Exam (elaborations)
CORPORATE FINANCE EXAM CHAPTERS 1-5 QUESTIONS AND ANSWERS #4.
- Course
- Institution
CORPORATE FINANCE EXAM CHAPTERS 1-5 QUESTIONS AND ANSWERS #4.
[Show more]
Seller
Follow
puritywanjihia
Content preview
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
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller puritywanjihia. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78252 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now