Managerial Finance Quiz

Unit 3: Analyzing Financial Statements - Quiz

1.

Shop-Til-You-Drop Inc. recently reported net income of $5.2 million and depreciation of $600,000. What is was net cash flow? Assume it has no amortization expense.

(Points: 4)

$5,400,000

$5,600,000

$5,800,000

$6,000,000

$6,200,000

2.

Superior Medical System's 2005 balance sheet showed total common equity of $2,050,000. The company had 100,000 shares of stock outstanding which sold at a price of $57.25 per share. By how much did the firm's market value and book value per share differ?

(Points: 4)

$36.75

$38.25

$39.50

$40.25

$51.00

3.

Madison Metals recently reported $9,000 of sales, $6,000 of operating costs other than depreciation, and $1,500 of depreciation. The company had no amortization charges and no non-operating income. It had issued $4,000 of bonds that carry a 7% interest rate, and its federal-plus-state income tax rate was 40%. What was the firm's taxable, or pre-tax, income?

(Points: 4)

$1,180

$1,220

$1,260

$1,300

$1,340

4.

Fine Breads Inc. paid out $26,000 common dividends during 2005, and it ended the year with $150,000 of retained earnings. The prior year’s retained earnings were $145,000. What was the firm's 2005 net income?

(Points: 4)

$30,000

$31,000

$32,000

$33,000

$34,000

5.

Raleigh Corp's sales last year were $500,000 and its net income after tax was $55,000. What was the Profit Margin?

(Points: 4)

10%

11%

11.5%

10.75%

11.25%

6.

Raleigh Corp's total common equity at the end of last year was $300,000 and its net income after taxes was $55,000. What was its ROE?

(Points: 4)

18.33%

18.67%

19.00%

19.33%

19.67%

7.

Rutland Corp's stock price at the end of last year was $30.25 and its earnings per share for the year were $2.45. What was its P/E ratio?

(Points: 4)

11.65

12.00

12.35

12.70

13.05

8.

Cooper Inc's latest EPS was $4.00, its book value per share was...