Corporate Finance_Final Exam

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California Polytechnic State University, Pomona *

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MISC

Subject

Finance

Date

Jan 9, 2024

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pdf

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6

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UOG-Corporate Finance NAME STUDENT ID 1. All of the following information, except one, should be disclosed as supplemental information in the statement of cash flows. Which one is the exception? A. Cash flow per share B. Conversion of debt to equity C. Issuance of common stock to purchase assets D. Exchange of long-term assets 2. Golden Co. is using the indirect method to prepare its Y1 statement of cash flows. On 7/1/Y1, Golden Co. sold an equipment with a gain. How should Golden Co. deal with this gain for its Y1 statement of cash flows? A. Deduct from sale proceeds to calculate net cash provided by investing activities B. Report as a cash outflow from investing activities C. Deduct from net income to calculate net cash provided by operating activities D. Add to net income to calculate net cash provided by operating activities 3. Golden Co. is preparing its Y1 statement of cash flows. During Y1, Golden has cash inflows of $30,000 from held-to-maturity securities related transactions. Golden also has cash inflows of $26,000 from available-for-sale securities related transactions. In its Y1 statement of cash flows, Golden Co. should report net cash from investing activities with an amount of ______. A. $0 B. $26,000 C. $30,000 D. $56,000 4. Which of the following is a nonfinancial performance measure? A. Customer retention ratio. IMPORTANT 1. The exam consists of 20 MCQ problems. Make sure that you have a complete exam. 2. To receive credit for your answers on the problems you must show and clearly label all of your computations. Your grade will be influenced by the orderliness and clarity of your answers. 3. When you finish the exam, please turn it in to the teacher.
UOG-Corporate Finance B. Return on asset. C. Net profit margin. D. Economic value-added. 5. Star Co. is a retail store specializing in contemporary furniture. The following information is taken from Star's June budget: Sales $540,000 Cost of goods sold 300,000 Merchandise inventory–June 1 150,000 Merchandise inventory–June 30 180,000 Accounts payable for purchases–June 1 85,000 Accounts payable for purchases–June 30 75,000 What amount should Star budget for cash disbursements for June purchases? A. $260,000 B. $280,000 C. $320,000 D. $340,000 6. The essence of responsibility accounting is A. Developing performance reports emphasizing costs and revenues that managers can control. B. Allocating service department costs to production departments so that production department managers know all costs for which they are responsible. C. Determining who is to blame for unfavorable variances. D. Investigating all variances, regardless of their status as favorable or unfavorable. 7.As part of the annual budgeting process, Fair Theatre Company compiled the following information for its next play production: Fixed expenses $48,000 Variable expenses $10 per ticket Ticket price $16 How many tickets would Fair need to sell for the play's run to obtain a $24,000 profit?
UOG-Corporate Finance A. 4,500 B. 7,200 C. 8,000 D. 12,000 8. An increase in the federal debt may create inflationary pressures for which of the following reasons? A. Businesses may have difficulty raising investment capital. B. The government may need to cut spending. C. Lenders may charge higher interest rates. D. The economy's money supply may increase. 9. Which of the following quantitative factors, when compared to its industry average, could be an indicator of potential corporate failure? A. High cash flow to total liabilities B. High retained earnings to total assets C. High fixed cost to total cost structure D. High fixed assets to non-current liabilities 10. According to the COSO Enterprise Risk Management Framework, each of the following is considered by management as part of a risk assessment, except A. Inherent risk. B. Unknown risk. C. Actual residual risk. D. Target residual risk. 11. A manufacturer actively monitors a foreign country's political events whenever a supply chain disruption occurs within the country that exceeds 90 days. According to the COSO Enterprise Risk Management principles, the manufacturer is following which of the following risk-response strategies? A. Share. B. Avoid. C. Accept. D. Reduce.
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