Which of the following are true of the Essay Checkpoint Assignment? (Select ALL that apply) 

Jim’s Farm Store reported $200,000 in sales, $120,000 in operating costs other than depreciation, and $30,000 of depreciation over the past year. The store holds a $40,000 loan at a 6% interest rate, and its federal-plus-state income tax rate is 20%. How much is EBIT? Indicate to the nearest whole number. Do not include a $ or commas. Note: There are three questions in this exam using the same information about Jim’s Farm Store. Keep your calculations handy.

Jim’s Farm Store reported $200,000 in sales, $120,000 in operating costs other than depreciation, and $30,000 of depreciation over the past year. The store holds a $40,000 loan at a 6% interest rate, and its federal-plus-state income tax rate is 20%. How much is interest? Indicate to the nearest whole number. Do not include a $ or commas. Note: There are three questions in this exam using the same information about Jim’s Farm Store. Keep your calculations handy.

Jim’s Welding Shop started recorded $400,000 in revenues, $200,000 in operating expenses, $20,000 in depreciation, and $10,000 in interest.. He withdrew $30,000 from his cash account to pay his daughter’s tuition. He purchased a bean roller for $40,000 and took out a loan on it for $30,0000 (that is, $30,000 in cash came from the bank), and the family withdrew $50,000 for family living expenses. He lives in the magical no-tax country of CherylLand. How much did he add or substract from cash during the year? Hint: You calculate net income, subtract net cash expenses not included in the calculation of net income, and add back depreciation as it is a non-cash expense.  Not included in the calculation of net income: tuition, purchase and financing of bean roller, and family living.

Calculate the after-tax cost of debt when the interest rate is 7% and the marginal tax rate is 20%. Indicate to the nearest tenth of a percentage (e.g., 10.3). Do not use a percentage sign.

Your firm has only one plant. You have an administrative team that makes decisions with regards to firm financing but you are not evaluating them at this time. Which of the following would you choose to evaluate how well your plant manager (only) did with regards to operational efficiency of the plant for the past decade?

For this question, refer to the values provided in the table. What is this farmer’s net worth? Note: There are three questions in this exam using the same information. Suggest calculating current assets, non-current assets, current liabilities, non-current liabilities, total assets, total liabilities, and net worth once and then keeping the calculated table handy.  Table for Exam 2(2).JPG  

You purchased a utility tractor for $43,000. You used the utility tractor in your landscaping business during the one year, and estimate that you earned $3,000 using this asset. You sold it for $44,000 at the end of the year. What was the total capital gain or loss? Indicate a gain as a positive number and a loss as a negative number. Please do not include $ or a comma.

On the cash flow statement, family living withdrawal is a(n)

Which financial statement represents a snapshot taken on a specific date that shows a firm’s assets and how those assets are financed?