Finance 3101
Assume the following: CA = $900; GFA = $3,150; NFA = $2,850; NWC = $300; L.T. Debt = $1,500. What is Owners' Equity?
$1,650
Assume the following: Revenue = $1,500; COGS = $450; SGA = $300; EBIT = $600; Taxable income = $525; Net Income = $315. What is Depreciation Expense?
$150
Assume the following: Revenue = $1,500; COGS = $450; SGA = $300; EBIT = $600; Taxable income = $525; Net Income = $315. What is Taxes?
$210
Given the following: OCF = $30; ∆NWC = Minus $8; NCS = $15. How much does this company have available to send to its investors?
$23
Assume the following: CA = $900; GFA = $3,150; NFA = $2,850; NWC = $300; L.T. Debt = $1,500. What is TA?
$3,750
Assume the following: CA = $900; GFA = $3,150; NFA = $2,850; NWC = $300; L.T. Debt = $1,500. What is AD?
$300
Assume the following: CA = $900; GFA = $3,150; NFA = $2,850; NWC = $300; L.T. Debt = $1,500. What is CL?
$600
Assume the following: Revenue = $1,500; COGS = $450; SGA = $300; EBIT = $600; Taxable income = $525; Net Income = $315. What is Interest Expense?
$75
If Revenue = $180; COGS = $20; SGA = $17; Depreciation = $15; Interest Expense = $0; and the tax rate is 35%, what is OCF?
$98.20
With a tax rate of 40%, what is the impact on NI and a firm's amount of cash from a decrease of $300 in Depreciation Expense?
+180 , -120
With a tax rate of 40%, what is the impact on NI and a firm's amount of cash from an increase of $200 in COGS?
-120 , -120
Assume a Normal distribution with an average return of 7% and a standard deviation of 2%. What is the probability of an actual return of (a) more than 11%; and (b) less than 5%?
2.5%; 16%
A fraction changes from 3/4 to 4/10. The numerator changed by _____%; the denominator changed by _____%; the value of the fraction changed by approximately _____%.
33%; 150%; -117%
Assume the following: Revenue = $1,500; COGS = $450; SGA = $300; EBIT = $400; Taxable income = $525; Net Income = $315. What is the tax rate?
40%
According to the Order of Operations, exponents are applied before the expression in parentheses, and addition and subtraction are to be completed before multiplication and division.
False
An increase in accounts receivable constitutes a use of cash while a decrease in accounts payable constitutes a source of cash.
False
COGS appears on the asset side of the BS.
False
Calculation of retained earnings is one of the factors cited by our author for why NI and CF may be different.
False
Changes in interest expense do not affect a firm's cash position.
False
Dealers' bid prices always exceed their ask prices.
False
For a given mean, a larger standard deviation means that actual returns that are far from the mean are less likely to occur.
False
If a firm's CFFA or "free cash flow" is negative, this means that the firm will be unable to pay any cash dividends.
False
If there is no change in gross fixed assets from one year to the next, then net fixed assets would have to have increased.
False
In a Normal Distribution, there is a 68% chance that an actual return will exceed the average return plus one standard deviation.
False
The balance sheet identity indicates that total liabilities can be found by adding total assets to total equity.
False
The capital budgeting area deals with how the firm should be financed.
False
The goal of the corporate financial manager is to maximize the firm's market share.
False
The total return on any investment equals the capital gain part divided by the income part.
False
To change a decimal value to a percent, divide by 100.
False
When you purchase a share of stock, you would pay the bid price.
False
Accounts payable represents short-term loans extended to the corporation by suppliers.
True
Ceteris paribus, greater risk associated with expected future cash flows from owning stock would result in a lower stock price.
True
Ceteris paribus, you could possibly benefit personally from a higher stock price of the firm at which you are employed
True
EBIT can be found by subtracting SGA and Depreciation from the gross profit margin.
True
The working capital management area deals with how much of a firm's assets should be held in cash, inventory and accounts receivable.
True
True or False: If the top of a fraction is unchanged and the bottom of a fraction decreases by 5%, then the value of the whole fraction would increase by approximately 5%.
True
A simple percent change represents a change as part of the old or earlier value.
true
An increase in inventory constitutes a use of cash.
true
Ceteris paribus, an increase in accounts receivable would reduce CFFA.
true
If CFFA is 100, CFTC is 60 and dividends paid is 20, then the firm repurchased stock in the amount of 20.
true
