1 What is the starting point in doing a projected discounted cash flows analysis A Start with the projected increase in assets B Start with the required interest rate C Start with the sale forecast D Start with the expense forecast 2 Which operating cash flow item is converted from the income state...

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1 . What is the starting point in doing a projected discounted cash flows analysis?A . Start...

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$1 .$ What is the starting point in doing a projected discounted cash flows analysis?A $.$ Start with the projected increase in assets.B $.$ Start with the required interest rate.C $.$ Start with the sale forecast.D $.$ Start with the expense forecast. $2 .$ Which operating cash flow item is converted from the income statement by an adjustment that fully offsets the amount in the income statement?A $.$ depreciation expenseB $.$ net incomeC $.$ salesD $.$ cost of goods sold $3 .$ What is the correct way to look at a statement of cash flows?A $.$ A statement of cash flows replaces an income statement evaluating a business.B $.$ A statement of cash flows provides information that is not used in evaluating a business.C $.$ A statement of cash flows does not replace an income statement in evaluating business.D $.$ A statement of cash flows provides the same information as an income statement in evaluating business. $4 .$ You are interested in a used specialty machine that would cost $ $110, 000$ new, would have a lifespan of ten years, and a $ $10, 000$ salvage value. If the machine is five years old, what is the fair value price?A $. 100000$ B $. 10000$ C $. 55000$ D $. 60000$ $5 .$ After making all your forecasts for next year, you are left with accounts payable that will be $ $10, 000$ higher than this year. Which implication does this have for the next year?A $.$ Your sales must increase by $ $10, 000$ over your forecast.B $.$ Your retained earning will be reduced by $ $10, 000 .$ C $.$ You will need an additional $ $10, 000$ in paid $-$ in $-$ capital.D $.$ Your payable have been incorrectly forecasted. $6 .$ Which ratio indicates the market expectations of the highest potential for future growth?A $.$ ABC inc., with a P $/$ E ratio of $55$ B $.$ XYZ inc., with a P $/$ E ratio of $25$ C $.$ JKL inc., with a debt ration of $75$ D $.$ EFG inc., with a current ration of $4$ $7 .$ Why should a company prepare forecasted financial statements?A $.$ to satisfy the reporting requirements of the Securities and Exchange Commission.B $.$ to set a baseline against which to compare future results.C $.$ to present growth estimates to potential investors.D $.$ to try options out on paper before implementing them. $8 .$ Why is the DuPont framework used in analyzing a company's performance?A $.$ to determine a company's profitability.B $.$ to understand why a company's ROE has changed.C $.$ to determine the return on investment for a company.D $.$ to understand changes in a company's efficiency. $9 .$ Which company would have the lowest price $-$ to $-$ sales ratio?A $.$ LMN Corp. has a $6.5 %$ return on sale, and $3.5 %$ expected sales growth.B $.$ EFG Inc. has a $3.5 %$ return on sales, and $4.5 %$ expected sales growth.C $.$ RST Inc. has a $6.5 %$ return on sales, and $5.0 %$ expected sales growth.D $.$ ABC Corp. has a $3.5 %$ return on sales, and $3.5 %$ expected sales growth. $10 .$ When you are analyzing your company's financial performance, which ratio shows you the company's liquidity?A $.$ price $-$ eating ratioB $.$ debt ratioC $.$ return on equity ratioD $.$ current ratio