FIN MISC

FIN MISC-Finance Exam 1 Practice Problems with Answers Chapter 2 1. A firm has beginning retained earnings of $4,200 and ending retained earnings of $4,550. What is the amount of dividends paid if the firm earned a net income of $1,950? A) $1,600 B) $1,950 C) $1,900 D) $2,000 E) $2,100 Explanation: Dividends paid = $1,950 – ($4,550 – $4,200) = $1,600 2. MLM Enterprises has net income of $984, interest expense of $146, sales of $6,320, addition to retained earnings of $495, selli...

FIN MISC-Chapter 3 Financial Statements Analysis and Financial Models Chapter 3 Financial Statements Analysis and Financial Models 1. On a common-size income statement, depreciation will be A) omitted since it is a noncash expense. B) added back to convert net income to cash flows. C) expressed as a percentage of total assets. D) expressed as a percentage of sales. E) expressed as a percentage of gross fixed assets. Answer: D Difficulty: 1 Easy Section: 3.1 Financial Statements Analy...