Principles-of-Finance-Unit-1-Milestone-1

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Western Governors University *

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C428

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Finance

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Jan 9, 2024

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pdf

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20

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1 CONCEPT Forecasting the Income Statement 26/27 that's 96% RETAKE 26 questions were answered correctly . 1 question was answered incorrectly . When finalizing a pro forma income statement, what should be considered in addition to the sales forecast? Report an issue with this question Forecasted revenues Forecasted market changes that may affect expenses Forecasted target volume Forecasted changes to owner's equity UNIT 1 — MILESTONE 1 SCORE 26/27
2 CONCEPT Tax Considerations 3 Which organization most fully protects owners from personal liabilities and is taxed separately? Report an issue with this question Preparing a cash flow forecast helps a company to examine and manage its __________. LLC Partnership C Corp S Corp profitability accounting practices float times
CONCEPT Building a Cash Budget 4 CONCEPT The Statement of Cash Flows 5 Report an issue with this question Under GAAP, how would the sale of company-owned land be accounted for on the statement of cash flows? Report an issue with this question bottom line As an increase in cash flow from operations As a decrease in cash flow from financing As a decrease in cash flow from operations As an increase in cash flow from investment
CONCEPT The Income Statement 6 Georgia is interested in selling her company. Before seeking a buyer, she wants her income statements to show a trend of increasing gross profits. How can she achieve her goal? Report an issue with this question Consider the price to book ratios of the following companies: Company A: 5.45 Company B: 14.30 Company C: 10.08 Company D: 19.62 Which company do investors believe will create the most value from its assets? Reduce net sales Reduce cost of goods sold Reduce operating expense Reduce taxes paid Company D
CONCEPT Market Value Ratios 7 CONCEPT The Balance Sheet Report an issue with this question Thomas is concerned about his company's ability to pay off its short-term debts. If he wants to know more about his company's liquidity, what should he do? Company B Company C Company A Calculate his total assets Calculate his net working capital Calculate his total liabilities Calculate his debt to equity ratio
8 CONCEPT Introducing Financial Statements 9 Report an issue with this question A potential investor in Cristian's company wants to know how much money was paid in dividends in the last reporting period. What type of financial statement should he look at? Report an issue with this question If Company A has a TIE ratio of 3 and Company B has a TIE ratio of 1.2, then Company A is more likely to __________ than Company B. Income statement Balance sheet Cash flow statement Statement of changes in equity be able to honor its debt payments
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