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.
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?
10. Harley paid $400 towards the principal on the note payable. 11. Harley made a $900 cash withdrawal from the company. Requirements: Complete the accounting equation worksheet for the transactions.
|December 31, 2011 | |ACCOUNT |DEBIT |CREDIT | | | Millions | |Cash & other current assets |$ 53 | | |Other assets |101 | | |Accounts payable | |$ 5 | |Other liabilities | |38 | |Shareholders’ equity | |80 | |Revenues | |275 | |Expenses | 244 |___ | |Total |$398 |$398 | Lululemon’s net income: $31 million ($275 – $244) (10-20 min.) E
. . $181,600 In discussion with Joe and by inspection of the accounting records, you discover the following facts: 1. The amount of cash, $5,000, includes $2,000 in the company’s bank account, $1,200 on hand in the company’s safe, and $1,800 in Joe’s personal savings account. 2.
Dolls-R-Us Dolls-R-Us is a manufacture of toy dolls, with three product lines: Penny, Suzie, and Lori. Its annual fixed costs of $85,000 consist of the following: Rent: $36,000 Administration $25,000 Depreciation $12,000 Other $12,000 Information on the three products is shown below: | Penny | Suzie | Lori | Selling price | $14 | $10 | $20 | Direct costs (per unit) | $4 | $3 | $5 | Direct labor cost (per unit) | $3 | $2 | $5 | Sales volume (units) | 15,000 | 15,000 | 15,000 | Number of employees | 3 | 2 | 3 | Floor space (sq. meter) | 3,000 | 3,000 | 4,000 | Value of machinery and equipment | $30,000 | $25,000 | $35,000 | 1. Calculate the unit contribution for each of the three products. Penny – $7 Suzie - $5 Lori - $10 2.
___I_____ Received $80,000 from the sale of land. b. __ O_____ Received $3,200 from cash sales. c. ___F_____ Paid a $5,000 dividend. d. ___O_____ Purchased $8,800 of merchandise for cash.
The key elements of the Apple financial statements: Balance sheet & Stockholders’ equity: All the following numbers are in thousands and in US dollars. Period Ending | Sep 25, 2010 | Sep 26, 2009 | Sep 27, 2008 | | Assets | Current Assets | | Cash And Cash Equivalents | 11,261,000 | 5,263,000 | 11,875,000 | | Short Term Investments | 14,359,000 | 18,201,000 | 12,615,000 | | Net Receivables | 11,560,000 | 6,192,000 | 6,151,000 | | Inventory | 1,051,000 | 455,000 | 509,000 | | Other Current Assets | 3,447,000 | 1,444,000 | 3,540,000 | | Total Current Assets | 41,678,000 | 31,555,000 | 34,690,000 | Long Term Investments | 25,391,000 | 10,528,000 | - | Property Plant and Equipment | 4,768,000 | 2,954,000 | 2,455,000 | Goodwill | 741,000 | 206,000 | 207,000 | Intangible Assets | 342,000 | 247,000 | 352,000 | Accumulated Amortization | - | - | - | Other Assets | 2,263,000 | 2,011,000 | 641,000 | Deferred Long Term Asset Charges | - | 1,727,000 | 1,227,000 | | Total Assets | 75,183,000 | 47,501,000 | 39,572,000 | | Liabilities | Current Liabilities | | Accounts Payable | 17,738,000 | 9,453,000 | 8,558,000 | | Short/Current Long Term Debt | - | - | - | | Other Current Liabilities | 2,984,000 | 2,053,000 | 5,534,000 | | Total Current Liabilities | 20,722,000 | 11,506,000 | 14,092,000 | Long Term Debt | - | - | - | Other Liabilities | 5,531,000 | 3,502,000
of Table 1 operations Cost Incurred (USD) Ref of cost given in column: 4 Unit Cost (USD) 1 2 3 4 5 6 A Handling of cartons B Shipping of cartons C Desktop delivery 2000 dly 440000 Para 3(c) 220/ dly D Set up of manual E Enter individual F Validate EDI orders 8000 orders 40000 Para 3(d) G General & Selling in Warehouse by freight 80000 cartons 75000 cartons 16000 orders 150000 lines 600000 Para 3(d) 4160000 Para 3(a) 52/ 450000 Para 3(b) 6/ carton Carton 160000 Para 3(d) order lines of each order (i) (ii) (iii) 10/order 4/line 5 / order Expense USD 42500000 of Annual Sales 200000 Para 3(e) 0.47% of sales 3. Explanation of working out the cost shown in column 5 of table above is given below. (a) Handling of cartons in warehouse:-This has two components. Cost of personnel used in warehouse operations and cost of warehouse excluding personnel expense. (i) Cost of Warehouse excluding personnel is USD 2000000 (ii) Only 90% of warehouse personnel are used for handling of cartons in warehouse.
Public Question Time value of money 1. Harry invested $10,600 in an account that pays 4 percent simple interest. How much money will he have at the end of five years? a. 12,897 b.