Quiz+3+fall+2010+w+answers+monday

Quiz+3+fall+2010+w+answers+monday - Revenue $100 Expenses...

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SM 121 Quiz #3 November 8, 2010 Name: Section: ___ 1) Q1: On August 1, 2008, the balance of the retained earnings account of the Rush and Sean Corporation was $730,000. Revenues for August totaled $334,000, of which $117,000 was collected in cash. Expenses for August totaled $151,000, of which $100,000 was paid in cash. Dividends declared and paid during August were $100,000. Calculate the retained earnings balance on September 1, 2007. A) $647,000 B) $713,000 C) $743,000 D) $747,000 E) $813,000 Beg 730 + Net Income 183 – Dividend 100 Q2. Assume revenue for the year is $2,000. Beginning Accounts Receivable are $250 and ending is $350. Cash sales collected are: a. $1,650 b. $2,000 c. $100 d. $1,900 e. None of the above Q3: What is cash flow from operations?
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Unformatted text preview: Revenue $100 Expenses $70 Net Income $30 Note: Depreciation $10 Accounts Receivable Beg: $20 End: $25 Accounts Payable Beg: $10 End: $12 a. $40 b. $45 c. $42 d. $37 Q4. If inventory increases by $100 and during the same period accounts payable increase by $40, what is the net change in operating cash flow for the period. a. Outflow $60 b. Outflow $140 c. Inflow $60 d. Inflow $140 Bonus: A firm has total debt of $1,200 and a debt-equity ratio of .30 . What is the value of the total assets? A) $1,560 B) $3,000 C) $3,600 D) $4,000 TL/TE =debt equity ratio 1200/X= 0.30 1200/0.3 = X X= 4000 Assets = 1200 + 4000 Assets = 5200 SM 121 Quiz #3 November 8, 2010 Name: Section: ___ E) $5,200...
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This note was uploaded on 01/09/2011 for the course SMG 121 taught by Professor Arnold during the Spring '08 term at BU.

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Quiz+3+fall+2010+w+answers+monday - Revenue $100 Expenses...

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