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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: 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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