Question : | (TCO 1) What is the goal of financial management for a sole proprietorship? | | | Student Answer: | | decrease long-term debt to reduce the risk to the owner | | | | maximize net income given the resources of the firm | | | | maximize the market value of the equity | | | | minimize the tax impact on the proprietor | | | | minimize costs and increase production | | Instructor Explanation: | Chapter 1, Page 11 | | | | Points Received: | 3 of 3 | | Comments: | | | | Question 2. | Question : | (TCO 1) Working capital management includes which of the following? | | | Student Answer: | | establishing the inventory level | | | | deciding when to pay suppliers | | | | determining the amount of cash needed on a daily basis | | | | establishing credit terms for customers | | | | all of the above | | Instructor Explanation: | Chapter 1, Page 6, Week 1 Lecture | | | | Points Received: | 3 of 3 | | Comments: | | | | Question 3. | Question : | (TCO 1) Market value is important to the financial manager because: | | | Student Answer: | | It reflects the value of the asset, based on generally-accepted accounting principles.
| | | Student Answer: | | $2,697.93 | | | | $2775.79 | | | | | $2921.86 | | | | | $3,075.64 | | | | $3,237.52 | | Instructor Explanation: | The answer represents the present value of the cash flows discounted by 5.5% over three years. | | | | Points Received: | 6 of 6 | | Comments: | | | | Question 4. | Question : | How much would $5,000 due in 50 years be worth today if the discount rate was 7.5%? | | | Student Answer: | |
FI504 Midterm Exam Study Guide 1. Know what information is desired by external users of financial statements. INTERNAL USERS Decision Making Human Resources Affordability in regards to pay raise Management Most profitable products Finance Seeing if funds are efficient to pay stockholders Marketing Determining prices that can possibly maximize income EXTERNAL USERS Taxing Authorities Financial charge or other levy Labor Unions Collective bargaining Customers Client, buyer,
opportunity cost. Instructor Explanation: Points Received: Comments: 3. Question : Student Answer: None of the above Chapter 2 6 of 6 (TCO A) Property taxes on a company's factory building would be classified as a(n) sunk cost. opportunity cost. period cost.
Caledonia Products Integrative Problem Shaneal Gaither, Nicolle Istre, Tara Shulfer, Laura Curry FIN/370 October 8, 2012 Instructor: Chrissy Helbling 1. Why should Caledonia focus on project free cash flows as opposed to the accounting profits earned by the project when analyzing whether to undertake the project? Caledonia should focus on free cash flow rather than accounting profits. The reason being is because with free cash flow that money coming in can be immediately reinvested into different projects or areas of the firm to start earning higher revenue. By focusing on the incremental cash flows Caledonia can analyze and determine the benefits and the costs to any project.
Another instance is recording rent when it is paid not delineating what is promised (unearned rent revenue) and when it is paid (rent revenue). Basically cash basis account doesn’t account for what is owed but what is owned. However, Cash basis accounting excels at tracking actual assets, cash on hand in particular. Cash is operating revenue; businesses cannot pay employees without some type of cash. Accrual basis accounting records the transaction immediately in a type of account, such as accounts payable, money owed to other companies for services; or accounts receivable “money owed by its debtors” ("Google.com", 2012).
Econ 6050 Assignment #3 Question #1 Once we average the income samples from each major, we discover that the average earned by those graduates who majored in economics is $30,206 while the average earned by those graduates who majored in marketing is $27,196. In looking at only the mean of the samples, it seems that those who major in economics will earn more, but we should also consider if this is only due to a sampling error. In testing the data, we can set up the following hypothesis: Let Ho: Mecon = Mmkt │ D = Mecon – Mmkt = 0 Ha: Mecon ≠ Mmkt │ D = Mecon – Mmkt ≠ 0 After testing, we reject the data because the difference is too great to be due to sampling error. We discover that there is a 95% chance that the true difference in the mean is between 2141 and 3881. This means that those who major in economics in contrast to marketing are more likely to make more money on average.
C) A candidate’s intent to graduate is checked for financial holds by the Bursar and for degree requirements by Advising before their diploma can released. D) A stockbroker calls a client and advises her to sell silver short. 2. Which of the following statements concerning manufacturing and service organizations is generally true? A) A service facility is more likely to serve national or even international markets.
d. List at least four operating costs your business might have. (1.0 points) Rent Utilities Inventory Payroll e. Consider the industry of your company and the current economy, and then explain how these factors might impact your company’s sales. If you do not think these factors would impact your sales, explain why they wouldn't. (2-4 sentences. 2.0 points) f. If you had $5,000 to start this company, which department would get the most funding?
c) Could there be an equilibrium in which equal (positive) quantities of the two types of calculators appear in the market? d) For which range of p do we observe calculators to be sold on the market? 3 Questions 4: In class we discussed several explanations why we observe underpricing in IPOs. In particular we discussed the Rock model. (Hint: the two companies in the model were named Opaque industries and Bright industries) 1.