Question

1. Shener Software's current balance sheet shows total common equity of $100,000,000. The company has 5,000,000 shares of stock outstanding, and they sell at a price of $200 per share. By how much do the firm's market and book values per share differ?

2. El Taco Tote's balance sheet showed total current assets of $5,500, all of which were required in operations. Its current liabilities consisted of $1,000 of accounts payable, $1,000 short-term notes payable to the bank, and $500 of accrued wages and taxes. What was its net operating working capital (NOWC)?

3. Alacati Inc. recently reported operating income of $12,000,000, depreciation of $2,000,000, and had a tax rate of 20%. The firm's expenditures on fixed assets and net operating working capital totaled $600,000. How much was its free cash flow?

4. GYOC Mining Inc. recently reported $115,000 of sales, $72,500 of operating costs other than depreciation, and $9,200 of depreciation. The company had $20,000 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 30%. How much was the firm's net income?

5. On 12/31/19, Times Industries reported retained earnings of $1,000,000 on its balance sheet, and it reported that it had $235,000 of net income during the year. On its previous balance sheet, at 12/31/18, the company had reported $905,000 of retained earnings. No shares were repurchased during 2019. How much in dividends did the firm pay during 2019?

Answer 1