Reference no: EM133094858

Questions -

Q1. ABC Corporation reports the following (in $ millions): net income of $445, retained earnings at the end of the year of $10,018 and retained earnings at the beginning of the year of $9,863. Assume that there were no other retained earnings transactions during the year. What dividends did the firm pay during the year?

a. $290 million

b. $0

c. $600 million

d. There is not enough information to calculate the amount.

e. $155 million

Q2. On December 31, Sleek Corporation reported, on its annual report, the following (in millions):

	Year 2	Year 1
Operating income	$4,589.1	$3,961.1
Net earnings	$3,100.8	$2,759.3

Calculate year-over-year increase or (decrease) in net earnings, in percentage terms.

a. 11.0%

b. None of the these are correct.

c. 15.9%

d. 12.4%

e. 18.2%

Q3. Page's June 30, year-end financial statements reported the following (in millions):

Cash, beginning of year	$6,836
Cash, end of year	$7,102
Cash from operating activities	$15,435
Cash from investing activities	$(5,575)

What did Page's report for cash from financing activities for the year ended June 30?

a. $(10,126) million

b. $9,594 million

c. $10,126 million

d. $9,860 million

e. $(9,594) million

Q4. ABC Corporation reports the following (in $ millions): net income of $1,112, retained earnings at the end of the year of $25,044 and retained earnings at the beginning of the year of $24,658. Assume that there were no other retained earnings transactions during the year.

What dividends did the firm pay during the year?

a. $1,498 million

b. $726 million

c. There is not enough information to calculate the amount.

d. $0

e. $386 million

Q5. Sales for the year = $341,126, Net Income for the year = $38,441, Income from equity investments = $9,033, and average Equity during the year = $123,650. Return on equity (ROE) for the year is:

a. 31.1%

b. 2.6%

c. 7.3%

d. There is not enough information to answer the question.

e. 11.3%

Q6. Which of the following are relevant in an analysis of a company's business environment? (Select as many as apply)

A. Financing

B. Labor

C. Buyers

D. Governance

E. All of the above

Q7. Interest expense appears in which financial statement?

A. Statement of stockholders' equity

B. Balance sheet

C. Income statement

D. Statement of cash flows

E. All of the above

Q8. On its year-end balance sheet, Blue Corporation, reported cash of $443 million at year-end. The statement of cash flows reports that cash increased by $115 million during the year and that net cash flow from operating activities was $1,632 million.

What was the cash flow from investing activities during the year?

a. $558 million cash inflow

b. There is not enough information to determine the amount.

c. $558 million cash outflow

d. $1,304 million cash outflow

e. $1,304 million cash inflow

Q9. Page's June 30, year-end financial statements reported the following (in millions):

Cash, beginning of year	$13,672
Cash, end of year	$14,204
Cash from operating activities	$30,870
Cash from investing activities	$(11,150)

What did Page's report for cash from financing activities for the year ended June 30?

a. $(20,252) million

b. $19,188 million

c. $(19,188) million

d. $19,720 million

e. $20,252 million

Q10. During the year, Sparkle Inc. had Sales of $7,126.6 million, Gross profit of $3,269.2 million and Selling, general, and administrative expenses of $2,556.0 million.

What was Sparkle's Cost of sales for the year?

a. $3,857.4 million

b. $4,570.6 million

c. $713.2 million

d. There is not enough information to calculate the amount.

e. $5,825.2 million

Q11. In addition to purchased assets like inventories and equipment, companies also may report on their balance sheets intangible assets such as the value of a brand name.

True

False

Q12. During the year, Kale Inc. had sales of $28,029 million, Cost of merchandise sold of $17,916 million, and gross profit of $10,113 million.

What was net income for the year?

a. There is not enough information to calculate the amount.

b. $17,916 million

c. $7,949 million

d. $10,113 million

e. $28,029 million

Q13. On December 31, Harper Inc., reported, on its year-end financial statements, the following (in millions):

	Year 2	Year 1
Total assets	$9,890	$9,973
Total sales	$5,996	$5,995
Net income	$692	$752

Calculate return on assets (ROA) for Year 2.

a. 60.4%

b. 60.6%

c. 7.0%

d. None of the these are correct.

e. 7.1%

Q14. Kelty Company's year-end financial statements reported the following (in millions):

Total assets	$41,278
Total liabilities	29,465
Total shareholders' equity	11,813
Dividends	205
Net income (loss)	3,160
Retained earnings, Jan 1	11,425

What did Kelty Company report for retained earnings at December 31?

a. $14,790 million

b. $14,380 million

c. $14,768 million

d. $14,585 million

e. There is not enough information to determine the answer.

Q15. During the year, Macur Inc. had sales of $4,365,320, total expenses of $4,110,902 and gross profit of $2,043,513.

What was the company's cost of sales for the year? ($ in thousands)

a. $4,110,902 thousand

b. There is not enough information to calculate the cost of sales.

c. $2,321,807 thousand

d. $723,155 thousand

e. $2,297,931 thousand