# Str 581 Week 3 Vertical Analysis

1875 Words8 Pages
STR 581 Week 4 Capstone 2 www.StudentWhiz.com 1. Internal reports that review the actual impact of decisions are prepared by: • the controller • department heads • factory workers • management accountants 2. Horizontal analysis is also known as: • trend analysis • vertical analysis • linear analysis • common size analysis 3. Which of the following is an advantage of corporations relative to partnerships and sole proprietorships? • most common form of organization • reduced legal liability for investors • lower taxes • harder to transfer ownership Click here to download STR 581 Week 4 Capstone 2 4. Serox stock was selling for \$20 two years ago. The stock sold for \$25 one year ago, and it is currently…show more content…
• begins when the firm uses its cash to purchase raw materials and ends when the firm collects cash payments on its credit sales. • shows how long the firm keeps its inventory before selling it. Click here to download STR 581 Week 4 Capstone 2 19. Ajax Corp. is expecting the following cash flows - \$79,000, \$112,000, \$164,000, \$84,000, and \$242,000 – over the next five years. If the company’s opportunity cost is 15 percent, what is the present value of these cash flows? (Round to the nearest dollar.) • \$480,906 • \$429,560 • \$414,322 • \$477,235 20. Jack Robbins is saving for a new car. He needs to have \$21,000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target? (Round to nearest dollar) • \$26,454 • \$19,444 • \$22,680 • \$16,670 21. Which of the following presents a summary of changes in a firm’s balance sheet from the beginning of an accounting period to the end of that accounting period? • the statement of net worth • the statement of cash flows • the statement of working capital • the statement of retained…show more content…
Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time: • that has been arranged from the highest number to the lowest number. • to determine the amount and/or percentage increase or decrease that has taken place. • to determine which items are in error. • that has been arranged from the lowest number to the highest number. 24. Jayadev Athreya has started his first job. He will invest \$5,000 at the end of each year for the next 45 years in a fund that will earn a return of 10 percent. How much will Jayadev have at the end of 45 years? • \$2,667,904 • \$5,233,442 • \$1,745,600 • \$3,594,524 25. Turnbull Corp. had an EBIT of \$247 million in the last fiscal year. Its depreciation and amortization expenses amounted to \$84 million. The firm has 135 million shares outstanding and a share price of \$12.80. A competing firm that is very similar to Turnbull has an enterprise value/EBITDA multiple of 5.40. What is the enterprise value of Turnbull Corp.? Round to the nearest million dollars. • \$1,344 million • \$453.6 million • \$1,315 million • \$1,787