Quiz_3_-_Ch._5__6
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University of Fredericton *
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Course
5015
Subject
Finance
Date
Jan 9, 2024
Type
docx
Pages
5
Uploaded by PrivateWaterOstrich32
Started on
Saturday, 14 January 2023, 10:45 AM
State
Finished
Completed on
Saturday, 14 January 2023, 11:13 AM
Time taken
28 mins 17 secs
Grade
10.00
out of 10.00 (
100
%)
Question
1
Correct
Mark 1.00 out of 1.00
Working capital management is primarily concerned with the management and financing of. Select one:
a. cash and inventory.
b. current assets and current liabilities.
c. dividends
d. receivables and payables.
Feedback
The correct answer is: current assets and current liabilities.
Question
2
Correct
Mark 1.00 out of 1.00
The term "permanent current assets" implies. Select one:
a. the same thing as capital assets.
b. nonmarketable assets.
c. some minimum level of current assets that is not self-liquidating.
d. inventory
Feedback
The correct answer is: some minimum level of current assets that is not self-liquidating.
Question
3
Correct
Mark 1.00 out of 1.00
The break-even point can be calculated as:
Select one:
a. variable costs divided by contribution margin.
b. total costs divided by contribution margin.
c. variable cost times contribution margin.
d. fixed cost divided by contribution margin.
Feedback
The correct answer is: fixed cost divided by contribution margin.
Question
4
Correct
Mark 1.00 out of 1.00
If a firm has fixed costs of $30,000, a price of $4.00, and a break-even point of 15,000 units, the variable cost per unit is
Select one:
a. $5.00
b. $2.00 c. $0.50
d. $4.00
Feedback
The correct answer is: $2.00
BE = FC / (P-VC) VC = FC / BE + P = (30,000/15,000) – 4 =2
Question
5
Correct
Mark 1.00 out of 1.00
If the price per unit decreases because of competition but the cost structure remains the same
Select one:
a. the break-even point rises.
b. the degree of combined leverage declines.
c. the degree of financial leverage declines.
d. all of the other answers are correct
Feedback
The correct answer is: the break-even point rises.
Question
6
Correct
Mark 1.00 out of 1.00
The cash flow cycle has a major bearing on the firm's
Select one:
a. dividend policy.
b. liquidity.
c. cash management efficiency.
d. risk.
Feedback
The correct answer is: liquidity.
Question
7
Correct
Mark 1.00 out of 1.00
Under normal conditions (80% probability), Financing Plan A will produce $25,000 higher return than Plan B. Under tight money conditions (20% probability), Plan A will produce $50,000 less than Plan B. What is the expected value of return for Plan A over Plan B?
Select one:
a. $25,000
b. $20,000
c. $15,000
d. $10,000
Feedback
The correct answer is: $10,000
1. Normal
conditions
Expected higher return
under Plan A vs. Plan B
Probability of
normal
conditions
Expected
outcome
$25,000
×
0.8
= $20,000
2. Tight money Expected lower return under
Plan A vs. Plan B
Probability of
tight money
-$50,000
× 0.2
= -10,000
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Question
8
Correct
Mark 1.00 out of 1.00
The term structure of interest rates
Select one:
a. is an indication of investors' expectations about inflation and future interest rates.
b. will be downward sloping if short-term interest rates are higher than long-term rates.
c. will be upward sloping under normal conditions.
d. all of the other answers are correct
Feedback
The correct answer is: all of the other answers are correct
Question
9
Correct
Mark 1.00 out of 1.00
The belief that investors require a higher return to entice them into holding long-term securities is the viewpoint of the
Select one:
a. the expectations hypothesis.
b. segmentation theory.
c. the liquidity premium theory.
d. market credit crunch theory
Feedback
The correct answer is: the liquidity premium theory.
Question
10
Correct
Mark 1.00 out of 1.00
Which of the following techniques allows explicit consideration of more than one possible outcome?
Select one:
a. operating leverage b. present value
c. least-squares regression
d. expected value
Feedback
The correct answer is: expected value
Related Documents
Related Questions
ACCOUNTING
ASAP
Assume the following data: EBIT = 100; Depreciation = 40; Interest = 20; Dividends = 10. Calculate the cash coverage ratio.
Select one:
a. 7.0x
b. 4.7x
c. 14.0x
d. 5.0x
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The calculation of working capital requires the inclusion of:
A.liabilities expected to be paid in more than 1 year
B.current assets minus total liabilities
C.assets expected to be used,sold or converted to cash within 1 year
D.total assets and total liabilities
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the information in the photo wants me to find out the working capital and current ratio
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HCS/380: Week 4 - Horizontal and Vertical Analysis - Academic Resources
HCS/380 Ratio Calculations
Select the images below to enlarge.
