Chapter 02: Review of Accounting
Frantic Fast Foods
a. Year 2009
Earnings per share Earnings after taxes
Shares outstanding
$390,000 = $1.30
300,000
b. Year 2010
Earnings after taxes $390,000 1.20 $468,000
Shares outstanding 300,000 25,000 325,000
Earnin
Points Awarded 7.00
Points Missed 3.00
Percentage 70.0%
Correct Incorrect Ungraded 1. If you invest $10,000 at 10% interest, how much will you have in
10 years?
A) $13,860
B) $25,940
C) $3,860
D) $80,712
Points Earned: 1.0/1.0
Correct Answer(s): B
Correct
Buena Vista University
FNBK306
Workshop 1
Problem Set Solution
1.
Income Statement (LO1) Frantic Fast Foods had earnings after taxes of $390,000 in the
year 2009 with 300,000 shares outstanding. On January 1, 2010, the firm issued 25,000
new shares. Becau
Practice Questions for Exam 1, Fall 2009
Chapter 1
True / False Questions
1. Inflation is assumed to be a temporary problem that does not affect financial decisions.
FALSE
2. Financial Capital is composed of long-term plant and equipment, as well as other
Buena Vista University
FNBK306
Workshop 3
Working Capital and Sources of Short-Term Credit
Problem Set Solutions
1.
Expected value Austin Electronics expects sales next year to be $900,000 if the economy
is strong, $650,000 if the economy is steady, and $
Buena Vista University
FNBK306 Managerial Finance
Workshop 6 Problem Set
Cost of Capital
Instructions: Complete each of the following problems using this document. Submit your work
as a file attachment in the designated drop-box by the due date. Show your
Points Awarded
100.00
Points Missed 0.00
Percentage
100%
Correct 1.
Conflict _ are patterned responses or clusters of behavior that people use in
conflict. Conflict _ are individual moves that people make to carry out their
general approach.
A) beliefs; s
Buena Vista University
FNBK306 Managerial Finance
Workshop 5 Problem Set
Valuation and Rates of Return
Instructions: Complete each of the following problems using this document. Submit your work
as a file attachment in the designated drop-box by the due d
Buena Vista University
FNBK306 Managerial Finance
Workshop 2 Problem Set
Instructions: Complete each of the following problems using this document. Submit your work
as a file attachment in the designated drop-box by the due date. Show your work.
Each prob
Points Awarded
4.50
Points Missed 0.50
Percentage
90.0%
Correct 1.
Which of the following statements is an example of a systems rule in conflict?
A) When Dad is angry at the youngest child, the older child intervenes.
B) Mom always talks to the kids on be
Points Awarded 10.00
Points Missed 0.00
Percentage 100%
Correct Incorrect Ungraded 1. Frisch Fish Corp expects net income next year to be $750,000.
Inventory and accounts receivable will have to be increased by $650,000 to accommodate this
sales level. Fr
Points Awarded
4.50
Points Missed 0.50
Percentage
90.0%
Correct 1.
Jake is always careful to arrive on time for work. He knows that his boss will dock his pay for
any missed hours. Jake's boss uses what kind of power over him?
A) Interpersonal linkages
B)
Points Awarded 9.00
Points Missed 1.00
Percentage 90.0%
Correct Incorrect Ungraded 1. Allen Lumber Company had earnings after taxes of $750,000 in
the year 2009 with 300,000 shares outstanding on December 31, 2009. On January 1, 2010, the
firm issued 50,0
Points Awarded
4.50
Points Missed 0.50
Percentage
90.0%
Correct 1.
Which of the following statements is NOT a commonly-held negative view of conflict?
A) Harmony is normal and conflict is abnormal.
B) Disagreements are the same thing as conflicts.
C) If s
Points Awarded
4.50
Points Missed 0.50
Percentage
90.0%
Correct 1.
According to the list of stages in the forgiveness process, what is the chronology of the following
statements, (1) "Why hasn't something like what happened to me happened to her," (2) "I
Points Awarded
4.00
Points Missed 1.00
Percentage
80.0%
Incorrect 1.
Why is expanding the pie an effective way of negotiating collaboratively?
A) It threatens both parties into giving up their piece of the pie
B) Someone is always hungrier.
C) It attempts
Buena Vista University
FNBK306 Managerial Finance
Workshop 3 Problem Set
Working Capital and Sources of Short-term Credit
Instructions: Complete each of the following problems using this document. Submit your work
as a file attachment in the designated dr
Points Awarded
5.00
Points Missed 0.00
Percentage
100%
Correct 1.
Suki and Laura are best friends. Laura feels betrayed because Suki is so caught up in her new
relationship with her boyfriend that she doesnt appear to have time for Laura. In this instance
Points Awarded
4.44
Points Missed 0.56
Percentage
88.9%
Correct 1.
Which emotion has been termed the moral emotion?
A) Anger
B) Sadness
C) Fear
D) Revenge
E) Contempt
Points Earned: 0.6/0.6
Correct Answer(s): A
Correct 2.
_ are more likely than _ to cover
Points Awarded 8.00
Points Missed 2.00
Percentage 80.0%
Correct Incorrect Ungraded 1. A firm has a debt to equity ratio of 40%, debt of $250,000, and net
income of $100,000. The return on equity is
A) 60%
B) 16%
C) 30%
D) not enough information
Points Ear
1
ATM CARDS, INC.
Income Statement
For the Year Ended Unknown
2009
10. Earnings after taxes (EAT)
13. Common shares outstanding
14. Earnings per share
2010.
10. Earnings after taxes (EAT)
13. Common shares outstanding
14. Earnings per share
750,000
300,00
#4
Sales
COGS
Gross Profit
S&A Exp.
Dep. Exp.
EBIT
validation
2000000
1250000
750000
160000
200000
390000
390000
#6
ATM CARDS, INC.
Income Statement
For the Year Ended Unknown
1. Sales
2. Cost of goods sold
3. Gross profits
4. Selling and administrative e
Chapter 3
Discussion Questions
3-1.
Short-term lenders - liquidity because their concern is with the firm's ability to pay
short-term obligations as they come due.
Long-term lenders - leverage because they are concerned with the relationship of debt to
to
Practice Questions for Finance 3000, Exam II, Fall 2009
Chapter 3
1. Ratios are used to compare different firms in the same industry.
TRUE
2. Financial ratios are used to weigh and evaluate the operational performance of the firm.
TRUE
3. Liquidity ratios
Buena Vista University
FNBK306
Workshop 2
Problem Set Solutions
1.
Profitability ratios Low Carb Diet Supplement, Inc., has two divisions. Division A has a
profit of $100,000 on sales of $2,000,000. Division B is only able to make $25,000 on sales
of $300
Buena Vista University
FNBK306
Workshop 4
The Time Value of Money
Problem Set Solution
1. Present value What is the present value of:
a.
$8,000 in 10 years at 6 percent?
b.
$16,000 in 5 years at 12 percent?
c.
$25,000 in 15 years at 8 percent?
Solution:
A