QUESTION 1
1. Which one of the following is the financial statement that shows the accounting value of a firm's equity as of a particular date?
• Income Statement
• Creditor's statement
• Balance sheet
• Statement of Cash flow
• Dividend statement
QUESTION 2
1. The cash flow related to interest payments less any net new borrowing is called the:
• Operating cash flow.
• Capital spending cash flow.
• Net working capital.
• Cash flow from assets.
• Cash flow to creditors.
QUESTION 3
1. A firm has net working capital of $560. Long-term debt is $3,970, total assets are $7,390, and fixed assets are $3,910. What is the amount of the total liabilities?
• $2,050
• $2,920
• $4,130
• $7,950
• $6,890
QUESTION 4
1. The following information pertains to Galaxy Interiors:
What is the cash flow to creditors for 2015?
• -$530
• $432
• $1,839
• $2,132
• $3,094
QUESTION 5
1. You have gathered this information on JJ Enterprises:
|
|
2014
|
2015
|
|
Sales
|
$6,318
|
$7,202
|
|
COGS
|
3,945
|
4,460
|
|
Interest
|
303
|
277
|
|
Depreciation
|
1,204
|
1,196
|
|
Cash
|
672
|
418
|
|
Accounts receivables
|
601
|
578
|
|
Current liabilities
|
414
|
463
|
|
Inventory
|
1,215
|
1,598
|
|
Long-term debt
|
4,780
|
4,103
|
|
Net fixed assets
|
7,700
|
7,330
|
|
Shareholder's equity
|
4,994
|
5,358
|
|
Taxes
|
217
|
317
|
2. What is the cash flow from assets for 2015?
• $1,430
• $1,542
• $1,656
• $2,810
• $3,308
QUESTION 6
1. If a firm produces a 13 percent return on assets and also a 13 percent return on equity, then the firm:
• May have short-term, but not long-term debt.
• Is using its assets as efficiently as possible.
• Has no net working capital.
• Has a debt-equity ratio of 1.0.
• Has an equity multiplier of 1.0.
QUESTION 7
1. Use the information below to answer the following question.
|
Income Statement
|
|
|
For the Year
|
|
Net sales
|
$827,500
|
|
COGS
|
611,800
|
|
Depreciation
|
23,100
|
|
|
|
|
EBIT
|
$192,600
|
|
Interest
|
9,700
|
|
|
|
|
Taxable income
|
$182,900
|
|
Taxes
|
6,200
|
|
|
|
|
Net income
|
176,700
|
|
|
|
|
Balance Sheet
|
|
|
Beginning of Year
|
End of Year
|
|
Cash
|
$ 38,200
|
$43,700
|
|
Accounts receivable
|
91,400
|
86,150
|
|
Inventory
|
203,900
|
214,600
|
|
Net fixed assets
|
516,100
|
537,950
|
|
|
|
|
|
Total assets
|
849,600
|
$882,400
|
|
|
|
|
|
Accounts payable
|
$136,100
|
104,300
|
|
Long-term debt
|
329,500
|
298,200
|
|
Common stock ($1 par value)
|
75,000
|
82,000
|
|
Retained earnings
|
309,000
|
397,900
|
|
|
|
|
|
Total Liab. & Equity
|
$849,600
|
882,400
|
|
|
|
|
How many days of sales are in receivables at year-end?
• 51.40
• 40.32
• 54.53
• 29.41
• 38.00
QUESTION 8
1. Coulter Supply has a total debt ratio of .46. What is the equity multiplier?
• .89
• 1.17
• 1.47
• 1.85
• 2.17
QUESTION 9
1. BL Industries has ending inventory of $302,800 and cost of goods sold for the year just ended was $1.41 million. On average, how long did a unit of inventory sit on the shelf before it was sold?
• 47.64 days
• 22.18 days
• 78.38 days
• 61.78 days
• 83.13 days
QUESTION 10
1. A firm has a debt-total asset ratio of 58 percent and a return on total assets of 13 percent. What is the return on equity?
• 26.27 percent
• 30.95 percent
• 45.00 percent
• 22.41 percent
• 13.50 percent
QUESTION 11
1. Frasier Cabinets wants to maintain a growth rate of 5 percent without incurring any additional equity financing. The firm maintains a constant debt-equity ratio of .55, a total asset turnover ratio of 1.30, and a profit margin of 9 percent. What must the dividend payout ratio be?
• 26.26 percent
• 38.87 percent
• 49.29 percent
• 61.13 percent
• 73.74 percent
QUESTION 12
1. A firm wishes to maintain a growth rate of 8 percent and a dividend payout ratio of 62 percent. The ratio of total assets to sales is constant at 1, and the profit margin is 10 percent. What must the debt-equity ratio be if the firm wishes to keep these ratios constant?
• .05
• .40
• .55
• .60
• .95
QUESTION 13
1. The Two Sisters has a 9 percent return on assets and a 75 percent dividend payout ratio. What is the internal growth rate?
• 3.24 percent
• 4.05 percent
• 3.97 percent
• 2.30 percent
• 2.25 percent
QUESTION 14
1. Luis is going to receive $20,000 six years from now. Soo Lee is going to receive $20,000 nine years from now. Which one of the following statements is correct if both Luis and Soo Lee apply a 7 percent discount rate to these amounts?
• The present values of Luis and Soo Lee's money are equal.
• In future dollars, Soo Lee's money is worth more than Luis's money.
• In today's dollars, Luis's money is worth more than Soo Lee's.
• Twenty years from now, the value of Luis's money will be equal to the value of Soo Lee's money.
• Soo Lee's money is worth more than Luis's money given the 7 percent discount rate.
QUESTION 15
1. What is the future value of $11,600 invested for 17 years at 7.25 percent compounded annually?
• $32,483.60
• $27,890.87
• $38,991.07
• $41,009.13
• $38,125.20