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CORPORATE FINANCE EXAM CHAPTERS 1-5 QUESTIONS AND ANSWERS #4.
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CORPORATE FINANCE EXAM CHAPTERS 1-5 QUESTIONSAND ANSWERS #4
This type of business has the unlimited liability for the owner of the business
Select one:
A. Proprietorship
B. Corporation
C. Limited Liability Company - correct answer a
Gross Profit is
Select one:
A. Earnings before Taxes
B. Sales minus Inventory plus Assets
C. Sales minus Cost of Goods Sold
D. Net Income divided by Sales - correct answer c
Sales = 5,000,000
COGS = 2,500,000
Selling Expense = 1,250,000
Interest Expense = 200,000
Administrative Expense = 300,000
What is the Gross Margin percent for this Company?
Select one:
A. 27.5%
B. 45%
C. 50%
D. 37.5% - correct answer c
TRT pays taxes on its earnings and when it pays dividends its owners pay taxes on
those dividends. What type of business is TRT?
Select one:
A. Proprietorship
B. Corporation
C. Dividends are no longer allowed to be paid due to the Dodd-Frank Act
D. Partnership - correct answer b
This type of financial statement show Revenues and Expenses for the appropriate time
frame.
Select one:
A. The Statement of Stockholders Equity
B. The Cash Flow Statement
C. The Balance Sheet
D. The Income Statement - correct answer d
You have the following data from RGR company.
Sales = 100,000,000
, Net Income = 25,000,000
Depreciation = 5,000,000
Capital Expenditures 7,500,000
What is the cash flow for RGR corporation?
Select one:
A. 22,500,000
B. 17,500,000
C. 12,500,000
D. 72,500,000 - correct answer a
MOG company has the following data
Sales 3,500,000
COGS 1,750,000
Cash on hand 875,000
Inventory 700,000
Accts Payable 350,000
What is the Inventory Turn metric for MOG?
Select one:
A. 200%
B. 5
C. 20%
D. 50 - correct answer b
What is the current ratio for this company.
Sales = 8,000,000
COGS = 6,000,000
Current Assets = 1,500,000
Current Liabilities = 1,000,000
Net Income 500,000
Select one:
A. 3
B. .67
C. 1.5
D. 4 - correct answer c
Which type of company finds it easiest to raise large amounts of capital?
Select one:
A. Sole Proprietorship
B. Corporation
C. 2 person partnership
D. Subchapter S - correct answer b
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