Question 1

A firm has earnings per share of $3.50 and cash flow per share of $3.84.The price-earnings ratio is 24.1.What is the price-cash flow ratio?

Accepted Answer

A) 19.8 
B) 20.1 
C) 22.0 
D) 26.0 
E) 27.1 
A) 19.8 
B) 20.1 
C) 22.0 
D) 26.0 
E) 27.1

Question 2

What is the financing cash flow,given the following information?

Accepted Answer

A) -$180 
B) -$150 
C) -$110 
D) -$75 
E) -$10 
A) -$180 
B) -$150 
C) -$110 
D) -$75 
E) -$10

Question 3

Better Products just filed its quarterly report with the SEC.This report is referred to as which one of the following?

Accepted Answer

A) 10F 
B) 10K 
C) 10Q 
D) EDGAR 10 
E) 10FD 
A) 10F 
B) 10K 
C) 10Q 
D) EDGAR 10 
E) 10FD

Question 4

Which one of the following is a tangible fixed asset?

Accepted Answer

A) cash 
B) equipment 
C) accounts receivable 
D) right 
E) inventory 
A) cash 
B) equipment 
C) accounts receivable 
D) right 
E) inventory

Question 5

A firm has net sales of $65,000,operating expenses of $21,300,depreciation of $5,000,cost of goods sold of $36,500,and interest expense of $4,500.What is the operating margin?

Accepted Answer

A) -2.8 percent 
B) 2.6 percent 
C) 3.4 percent 
D) 9.2 percent 
E) 10.3 percent 
A) -2.8 percent 
B) 2.6 percent 
C) 3.4 percent 
D) 9.2 percent 
E) 10.3 percent

Question 6

What is the financing cash flow,given the following information?

Accepted Answer

A) -$210 
B) -$160 
C) -$110 
D) -$60 
E) -$50 
A) -$210 
B) -$160 
C) -$110 
D) -$60 
E) -$50

Question 7

Which one of the following is a financial planning method wherein some account values vary in relation to expected sales?

Accepted Answer

A) common size approach 
B) linear method 
C) percentage of net income method 
D) adjusted sales method 
E) percentage of sales approach 
A) common size approach 
B) linear method 
C) percentage of net income method 
D) adjusted sales method 
E) percentage of sales approach

Question 8

Marley Enterprises has financing cash flow of -$41,400 and investment cash flow of $28,600 for the year.The beginning cash balance was $65,300 and the ending cash balance was $44,800.What was the operating cash flow for the period?

Accepted Answer

A) -$15,500 
B) -$9,600 
C) -$7,700 
D) $8,900 
E) $15,500 
A) -$15,500 
B) -$9,600 
C) -$7,700 
D) $8,900 
E) $15,500

Question 9

A firm has current sales of $32,000.Projected sales for next year are $35,520.The percentage of sales approach is used for pro forma purposes.All balance sheet accounts,except long-term debt and common stock,change according to that approach.The expected increase in retained earnings is $2,200.What is the projected external financing need given the following current account values?

Accepted Answer

A) -$3,532 
B) -$1,969 
C) -$1,390 
D) $231 
E) $1,341 
A) -$3,532 
B) -$1,969 
C) -$1,390 
D) $231 
E) $1,341

Question 10

Which one of the following is an accounting statement that provides information on a firm's revenues and expenses?

Accepted Answer

A) balance sheet 
B) cash budget 
C) pro-forma balance sheet 
D) income statement 
E) cash flow statement 
A) balance sheet 
B) cash budget 
C) pro-forma balance sheet 
D) income statement 
E) cash flow statement

Question 11

A firm has sales of $685,000 and cost of goods sold of $435,000.The firm expects sales to increase by 6 percent next year.What is the gross profit amount expected to be next year if the firm uses the percentage of sales approach when compiling pro forma statements?

Accepted Answer

A) $235,100 
B) $265,000 
C) $335,000 
D) $355,100 
E) $536,100 
A) $235,100 
B) $265,000 
C) $335,000 
D) $355,100 
E) $536,100

Question 12

A decrease in which one of the following will increase the gross margin?

Accepted Answer

A) taxes 
B) sales 
C) depreciation 
D) variable costs 
E) fixed costs 
A) taxes 
B) sales 
C) depreciation 
D) variable costs 
E) fixed costs

Question 13

Sugar Tree Cookies has current net income of $268,000 of which $110,000 was paid out in dividends.The remaining $158,000 will be shown in which account on the firm's financial statements for next year?

