Quiz+3+fall+2010+w+answers+wednesday

# Quiz+3+fall+2010+w+answers+wednesday - Revenue \$100...

This preview shows page 1. Sign up to view the full content.

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 \$630,000.  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 Beg 630 + Net Income 183 – Dividend  100 C) \$743,000 D) \$747,000 E) \$813,000  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?
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Revenue \$100 Expenses \$70 Net Income \$30 Note: Depreciation \$20 Accounts Receivable Beg: \$20 End: \$25 Accounts Payable Beg: \$10 End: \$12 a. \$40 b. \$47 c. \$42 d. \$37 Q4. If inventory decreases by \$100 and during the same period accounts payable decrease 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: Matt’s MicroSales has \$6,400 in sales. The Return on Sales is 4 percent. There are 6,400 shares of stock outstanding. The market price per share is \$1.20. What is the price-earnings ratio? A) 13 B) 14 C) 21 D) 30 E) 48 6400 sales* 0.04 ROA= 256 net income 256 net income/6400 # shares outstanding= .04 EPS...
View Full Document

## This note was uploaded on 01/09/2011 for the course SMG 121 taught by Professor Arnold during the Spring '08 term at BU.

Ask a homework question - tutors are online