Mauricio Lpez Rojon A01330465

GUIA 23-Use the follo in! financial "ata for Moose #rintin! $orporation to calculate the cash flo fro% operations &$'() usin! the in"irect %etho"*

+et inco%e ,225 -ncrease in accounts recei.a/le 55 0ecrease in in.entor1 33 0epreciation 65 0ecrease in accounts pa1a/le 25 -ncrease in a!es pa1a/le 15 0ecrease in "eferre" ta2es 10 #urchase of ne e3uip%ent 65 0i.i"en"s pai" 45

A) -ncrease in cash of ,153* B) -ncrease in cash of ,245* C) -ncrease in cash of ,143* D) 0ecrease in cash of ,105* 24-Use the follo in! infor%ation to calculate cash flo s fro% operations usin! the in"irect %etho"*

67+et -nco%e ,128000 670epreciation 92pense 18000 67Loss on sale of %achiner1 500 67-ncrease in Accounts Recei.a/le 28000 670ecrease in Accounts #a1a/le 18500 67-ncrease in -nco%e ta2es pa1a/le 500 67Repa1%ent of :on"s 38000

Mauricio Lpez Rojon A01330465

A) -ncrease in cash of ,48500* B) -ncrease in cash of ,;8500* C) 0ecrease in cash of ,58500* D) -ncrease in cash of ,108500* 25-<he follo in! infor%ation is fro% the /alance sheet of =il.erstone $o%pan1>

+et -nco%e for 5?1?05 to 5?31?05> ,58000 Account -n.entor1 #repai" e2p* Accu%* 0epr* Accounts pa1a/le :on"s pa1a/le :alance 5?31?05 ,18450 ,18400 ,;45 ,625 ,550

:alance 5?01?05 ,28000 ,18200 ,500 ,425 ,650

Usin! the in"irect %etho"8 calculate the cash flo fro% operations for =il.erstone $o%pan1 as of 5?31?05> A) -ncrease in cash of ,58025* B) -ncrease in cash of ,58125* C) -ncrease in cash of ,48425* D) <he in"irect %etho" cannot /e calculate" fro% the infor%ation pro.i"e"*

26-0arth $orporation@s %ost recent inco%e state%ent sho s net sales of ,680008 an" 0arth@s %ar!inal ta2 rate is 40 percent* <he total e2penses reporte" ere ,382008 all of hich ere pai" in cash* -n a""ition8 "epreciation e2pense as reporte" at ,500* A further e2a%ination of the %ost recent /alance sheets re.eals that accounts recei.a/le "urin! that perio" increase" /1 ,18000* <he cash flo fro% operatin! acti.ities reporte" /1 0arth shoul" /e>

Mauricio Lpez Rojon A01330465

A) ,18200* B) ,28000* C) ,28200* D) ,18000* 24-Usin! the follo in! financial "ata for +ails8 9tc*8 calculate the net chan!e in cash usin! the in"irect %etho"* +et -nco%e 0ecrease in Accounts recei.a/le 0epreciation e2pense -ncrease in in.entor1 -ncrease in "eferre" ta2es #urchase of e3uip%ent 0i.i"en"s pai" A) 0ecrease in cash of ,118425* B) -ncrease in cash of ,138145* C) 0ecrease in cash of ,138045* D) -ncrease in cash of ,128445* 25-Usin! the in"irect %etho"8 calculate net cash flo usin! the follo in! infor%ation>

,158000 200 120 45 50 28000 150

+et -nco%e ,438000 -ncrease in Accounts recei.a/le 358500 0epreciation e2pense 350 -ncrease in #repai" e2pense 108450 0ecrease in inco%e ta2es pa1a/le 45 =ale of furniture 200 -ncrease in co%%on stocA 25

Mauricio Lpez Rojon A01330465

A) 0ecrease in cash of ,28450* B) -ncrease in cash of ,158450* C) -ncrease in cash of ,658250* D) 0ecrease in cash of ,28600*