Accepted Answer

A) long-term debt 
B) common stock 
C) net income 
D) retained earnings 
E) paid in surplus 
A) long-term debt 
B) common stock 
C) net income 
D) retained earnings 
E) paid in surplus

Question 14

Which one of the following is most apt to vary directly with sales?

Accepted Answer

A) current assets 
B) long-term debt 
C) shareholders' equity 
D) paid-in capital 
E) retained earnings 
A) current assets 
B) long-term debt 
C) shareholders' equity 
D) paid-in capital 
E) retained earnings

Question 15

Young Industries has a 3-year bank loan of $85,000,a 6-month note payable of $6,000,a $67,300 mortgage,and accounts payable of $22,500.What is the amount of the total current liabilities? (Ignore the current portion of any long-term debt.)

Accepted Answer

A) $5,000 
B) $16,200 
C) $28,500 
D) $64,200 
E) $117,000 
A) $5,000 
B) $16,200 
C) $28,500 
D) $64,200 
E) $117,000

Question 16

ABC Construction,Inc.has buildings and equipment of $315,600,long-term debt of $154,700,accounts payable of $52,000,cash of $9,800,accounts receivable of $18,300,inventory of $62,000,and retained earnings of $147,000.What is the total equity of the firm?

Accepted Answer

A) $5,200 
B) $97,000 
C) $147,000 
D) $199,000 
E) $228,000 
A) $5,200 
B) $97,000 
C) $147,000 
D) $199,000 
E) $228,000

Question 17

Which one of the following means of communication do most firms use for announcements in order to comply with Regulation FD?

Accepted Answer

A) TV spots 
B) e-mail alerts 
C) public newspapers 
D) radio 
E) analyst networks 
A) TV spots 
B) e-mail alerts 
C) public newspapers 
D) radio 
E) analyst networks

Question 18

Which of the following are current assets?
I.inventory
II.goodwill
III.fixed assets
IV.cash

Accepted Answer

A) III only 
B) IV only 
C) II and III only 
D) I and IV only 
E) I, II, and IV only 
A) III only 
B) IV only 
C) II and III only 
D) I and IV only 
E) I, II, and IV only

Question 19

Healthy Supplements,Inc.paid $7,300 in interest and $4,300 in dividends for the year.The firm also issued $15,000 worth of new equity securities.What is the amount of the financing cash flow?

Accepted Answer

A) $2,500 
B) $5,200 
C) $6,800 
D) $7,700 
E) $10,700 
A) $2,500 
B) $5,200 
C) $6,800 
D) $7,700 
E) $10,700

Question 20

The summation of the operating,investment,and financing cash flows for a stated period of time must equal which one of the following for the same time period?

Accepted Answer

A) net income 
B) total assets 
C) ending cash balance 
D) change in the cash balance 
E) taxable income 
A) net income 
B) total assets 
C) ending cash balance 
D) change in the cash balance 
E) taxable income

A firm has earnings per share of $3.50 and cash flow per share of $3.84.The price-earnings ratio is 24.1.What is the price-cash flow ratio?

What is the financing cash flow,given the following information?

Better Products just filed its quarterly report with the SEC.This report is referred to as which one of the following?

Which one of the following is a tangible fixed asset?

A firm has net sales of $65,000,operating expenses of $21,300,depreciation of $5,000,cost of goods sold of $36,500,and interest expense of $4,500.What is the operating margin?

What is the financing cash flow,given the following information?

Which one of the following is a financial planning method wherein some account values vary in relation to expected sales?

Marley Enterprises has financing cash flow of -$41,400 and investment cash flow of $28,600 for the year.The beginning cash balance was $65,300 and the ending cash balance was $44,800.What was the operating cash flow for the period?

Which one of the following is an accounting statement that provides information on a firm's revenues and expenses?

A firm has sales of $685,000 and cost of goods sold of $435,000.The firm expects sales to increase by 6 percent next year.What is the gross profit amount expected to be next year if the firm uses the percentage of sales approach when compiling pro forma statements?

A decrease in which one of the following will increase the gross margin?

Sugar Tree Cookies has current net income of $268,000 of which $110,000 was paid out in dividends.The remaining $158,000 will be shown in which account on the firm's financial statements for next year?

