ORIE 3150 Final draft - ORIE 3150 Full Name (please print)_...

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ORIE 3150 Full Name (please print)________________________________ Final Exam, Fall 2010 150 minutes There are 16 problems, 20 points each. All problems count towards your score. Budget your time. Please hand in your exam and leave the room quietly when you are done so as to not disturb the other test takers. 1 2 3 4 5 6 7 8 9 10 1 1 12 13 14 15 16 Total A = L + SE Earnings per Share = Net Income Average Number of Shares Outstanding Current ratio = current assets / current liabilities Gross margin = Net Sales – Cost of Goods Sold Gross margin percentage = Gross margin / Net Sales Net Sales = Gross Sales – Discounts – Returns/Allowances Discounts are sales discounts. Allowances are selling price reductions due to defective merchandise. Returns are merchandise returned for a refund. Revenue Recognition requires all of these: a. Purchase agreement. b. Delivery or very good buy and hold. c. Seller's price to the buyer is fixed or determinable. d. Collectability is reasonably assured. Beginning SE + Stock Sold + Net Income ̶ Dividends Ending SE Cost of Goods Sold Payables Turnover Average A/P = Cost of Goods Sold Inventory Turnover Average Inventory = Receivables Turnover Net Sales Average A/R = 365 Age (days) Turnover =
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Cash Used = u n CGS 365 × Cash Supplied = f n Sales 365 × Beginning Inventory + Purchases + Freight-In Ending Inventory Cost of Goods Sold Goods Available for Sale = Beginning Inventory + Purchases (net of returns) Working Capital = Current Assets - Current Liabilities Beginning Retained Earnings + Net Income Dividends Ending Retained Earnings Net Sales Cost of Goods Sold Gross Margin Selling Expenses Other Operating Expenses Operating Income Non-Operating Expenses + Gains Losses Income Before Taxes Taxes Expense Net Income A i i c = ( 29 n i 1 PV FV + = single payment ordinary annuities: - + = i 1 ) i 1 ( A FV n + - = - i ) i 1 ( 1 A PV n annuities due: n 1 (1 i) 1 FV A A i + + - = - ( 29 n 1 (1 i) PV A 1 i i - - + = + ( 29 ( 29 n n i 1 FV i i 1 1 A PV + + + - = - The “bond equation” The annual yield for a bond is 2 × i for bonds that pay interest semi-annually.
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Interest Expense = i × Carrying Value. Carrying value must be updated every 6 months when interest is paid. Leases - The Lease Checklist: 1. The lease transfers ownership to the lessee at the end of the lease term. 2. The lease contains a bargain purchase option 3. The lease term is equal to 75% or more of the estimated economic life of the asset 4. The present value of the lease payments amounts to 90% or more of the fair value of the lease property. If any one is true, it is a capital lease!
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ORIE 3150 Final draft - ORIE 3150 Full Name (please print)_...

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