2;-Usin! the follo in! infor%ation8 hat is the fir%Bs cash flo fro% operationsC +et inco%e 0ecrease in accounts recei.a/le 0epreciation -ncrease in in.entor1 -ncrease in accounts pa1a/le 0ecrease in a!es pa1a/le -ncrease in "eferre" ta2es #rofit fro% the sale of fi2e" assets 0i.i"en"s pai" out A) 165* B) 145* C) 152* D) 155* 30-An e2a%ination of the cash receipts an" pa1%ents of Da.ier $orporation re.eals the follo in!> $ash pai" to suppliers for purchase of %erchan"ise ,58000 $ash recei.e" fro% custo%ers $ash pai" for purchase of e3uip%ent 148000 228000 ,100 30 25 14 10 5 14 5 35

Mauricio Lpez Rojon A01330465

0i.i"en"s pai" $ash recei.e" fro% issuance of preferre" stocA -nterest recei.e" on short-ter% in.est%ents Ea!es pai" Repa1%ent of loan to the /anA $ash fro% sale of lan" Da.ier@s reporte" cash flo fro% operations ill /e> A) -,68000* B) -,58000* C) ,68000* D) ,58000*

28000 108000 18000 48000 58000 128000

31-A fir% has net cash sales of ,385008 earnin!s after ta2es &9A<) of ,180008 "epreciation e2pense of ,5008 cost of !oo"s sol" &$(F=) of ,185008 an" cash ta2es of ,500* Also8 in.entor1 "ecrease" /1 ,1008 an" accounts recei.a/le increase" /1 ,300* Ehat is the fir%Bs cash flo fro% operationsC A) ,18200* B) ,18500* C) ,28000* D) ,18300* 32-Go"i Lein8 s%all /usiness consultant8 is currentl1 orAin! ith RG Lan"scapin!8 a sole proprietorship* =he is tr1in! to e"ucate the o ner on the i%portance of %onitorin! cash flo s* (peratin! infor%ation as of the en" of the %ost recent %onth appears /elo >

$ash fro% sale of trucA of ,48000* $ash salaries pai" of ,148000* $ash fro% custo%ers of ,458000* 0epreciation e2pense of ,58500*

Mauricio Lpez Rojon A01330465

-nterest on /anA line of cre"it of ,18000* $ash pai" to suppliers of ,228000* (ther cash e2penses8 inclu"in! rent8 of ,68300* +o ta2es "ue*

Usin! this infor%ation8 Lein calculates the cash flo fro% operations for the %onth at> A) ,118200* B) -,300* C) ,48200* D) -,18300* 33-Use the follo in! "ata fro% 0eltaBs co%%on size financial state%ent to ans er the 3uestion> 9arnin!s after ta2es 93uit1 $urrent assets $urrent lia/ilities =ales <otal assets H H H H 15I 40I 60I 30I

H ,300 H ,18400

Ehat is 0eltaBs total-"e/t-to-e3uit1 ratioC A) 1*0* B) 2*0* C) 1*5* D) 2*5* 34-Gohnson $orp* ha" the follo in! financial results for the fiscal 2004 1ear> $urrent ratio 2*00

Mauricio Lpez Rojon A01330465

JuicA ratio

1*25

$urrent lia/ilities ,1008000 -n.entor1 turno.er 12 Fross profit I 25

<he onl1 current assets are cash8 accounts recei.a/le8 an" in.entor1* <he /alance in these accounts has re%aine" constant throu!hout the 1ear* Gohnson@s net sales for 2004 ere> A) ,3008000* B) ,;008000* C) ,180008000* D) ,182008000* 35-Aztec Corporation Common Sized Income Statement =ales $(F= (peratin! e2pense -nterest e2pense -nco%e ta2 +et inco%e =ales 100I 65 15 5 5 10 ,;00

Aztec Corporation Common Size Balance Sheet $ash Accounts recei.a/le -n.entor1 'i2e" assets <otal assets =hort-ter% "e/t 5I 20 25 50 100I 20I

Mauricio Lpez Rojon A01330465

Lon!-ter% "e/t $o%%on e3uit1 0e/t K e3uit1 <otal assets

30 50 100I ,400

:ase" on the "ata !i.en a/o.e8 "eter%ine AztecBs 3uicA ratio an" total asset turno.er* <otal Asset <urno.er 1*2; 1*12 1*12

