Accounting

Question:

(TCO 1) Which one of the following actions best matches the primary goal of financial management?

Your Answer:

increasing the net  working capital while  lowering the long­ term asset  requirements

improving the  operating  efficiency, thereby  increasing the  market value of the  stock increasing the firm’s  market share reducing fixed costs  and increasing  variable costs increasing the  liquidity of the firm by  transferring short­ term debt into long­ term debt

CORRECT ANSWER

2.

Question:

(TCO 1) Which of the these activities is not a capital budgeting task?

Your Answer:

3.

Question:

(TCO 1) Market value is important to the financial manager because:

Your Answer:

4.

Question:

(TCO 1) The income statement reflects:

Your Answer:

5.

Question:

(TCO1) Telemarket Inc. has sales of $625,000. They paid $43,000 in interest during the year and depreciation was $79,000. Administrative costs were $100,000 and other costs were $160,000. Assuming a tax rate of 35 percent, what is Telemarket’s taxes figure?

Your Answer:

6.

Question:

(TCO 1) Home Best Hardware had $315,000 in taxable income last year. Using the tax rates provided in  Table 2.3, what are the company’s income taxes?

Your Answer:

7.

Question:

(TCO 1) Pizza A had earnings after taxes of $600,000 in the year 2008, and 300,000 shares outstanding.  In year 2009, earnings after taxes increased to $750,000, and 25,000 new shares were issued for a total  of 325,000 shares. What is the EPS figure for 2008?

Your Answer:

8.

Question: (TCO 1) The income statement reflects: Your Answer:

9.

Question:

(TCO 1) Green Leaf Nursery has EBIT of $250,000, interest of $30,000, taxes of $50,000, and  depreciation of $80,000. What is the company’s operating cash flow?

Your Answer:

10.

Question:

(TCO 3) Linda invested $15,000 today, in an investment that pays 6.50 percent interest, compounded ...