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WGU C708 Principles of Finance Pre-Assessment Questions and Answers 2023 (Verified Answers) 1.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 b.) $119 million c.) $128 million d.) $227 million ANS $227 million 2.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 ANS $114.9 million 1 / 4
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3.Which item from a company's financial statement is considered a non-cash item?a.) Interest b.) Taxes c.) Utilities d.) Intangibles ANS d.
4.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 ANS $185,000 5.With the accompanying information on page 5, what is the cash flow from investing in millions?a.) ($1,430) b.) $1,430 2 / 4
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c.) ($1,039) d.) $1,039 ANS ($1,430) 6.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 ANS 6.99 7.Match the following ratios with the appropriate ratio formulas.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/To- tal 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)/Cur- 3 / 4
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rent liabilities, Sales/Fixed assets, and Net income/Total equity ANS Ar/Daily credit sales, Sales/Fixed assets, Net income/Total equity, COGS/Inventory, and (Current assets - Inventory)/Current liabilities 8.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 d.) 3.14 ANS 2.39 9.A company as sales of $132 million, net income of $24 million, a total asset turnover of .84, and a leverage multiplier of 1.6.Using the DuPont Formula, what is the company's return on equity? (Round
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