JuicA Ratio A) B) C) D) 1*25 1*25 2*50

2*50 1*2; 36-:ase" on the "ata !i.en a/o.e8 "eter%ine AztecBs ti%es interest earne" ratio an" !ross profit %ar!in* <i%es -nterest 9arne" Ratio A) B) C) D) 4*0D 5*0D 4*0D 5*0D

Fross #rofit Mar!in

35I 20I 20I 35I

34-Use the follo in! "ata fro% 0eltaBs co%%on size financial state%ent to ans er the 3uestion>

Mauricio Lpez Rojon A01330465

9arnin!s after ta2es 93uit1 $urrent assets $urrent lia/ilities =ales <otal assets

H 15I H 40I H 60I H 30I H ,300 H ,18400

Ehat is 0eltaBs after-ta2 return on e3uit1C A) 5*0I* B) ;*6I* C) 12*0I* D) 15*0I* 35-Use the follo in! "ata fro% 0eltaBs co%%on size financial state%ent to ans er the 3uestion> 9arnin!s after ta2es 93uit1 $urrent assets $urrent lia/ilities =ales <otal assets H H H H 15I 40I 60I 30I

H ,300 H ,18400

Ehat is 0eltaBs after-ta2 profit %ar!inC A) 5*0I* B) ;*6I* C) 15*0I* D) 12*0I* 3;-Assu%e that J-<ell -ncorporate" is in the co%%unications in"ustr18 hich has an a.era!e recei.a/les turno.er ratio of 16 ti%es* -f the J-<ell@s recei.a/les turno.er is less than that of the in"ustr18 J-<ell@s a.era!e recei.a/les collection perio" is most likely> A) 12 "a1s*

Mauricio Lpez Rojon A01330465

B) 16 "a1s* C) 25 "a1s* D) 20 "a1s* 40-Use the follo in! "ata to calculate return on e3uit1 &R(9)*

9arnin!s :efore -nterest an" <a2 ? =ales H 25I =ales?<otal Assets H 1*25 9arnin!s :efore <a2?9arnin!s /efore interest an" ta2 H 0*50 <otal Assets ? 93uit1 H 1*5 9arnin!s After <a2 ? 9arnin!s :efore <a2 H 0*6

A) 34*5I* B) 22*5I* C) 62*5I* D) 25I* 41-A co%pan1Bs financial state%ents sho the follo in! "ata &in %illions)>

9:-< H ,1*2 -nterest 92pense H ,0*2 =ales H ,20*0 Assets H ,15*0 93uit1 H ,4*5 <a2 Rate H 40I

<he co%pan1Bs return on e3uit1 &R(9) is closest to: A) 6*4I* B) 5*3I* C) 5*0I* D) 16*4I*

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42-Usin! the follo in! "ata8 fin" the return on e3uit1 &R(9)* Net Income ,2 A) 25I* B) 100I* C) 20I* D) 4I* 43-Fi.en the follo in! infor%ation a/out a fir% hat is its return on e3uit1 &R(9)C An asset turno.er of 1*2 An after ta2 profit %ar!in of 10I A financial le.era!e %ultiplier of 1*5 A) 0*0;* B) 0*15* C) 0*12* D) 0*10* 44--f a co%pan1 has a net profit %ar!in of 15 percent8 an asset turno.er ratio of 4*5 an" a R(9 of 15 percent8 hat is the e3uit1 %ultiplierC A) 0*264* B) 0*523* C) 2*664* D) 3*135* Total Assets ,10 Sale Equit s y ,10 ,5

Mauricio Lpez Rojon A01330465

45-Ehat is a co%pan1@s e3uit1 if their return on e3uit1 &R(9) is 12 percent8 an" their net inco%e is 10 %illionC A) 182008000* B) 1280008000* C) 12080008000* D) 5383338333* 46-<he e3uit1 %ultiplier for a fir% ith a total "e/t ratio e3ual to 45 percent is> A) 1*5152 ti%es* B) 0*54;5 ti%es* C) 0*65;4 ti%es* D) 2*2222 ti%es* 44-A fir%@s financial state%ents reflect the follo in!> +et profit %ar!in =ales -nterest pa1%ents A.!* assets 93uit1 A.!* orAin! capital 0i.i"en" pa1out rate 15I ,1080008000 ,182008000 ,1580008000 ,1180008000 ,5008000 35I

