Question 1Trevi Corporation recently reported an EBITDA of $31,478,000
million and $9,564,800 million of net income. The company has $6,701,200
million interest expense, and the corporate tax rate is 35 percent. What was
the companys depreciation and amortization expense?Question 2Working capital: Winston Electronics reported the following
information at its annual meetings. The company had cash and marketable
securities worth $1,235,523, accounts payables worth $4,160,145, inventory of
$7,122,998, accounts receivables of $3,489,557, notes payable worth $1,152,878,
and other current assets of $121,950. What is the companys net working
capital?Correct answerQuestion 3The difference between FIFO and LIFO is FIFO refers to the
practice of firms, when making sales, assuming that the inventory that came in
last (at a higher price) is being sold first. LIFO implies that a firm is
selling the lower cost, older inventory first, leaving the higher cost, newer
inventory on the balance sheet.TrueFalseQuestion 4Which of the following balance sheet items generally takes
the longest time to convert to cash?marketable securitiesaccounts payableCorrect answerinventoryaccounts receivableQuestion 5A firms net income may be greater than its net cash flows
because the firmCorrect answersold merchandise on creditdid not pay dividendsdeferred income taxesdeducted depreciation expenseQuestion 6The average tax rate isthe tax rate that is paid on the last dollar of income
earnedalways higher than the marginal tax rateCorrect answercalculated by dividing the total taxes paid by the taxable
incomenone of the aboveQuestion 7If Cleveland Motors Had an EBIT of $22,727,100, Interest of
$7,209,400 and is taxed at an average rate of 32% what is their Net Income?Correct answerQuestion 8Using the information below — what was Bala Industries
Cash Flow from Financing for the year ending 6/30/2011?Increase in inventories $35Purchased treasury stock $25Purchased property & equipment $15Net Income $338Decrease in accrued income taxes $49Depreciation & amortization $112Decrease in accounts payable $17Increase in accounts receivable $29Increase in Long-term debt $110Which of the following is a tax deductible expense for a
corporation?common stockdividends paidloan principal paidCorrect answerinterest paidQuestion 10Delta Ray Brands Corp. just completed their latest fiscal
year. The firm had sales of $17,506,000. Depreciation and amortization was
$872,300, interest expense for the year was $899,100, and selling general and
administrative expenses totaled $1,554,600 for the year, and cost of goods sold
was $10,043,500 for the year. Assuming a federal income tax rate of 34%, what
was the Delta Ray Brands net income after-tax?

Trevi Corporation recently reported an EBITDA of $31,478,000
million and $9,564,800 million of net income. The company has $6,701,200
million interest expense, and the corporate tax rate is 35 percent. What was
the companys depreciation and amortization expense?Question 2Working capital: Winston Electronics reported the following
information at its annual meetings. The company had cash and marketable
securities worth $1,235,523, accounts payables worth $4,160,145, inventory of
$7,122,998, accounts receivables of $3,489,557, notes payable worth $1,152,878,
and other current assets of $121,950. What is the companys net working
capital?Correct answerQuestion 3The difference between FIFO and LIFO is FIFO refers to the
practice of firms, when making sales, assuming that the inventory that came in
last (at a higher price) is being sold first. LIFO implies that a firm is
selling the lower cost, older inventory first, leaving the higher cost, newer
inventory on the balance sheet.TrueFalseQuestion 4Which of the following balance sheet items generally takes
the longest time to convert to cash?marketable securitiesaccounts payableCorrect answerinventoryaccounts receivableQuestion 5A firms net income may be greater than its net cash flows
because the firmCorrect answersold merchandise on creditdid not pay dividendsdeferred income taxesdeducted depreciation expenseQuestion 6The average tax rate isthe tax rate that is paid on the last dollar of income
earnedalways higher than the marginal tax rateCorrect answercalculated by dividing the total taxes paid by the taxable
incomenone of the aboveQuestion 7If Cleveland Motors Had an EBIT of $22,727,100, Interest of
$7,209,400 and is taxed at an average rate of 32% what is their Net Income?Correct answerQuestion 8Using the information below — what was Bala Industries
Cash Flow from Financing for the year ending 6/30/2011?Increase in inventories $35Purchased treasury stock $25Purchased property & equipment $15Net Income $338Decrease in accrued income taxes $49Depreciation & amortization $112Decrease in accounts payable $17Increase in accounts receivable $29Increase in Long-term debt $110Which of the following is a tax deductible expense for a
corporation?common stockdividends paidloan principal paidCorrect answerinterest paidQuestion 10Delta Ray Brands Corp. just completed their latest fiscal
year. The firm had sales of $17,506,000. Depreciation and amortization was
$872,300, interest expense for the year was $899,100, and selling general and
administrative expenses totaled $1,554,600 for the year, and cost of goods sold
was $10,043,500 for the year. Assuming a federal income tax rate of 34%, what
was the Delta Ray Brands net income after-tax?