Fin 370 Final Exam Paper

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Final Examination ---- Finance for Business- FIN/370 You must show all work. In addition, One Excel attachment is preferred -- do not send in more than one attached file. True/False: Write “T’ if the statement is true and “F” is the statement is false. (2 points each). 1. The focus of DuPont analysis is to provide management information as to how the firm is using its resources to maximize returns on owners’ investments. 2. The financial manager should examine available risk-return trade-offs and make his decision based upon the greatest expected return. 3. When fixed expenses increase relative to sales, it indicates that there is not enough productive capacity to absorb an increase in sales. 4. We can use the present value of an annuity formula to…show more content…
all of the above 15. Which of the following is considered a source of spontaneous financing? a. Trade credit b. Inventories c. Accounts payable d. Both a and c Multiple Choice: Choose the one alternative that best completes the statement or answers the question. Please provide any back-up of your calculations on a separate sheet of paper so that partial credit can be assigned. You may provide either a Word document or and Excel spreadsheet. 16. Your firm is trying to determine its cash disbursements for the next two months (June and July). In any month, the firm makes purchases of 60% of that month’s sales, which are paid the following month. In addition, the firm incurs the following costs every month and pays for them in the month the expenses are incurred: wages and salaries of $10,000, rent of $4,000, and miscellaneous cash expenses of $1,000. Depreciation amortized on a monthly basis is $2,000. June’s sales are expected to be $100,000, and July’s sales are expected to be $150,000. Cash disbursements for the month of July are expected to be: a. $105,000 b. $107,000 c. $77,000 d.

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