Ask a Question

MGMT 640 MGTM640 MIDTERM ANSWERS (AMERICAN PUBLIC UNIVERSITY)

Regular price $15.00

Which of the following cannot be engaged in managing the business?
One reason for the existence of agency problems between managers and share holders is that:
On June 23, 2008, Mikhal Cosmetics sold $250,000 worth of its products to Rynex Corporation, with the payment to be made in 90 days on September 20. The goods were shipped to Rynex on July 2. The firm's accountants should recognize the sale on
During the last year, Sigma Co had Net Income of $152, paid $19 in dividends, and sold new stock for $37. Beginning equity for the year was $620. Ending equity was
The following items are components of a traditional balance sheet. How much are the total assets of the firm?
Brighton Corp. bought an oil rig exactly 6 years ago for $112,000,000. Brighton depreciates oil rigs straight line over 10 years assuming no salvage value. (Straight line depreciation means that the yearly depreciation will be the purchase price of the oil rig divided by the number of years it will last, which is 10 years here). The rig was just sold to British Petroleum for $35,000,000. What Capital Gain/Loss will Brighton report on this transaction?
Walker Corporation conducted the following activities during 2001: (1) they sold 10,000 shares of their own stock for $16.00 per share; (2) they issued bonds for which they received $496,000; (3) they paid dividends to their stockholders totaling $80,000; (4) they sold a piece of equipment for $50,000 that they were carrying on their books for $20,000; (5) they earned net income of $140,000. What would be shown on the Statement of Cash Flows for “Cash from financing activities” based on the information above?
Given the following selected information on Cicalese’s Chocolate, Inc., calculate Cash Flow from Operating Activities for 2001
Cameron Balance Sheet
Accounts Payable
32
Accounts Receivable
65
Accruals
30
Accumulated Depreciation
(175)
Cash
34
Common Stock
120
Fixed Assets (gross)
390
Inventory
132
Long-Term Debt
200
Retained Earnings
65
What is Cameron Inc.’s Net Working Capital?
A firm’s current ratio is 1.2, and its quick ratio is 1.0. If its current liabilities are $13,600, what are its inventories?
Iris Income Statement
Cost of Goods Sold
350
Depreciation Expense
35
Interest Expense
20
Operating Expense (excluding depreciation)
115
Sales
770


What was Iris Inc.’s earnings before interest and
taxes (EBIT)?
Iris Balance Sheet
Accounts Payable
35
Accounts Receivable
60
Accruals
30
Accumulated Depreciation
(175)
Cash
27
Common Stock
120
Fixed Assets (gross)
390
Inventory
134
Long-Term Debt
200
Retained Earnings
65
What is Iris Inc.’s Total Assets?
If firm A has a higher debt-to-equity ratio than firm B, then
Flying Tigers, Inc., has net sales of $784,000 and accounts receivables of $152,000. What is the firm's accounts receivables turnover? (Give your answer upto two decimal places)
Reagan Corp. has reported a net income of $822,200 for the year. The company's share price is $13.50, and the company has 304,310 shares outstanding. Compute the firm's price-earnings ratio upto two decimal places.
You purchased a piece of property for $30,000 nine years ago and sold it today for $83,190. What was the annual rate of return on your investment?
The First National Bank has agreed to lend you
$30,000 today, but you must repay $42,135 in 3 years. What rate is the bank is charging you?
The Florida lottery agrees to pay the winner $255,000 at the end of each year for the next 20 years. What is the future value of this prize if each payment is put in an account earning 0.08?
Which of the following is not a “Fundamental Decision of Financial Management”?
Which of the following is least likely to be part of an Annual Report?
Which of the following cannot be engaged in managing the business?
One reason for the existence of agency problems between managers and share holders is that:
On June 23, 2008, Mikhal Cosmetics sold $250,000 worth of its products to Rynex Corporation, with the payment to be made in 90 days on September 20. The goods were shipped to Rynex on July 2. The firm's accountants should recognize the sale on
During the last year, Sigma Co had Net Income of $152, paid $19 in dividends, and sold new stock for $37. Beginning equity for the year was $620. Ending equity was
The following items are components of a traditional balance sheet. How much are the total assets of the firm?
Brighton Corp. bought an oil rig exactly 6 years ago for $112,000,000. Brighton depreciates oil rigs straight line over 10 years assuming no salvage value. (Straight line depreciation means that the yearly depreciation will be the purchase price of the oil rig divided by the number of years it will last, which is 10 years here). The rig was just sold to British Petroleum for $35,000,000. What Capital Gain/Loss will Brighton report on this transaction?
Walker Corporation conducted the following activities during 2001: (1) they sold 10,000 shares of their own stock for $16.00 per share; (2) they issued bonds for which they received $496,000; (3) they paid dividends to their stockholders totaling $80,000; (4) they sold a piece of equipment for $50,000 that they were carrying on their books for $20,000; (5) they earned net income of $140,000. What would be shown on the Statement of Cash Flows for “Cash from financing activities” based on the information above?
Given the following selected information on Cicalese’s Chocolate, Inc., calculate Cash Flow from Operating Activities for 2001.
Cameron Balance Sheet
Accounts Payable
32
Accounts Receivable
65
Accruals
30
Accumulated Depreciation
(175)
Cash
34
Common Stock
120
Fixed Assets (gross)
390
Inventory
132
Long-Term Debt
200
Retained Earnings
65
What is Cameron Inc.’s Net Working Capital?
A firm’s current ratio is 1.2, and its quick ratio is 1.0. If its current liabilities are $13,600, what are its inventories?
Iris Income Statement
Cost of Goods Sold
350
Depreciation Expense
35
Interest Expense
20
Operating Expense (excluding depreciation)
115
Sales
770


