ex1 - EXAM I PRACTICE 1.The forecast of cash receipts and...

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EXAM I: PRACTICE 1.The forecast of cash receipts and disbursements for the next planning period is called a: a.Pro forma income statement. b.Statement of cash flows. c.Cash budget. d.Receivables analysis. e.Credit analysis. 2.Which of the following statements is false ? 3.If taxable income is $92,000, then the ______ . 4.An insurance company promises to pay Jane $1 million on her 65th birthday in return for a one-time payment of $125,000 today.
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(Jane just turned 30.) At what rate of interest would Jane be indifferent between accepting the company's offer and investing the premium on her own? a.3.4% b.4.5% c.5.1% d.6.1% e.7.2% 5.The interest rate used to calculate the present value of future cash flows is called the ________ rate. In a growing midwestern town, the number of eating establishments at the end of each of the last five years are as follows: Year 1 = 273; Year 2 = 279; Year 3 = 302; Year 4 = 320; Year 5 = 344 6.Between the end of year 2 and the end of year 3, the number of eating establishments grew at a rate of _______ compounded annually. a.5.2% b.6.7% c.7.6% d.8.2% e.9.3%
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