Balance Sheet
Murawski Company
Balance Sheet
December 31
Current Assets
Investments
Cash and cash equivalents
Accounts receivable (net)
Property, plant, and equipment
Intangibles and other assets
Total assets
Current liabilities
Inventory
Prepaid expenses
Total current assets
Sales Revenue
Murawski Company
Income Statement
For the Years Ended December 31
Costs and expenses
Cost of goods sold
Selling and Administrative expenses
Interest expense
Total costs and expenses
2022
Income Statement
Income before income taxes
$330
470
460
120
1,380
Income tax expense
Net Income
10
420
530
$2,340
Long-term liabilities
Stockholder's equity - common
1,030
1,040
Total liabilities and stockholder's equity $2,340 $2,210
$900
410
2022
$3,800
955
2,400
25
3,380
2021
420
126
$294
$360
400
390
160
1,310
10
380
510
$2,210
$790
380
2021
$3,460
890
2,330
20
3,240
220
66
$154…
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What is the value of the current liabilities?
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Using the balance sheets provided above for The Enchanted Forest Boutique, the amount that should be
included in box L of the vertical analysis above is: Group of answer choices A. 100% B. 0% C. 4.41% D
. 23.76%
The Enchanted Forest Boutique
Balance Sheets
As of December 31, 2018 and December 31, 2019
Cash
Accounts receivable
Inventory
Prepaid insurance
Total current assets
Equipment
Less: Accumulated depreciation
Net fixed assets
Total assets
Accounts payable
Wages and payroll taxes payable
Short-term portion of mortgage payable
Total current liabilities
Mortgage payable
Total liabilities
Owner's equity
c
Total liabilities and owner's equity
2018
Minimize global navigation
19,541
40.285
1.258
67,405
127,300
21.150
106,150
$173,555
$ 16,996
6.647
7.800
31,443
45,000
76.443
97,112
2019
$173.555
17,555
20,145
39,552
1.313
68.565
131,300
23.150
108,150
$176,715
$ 17,113
7,916
7,800
32.829
37.200
70.029
106.686
$176,715
Vertical
Analysis
2019
A
BCDE
с
Ε
F
G
H
I
J
K
L
M
N
P
Q
R
arrow_forward
Applying Excel 4: Total Plant Assets
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
A
B
Current assets
Cash
Short-term investments
Accounts receivable, net
Supplies
Prepaid expenses
Total current assets.
Long-term investments
Land
www.
Long-term notes receivable
Investments in stocks and bonds
Total long-term investments
Plant assets:
Equipment
Accumulated Depreciation
Equipment, net
Total plant assets
Intangible assets:
Multiple Choice
с
=+E17-E18+F20
=SUM(E17,E18,F19)
=+E17-E18+F19
D
Harriet Tubman Company
Balance Sheet
December 31
Assets
Copyrights
Total assets
Which formula in cell F21 accurately computes the value of total plant assets?
=SUM(E17,E18,F20)
$
E
33,000
26,000
46,800
(9,400)
F
$20.700
15,700
29,000
7,300
5,800
$78,500
59,000
37,400
37,000
74,400
8,000
$219,900
arrow_forward
12/31/2018
12/31/2019
Current assets
$79,000
$298,000
Current liabilities
49,000
166,000
Using the above Balance Sheet summary information,
compute working capital and current ratio.
Round "Current ratio" answers to two decimal
places.
12/31/2018
12/31/2019
A. Working capital
$4
B. Current ratio
arrow_forward
2. Compute the IRR for the investment represented by the following cash flow table:
Year
1
4
6.
7.
Cash Flow
-1200
+350
+300
+250
+200
+150
+100
+50
(in $1000's)
arrow_forward
Want Answer please provide
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SCORE:
SECTION:
PROFESSOR:
Problem #21
Preparation of Financial Statements
2019:
Accounts Payable
Accounts Receivable
Accumulated Depreciation-Equipment
Allowance for Uncollectible Accounts
Cash
Calamba, Capital
Calamba, Drawing
Equipment
Transportation In
General Expenses (control)
Interest Expense
Merchandise Inventory, December 31
Notes Payable
Prepaid Insurance
P 677,820
545,070
462,870
18,790
132,310
612,000
326,400
753,150
224,880
149,390
35,000
1,320,420
299,000
7,350
5,407,160
43,050
259,600
499,600
Purchases
Purchases Discounts
Purchases Returns and Allowances
Santiago, Capital
Santiago, Drawing
Sales
Sales Returns and Allowances
244,800
7,155,000
375,750
385,880
Selling Expenses (control)
There were no changes in the partners' Capital accounts during the year. The
merchandise inventory at the beginning of the year was P1,440,590. The partnership
agreement provides for salary allowances of P330,000 for Calamba and P290,000 for
Santiago. It also stipulates an interest allowance…
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Give correct answer for this question
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Solve #35 please
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Can you redo the answer in the following format?
