AutoSave O A A 5 . CD ... X: BUS333 Final Exam Q Search (Cmd + Ctrl + U) Home Insert Draw Page Layout Formulas Data Review View Automate Acrobat Comments Share Times New Roman v 12 AA = Percentage Conditional Formatting v Insert v Format as Table Ex Delete Paste BI UVV DVAv $ % Sort & Find & Sensitivity Add-ins Analyze Create PDF Cell Styles v Format v v Filter Select Data and share link A41 4 x V fx A B C D E F G H K M N O P Q R BUS333 - Final Exam N 33 34 For questions #6-7, refer to the following financial information. Show all calculations - insert rows where needed: 35 36 A corporation's pretax net income of $1,250,000 is taxable based on 21% of the first $300,000, 25% of the next $400,000, 37 and 31% of the balance: 38 39 40 6. What is the corporation's average tax rate? 41 42 43 7. What is the corporation's marginal tax rate? 44 45 46 47 Do the following events INCREASE or DECREASE or have NO EFFECT on net working capital? 48 49 8. Inventory is purchased on credit. -- Select One - ID 50 INCREASE 51 DECREASE NO FFFFCT 52 53 9. A $100 account receivable is discounted and sold for $97 cash. Select One 54 INCREASE DECREASE 55 NO FFFFCT 56 57 10. The company has an open invoice for $100 but then chooses to take the 2% -- Select One - 58 discount offered and pay $98 if paid within 10 days. INCREASE 59 NO FFFFCT 60 61 62 For questions #11-13, refer to the following financial information. Show all calculations - insert rows where needed: 63 64 A company's balance sheet contains the following accounts: 65 Cash $3,700 99 Accounts Receivable 13,400 67 Inventory 6,500 68 Fixed Assets, net 24.000 69 Accounts Pavable 7.600 Sheet1 + Ready 76 Accessibility: Investigate + 100%AutoSave O A A 5 . CD ... X: BUS333 Final Exam Q Search (Cmd + Ctrl + U) Home Insert Draw Page Layout Formulas Data Review View Automate Acrobat Comments Share Times New Roman v 12 AA = Percentage Conditional Formatting v Insert v Format as Table Ex Delete Paste BI UVV DVAv $ % Sort & Find & Sensitivity Add-ins Analyze Create PDF Cell Styles v Format v v Filter Select Data and share link A41 4 X V fx A B C D E F G H K L M N O P Q R BUS333 - Final Exam N OT 62 For questions #11-13, refer to the following financial information. Show all calculations - insert rows where needed: 63 64 A company's balance sheet contains the following accounts: 65 Cash $3,70 66 Accounts Receivable 13,40 67 Inventory 6,500 68 Fixed Assets, net 24,000 69 Accounts Payable 7,60 70 Line of Credit 11,500 71 The company has no other assets or liabilities. 72 73 74 11. What is the company's total current assets? 75 76 77 12. What is the company's current quick ratio? 78 79 80 13. What is the company's book value of equity? 81 82 83 84 Do the following events represent a SOURCE or USE of cash? 85 86 14. Increase in Accounts Receivable: - alert One - 87 SALIRCE LISE 88 89 15. Decrease in Notes Payable: -- Calart One - SOIIRCF 4 90 IISE 91 92 16. Increase in Inventory: - Calart One - 93 SALIRCE LISE 94 95 17. Increase in Accounts Payable: -- Calart One - 96 LISE 97 98 18. Installme oan payme Sheet1 + Ready To Accessibility: Investigate + 100%AutoSave O A A 5 . CD ... X: BUS333 Final Exam Q Search (Cmd + Ctrl + U) Home Insert Draw Page Layout Formulas Data Review View Automate Acrobat Comments Share Times New Roman v 12 AA = Percentage Conditional Formatting v Insert v Z X AY - O. Format as Table Ex Delete Paste BI UVV DVAv $ % Sort & 207 V :00 Find & Cell Styles v Sensitivity Add-ins Analyze Create PDF Format v v Filter Select Data and share link A41 4 x V fx A B C D E F G H K L M N O P Q R BUS333 - Final Exam N 83 84 Do the following events represent a SOURCE or USE of cash? 85 86 14. Increase in Accounts Receivable: - Salart One - 4 87 LISE 88 89 15. Decrease in Notes Payable: -- Calart One -. 