Corporate Finance_Final Exam
.pdf
keyboard_arrow_up
School
California Polytechnic State University, Pomona *
*We aren’t endorsed by this school
Course
MISC
Subject
Finance
Date
Jan 9, 2024
Type
Pages
6
Uploaded by alexana0808
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.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Questions
Answer full question please.
arrow_forward
Accountancy
arrow_forward
Write an X in the appropriate column to show whether each of the following cash flows should be classified as an operating, investing, or financing. Also, indicate whether it represents a cash inflow or outflow. You may copy/paste the table below into your submission box. Cash Flow Operating Investing Financinga. Received cash from issuance of common stock ________ ________ ________ b. Net Income ________ ________ ________ c. Received cash from sale of used equipment ________ ________ ________ d. Paid cash dividends ________ ________ ________ e. Paid cash to settle a note payable ________ ________ ________ f. Paid cash to purchase new computer ________ ________ ________ g. Paid cash to pay…
arrow_forward
37. Which of the following is/are true?
Statement of cash flows shows the halances of an entity's assets, liabilities, and equities.
I. Statement of changes in equity shows the movements of an entity's cash account.
i Statement ot comprehensive income shows the list ot real accounts.
IV. Notes to financial statements shows the supporting details for the accounts being shown in othe
components of financial statements.
A. I, II, III and IV
B. I, Il and IV
O V
C. II and IV
O D. IV only
arrow_forward
When preparing the operating section of the cash flow statement using the indirect method, which of the
following financial statements or sections in the financial statement are used?
O Long-term liabilities and stockholders' equity from the balance sheet.
O Long-term assets from the balance sheet.
O Income statement plus long-term assets from the balance sheet.
O Income statement plus current assets and current liabilities from the balance sheet.
ASUS
f4
f5
f6
f7
[X
f8
f9
f10
f11
%24
&
4.
5
7
Y
G
H.
因
6
近
F.
图
arrow_forward
Answer full question.
arrow_forward
The retirement of long-term debt by the issuance of common stock should be presented in a statement of cash shows as a:
arrow_forward
Attached below is the Balance Sheet of GoodWorld Incorporated Company. Calculate
the WACC for the company by using the capital Structure value from the balance
sheet.
Use the format below to answer your question.
Capital Structure
1.Common Stock
2.Preferred Stock
3.Loans / LT debt /Bond
4.Retained Earnings
Total
ASSETS
Current Assets
Cash and Cash Equivalents
Accounts Receivable
Inventory
Prepaid Expenses
Investment
Total Current Assets
Amount in Balance Sheet
Calculate the WACC:
Balance Sheet of GoodWorld Incorporated Company
Good World Incorporated
Balance Sheet
31-Dec-22
Property & Equipment
Land
Buildings
Equipment
Less: Accumulated Depreciation
Other Assets
Intangible Assets
Less: Accumulated Amortization
Total Assets
$'000
200,000
30,000
20,000
10,000
20,000
280,000
120,000
450,000
100,000
-30,000
40,000
-10,000
Cost
950,000
12%
10%
14%
12%
Proposition
LIABILITIES & SHAREHOLDERS EQUITY
Current Liabilities
Accounts Payable
Notes Payables
Accrued Expenses
Deferred Revenue
Total…
arrow_forward
On the statement of cash flows, the investing activities section would include
a. cash paid for dividends
Ob. cash paid for retirement of bonds payable
Oc. cash received from the issuance of capital stock
Od. cash received from the sale of investments
arrow_forward
Which of the following is included in the cash flows from financing activities section of the statement of cash flows?
O A. Interest received from borrowers.O B. Purchase of stock in another company.O C. Purchase of treasury stock.O D. Interest paid to lenders.
arrow_forward
Please help me compute the ff requirements. Thanks
arrow_forward
On the statement of cash flows, which of the following items will
affect both financing activities and operating activities?
O a.
Collection of loans to other entities.
O b. Payment of dividends.
O c. Redemption of debt.
O d. Issuance of equity securities.
arrow_forward
Entities are required to issue general purpose financial statements at least
a. Once a month
b. Once a year
c. Twice a year
d. Once a quarter
This statement shows the entity's assets, liabilities, and equity of a particular date
a. Statement of profit or loss and other comprehensive income
b. Statement of financial position
c. Statement of cash flows
d. Notes to financial statements
In the Statement of cash flows, the most important source of cash that serves as barometer about the health
of business cash flows, come from
a. Cash flows from investing activities
b.
Cash flows from operating activities
c. Cash flows from investing activities
d. Cash flows from borrowing activities
arrow_forward
Question Content Area
On the statement of cash flows, the financing activities section would include all of the following except
a. cash paid for dividends
b. cash received from the sale of bonds payable
c. cash paid for the purchase of treasury stock
d. cash paid for the interest on bonds payable
arrow_forward
Write an X in the appropriate column to show whether each of the following cash flows should be classified as an operating, investing, or financing. Also, indicate whether it represents a cash inflow or outflow. Cash Flow Operating Investing Financinga. Received cash from issuance of common stock __ __ __b. Net Income __ __ __c. Received cash from sale of used equipment __ __ __ d. Paid cash dividends __ __ __e. Paid cash to settle a note payable __ __ __f. Paid cash to purchase new computer __ __ __g. Paid cash to pay inventories __ __ __h. Received cash from issuance of bonds payable __ __ __i. Received cash from sale of investment __ __ __j. Paid cash to repurchase stocks __ __ __
arrow_forward
During Year 1, Chung Corporation earned $5,100 of cash revenue and accrued $3,400 of salaries expense.
