2024 FLORIDA CONTRACTOR'S MANUAL
ACTUAL EXAM V1 250+ QUESTIONS & 100%
CORRECT
VERIFIED ANSWERS WITH RATIONALES GRADED
A+
Which of the following companies has:
The greatest profit margin?
The greatest working capital?
DESCRIPTION ...........A.................B..............C................D
Current Assets....310,000......500,000..230,000....189,000
Total Assets........ 425,000.....546,000...285,000....200,000
Current Liabilities..............124,000....250,000......75,000....134,000
Total Liabilities....324,000....350,000....275,000... 355,000
Net Income........... 26,000......29,000....210,000....185,000
Sales............1,500,000...1,285,500...4,000,000...1,470,800
Expense Control
Ratio......................15.................14...............13...............19 - ANSWER---Accounting and
Finance Math Video
Profit Margin
, 2024 FLORIDA CONTRACTOR'S MANUAL
ACTUAL EXAM V1 250+ QUESTIONS & 100%
CORRECT
VERIFIED ANSWERS WITH RATIONALES GRADED
A+
Answer and Solution:
Net Income / Sales = Profit Margin
$185,000 / $1,470,800 = 0.125
Company D has the greatest profit margin.
Current Assets - Current Liabilities = Working Capital
$500,000 - $250,000 = $250,000
Company B has the greatest working capital.
A contractor who would have made 19% profit on the original contract. There is a change order for
$15,000 in materials and $10,000 in labor. The contractor would have made $16,240 on the original
contract. The architect will allow 25% profit based on cost and 10% overhead on the Change Order.
What percentage of the profit will the contractor make AFTER the Change Orders?
, 2024 FLORIDA CONTRACTOR'S MANUAL
ACTUAL EXAM V1 250+ QUESTIONS & 100%
CORRECT
VERIFIED ANSWERS WITH RATIONALES GRADED
A+
1- 43.5
2- 47.3
3- 42.2
4- 46.2 - ANSWER---Accounting and Finance Math Video
Profit Percentage and Change Orders
Answer and Solution:
*Contract Total: $16,% = $85,473.68
*Change
Order Total: $15,000 + $10,000 + 10% + 25% = $34,375
*Contract Costs: $85,473.68 - $16,240 = $69,233.68
*Change
Order Costs: $15,000 + $10,000 + 10% = $27,500
Contract Amount + Change Order Amount = Total
$85,473.68 + $34,375 = $119,848.68
Total Amount - Total Costs / Total Amounts
$119,848.68 - $69,233.68 / $119,848.68 = 42.2%
, 2024 FLORIDA CONTRACTOR'S MANUAL
ACTUAL EXAM V1 250+ QUESTIONS & 100%
CORRECT
VERIFIED ANSWERS WITH RATIONALES GRADED
A+
3- 42.2
What is the inventory turnover for the year based on the figures below?
______________________________________________12/31/2008
Inventory at Beginning of Period (1/1/2008) $41,460
ADD: Direct Labor $90,180
Materials Purchased $175,000
Sub-Contractors $38,000
Freight and Delivery $1,700
Sub-total................................................. $346,840
LESS: Inventory as of 12/31/2008 $47,589
Cost of Goods Sold $299,251
1- 6.5
2- 7.52
3-4.5
4- 6.72 - ANSWER---Accounting and Finance Math Video
Inventory Turnover
ACTUAL EXAM V1 250+ QUESTIONS & 100%
CORRECT
VERIFIED ANSWERS WITH RATIONALES GRADED
A+
Which of the following companies has:
The greatest profit margin?
The greatest working capital?
DESCRIPTION ...........A.................B..............C................D
Current Assets....310,000......500,000..230,000....189,000
Total Assets........ 425,000.....546,000...285,000....200,000
Current Liabilities..............124,000....250,000......75,000....134,000
Total Liabilities....324,000....350,000....275,000... 355,000
Net Income........... 26,000......29,000....210,000....185,000
Sales............1,500,000...1,285,500...4,000,000...1,470,800
Expense Control
Ratio......................15.................14...............13...............19 - ANSWER---Accounting and
Finance Math Video
Profit Margin
, 2024 FLORIDA CONTRACTOR'S MANUAL
ACTUAL EXAM V1 250+ QUESTIONS & 100%
CORRECT
VERIFIED ANSWERS WITH RATIONALES GRADED
A+
Answer and Solution:
Net Income / Sales = Profit Margin
$185,000 / $1,470,800 = 0.125
Company D has the greatest profit margin.
Current Assets - Current Liabilities = Working Capital
$500,000 - $250,000 = $250,000
Company B has the greatest working capital.
A contractor who would have made 19% profit on the original contract. There is a change order for
$15,000 in materials and $10,000 in labor. The contractor would have made $16,240 on the original
contract. The architect will allow 25% profit based on cost and 10% overhead on the Change Order.
What percentage of the profit will the contractor make AFTER the Change Orders?
, 2024 FLORIDA CONTRACTOR'S MANUAL
ACTUAL EXAM V1 250+ QUESTIONS & 100%
CORRECT
VERIFIED ANSWERS WITH RATIONALES GRADED
A+
1- 43.5
2- 47.3
3- 42.2
4- 46.2 - ANSWER---Accounting and Finance Math Video
Profit Percentage and Change Orders
Answer and Solution:
*Contract Total: $16,% = $85,473.68
*Change
Order Total: $15,000 + $10,000 + 10% + 25% = $34,375
*Contract Costs: $85,473.68 - $16,240 = $69,233.68
*Change
Order Costs: $15,000 + $10,000 + 10% = $27,500
Contract Amount + Change Order Amount = Total
$85,473.68 + $34,375 = $119,848.68
Total Amount - Total Costs / Total Amounts
$119,848.68 - $69,233.68 / $119,848.68 = 42.2%
, 2024 FLORIDA CONTRACTOR'S MANUAL
ACTUAL EXAM V1 250+ QUESTIONS & 100%
CORRECT
VERIFIED ANSWERS WITH RATIONALES GRADED
A+
3- 42.2
What is the inventory turnover for the year based on the figures below?
______________________________________________12/31/2008
Inventory at Beginning of Period (1/1/2008) $41,460
ADD: Direct Labor $90,180
Materials Purchased $175,000
Sub-Contractors $38,000
Freight and Delivery $1,700
Sub-total................................................. $346,840
LESS: Inventory as of 12/31/2008 $47,589
Cost of Goods Sold $299,251
1- 6.5
2- 7.52
3-4.5
4- 6.72 - ANSWER---Accounting and Finance Math Video
Inventory Turnover
