The beginning balance of total assets was $360,000 and the ending balance was $320,000. What percentage is the return on total assets closest to?

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Student ID: 22036501 Exam: 061403RR - Capital, Cashflows, and Financial Statement Analysis When you have completed your exam and reviewed your answers, click Submit Exam.

1 Student ID: Exam: RR - Capital, Cashflows, and Financial Statement Analysis When you have completed your exam and reviewed your answers, click Submit Exam. Answers will not be recorded until you hit Submit Exam. If you need to exit before completing the exam, click Cancel Exam. Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page break, so be sure that you have seen the entire question and all the answers before choosing an answer. 1. Jester Corporation's most recent income statement appears below: The beginning balance of total assets was $360,000 and the ending balance was $320,000. What percentage is the return on total assets closest to? A. 18.5% B. 32.4% C. 26.5% D. 22.6% 2. Kaeser Corporation's most recent balance sheet appears below:

2 The company's net income for the year was $52 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $9. What was the net cash provided by (used in) investing activities for the year? A. ($67) B. ($17) C. $17 D. $67 3. (Ignore income taxes in this problem.) Buse Corporation is investigating buying a small used aircraft for the use of its executives. The aircraft would have a useful life of 8 years. The company uses a discount rate of 14% in its capital budgeting. The net present value of the investment, excluding the salvage value of the aircraft, is -$488,487. Management is having difficulty estimating the salvage value of the aircraft. To the nearest whole dollar, how large would the salvage value of the aircraft have to be to make the investment in the aircraft financially attractive? A. $1,391,701 B. $488,487 C. $3,489,193 D. $68, (Ignore income taxes in this problem.) Assume you can invest money at a 14% rate of return. How much money must be invested now in order to be able to withdraw $5,000 from this investment at the end of each year for 8 years, the first withdrawal occurring one year from now? A. $1,755 B. $24,840 C. $23,195 D. $21,440

3 5. Smay Corporation has provided the following data: Which is the accounts receivable turnover for this year closest to? A B C D (Ignore income taxes in this problem.) James just received an $8,000 inheritance check from the estate of his deceased rich uncle. James wants to set aside enough money to pay for a trip in 5 years. If the trip is expected to cost $5,000 and the rate of return is 12% per year, how much of the $8,000 must James deposit now if in order to have the $5,000 in five years? A. $2,835 B. $2,535 C. $5,000 D. $2, The market price of Friden Company's common stock increased from $15 to $18. Earnings per share of common stock remained unchanged. What would happen to the company's price-earnings ratio? A. Remain unchanged B. Impossible to determine C. Increase D. Decrease 8. (Ignore income taxes in this problem.) The following data pertain to an investment project: Which percent is the internal rate of return closest to? A. 14% B. 16% C. 13% D. 15% 9. Onorato Corporation has provided the following information concerning a capital budgeting project:

4 The company uses straight-line depreciation on all equipment. How much is the total cash flow net of income taxes in year 2? A. $98,000 B. $160,000 C. $133,000 D. $90, Erastic Corporation has $14,000 in cash, $8,000 in marketable securities, $34,000 in account receivable, $40,000 in inventories, and $42,000 in current liabilities. The corporation's current assets consist of cash, marketable securities, accounts receivable, and inventory. Which is the corporation's acidtest ratio closest to? A B C D An increase in accounts receivable of $1,000 over the course of a year would be shown on the company's statement of cash flows prepared under the indirect method as A. a deduction of $1,000 under financing activities. B. an addition of $1,000 under financing activities. C. an addition to net income of $1,000 in order to arrive at net cash provided by operating activities. D. a deduction from net income of $1,000 in order to arrive at net cash provided by operating activities. 12. (Ignore income taxes in this problem.) The following data pertain to an investment proposal: Which is the net present value of the proposed investment closest to? A. $19,000 B. $4,713 C. $2,268 D. $2, (Ignore income taxes in this problem.) How much would you have to invest today in the bank at an interest rate of 5% to have an annuity of $1,400 per year for 5 years, with nothing left in the bank at the end of the 5 years? Select the amount below that is closest to your answer. A. $7,000

5 18. Sales reported on the income statement totaled $750,000. The beginning balance in accounts receivable B. $6,667 C. $1,098 D. $6, Evita Corporation prepares its statement of cash flows using the indirect method. Evita's statement showed "Net cash provided by operating activities" of $46,000. Under the direct method, this number would have been A. greater than $46,000. B. less than $46,000 but greater than $0. C. $0. D. $46, Pascarelli Corporation's inventory at the end of Year 2 was $122,000 and its inventory at the end of Year 1 was $150,000. Cost of goods sold amounted to $870,000 in Year 2. How long is the company's average sale period (turnover in days) for Year 2 closest to? A days B days C days D days 16. (Ignore income taxes in this problem.) The management of Edelmann Corporation is considering the following three investment projects: Rank the projects according to the profitability index, from most profitable to least profitable. A. T, R, S B. T, S, R C. R, T, S D. S, T, R 17. Schoultz Corporation has provided the following data concerning an investment project that it is considering: The life of the project is 4 years. The company's discount rate is 12%. What is the net present value of the project closest to? A. $700,000 B. $108,108 C. $808,108 D. $364,000

6 was $70,000. The ending balance in accounts receivable was $80,000. Under the direct method of determining the net cash provided by operating activities on the statement of cash flows, sales adjusted to a cash basis are how much? A. $760,000 B. $830,000 C. $740,000 D. $680, (Ignore income taxes in this problem.) The management of Helberg Corporation is considering a project that would require an investment of $203,000 and would last for 6 years. The annual net operating income from the project would be $103,000, which includes depreciation of $30,000. The scrap value of the project's assets at the end of the project would be $23,000. The cash inflows occur evenly throughout the year. How long is the payback period of the project closest to? A. 1.4 years B. 1.5 years C. 1.7 years D. 2.0 years 20. Spomer Corporation's inventory at the end of Year 2 was $114,000 and its inventory at the end of Year 1 was $120,000. Cost of goods sold amounted to $710,000 in Year 2. What is the company's inventory turnover for Year 2 closest to? A B C D End of exam

1. The net cash provided by (used by) financing activities for the year was

1. The net cash provided by (used by) financing activities for the year was Student ID: 510748 Exam: 061684RR - THE IMPACT OF MANAGEMENT When you have completed your exam and reviewed your answers, click Submit Exam. Answers will not be recorded until you hit Submit Exam. If you