Asset utilization ratios measure the returns on various assets such as return on total assets. A....
Asset utilization ratios measure the returns on various assets such as return on total assets.
A. True
B. False
A decreasing average collection period could be associated with
A. increasing sales.
B. decreasing sales.
C. decreasing accounts receivable
D. a and c.
The main consideration in constructing the pro forma income statement is the costs specifically associated with the units sold during the period.
A. True
B. False
As the dividend payout ratio declines more external funds are required.
A. True
B. False
A cash budget is unnecessary under level production since we know how much will be produced every month.
A. True
B. False
The key initial element in developing pro forma statements
is
A. a cash budget.
B. an income statement.
C. a sales forecast.
D. a collections schedule.
A firm has forecasted sales of $3,000 in April, $4,500 in May,
and $12,000 in June. All sales are on credit. 30% is collected the
month of sale and the remainder the following month. What will be
the balance in accounts receivable at the end of June?
A. $1,950
B. $6,500
C. $8,400
D. $5,100
When using the percent-of-sales method in forecasting funds
needed, which of the following is not true?
A. As the dividend payout ratio decreases, the required new funds
also decrease.
B. Required new funds decrease as profits margins increase.
C. Required new funds increase as accumulated amortization
increases.
D. As the tax rate increases, the required new funds increase.
An amount of money to be received in the future is worth less
today than the stated amount.
A. True
B. False
In evaluating capital investment projects, current outlays must
be judged against the current value of future benefits.
A. True
B. False
The time value of money concept becomes less critical as the prime rate increases.
A. True
B. False
As the time period until receipt decreases, the present value of
an amount at a fixed interest rate
A. decreases.
B. remains the same.
C. increases.
D. not enough information to tell
James is creating a university investment fund for his son Jon.
He will put in $71.00 per month at the end of each month for the
next 15 years and expects to earn an 8% annual rate of return,
compounded monthly. How much money will Jon have when he starts
university?
A. $28,052.38
B. $12,780.00
C. $13,393.98
D. $24,568.71
Homework Answers
Add Answer to:
Asset utilization ratios measure the returns on various assets
such as return on total assets.
A....
When using the percent-of-sales method in forecasting funds needed, which of the following is not true?...
When using the percent-of-sales method in forecasting funds needed, which of the following is not true? A. As the dividend payout ratio decreases, the required new funds also decrease. B. Required new funds decrease as profits margins increase. C. Required new funds increase as accumulated amortization increases. D. As the tax rate increases, the required new funds increase. An amount of money to be received in the future is worth less today than the stated amount. A. True B. False...
An increase in the marginal propensity to consume Select one: a increases the multiplier, so that...
An increase in the marginal propensity to consume Select one: a increases the multiplier, so that changes in government expenditures have a larger effect on aggregate demand. b. decreases the multiplier, so that changes in government expenditures have a larger effect on aggregate demand. C. increases the multiplier, so that changes in government expenditures have a smaller effect on aggregate demand. d. decreases the multiplier, so that changes in government expenditures have a smaller effect on aggregate demand. If many...
Question 8 The theory of liquidity preference implies that an increase in the price level shifts...
Question 8 The theory of liquidity preference implies that an increase in the price level shifts the Not yet answered Marked out of 2.00 Flag question Select one: a money demand curve to the right, so the interest rate decreases. b. money demand curve to the left, so the interest rate decreases. 0 C. money demand curve to the right, so the interest rate increases. 0 d. money demand curve to the left, so the interest rate increases. Question 9...
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to...
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to appreciate b)exports increase c)interest rates decrease d)demand for loanable funds decrease e)decreases merchandise trade deficit 2. When the Fed decreases money supply to combat inflation, it cuases: a)the price of the U.S. dollar to decrease b) capital to flow out of the US c)an increase in the merchandise trade deficit d)an increase in private spending e) a decrease in the interest rates 3. Which...
XYZ Company Balance Sheet 12/31/XXXX Assets A Current Assets Cash Accounts Receivable Inventory Prepaid Items Other...
XYZ Company Balance Sheet 12/31/XXXX Assets A Current Assets Cash Accounts Receivable Inventory Prepaid Items Other CA Total Current Assets Net Plant & Equipment Total Assets $7,500 12,100 10,400 5,900 4,300 $40,200 82,300 $122,500 XYZ Company Balance Sheet 12/31/xxxx Liabilities & Equity Current Liabilities Accounts Payable Wages Payable Notes Payable Taxes Payable Total Current Liabilities Long Term Debt Total Liabilities $7,200 3,600 5,400 4.200 $20,400 35,700 $56,100 Common Stock Retained Earnings 28,700 37,700 Total Liabilities & Equity $122,500 Homework Problem,...
The exchange rate effect of a price increase is: if the US price level increases, then the Fed increases interest rate i...