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Pls answer the all questions with solutions. Thank you
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Please provide the rate of return: picture enclosed
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2022
January 1- The partners decide to liquidate the partnership. They have the following balances:
Cash $93,667
Accounts Receivable $4 500
Equipment $ 46,250
Accumulated Depreciation $ 25 000
Accounts Payable $4417
The partners were able to collect $3 500 of the accounts receivable and sell the equipment for $57,250
a) Record all journal entries to dissolve the partnership in the following order.
i) Record the collection of the A/R and sale of the equipment. You need to close out the A/R, Equipment
and Accumulated Amortization Accounts. There will be either a Gain on Disposal or Loss on
Disposal of Assets account needed to balance the journal entry.
ii) Allocate the Gain or Loss on Disposal to the two partners capital accounts.
iii) Pay off any outstanding liabilities.
iv) Pay out the Capital balances to the remaining partners from the Bank account.
Do the balance sheet on the left to help you determine the new Bank balance
and the final Capital balances.
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Hello tutor please provide this question solution general accounting
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The answer was wrong
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Jse the following Company A Balance Sheet for the next questions 8 and 9
ASSETS
Cash
Accounts Receivable, net
Inventory
Other
Current Assets
Property, Plant and Equipment, net
Other
Total Assets
The Working Capital of Company A is:
1.
2.
3.
$1,400,000
$1,900,000
$3,400,000
1,400,000
1,600,000
1,800,000
500,000
5,300,000
3,700,000
1,000,000
S 10,000,000
$5,300,000
LIABILITIES AND EQUITY
Accounts Payable
Accrued Expenses
Current portion of LTD
Other
Current Liabilities
Long Term Debt
Shareholder's Equity
Total Liabilities and Equity
S
S
1,200,000
1,500,000
300,000
400.000
3,400,000
2,800,000
3,800,000
10,000,000
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- HCS/380: Week 4 - Horizontal and Vertical Analysis - Academic Resources HCS/380 Ratio Calculations Select the images below to enlarge. Balance Sheet Murawski Company Balance Sheet December 31 Current Assets Investments Cash and cash equivalents Accounts receivable (net) Property, plant, and equipment Intangibles and other assets Total assets Current liabilities Inventory Prepaid expenses Total current assets Sales Revenue Murawski Company Income Statement For the Years Ended December 31 Costs and expenses Cost of goods sold Selling and Administrative expenses Interest expense Total costs and expenses 2022 Income Statement Income before income taxes $330 470 460 120 1,380 Income tax expense Net Income 10 420 530 $2,340 Long-term liabilities Stockholder's equity - common 1,030 1,040 Total liabilities and stockholder's equity $2,340 $2,210 $900 410 2022 $3,800 955 2,400 25 3,380 2021 420 126 $294 $360 400 390 160 1,310 10 380 510 $2,210 $790 380 2021 $3,460 890 2,330 20 3,240 220 66 $154…arrow_forwardNeed Correct answer of the questionarrow_forwardWhat is the value of the current liabilities?arrow_forward
- Using the balance sheets provided above for The Enchanted Forest Boutique, the amount that should be included in box L of the vertical analysis above is: Group of answer choices A. 100% B. 0% C. 4.41% D . 23.76% The Enchanted Forest Boutique Balance Sheets As of December 31, 2018 and December 31, 2019 Cash Accounts receivable Inventory Prepaid insurance Total current assets Equipment Less: Accumulated depreciation Net fixed assets Total assets Accounts payable Wages and payroll taxes payable Short-term portion of mortgage payable Total current liabilities Mortgage payable Total liabilities Owner's equity c Total liabilities and owner's equity 2018 Minimize global navigation 19,541 40.285 1.258 67,405 127,300 21.150 106,150 $173,555 $ 16,996 6.647 7.800 31,443 45,000 76.443 97,112 2019 $173.555 17,555 20,145 39,552 1.313 68.565 131,300 23.150 108,150 $176,715 $ 17,113 7,916 7,800 32.829 37.200 70.029 106.686 $176,715 Vertical Analysis 2019 A BCDE с Ε F G H I J K L M N P Q Rarrow_forwardApplying Excel 4: Total Plant Assets 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A B Current assets Cash Short-term investments Accounts receivable, net Supplies Prepaid expenses Total current assets. Long-term investments Land www. Long-term notes receivable Investments in stocks and bonds Total long-term investments Plant assets: Equipment Accumulated Depreciation Equipment, net Total plant assets Intangible assets: Multiple Choice с =+E17-E18+F20 =SUM(E17,E18,F19) =+E17-E18+F19 D Harriet Tubman Company Balance Sheet December 31 Assets Copyrights Total assets Which formula in cell F21 accurately computes the value of total plant assets? =SUM(E17,E18,F20) $ E 33,000 26,000 46,800 (9,400) F $20.700 15,700 29,000 7,300 5,800 $78,500 59,000 37,400 37,000 74,400 8,000 $219,900arrow_forward12/31/2018 12/31/2019 Current assets $79,000 $298,000 Current liabilities 49,000 166,000 Using the above Balance Sheet summary information, compute working capital and current ratio. Round "Current ratio" answers to two decimal places. 12/31/2018 12/31/2019 A. Working capital $4 B. Current ratioarrow_forward
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