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1. Book values are different to market values bec...

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Question

1. Book values are different to market values because: a)Book values reflect the value of the asset based on generally-accepted accounting principles. b)Book values are used in the company's balance sheet c)Book values do not reflect the amount someone is willing to pay today for an asset. d)All of the above 2. For this question, use the information for Sports Baseballs, Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells baseballs across several states in the Southeast. It had sales of $2.7 million during the last year. Expenses were as follows: Cost of goods sold.......................$1.2 million Administrative expenses........................ $250,000 Marketing and selling expenses............... $175,000 Depreciation........................................ $500,000 Interest expense.................................. $200,000 Dividends paid..................................... $150,000 Suppose that Sports Baseball has 30,000 shares of stock. Assume a tax rate of 30%. What is the EPS figure? a) 8.50 b) 8.75 c) 9.0 d) 9.15 3)For this question, use the information for Sports Baseballs, Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells baseballs across several states in the Southeast. It had sales of $2.7 million during the last year. Expenses were as follows: Cost of goods sold............................... $1.2 million Administrative expenses........................ $250,000 Marketing and selling expenses............... $175,000 Depreciation........................................ $500,000 Interest expense.................................. $200,000 Dividends paid..................................... $150,000 Assuming a tax rate of 30%, what is the operating cash flow for the year? a) $1,260,000 b) $962,000 c) $962,500 d) $1,265,000 e) Can not be determined with the information given

 

Paper#2874 | Written in 18-Jul-2015

Price : $25
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