Business Finance -
Exam 1 Questions and
Answers 2026\2027
NetBWorkingBCapitalB-BAnswerBCurrentBassetsB-BcurrentBliabilities
▲NetBCapitalBSpendingB-BAnswerBEndingBfixedBassetsB-
BbeginningBfixedBassetsB+Bdepreciation
▲BNWCB-BAnswerBEndingBNWCB-BBeginningBNWC
IncomeBStatementB-BAnswerB+Revenue/Sales
-CostBofBGoodsBSoldB(Royalties)
-Depreciation
=EBITB(EarningsBbeforeBInterestB&BTaxes)
-Interest
-Taxes
=NetBIncome
EBITB-BAnswerBSalesB-BCostBofBGoodsBSoldB-BDepreciation
OperatingBCashBFlowB(OCF)B-BAnswerBEBITB+BDepreciationB-BTaxes
CashBFlowBfromBAssetsB(CFFA)B-BAnswerBOCFB-B▲NCSB-B▲NWC
AverageBTaxBRateB-BAnswerB(TotalBTaxesBPaid)/(TotalBTaxableBIncome)
, CurrentBRatioB-BAnswerBCurrentBAssets/CurrentBLiabilities
QuickBRatioB-BAnswerB(CurrentBAssetsB-BInventory)/CurrentBLiabilities
CashBRatioB-BAnswerBCash/CurrentBLiabilities
TotalBDebtBRatioB-BAnswerB(TotalBAssetsB-BTotalBEquity)/TotalBAssets
Debt/EquityBRatioB-BAnswerBTotalBDebt/TotalBEquity
EquityBMultiplierB-BAnswerBTotalBAssets/TotalBEquity
TimesBInterestBEarnedB-BAnswerBEBIT/Interest
CashBCoverageBRatioB-BAnswerB(EBITB+BDepreciation)/BInterest
InventoryBTurnoverB-BAnswerBCostBofBGoodsBSold/Inventory
Days'BSalesBinBInventoryB-BAnswerB365/InventoryBTurnover
ReceivablesBTurnoverB-BAnswerBSales/AccountsBReceivables
Days'BSalesBinBReceivablesB-BAnswerB365/ReceivablesBTurnover
TotalBAssetsBTurnoverB-BAnswerBSales/TotalBAssets
ProfitBMarginB-BAnswerBNetBIncome/Sales
Exam 1 Questions and
Answers 2026\2027
NetBWorkingBCapitalB-BAnswerBCurrentBassetsB-BcurrentBliabilities
▲NetBCapitalBSpendingB-BAnswerBEndingBfixedBassetsB-
BbeginningBfixedBassetsB+Bdepreciation
▲BNWCB-BAnswerBEndingBNWCB-BBeginningBNWC
IncomeBStatementB-BAnswerB+Revenue/Sales
-CostBofBGoodsBSoldB(Royalties)
-Depreciation
=EBITB(EarningsBbeforeBInterestB&BTaxes)
-Interest
-Taxes
=NetBIncome
EBITB-BAnswerBSalesB-BCostBofBGoodsBSoldB-BDepreciation
OperatingBCashBFlowB(OCF)B-BAnswerBEBITB+BDepreciationB-BTaxes
CashBFlowBfromBAssetsB(CFFA)B-BAnswerBOCFB-B▲NCSB-B▲NWC
AverageBTaxBRateB-BAnswerB(TotalBTaxesBPaid)/(TotalBTaxableBIncome)
, CurrentBRatioB-BAnswerBCurrentBAssets/CurrentBLiabilities
QuickBRatioB-BAnswerB(CurrentBAssetsB-BInventory)/CurrentBLiabilities
CashBRatioB-BAnswerBCash/CurrentBLiabilities
TotalBDebtBRatioB-BAnswerB(TotalBAssetsB-BTotalBEquity)/TotalBAssets
Debt/EquityBRatioB-BAnswerBTotalBDebt/TotalBEquity
EquityBMultiplierB-BAnswerBTotalBAssets/TotalBEquity
TimesBInterestBEarnedB-BAnswerBEBIT/Interest
CashBCoverageBRatioB-BAnswerB(EBITB+BDepreciation)/BInterest
InventoryBTurnoverB-BAnswerBCostBofBGoodsBSold/Inventory
Days'BSalesBinBInventoryB-BAnswerB365/InventoryBTurnover
ReceivablesBTurnoverB-BAnswerBSales/AccountsBReceivables
Days'BSalesBinBReceivablesB-BAnswerB365/ReceivablesBTurnover
TotalBAssetsBTurnoverB-BAnswerBSales/TotalBAssets
ProfitBMarginB-BAnswerBNetBIncome/Sales