文档介绍：Corporate Finance Midterm 1, Spring 2013
Name: ID:
1. Multiple Choices (3 p. is a noncash expense which increases the net income.
E. decreases net fixed assets, net income, and operating cash flows.
A
7. Which one of the following must be true if a firm had a negative cash flow from
assets?
A. The firm borrowed money.
B. The firm acquired new fixed assets.
C. The firm had a net loss for the period.
D. The firm utilized outside funding.
E. Newly issued shares of stock were sold.
D
8. A firm has net working capital of $640. Long-term debt is $4,180, total assets are
$6,230, and fixed assets are $3,910. What is the amount of the total liabilities?
A. $2,050
B. $2,690
C. $4,130
D. $5,590
E. $5,860
Current assets = $6,230 - $3,910 = $2,320
Current liabilities = $2,320 - $640 = $1,680
Total liabilities = $1,680 + $4,180 = $5,860E
9. Bonner Collision has shareholders' equity of $141,800. The firm owes a total of
$126,000 of which 60 percent is payable within the next year. The firm net fixed
assets of $161,900. What is the amount of the net working capital?
A. $25,300
B. $30,300
C. $75,600
D. $86,300
E. $111,500
Current liabilities = .60 $126,000 = $75,600
Total assets = $141,800 + $126,000 = $267,800
Current assets = $267,800 - $161,900 = $105,900
Net working capital = $105,900 - $75,600 = $30,300