The exchange rate effect of a price increase is: if the US price level increases, then the Fed increases interest rate in order to stabilize the price level. As a result US dollar appreciates causing US exports to decreases. a. False b. True If the Fed increases money supply, then: a. the value of money decreases. b. the price level increases. c. Both of the above d. none of the above Which of the following will the Aggregate Demand curve...
The theory of liquidity preference implies that an increase in the price level shifts the Select...
The theory of liquidity preference implies that an increase in the price level shifts the Select one: a. money demand curve to the right, so the interest rate decreases. 0 b. money demand curve to the left, so the interest rate increases. C. money demand curve to the right, so the interest rate increases. d. money demand curve to the left, so the interest rate decreases. If the marginal propensity to consume is 6/7, then the multiplier is 7. Select...
Finch Pointers Corporation expects to begin operations on January 1, 2019; it will operate as a...
Finch Pointers Corporation expects to begin operations on January 1, 2019; it will operate as a specialty sales company that sells laser pointers over the Internet. Finch expects sales in January 2019 to total $350,000 and to increase 15 percent per month in February and March. All sales are on account. Finch expects to collect 68 percent of accounts receivable in the month of sale, 23 percent in the month following the sale, and 9 percent in the second month...
Q. March, April and May inventory purchases are expected to total $100,000, $120,000 and $125,000, respectively....
Q. March, April and May inventory purchases are expected to total $100,000, $120,000 and $125,000, respectively. A total of 80% of purchases are on credit and 20% are paid in cash at the time of the purchase. A total of 60% of credit purchases are paid in the month of the sale and 40% are paid in the following month. If a pro forma balance sheet is created for the end of May, what would be the Accounts Payable balance?...
Spalding Pointers Corporation expects to begin operations on January 1, 2019; it will operate as a...
Spalding Pointers Corporation expects to begin operations on January 1, 2019; it will operate as a specialty sales company that sells laser pointers over the Internet. Spalding expects sales in January 2019 to total $120,000 and to increase 5 percent per month in February and March. All sales are on account. Spalding expects to collect 70 percent of accounts receivable in the month of sale, 20 percent in the month following the sale, and 10 percent in the second month...
An increase in the marginal propensity to consume Select one: a increases the multiplier, so that changes in government expenditures have a larger effect on aggregate demand. b. decreases the multiplier, so that changes in government expenditures have a larger effect on aggregate demand. C. increases the multiplier, so that changes in government expenditures have a smaller effect on aggregate demand. d. decreases the multiplier, so that changes in government expenditures have a smaller effect on aggregate demand. If many...
Question 8 The theory of liquidity preference implies that an increase in the price level shifts the Not yet answered Marked out of 2.00 Flag question Select one: a money demand curve to the right, so the interest rate decreases. b. money demand curve to the left, so the interest rate decreases. 0 C. money demand curve to the right, so the interest rate increases. 0 d. money demand curve to the left, so the interest rate increases. Question 9...
XYZ Company Balance Sheet 12/31/XXXX Assets A Current Assets Cash Accounts Receivable Inventory Prepaid Items Other CA Total Current Assets Net Plant & Equipment Total Assets $7,500 12,100 10,400 5,900 4,300 $40,200 82,300 $122,500 XYZ Company Balance Sheet 12/31/xxxx Liabilities & Equity Current Liabilities Accounts Payable Wages Payable Notes Payable Taxes Payable Total Current Liabilities Long Term Debt Total Liabilities $7,200 3,600 5,400 4.200 $20,400 35,700 $56,100 Common Stock Retained Earnings 28,700 37,700 Total Liabilities & Equity $122,500 Homework Problem,...
The theory of liquidity preference implies that an increase in the price level shifts the Select one: a. money demand curve to the right, so the interest rate decreases. 0 b. money demand curve to the left, so the interest rate increases. C. money demand curve to the right, so the interest rate increases. d. money demand curve to the left, so the interest rate decreases. If the marginal propensity to consume is 6/7, then the multiplier is 7. Select...
Finch Pointers Corporation expects to begin operations on January 1, 2019; it will operate as a specialty sales company that sells laser pointers over the Internet. Finch expects sales in January 2019 to total $350,000 and to increase 15 percent per month in February and March. All sales are on account. Finch expects to collect 68 percent of accounts receivable in the month of sale, 23 percent in the month following the sale, and 9 percent in the second month...
Spalding Pointers Corporation expects to begin operations on January 1, 2019; it will operate as a specialty sales company that sells laser pointers over the Internet. Spalding expects sales in January 2019 to total $120,000 and to increase 5 percent per month in February and March. All sales are on account. Spalding expects to collect 70 percent of accounts receivable in the month of sale, 20 percent in the month following the sale, and 10 percent in the second month...
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