BUSI 408 Practice Questions & Answers
Assume earnings before interest and Times interest earned ratio = $38,218 / {$38,218 - [$14,042 / (1 - .34)]} = 2.26
taxes of $38,218 and net income of
$14,042. The tax rate is 34 percent. What is
the times interest earned ratio?
Cash flow to creditors increases when long-term debt is repaid
The concept of marginal taxation is best Mitchell's Grocer increased its sales by $52,000 last year and had to pay an
exemplified by which of the following? additional $16,000 in taxes
The daily financial operations of a firm are working capital
primarily controlled by managing the:
The Embroidery Shoppe had beginning Net income = ($83,490 -68,407 -8,200 -478) ×(1 -.34) = $4,227.30
retained earnings of $18,670. During the Ending retained earnings = $18,670 + 4,227.30-950 = $21,947.30
year, the company reported sales of
$83,490, costs of $68,407, depreciation of
$8,200, dividends of $950, and interest
paid of $478. The tax rate is 34 percent.
What is the retained earnings balance at
the end of the year?
provides useful information that can serve as a basis for forecasting future
Financial statement analysis
performance
, BUSI 408 Practice Questions & Answers
The firm has an equity multiplier of 1.5. This total debt ratio is .33
means that the firm had a:
A firm's liquidity level decreases when inventory is purchased with cash
if a firm has a negative cash flow from may be continually increasing in size
assets each year for several years, the
firm:
An increase in which of the following will Depreciation
increase operating cash flow for a
profitable, tax-paying firm?
Last year, The Pizza Joint added $6,230 to Earnings before interest and taxes = [($6,230 + 2,500)/(1 -.34)] + $1,620 = $14,8
retained earnings from sales of $104,650. Depreciation = $104,650-87,300-14,847 = $2,503
The company had costs of $87,300,
dividends of $2,500, and interest paid of
$1,620. Given a tax rate of 34 percent,
what was the amount of the depreciation
expense?
Assume earnings before interest and Times interest earned ratio = $38,218 / {$38,218 - [$14,042 / (1 - .34)]} = 2.26
taxes of $38,218 and net income of
$14,042. The tax rate is 34 percent. What is
the times interest earned ratio?
Cash flow to creditors increases when long-term debt is repaid
The concept of marginal taxation is best Mitchell's Grocer increased its sales by $52,000 last year and had to pay an
exemplified by which of the following? additional $16,000 in taxes
The daily financial operations of a firm are working capital
primarily controlled by managing the:
The Embroidery Shoppe had beginning Net income = ($83,490 -68,407 -8,200 -478) ×(1 -.34) = $4,227.30
retained earnings of $18,670. During the Ending retained earnings = $18,670 + 4,227.30-950 = $21,947.30
year, the company reported sales of
$83,490, costs of $68,407, depreciation of
$8,200, dividends of $950, and interest
paid of $478. The tax rate is 34 percent.
What is the retained earnings balance at
the end of the year?
provides useful information that can serve as a basis for forecasting future
Financial statement analysis
performance
, BUSI 408 Practice Questions & Answers
The firm has an equity multiplier of 1.5. This total debt ratio is .33
means that the firm had a:
A firm's liquidity level decreases when inventory is purchased with cash
if a firm has a negative cash flow from may be continually increasing in size
assets each year for several years, the
firm:
An increase in which of the following will Depreciation
increase operating cash flow for a
profitable, tax-paying firm?
Last year, The Pizza Joint added $6,230 to Earnings before interest and taxes = [($6,230 + 2,500)/(1 -.34)] + $1,620 = $14,8
retained earnings from sales of $104,650. Depreciation = $104,650-87,300-14,847 = $2,503
The company had costs of $87,300,
dividends of $2,500, and interest paid of
$1,620. Given a tax rate of 34 percent,
what was the amount of the depreciation
expense?
