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Financial Management 3771 Test 1




Question;Multiple Choice Questions;Question 1(5;points);Fresno Salads has current sales of $4,900 and a profit margin of 6.5;percent. The firm estimates that sales will increase by 5 percent next year and;that all costs will vary in direct relationship to sales. What is the estimate;of net income for next year?;Question 1 options;A);$303.33;B);$327.18;C);$334.43;D);$338.70;E);$341.10;Save;Question 2(5;points);A firm has total debt of $4,620 and a debt-equity ratio of 0.57. What is;the value of the total assets?;Question 2 options;A);$6,128.05;B);$7,253.40;C);$9,571.95;D);$11,034;E);$12,725.26;Save;Question 3(5;points);The Two Sisters has a 9 percent return on assets and a 75 percent;retention ratio. What is the internal growth rate?;Question 3 options;A);6.50 %;B);6.75%;C);6.97%;D);7.24%;E);7.38%;Save;Question 4(5;points);Russell's Deli has cash of $136, accounts receivable of $87;accounts payable of $215, and inventory of $409. What is the value of the quick;ratio?;Question 4 options;A);.31;B);.53;C);.71;D);1.04;E);1.07;Save;Question 5(5;points);2. A firm has net working capital of $640. Long-term debt is;$4,180, total assets are $6,230, and fixed assets are $3,910. What is the;amount of the total liabilities?;Question 5 options;A);$2,050;B);$2,690;C);$4,130;D);$5,590;E);$5,860;Save;Question 6(5;points);Andre's Bakery has sales of $687,000 with costs of $492,000.;Interest expense is $26,000 and depreciation is $42,000. The tax rate is 35;percent. What is the net income?;Question 6 options;A);$42,750;B);$44,450;C);$82,550;D);$86,450;E);$124,550;Save;Question 7(5;points);What is the sustainable growth rate;assuming the following ratios are constant?;Total asset turn over 1.46;Profit Margin 8%;Equity Multipler 1.2;Payout ratio 32%;Question 7 options;A);10.30%;B);10.53%;C);10.67%;D);10.89 %;E);11.01%;Save;Question 8(5;points);Al's Sport Store has sales of $897,400, costs of goods sold of $628,300;inventory of $208,400, and accounts receivable of $74,100. How many days, on;average, does it take the firm to sell its inventory assuming that all sales;are on credit?;Question 8 options;A);74.19 days;B);84.76 days;C);121.07 days;D);138.46 days;E);151.21 days;Save;Question 9(5;points);The Dog House has net income of $3,450 and total equity of $8,600. The;debt-equity ratio is 0.60 and the payout ratio is 20 percent. What is the;internal growth rate?;Question 9 options;A);14.47%;B);17.78%;C);25.09%;D);29.40%;E);33.33%;Save;Question 10;1. 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?;Question;10 options;A);$710;B);$780;C);$990;D);$2,430;E);$2,640;Question 11(10 points);Discuss the three areas of;decisions that financial managers are involved in.;Question 11 options;Save;Question 12(10 points);Discuss the three types of entities that conduct business.;Question 12 options;Save;Question 13(10 points);Discuss the primary goal of financial management.;Question 13 options;Save;Question 14(10 points);Discuss the agency issue. Discuss the main agency issue with;professional managers.;Question 14 options;Save;Question 15(10 points);Discuss the primary and secondary markets. Which is bigger;why? Which one is more important, why is your;perspective important when looking at the importance of the markets?


Paper#41465 | Written in 18-Jul-2015

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