# W3 Quiz Solutions Essay

668 Words Feb 12th, 2015 3 Pages
BUSN 5200 Quiz for week 3

Note: In the questions below, the correct answer is identified with an asterisk

1. (See Exhibit 2-2 on page 58 in your BUSN 5200 Custom text Version 2) Assume Main Street Store’s Net Sales in 2010 were \$1,000,000 and it’s Net Income in 2010 was \$17,000. Thus, between 2010 and 2011 Main Street Store’s net sales increased 20%. During the same period what percentage did net income increase?

a. 5.6% From Exhibit 2-2 on page 58:

b. 17.0% 2010 net income: \$17,000 2011 net income: \$18,000 c. 5.9% * Change: \$ 1,000 Percent change = \$1,000 / \$17,000 = .0588, or 5.9% d. 94.4%

2. (See Exhibit 2-2 on page 58 in your BUSN 5200 Custom text Version 2) In 2011 Main Street Store’s

b. Paying off debt no pay down of debt in 2011

c. Increasing inventory * \$(170,000) See Exhibit 2-4 on page 62

d. Paying dividends * \$(5,000)

7. (See Exhibit 2-4 on page 62 in your BUSN 5200 Custom text Version 2) What happened to Main Street Store’s Cash Account in 2011?

a. It increased * From Exhibit 2-4 on page 62: Increase in cash during 2011 = \$34,000 b. It decreased

c. It stayed the same

d. You can’t tell without further information

8. Which of the following is true about McDonalds Corporation?

a. Between 2010 and 2011 total revenue increased by a higher percentage than net income. * 2010 2011 Change Percent Change McDonalds Total Revenue \$24,074.6 \$27,006.0 \$2,931.4 .1218, or 12.18% McDonalds Net Income \$4,946.3 \$5,503.1 \$556.8 .1126, or 11.26% http://www.sec.gov/Archives/edgar/data/63908/000119312511046701/d10k.htm#toc37660_19 Scroll down to page 28

b. Between 2010 and 2011 total revenue increased by a lower percentage than net income.

c. McDonalds’ sales decreased between 2010 and 2011.

d. McDonalds’ net income decreased between 2010 and 2011.

9. McDonalds’ net worth (in millions) at the end of 2011 was:

a. \$16.6

b. \$0

c. \$14,390.2 * See http://www.sec.gov/Archives/edgar/data/63908/000119312511046701/d10k.htm#toc37660_19
Scroll down to page 29

d. 32,989.9

10. Which of the following is