Which one of the following is most apt to vary directly with sales?

Young Industries has a 3-year bank loan of $85,000,a 6-month note payable of $6,000,a $67,300 mortgage,and accounts payable of $22,500.What is the amount of the total current liabilities? (Ignore the current portion of any long-term debt.)

ABC Construction,Inc.has buildings and equipment of $315,600,long-term debt of $154,700,accounts payable of $52,000,cash of $9,800,accounts receivable of $18,300,inventory of $62,000,and retained earnings of $147,000.What is the total equity of the firm?

Which one of the following means of communication do most firms use for announcements in order to comply with Regulation FD?

Which of the following are current assets? I.inventory II.goodwill III.fixed assets IV.cash

Healthy Supplements,Inc.paid $7,300 in interest and $4,300 in dividends for the year.The firm also issued $15,000 worth of new equity securities.What is the amount of the financing cash flow?

The summation of the operating,investment,and financing cash flows for a stated period of time must equal which one of the following for the same time period?

A Brief History of Risk and Return

The Investment Process

Overview of Security Types

Mutual Funds and Other Investment Companies

The Stock Market

Common Stock Valuation

Stock Price Behavior and Market Efficiency

Behavioral Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Diversification and Risky Asset Allocation

Return, Risk, and the Security Market Line

Performance Evaluation and Risk Management

Futures Contracts

Stock Options

Option Valuation

Corporate and Government Bonds

Global Economic Activity and Industry Analysis

Mortgage-Backed Securities

Filters

Exam 17: Projecting Cash Flow and Earnings

A firm has earnings per share of $3.50 and cash flow per share of $3.84.The price-earnings ratio is 24.1.What is the price-cash flow ratio?

What is the financing cash flow,given the following information?

Better Products just filed its quarterly report with the SEC.This report is referred to as which one of the following?

Which one of the following is a tangible fixed asset?

A firm has net sales of $65,000,operating expenses of $21,300,depreciation of $5,000,cost of goods sold of $36,500,and interest expense of $4,500.What is the operating margin?

What is the financing cash flow,given the following information?

Which one of the following is a financial planning method wherein some account values vary in relation to expected sales?

Marley Enterprises has financing cash flow of -$41,400 and investment cash flow of $28,600 for the year.The beginning cash balance was $65,300 and the ending cash balance was $44,800.What was the operating cash flow for the period?

Which one of the following is an accounting statement that provides information on a firm's revenues and expenses?

A firm has sales of $685,000 and cost of goods sold of $435,000.The firm expects sales to increase by 6 percent next year.What is the gross profit amount expected to be next year if the firm uses the percentage of sales approach when compiling pro forma statements?

A decrease in which one of the following will increase the gross margin?

Sugar Tree Cookies has current net income of $268,000 of which $110,000 was paid out in dividends.The remaining $158,000 will be shown in which account on the firm's financial statements for next year?

Which one of the following is most apt to vary directly with sales?

Young Industries has a 3-year bank loan of $85,000,a 6-month note payable of $6,000,a $67,300 mortgage,and accounts payable of $22,500.What is the amount of the total current liabilities? (Ignore the current portion of any long-term debt.)

ABC Construction,Inc.has buildings and equipment of $315,600,long-term debt of $154,700,accounts payable of $52,000,cash of $9,800,accounts receivable of $18,300,inventory of $62,000,and retained earnings of $147,000.What is the total equity of the firm?

Which one of the following means of communication do most firms use for announcements in order to comply with Regulation FD?

Which of the following are current assets? I.inventory II.goodwill III.fixed assets IV.cash

Healthy Supplements,Inc.paid $7,300 in interest and $4,300 in dividends for the year.The firm also issued $15,000 worth of new equity securities.What is the amount of the financing cash flow?

The summation of the operating,investment,and financing cash flows for a stated period of time must equal which one of the following for the same time period?

A Brief History of Risk and Return

The Investment Process

Overview of Security Types

Mutual Funds and Other Investment Companies

The Stock Market

Common Stock Valuation

Stock Price Behavior and Market Efficiency

Behavioral Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Diversification and Risky Asset Allocation

Return, Risk, and the Security Market Line

Performance Evaluation and Risk Management

Futures Contracts

Stock Options

Option Valuation

Corporate and Government Bonds

Global Economic Activity and Industry Analysis

Mortgage-Backed Securities

Filters