Can someone show me the break down of how you get the answer.


Shop Til You Drop Inc. recently reported net income of $5.2 million and depreciation of $600.000. What is was net cash flow? Assume it has no amortization expense.



Superior Medical System’s 2005 balance sheet showed total common equity of $2,050.000. The company had 100.000 shares of stock outstanding which sold at a price of $57.25 per share. By how much did the firm’s market value and book value per share differ?


Madison Metals recently reported $9,000 of sales, $6.000 of operating costs other than depreciation, and $1,500 of depreciation. The company had no amortization charges and no non operating income. It had issued $4,000 of bonds that carry a 7% interest rate, and it’s federal plus state income tax was 40%. What was the firm’s taxable, or pre tax income?


Fine Breads Inc. paid out $26,000 common dividends during 2005, and it ended the year with $150,000 of retained earnings. The prior year’s retained earnings were $145,000 what was the firm’s 2005 net income.




Anonymous User
Anonymous User
Asked Oct 10, 2010
Woa, one question at a time please!
You can't calculate net cash flow on income alone. Net = inflow - outflow.

In the remaining questions the placements of decimal points look suspect. Is "$2,050.000," two thousand fifty or two million fifty thousand. Does "$6.000" of operating costs mean they operated the company all year on six dollars?

If Fine Bread previous retained earnings were 145,000, they retained 150,000 and distributed 26,000, their profit this year was $31,000; 5,000 added to retained earnings plus the distribution. Net Income would be 31,000 plus the operating cost but that wasn't given in the question.
Rob
Answered Jan 01, 2011
Edited Jan 01, 2011

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