Mauricio Lpez Rojon A01330465

Ehich of the follo in! is the closest esti%ate of the fir%@s sustaina/le !ro th rateC A) 5I* B) 10I* C) ;I* D) 11I* 45-(snat 9nterprise ha" the follo in! financial "ata>

(peratin! profit %ar!in 10I $urrent ratio 2*5 <otal asset turno.er 2*4 -nterest e2pense rate 6I Le.era!e %ultiplier 2*0 <a2 retention rate 0*50

Ehat is (snat@s return on e3uit1C A) 13*0I B) 14*4I C) 15*0I D) 25*5I* 4;--f the in.entor1 turno.er ratio is 48 hat is the a.era!e nu%/er of "a1s the in.entor1 is in stocAC A) 40 "a1s* B) 25 "a1s* C) 36 "a1s* D) 52 "a1s* 50-Assu%e a fir% ith a "e/t to e3uit1 ratio of 0*50 an" "e/t e3ual to ,35 %illion %aAes a co%%it%ent to ac3uire ra %aterials ith a present .alue of ,12 %illion o.er the ne2t 3 1ears* 'or purposes of anal1sis the /est esti%ate of the "e/t to e3uit1 ratio shoul" /e> A) 0*641* B) 0*343* C) 0*500*

Mauricio Lpez Rojon A01330465

D) 0*543* 51-<he RLR $o%pan1 has a "i.i"en" pa1out rate of 40 percent* -f its return on e3uit1 is 15 percent8 hat is RLRBs sustaina/le !ro th rateC A) ;I* B) 6I* C) 12I* D) 15I* 52-Usin! a 365-"a1 1ear8 if a fir% has net annual sales of ,2508000 an" a.era!e recei.a/les of ,15080008 hat is its average collection perio"C A) 1*4 "a1s* B) 0*6 "a1s* C) 21;*0 "a1s* D) 46*5 "a1s* 53-An anal1st has !athere" the follo in! infor%ation a/out a co%pan1>

$ost of !oo"s sol" e3uals 65 percent of sales -n.entor1 of ,4508000 =ales of ,1 %illion

Ehat is the .alue of this fir%@s a.era!e in.entor1 processin! perio" usin! a 365-"a1 1earC A) 0*4 "a1s* B) 0*4 "a1s* C) 1*4 "a1s*

Mauricio Lpez Rojon A01330465

D) 252*4 "a1s* 54- <he :u"!et $o%pan1 ha" net inco%e of ,2 %illion for the perio"* <here ere 1 %illion shares of ei!hte" co%%on stocA outstan"in! for the entire perio"* -f there are 2008000 options outstan"in! ith an e2ercise price of ,308 hat is the /asic earnin! per share an" the "ilute" earnin!s per share for :u"!et co%%on stocA if the a.era!e price per share o.er the perio" as ,40C :asic 9#= MMMMMMMM 0ilute" 9#= MMMMMMM 55-'or the 1ear en"e" 31 0ece%/er 20048 An!e $o%pan1 ha" net inco%e of , 185008000* <he co%pan1 ha" an a.era!e of 4008000 shares of co%%on stocA outstan"in!8 308000 shares of con.erti/le preferre"8 an" no other potentiall1 "iluti.e securities* 9ach share of preferre" pa1s a "i.i"en" of ,10 per share8 an" each is con.erti/le into fi.e shares of the co%pan1Ns co%%on stocA* $alculate the co%pan1Ns /asic an" "ilute" 9#=* :asic 9#= MMMMMMMMMMM 0ilute" 9#= MMMMMMMMM 56-<ell $o%pan1 reporte" net inco%e of , 450 000 for the 1ear en"e" 31 0ece%/er 2005* <he co%pan1 ha" an a.era!e of 500 000 shares of co%%on stocA outstan"in!* -n a""ition the co%pan1 has onl1 one potentiall1 "iluti.e securit1> , 100 000 of 4I con.erti/le /on"s8 con.erti/le into a total of 10 000 shares* Assu%in! a ta2 rate of 30 percent8 calculate <ellNs /asic an" "ilute" 9#=* :asic 9#= MMMMMMMMMM 0ilute" 9#= MMMMMMMMM