1) Wick Inc., has sales of $889,095.00, operating costs (notincluding depreciation) of $320,074.20, depreciation expense of$124,473.30, interest expense of $62,236.65, and a tax rate of38.00%. What is the net income for this firm?
a. $237,032.73
b. $237,032.73
c. $145,278.12
d. $168,928.05
2)Given the following Financial Information Answer the followingquestion:
| 2017 | 2018 |
|---|
| Cash | 3,000 | 461,305 |
| Accounts Receivable | 9,000 | 9,900 |
| Inventory | 5,000 | 5,500 |
| Prepaid Assets | 3,000 | 3,300 |
| Other Assets | 5,000 | 5,500 |
| Total Current Assets | 25,000 | 485,505 |
| Net PPE | 80,000 | 67,000 |
| Intangibles | 1,000 | 1,000 |
| Total Assets | 106,000 | 553,505 |
| Accounts Payable | 3,000 | 3,300 |
| Salary Payable | 1,000 | 1,100 |
| Notes Payable | 1,000 | 1,000 |
| Total Current Liabilities | 5,000 | 5,400 |
| Long-Term Debt | 70,000 | 70,000 |
| Total Liabilities | 75,000 | 75,400 |
| Common Stock | 40,000 | 40,000 |
| Retained Earnings | -9,000 | 438,105 |
| total equity | 31,000 | 478,105 |
| 2018 |
|---|
| Sales | 2,965,000 |
| COGS | 2,223,750 |
| Gross Profit | 741,250 |
| SG&A | 12,000 |
| Other Operating Expenses | 13,000 |
| Depreciation | 8,000 |
| Interest | 6,785 |
| Taxes | 223,481 |
| Net Income | 485,984 |
| dividends | 38,879 |
Calculate the Change in Net Operating Working Capital (NOWC)
a. $ -460,504.82
b. $ 460,504.82
c. $ 460,104.82
d. $ -460,104.82
3)
Reihing Inc., 's current balance sheet shows total common equityof $1,667,544.00. The company has 340,000.00 shares of stockoutstanding, and they sell at a price of $5.49 per share. By howmuch do the firm's book value and market value per sharediffer?
a. $-0.59
b. $4.90
c. $5.49
d. $0.59
