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Use the following information for questions 1-4

Steak and Quake, Inc.	2014	2013
Sales	$4,507	$4,203
Cost of Goods Sold	2,633	2,422
Depreciation	952	785
Interest paid	196	180
Dividends	250	225
Current Assets	2,429	2,205
Net Fixed Assets	7,650	7,344
Current liabilities	1,255	1,003
Long term debt	2,085	3,106
Tax rate 35%

What is the value of equity for Steak and Quake, Inc. at the end of 2014?

$5,440

$6,739

$10,079

$3,340

Cannot be determined

What is the cash flow from operations for 2014?

$1,424

$2,128

$224

$471

$1,620

What is the cash flow to creditors?

-$825

$1,217

$825

$1,021

-$1,021

What is the change in net working capital?

-$28

$224

$28

$252

-$224

Use the following information for questions 5 and 6:

Big Farm Implements R Us, Inc. purchased new machinery three years ago for $7 million. The machinery can be sold today for $4.9 million. The companys current balance sheet shows net fixed assets of $3.7 million, current liabilities of $1.1 million, and net working capital of $380,000. If all the current assets of the company were liquidated today, it would receive $1.6 million cash.

What is the book value of the firms assets?

$5,180,000

$380,000

$7,380,000

$7,000,000

$6,500,000

What is the market value of the firms assets?

$4.9 million

$1.1 million

$6.5 million

$3.7 million

$1.6 million

Using the following tax rate information, calculate the average tax rate for a corporation earning $250,000 before taxes are applied.

Taxable income over	Not Over	Tax Rate

25.25%

34.00%

28.25%

39.00%

32.30%

Beta Investments earned $50,000 before taxes at the end of 2014. They are in the 34% tax bracket and their payout policy is 30%. Their total equity at the end of 2013 was $200,000. They did not issue or retire any shareholder stock. What is the value of Equity at the end of 2014?

$250,000

$217,000

$223,100

$205,100

$200,000

Use the following information to calculate the cash flow from assets (CFFA)?

Current Accounts:

2012: current assets = 4,400; current liabilities = 1,500

2011: current assets = 3,500; current liabilities = 1,200

Fixed Assets and Depreciation

2012: net fixed assets = 3,400; 2011: net fixed assets = 3,100

Depreciation Expense = 400

Long-term Debt and Equity (Retained earnings not given)

2012: LTD = 4,000; Common stock & APIC = 400

2011: LTD = 3,950; Common stock & APIC = 400

Income Statement

EBIT = 2,000; Taxes = 300

Interest Expense = 350; Dividends = 500

400

500

600

800

1,000

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