B5 10 current liability current assets-net working capital 1,680.00 =B8-B2 14 total liabilities =long term liability + current liability 5,860.00 =B11+B3

question B.

B 17 Given 18 retained earning 19 add dividend paid 20 net profit 21 tax value 22 profit before tax 23 add interest 24 ebit 5,300.00 1,800.00 7,100.00 3,657.58 10,757.58 4,900.00 15,657.58 (A) 25 27 gross sales 28 less cost 52,000.00 27,300.00 GIVEN GIVEN (B) 30 net profit without dep 24,700.00 31 EBIT 15,657.58 32 DEP 9,042.42 (A-B)

Formula

17 Given 18 retained earning 19 add dividend paid 20 net profit 21 tax value 22 profit before tax 23 add interest 24 ebit 5300 1800 =SUM(B18:319) =+B20*34%/(1-34%) =SUM(B20:B21) 4900 =+B22+B23 27 gross sales 28 less cost 52000 27300 GIVEN GIVEN 30 net profit without dep 31 EBIT B2 DEP =+B27-B28 =+B24 =+B30-B31 (A-B)

340) correct answer is c explanation. Current laibilities has the life of upto one year. note payable, account payable due less than one year is current liability. loan payable more than one year is long term liability 37

given net working capital current liability current assets current assets 360 190 =net wokring capital + current laibility 550 current ratio= current assets/current liability 2.89 =550/190

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