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WGU C214 OA Financial Management Retake Exam all Questions & answers solved accurately with Complete Solution Graded A+ latest version CA$18.71   Add to cart
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WGU C214 OA Financial Management Retake Exam all Questions & answers solved accurately with Complete Solution Graded A+ latest version
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WGU C214 OA Financial Management Retake Exam all Questions & answers solved accurately with Complete Solution Graded A+ latest version

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  • July 6, 2024
  • 10
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

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  • wgu c214 oa financial management retake exam all

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WGU C214 OA Financial Management
Retake Exam Latest Questions and
Answers () (Verified Answers)


1. What does the Foreign Corrupt Practices Act forbid U.S. companies to do -
ANSWER-Prohibits U.S. firms and individuals from paying bribes to foreign officials to
further business deals.

2. What are two basic types of financial instruments - ANSWER-Stocks and Bonds

3. What are secondary markets - ANSWER-Secondary financial markets are where
securities are traded after the initial offering.

4. What do cash flows from operating activities report - ANSWER-Operating - day to
day operations Investing - Property, plant, equipment, long term items Financing - debt
and equity changes

5. What does the statement of cash flows report - ANSWER-Cash inflow and cash
outflow of business for period of time

6. Write the equation that links the income statement to the balance sheet -
ANSWER-New Re= Old RE + Net Income - dividends

7. Net income 2,000 Depreciation 500 Change in operating assets 400 Change in PPE
1,000 Change on long term liabilities 600 Dividends paid 100 What is the firm's cash
flow from financing activities - ANSWER-Increase in debt 600 + (no change in stock) 0 -
(dividends paid) 100 = 500

8. Describe an income statement - ANSWER-An income statement is a financial
statement that shows you how profitable your business was over a given reporting
period. It shows your revenue, minus your expenses and losses

9. What item is included in the income statement and not included in the statement of
cash flows - ANSWER-Depreciation

, 10. A company sold goods in 2016 for $30,000 and collected the cash in 2017. In 2016,
the company incurred and paid $20,000 in expenses related to the goods sold. How
much income should the company report in 2016 under the accrual basis of accounting
- ANSWER-30,000-20,000= $10,000

11. EBIT: $1,000,000 Depreciation: $30,000 Change in working capital($5,000) Net
capital expenditures: $10,000 Tax rate: 40% What is the company's free cash flow -
ANSWER-1,000,000*(1-.40) + 30,000) - (-5,000) - 10,000 = 625,000

12. Define Free Cash Flow - ANSWER-Represents the cash available for the company
to repay creditors or pay dividends and interest to investor

13. A company reported an increase in accounts payable of $4,000 during the recent
period. Half of this amount is expected to be paid next period. What is the impact on the
cash flow from operating activities - ANSWER-increase of $4000

14. An architect will receive $10,000 per year (at the end of the year) PMT for 10 years.
The annual interest earned on the investment is 6%. What is the present value of the
architect's investment - ANSWER-10,000 PMT (at the end of each year) 6 I/Y 10 N CPT
PV = -7360008705

15. An employee wants to retire 20 years from today and would like to have an annual
income of $300,000 per year for 10 years starting in exactly 20 years. The discount rate
is 6%. What is the present value, today - ANSWER-FUTURE 1000 PMT = 300,000 N =
10 I/Y = 6 CPT PV = 2,208,026.115 PRESENT FV = 2,208,026.115 N = 20 I/Y = 6 PV =
688,472,9797

16. A person won $75,000 in a lottery and invests this money for 2 years and 3 months
at an interest rate of 6% simple interest. How much will the person have in principal and
interest at the end of the period - ANSWER-10,125.000

17. A company shows the following financial data: Accounts receivable: $300 Inventory:
$700 Fixed assets: $900 Accounts payable: $500 Long-term debt: $1000 What is the
current ratio - ANSWER-(300+700)/500 = 2.0

18. What is an example of an estimate used in recording transactions -
ANSWER-Deciding the salvage value of a fixed asset when calculating depreciation
expense

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