What was Iris Inc.’s earnings before interest and
taxes (EBIT)?
Iris Balance Sheet
Accounts Payable
35
Accounts Receivable
60
Accruals
30
Accumulated Depreciation
(175)
Cash
27
Common Stock
120
Fixed Assets (gross)
390
Inventory
134
Long-Term Debt
200
Retained Earnings
65
What is Iris Inc.’s Total Assets?
If firm A has a higher debt-to-equity ratio than firm B, then
Flying Tigers, Inc., has net sales of $784,000 and accounts receivables of $152,000. What is the firm's accounts receivables turnover? (Give your answer upto two decimal places)
Reagan Corp. has reported a net income of $822,200 for the year. The company's share price is $13.50, and the company has 304,310 shares outstanding. Compute the firm's price-earnings ratio upto two decimal places.
You purchased a piece of property for $30,000 nine years ago and sold it today for $83,190. What was the annual rate of return on your investment?
The First National Bank has agreed to lend you
$30,000 today, but you must repay $42,135 in 3 years. What rate is the bank is charging you?
The Florida lottery agrees to pay the winner $255,000 at the end of each year for the next 20 years. What is the future value of this prize if each payment is put in an account earning 0.08?
Which of the following is not a “Fundamental Decision of Financial Management”?
Which of the following is least likely to be part of an Annual Report?
n profits if Costa were to accept this special order?

A company has $6.10 per unit in variable costs and $4.3 per unit in fixed costs at a volume of 50,000 units. If the company marks up total cost by 0.45, what price should be charged if 63.000 units are expected to be sold?

Customer profitability analysis might result in:

The Estrada Company uses cost-plus pricing with a 0.31 mark-up. The company is currently selling 100,000 units at $12 per unit. Each unit has a variable cost of $5.10. In addition, the company incurs $189,300 in fixed costs annually. If demand falls to 73,700 units and the company wants to continue to earn a 0.31 return, what price should the company charge.

A new product is being designed by an engineering team at Golem Security. Several managers and employees from the cost accounting department and the marketing department are also on the team to evaluate the product and determine the cost using a target costing methodology. An analysis of similar products on the market suggests a price of $135 per unit. The company requires a profit of 30 percent of selling price. How much is the target cost per unit?

A company using activity based pricing marks up the direct cost of goods by 0.22 plus charges customers for indirect costs based on the activities utilized by the customer. Indirect costs are charged as follows: $7.3 per order placed; $2.6. per separate item ordered; $26.9 per return. A customer places 8 orders with a total direct cost of $2800, orders 281 separate items, and makes 4 returns. What will the customer be charged?

A law firm uses activity-based pricing. The company’s activity pools are as follows: Cost Pool Annual Estimated Cost Cost Driver Annual Driver Quantity Consultation 185,000 Number of consultations 90 consultations Administrative Costs 131,000 Admin labor hours 98,00 labor hours Client Service 97,000 Number of clients 120 clients The firm had two consultations with this client and required 130 administrative labor hours. What additional costs will be charged to this customer?

Questions & Answers

Have a Question?

Be the first to ask a question about this.

Ask a Question