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STR 581 Week 4 Capstone 2
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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

• 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

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

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