Finance

Based on the following selected financial information for Sheets Clinicworks, calculate net income for 2003. 2002 2003 Dividends paid $400 $700 Accts. payable/accr. 300 500 Long-term debt 2,300 2,000 Common stock 2,200 3,000 Retained earnings 6,150 6,350

A. $100
B. $300
C. $500
D. $700
E. $900

Assume that Helaron, Inc. has sales of $83 million and fixed assets of $22.4 million. The corporation utilizes the percent-of-sales method of financial forecasting. If Helaron is expected to generate sales of $94 million next year, what will the firm’s investment in fixed assets be?

A. $19.8 million
B. $28.8 million
C. $16.2 million
D. $25.4 million
E. None of the above

Your firm has the following income statement items: sales of $50,250,000; income tax of $1,744,000; operating expenses of $10,115,000; cost of goods sold of $35,025,000; and interest expense of $750,000. What is the amount of the firm’s gross profit?

A. $18,000,000
B. $15,225,000
C. $5,000,110
D. $6,632,000

Which of the following is NOT included in the calculation of free cash flows?

A. Interest expense
B. Operating income
C. Depreciation
D. Net operating working capital

Your firm has the following balance sheet statement items: total liabilities of $1,005,000; 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 stockholder’s equity?

A. $3,650,885
B. $550,000
C. $1,650,000
D. $833,000