Required:
Based on this information alone: (Hint: Record the events in accounts under an accounting equation before satisfying the
requirements.)
Note: Enter any decreases to account balances with a minus sign.
Event
Earned revenue
Accrued salaries
Ending balance
CHUNG CORPORATION
Accounting Equation - Year 1
Liabilities
Salaries
Payable
Assets
Cash
0 =
+
+
0 +
Stockholders' Equity
Common
Stock
PERNIKI
+
+
0 +
Retained
Earnings
0
arrow_forward
04-Principles of Management Acco
My courses / BUSS 104-1-20202 / MAKEUP TEST SCHEDULED FOR Thursday 6th
st (06-05-2021 from 11:00 to 12: Noon)
If a company purchased avalaible for sale securities with cash, this
would be reported on the statement of cash flows as?
Select one:
in
O a. Financing Activities cash outflow
O b. Investing Activities cash outflow
O c. Financing Activities cash inflow
d. Operating activities cash outflow
Clear my choice
Next page
page
arrow_forward
Cash flow from financing activities is affected by:
Select one:
O
a. Issuing or reacquiring shares.
b. net income
c. buying or selling inventory
d. buying or selling assets
arrow_forward
Classifying Items in the Statement of Cash Flows
The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement.
(a)
(b)
1. Payments of short-term debt.
Answer
Answer
2. Repurchases of common stock.
Answer
Answer
3. Purchases of property and equipment.
Answer
Answer
4. Sale of investments classified as long-term.
Answer
Answer
5. Proceeds from the issuance of common stock.
Answer
Answer
6. Increase in prepaid expenses and other current assets.
Answer
Answer
7. Acquisition for cash of a competitor.
Answer
Answer
8. Increase in current income tax payable.
Answer
Answer
9. Decrease in accounts payable.
Answer
Answer
10. Dividends paid to stockholders.
Answer
Answer
11.…
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Related Questions
- Answer full question please.arrow_forwardAccountancyarrow_forwardWrite an X in the appropriate column to show whether each of the following cash flows should be classified as an operating, investing, or financing. Also, indicate whether it represents a cash inflow or outflow. You may copy/paste the table below into your submission box. Cash Flow Operating Investing Financinga. Received cash from issuance of common stock ________ ________ ________ b. Net Income ________ ________ ________ c. Received cash from sale of used equipment ________ ________ ________ d. Paid cash dividends ________ ________ ________ e. Paid cash to settle a note payable ________ ________ ________ f. Paid cash to purchase new computer ________ ________ ________ g. Paid cash to pay…arrow_forward
- 37. Which of the following is/are true? Statement of cash flows shows the halances of an entity's assets, liabilities, and equities. I. Statement of changes in equity shows the movements of an entity's cash account. i Statement ot comprehensive income shows the list ot real accounts. IV. Notes to financial statements shows the supporting details for the accounts being shown in othe components of financial statements. A. I, II, III and IV B. I, Il and IV O V C. II and IV O D. IV onlyarrow_forwardWhen preparing the operating section of the cash flow statement using the indirect method, which of the following financial statements or sections in the financial statement are used? O Long-term liabilities and stockholders' equity from the balance sheet. O Long-term assets from the balance sheet. O Income statement plus long-term assets from the balance sheet. O Income statement plus current assets and current liabilities from the balance sheet. ASUS f4 f5 f6 f7 [X f8 f9 f10 f11 %24 & 4. 5 7 Y G H. 因 6 近 F. 图arrow_forwardAnswer full question.arrow_forward
- The retirement of long-term debt by the issuance of common stock should be presented in a statement of cash shows as a:arrow_forwardAttached below is the Balance Sheet of GoodWorld Incorporated Company. Calculate the WACC for the company by using the capital Structure value from the balance sheet. Use the format below to answer your question. Capital Structure 1.Common Stock 2.Preferred Stock 3.Loans / LT debt /Bond 4.Retained Earnings Total ASSETS Current Assets Cash and Cash Equivalents Accounts Receivable Inventory Prepaid Expenses Investment Total Current Assets Amount in Balance Sheet Calculate the WACC: Balance Sheet of GoodWorld Incorporated Company Good World Incorporated Balance Sheet 31-Dec-22 Property & Equipment Land Buildings Equipment Less: Accumulated Depreciation Other Assets Intangible Assets Less: Accumulated Amortization Total Assets $'000 200,000 30,000 20,000 10,000 20,000 280,000 120,000 450,000 100,000 -30,000 40,000 -10,000 Cost 950,000 12% 10% 14% 12% Proposition LIABILITIES & SHAREHOLDERS EQUITY Current Liabilities Accounts Payable Notes Payables Accrued Expenses Deferred Revenue Total…arrow_forwardOn the statement of cash flows, the investing activities section would include a. cash paid for dividends Ob. cash paid for retirement of bonds payable Oc. cash received from the issuance of capital stock Od. cash received from the sale of investmentsarrow_forward
- Which of the following is included in the cash flows from financing activities section of the statement of cash flows? O A. Interest received from borrowers.O B. Purchase of stock in another company.O C. Purchase of treasury stock.O D. Interest paid to lenders.arrow_forwardPlease help me compute the ff requirements. Thanksarrow_forwardOn the statement of cash flows, which of the following items will affect both financing activities and operating activities? O a. Collection of loans to other entities. O b. Payment of dividends. O c. Redemption of debt. O d. Issuance of equity securities.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub