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

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

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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 $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?
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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...
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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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