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WGU C708 Principles of Finance Pre-Assessment EXAM
- & 2 ALL 500 QUESTIONS AND VERIFIED SOLUTIONS
LATEST UPDATE THIS YEAR
WGU C708 EXAM 1
QUESTION: Which item from a company's financial statement is considered a non-cash item?
a.) Interest b.) Taxes c.) Utilities d.) Intangibles - ANSWER-d.
QUESTION: With the accompanying information on page 4, what is the cash flow from financing?
a.) $185,000 b.) ($19,000) c.) ($17,000) d.) $194,000 - ANSWER-$185,000
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QUESTION: With the accompanying information on page 5, what is the cash flow from investing in millions?
a.) ($1,430) b.) $1,430 c.) ($1,039) d.) $1,039 - ANSWER-($1,430)
QUESTION: With the accompanying information on page 6, what is the correct times interest earned?
a.) 1.50 b.) 2.05 c.) 2.91 d.) 3.59 e.) 6.99 - ANSWER-6.99
QUESTION: Match the following ratios with the appropriate ratio formulas.
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Average collection period, fixed asset turnover, return on equity, inventory turnover, and quick ratio.
a.) Sales/Fixed assets, COGS/Inventory, AR/Daily credit sales, Net income/Total equity, and (Current assets - Inventory)/Current liabilities
b.) (Current assets - Inventory)/Current liabilities, COGS/Inventory, Sales/Fixed Assets, Net income/Total equity, and AR/Daily credit sales
c.) AR/Daily credit sales, Sales/Fixed assets, Net income/Total equity, COGS/Inventory, and (Current assets - Inventory)/Current liabilities
d.) COGS/Inventory, AR/Daily credit sales, (Current assets - Inventory)/Current liabilities, Sales/Fixed assets, and Net income/Total equity - ANSWER-Ar/Daily credit sales, Sales/Fixed assets, Net income/Total equity, COGS/Inventory, and (Current assets - Inventory)/Current liabilities
A company has fixed assets of $509 million, total equity of $218 million, current liabilities of $128 million, and long-term debt of $390 million.What is the total for the company's current assets?
a.) $262 million 3 / 4
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b.) $119 million c.) $128 million d.) $227 million - ANSWER-$227 million
QUESTION: A company has just reported sales of $557 million, costs of goods sold of $150 million, depreciation of $190 million and interest expense of $40.2 million.What is the company's net income if the tax rate is 35%? (Round your answer to the nearest decimal place.)
a.) $407.0 million b.) $217.0 million c.) $114.9 million d.) $187.6 million - ANSWER-$114.9 million
QUESTION: With the accompanying balance sheets on page 8, what was XYZ's quick ratio in 2012?
a.) 2.39 b.) 2.99 c.) 1.16
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