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Author Question: Wells Water Systems recently reported $9,750 of sales, $4,800 of operating costs other than ... (Read 59 times)

tashina2013

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Question 1

Tucker Electronic System’s current balance sheet shows total common equity of $4,785,000. The company has 165,000 shares outstanding, and they sell at a price of $54.50 per share. By how much do the firm’s market and book values per share differ?

$23.95


$24.88


$25.50


$26.73



Question 2

Wells Water Systems recently reported $9,750 of sales, $4,800 of operating costs other than depreciation, and $1,150 of depreciation. The company had no amortization charges, it had $4,150 of outstanding bonds that carry a 6.25% interest rate, and its combined federal and provincial income tax rate was 33%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to spend $830 to buy new fixed assets and to invest $290 in net operating working capital. How much free cash flow did Wells generate?

$2,207.00


$2,341.50


$2,491.43


$2,576.00



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Marked as best answer by tashina2013 on Aug 7, 2023

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tashina2013

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Reply 2 on: Aug 7, 2023
Wow, this really help


zacnyjessica

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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