90 SALIRCE LISE 91 92 16. Increase in Inventory: -- Calart One - 93 SALIRCE IISE 94 95 17. Increase in Accounts Payable: - Calart One - 96 IISE 97 98 18. Installment Loan payment - Calart One - 99 SOURCE IISE 100 101 102 19. A company began the year with retained earnings of $14,500. Net income for the year was $16,250, it repaid $4,500 of its line 103 of credit balance, and it paid dividends of $13,900. What was the company's retained earnings at the end of the year? 104 105 106 20. Eagle LLC had sales in 2024 of $2,750,000, cost of sales of $1,340,000, average accounts receivable of $940,000 and average 107 inventory of $555,000. How many days does it take Eagle Sports to sell its inventory assuming that all sales are on credit? 108 (Assume 365-day year) 109 110 111 21. Eagle LLC had sales in 2024 of $2,750,000, cost of sales of $1,340,000, average accounts receivable of $940,000 and average 112 inventory of $555,000. What is Eagle's average collection period assuming all of its sales are on credit? 113 (Assume 365-day year) 114 115 116 117 22. Which THREE(3) factors on the list describe accurately the three parts of the -Salart Three 118 DuPont formula? Doht-Fruity Rat Enuitv Multinlia 119 Financial I evera Sheet1 + Ready to Accessibility: Investigate + 100%AutoSave O A A 5 . CD ... X: BUS333 Final Exam Q Search (Cmd + Ctrl + U) Home Insert Draw Page Layout Formulas Data Review View Automate Acrobat Comments Share Times New Roman v 12 AA = Percentage Conditional Formatting v Insert v Format as Table Ex Delete Paste BI UVV DVAv $ % Sort & Find & Sensitivity Add-ins Analyze Create PDF Cell Styles v Format v v Filter Select Data and share link A41 4 X V fx A B C D E F G H K L M N O P Q R BUS333 - Final Exam 2 3 116 117 22. Which THREE(3) factors on the list describe accurately the three parts of the Salart Three 118 DuPont formula? Deht-Fruity Rat Fruity Multinlia 119 Financial I evera 120 Anorating Efficie Profit Marain 121 Return on Accet 122 Total Accet Tun 123 124 23. Which figure in the list represents the amount of assets a company needs in order - Calart One - 125 to generate a $1 of earnings? Accet Turnover Canital Intencit 126 Dividend Viald Earnings Ratant 127 Financial I overa 128 129 24. Which figure in the list represents the percentage of net income a company -- Calart One _ _ 130 reinvests in its business' Accet Turnover Canital Intancit 131 Dividend Viald Earnings Rotant 132 Financial I evora 133 134 25. Which figure in this list represents the relationship between a company's dividend - Calart One - 135 payout and its market value? Accet Turnover Canital Intancity 136 Dividend Viald 137 Earnings Ratant Financial I evera 138 139 26. A company can most likely increase its sales without increasing which of the -- Calart One - 140 following? Arraunts Parai Arraiints Davah 141 Cact of Salad 142 Fival Accato Inventor 143 144 145 27. The Cookie Shoppe expects sales of $2,840,000 next year at a 7% pretax profit margin and an average tax rate of 28%. If it 146 chooses to pay out 40% of its earnings as dividends, what is the projected increase in retained earnings? 147 148 149 150 28. In calendar 2024, you earned a salary of $56,000. You expect to be given 4% annual merit increases on January 1 of each year 151 for the foreseeable future. What is your projected annual salary in 2030? 152 Sheet1 + Ready 20 Accessibility: Investigate + 100%AutoSave O A A 5 . CD ... X: BUS333 Final Exam Q Search (Cmd + Ctrl + U) Home Insert Draw Page Layout Formulas Data Review View Automate Acrobat Comments Share v 12 AA = Conditional Formatting v Insert v Times New Roman Percentage Format as Table Ex Delete Paste DVAv $ ~ % Sort & Find & Sensitivity Add-ins Analyze Create PDF Cell Styles v Format v v Filter Select Data and share link A41 4 X V fx A B C D E F G H K L M N O P Q R BUS333 - Final Exam 2 3 154 29. You have won a contest that will pay you $15,000 a year at the end of each of the next 6 years. Based on a discount rate of 155 8.75% per year, what is the annuity worth to you today? 