NAME: SCORE /50 DATE: FINANCIAL MANAGEMENT FIN 450 SUMMER 2014 QUIZ 1 ________ QUESTIONNUMBER | ANSWERS | QUESTIONS | 1 | b | A firm has $520 in inventory, $1,860 in fixed assets, $190 in accounts receivables, $210 in accounts payable, and $70 in cash. What is the amount of the current assets? A. | $710 | B. | $780 | C. | $990 | D. | $2,430 | E. | $2,640 | | 2 | D | A firm has common stock of $6,200, paid-in surplus of $9,100, total liabilities of $8,400, current assets of $5,900, and fixed assets of $21,200.
(0.5 points) 50% c. A company has $1,400 in liabilities and $1,500 in assets. Calculate the company's debt ratio as a percentage. (0.5 points) 93.3% d. A company has $1,400 in liabilities and $1,500 in equity. Calculate the company's debt to equity ratio as a percentage. (0.5 points) 93.3% e. A company's current assets are $30,000 and current liabilities are
Analysis of stockholders' equity Star Corporation issued both common and preferred stock during 20X6. The stockholders' equity sections of the company's balance sheets at the end of 20X6 and 20X5 follow: 20X6 20X5 Preferred stock, $100 par value, 10% $580,000 $500,000 Common stock, $10 par value 2,350,000 1,750,000 Paid-in capital in excess of par value Preferred 24,000 — Common 4,620,000 3,600,000 Retained earnings 8,470,000 6,920,000 Total stockholders' equity $16,044,000 $12,770,000 a. Compute the number of preferred shares that were issued during 20X6. 100 b. Calculate the average issue price of the common stock sold in 20X6. $27 c. By what amount did the company's paid-in capital increase during 20X6?
1,054,848 c. 1,405,888 d. 1,045,828 5. Evaluate: 12xy, when x = 8 and y = 11. a. 31 b. 228 c. 1056 d. 188 6. Write
Answer: $235,000 6. Corporation P owns 85 percent of Corporation S1; Corporation S1 owns 60 percent of Corporation S2; Corporation S2 owns 90 percent of S3; Corporation S3 owns 60 percent of Corporation S4 and 15 percent of Corporation S2; Corporation S4 owns 100 percent of Corporation S5. Identify the consolidated group of corporations. Answer: P, S1, S2, S3, S4, S5 7. Corporation P files a consolidated return with Corporation S. In preparing a consolidated return, their accountant finds the following: Separate taxable income (loss) P= $500,000 S= ($200,000) Capital gain (loss)
Week Five Exercise Assignment Financial Ratios 1. Liquidity ratios. Edison, Stagg, and Thornton have the following financial information at the close of business on July 10: | Edison | Stagg | Thornton | Cash | $6,000 | $5,000 | $4,000 | Short-term investments | 3,000 | 2,500 | 2,000 | Accounts receivable | 2,000 | 2,500 | 3,000 | Inventory | 1,000 | 2,500 | 4,000 | Prepaid expenses | 800 | 800 | 800 | Accounts payable | 200 | 200 | 200 | Notes payable: short-term | 3,100 | 3,100 | 3,100 | Accrued payables | 300 | 300 | 300 | Long-term liabilities | 3,800 | 3,800 | 3,800 | a. Compute the current and quick ratios for each of the three companies. (Round calculations to two decimal places.) Which firm is the most liquid?
E6-4 (Computation of Future Values and Present Values) (a) What is the future value of 20 periodic payments of $5,000 each made at the beginning of each period and compounded at 8%? The future value of 20 periodic payments of $5,000 a period at 8% is: $247,114.58 or $247,115 Interest = 8% $5,000 x 45.76196 = $228,809.80 Period = 20 $228,809.80 x 1.08= $247,114.58 (b) What is the present value of $2,500 to be received at the beginning of each of 30 periods, discounted at 10% compound interest? The present value of $2,500 for 30 periods at 10% is: $25,924 Interest = 10% $2,500 x 9.42691 = $23,567.28 Period = 30 $23,567.28 x 1.10= $25,924.008 (c) What is the future value of 15 deposits of $2,000 each made at the beginning of each
Which of the following numbers, when rounded off to the nearest thousand, becomes 7 541 000? A 7 530 798 C 7 540 618 ( B 7 531 300 D 7 541 503 5. When 690 203 is broken down according to its digit values, it becomes A 690 000 + 20 + 3 B 690 000 + 200 + 3 C 600 000 + 9 000 + 200 + 3 D 600 000 + 90 000 + 200 + 3 ( 6. Which of the following numbers is the nearest to 1 million? A 989 799 C 1 000 100 ( B 997 899 D 1 100 000 7.
What would be the impact on monthly sales cost, and income? Regular Selling Price Impact: Price $4,350 Quantity $3,000 Revenue $13,050,000 Variable Manufacturing Costs ($5,385,000) Variable Marketing Costs ($825,000) Contribution Margin $6,840,000 *Fixed Manufacturing Costs ($1,980,000) *Fixed Marketing Costs ($2,310,000) Income $2,550,000 Using the regular selling price Income = Revenues – Total costs = $13,050,000 - $10,500,000 = $2,550,000 * Continue to the next page New Selling Price Impact: Price $3,850 Quantity $3,500 Revenue $13,475,000 Variable Manufacturing Costs ($6,282,500) Variable Marketing Costs ($962,500) Contribution Margin $6,230,000 Fixed Manufacturing Costs ($1,980,000) Fixed Marketing Costs ($2,310,000) Income $1,940,000 2) After price reduction, income = $13,475,000 - $11,535,000 =
| 18.01V | 0.36A | 50-ohm Resistor | V drop | I through | 1. | 1.99V | 0.44A | 2. | 3.01V | 0.52A | 3. | 4.08V | 0.60A | 4. | 4.99V | 0.66A | 5.