156 157 158 30. You would like to contribute $70,000 towards your grandchild's college education 18 years from now. How much money must 159 you set aside today for this purpose if you believe you can earn 8.25% per year on your investment? 160 161 162 163 You are considering purchasing a 15-year 8.6% unsecured bond at a price of $910: 164 165 31. How much is the bond's face value? 166 167 168 32. How much is the bond's coupon? 169 170 171 33. What is the bond's current yield? 172 173 174 175 Are the following statements about bonds TRUE or FALSE? 176 177 34. Bonds provide tax benefits to issuers. - Salart One - 178 FAI S 179 180 35. A company's risk increases when a firm issues bonds to the public. - Salart One -. 181 FALSE 182 183 36. The current yield on a bond is higher than its coupon rate when the bond - Calart One - 184 sells at a discount. TRIIF 185 186 37. Callable bonds are generally called when market interest rates increase. Calart One - 187 TRIIE 188 189 190 38. How much should you be willing to pay for one share of stock if the company is expected to pay a $3.15 dividend next year, Sheet1 + Ready 16 Accessibility: Investigate + 100%AutoSave O A A 5 . CD ... X: BUS333 Final Exam Q Search (Cmd + Ctrl + U) Home Insert Draw Page Layout Formulas Data Review View Automate Acrobat Comments Share Times New Roman v 12 AA = Percentage Conditional Formatting v Insert v ZY AP - O. Format as Table Ex Delete Paste BI UVV TVAv $ ~ % Sort & Find & Cell Styles v Sensitivity Add-ins Analyze Create PDF Format v v Filter Select Data and share link A41 4 X V fx A B C D E F G H K L M N O P Q R BUS333 - Final Exam 2 3 190 38. How much should you be willing to pay for one share of stock if the company is expected to pay a $3.15 dividend next year, 191 you expect dividends to increase by 6% annually, and you need a 16% return on your investment? 192 193 194 39. Which of the following is an underlying assumption of the dividend growth model? 195 C A stock's value changes in direct relation to the required return on the stock. 196 A stock has the same value to every investor. 197 Stocks that pay the same dividend have equal market values. 198 A stock's value is equal to the discounted present value of the future cash flows it generates 199 200 201 40. What is the net present value of a project that has an upfront cash outlay of $33,000, and generates cash inflows of $18,000 in 202 year 1, $24,000 in year 2, and $35,000 in year 3 assuming that the company's cost of capital is 13.2% per year? 203 204 205 41. You are depositing $20,000 in a retirement account today and expect to earn an average return of 8% per year on this money. 206 How much additional income will you earn if you leave the money invested for 28 years instead of just 20 years? 207 208 209 210 42. Which measure refers to the discount rate that causes the net present value of Calart One - 211 a particular project to equal zero? Arrnintina Rati crnunted Ca 212 Internal Rate of Dayhark 213 Profitability Ind 214 215 43. Which measure examines the length of time it will take for a company to recoup - Calart One - 216 its initial investment in a specific project? Arrainting Rati niccounted Cac 217 Internal Rate of 218 Dawhack Profitability Ind 219 220 44. Which measure refers to the ratio of a project's future cash flows to the project's Calart One - 221 initial cash outlay? Arrainting Rati nicenunted Ca 222 Internal Rate of Dayhack 223 Profitability Ind 224 225 45. Which measure is considered the easiest to compute among all measures to the Calart One - 226 easy availability of information needed to compute it? Arrainting Rati untal fac Sheet1 + Ready 16 Accessibility: Investigate + 100%