WGU Principles of Finance
C708 Pre-Assessment Questions And 100% Correct 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: $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 $40.2million.
What is the company's net income if the tax rate is 35%? (Round your
answerto the nearest decimal place.)
,a.) $407.0
million
b.) $217.0
million
c.) $114.9
million
d.) $187.6 million: $114.9 million
3. Which item from a company's financial statement is
considered anon-cash item?
a. )
Interest
b. )
Taxes
c. Utiliti
es
d.) Intangibles: d.
4. With the accompanying information on page 4, what is the cash
,flow fromfinancing?
a.) $185,000
b.) ($19,000)
c.) ($17,000)
d.) $194,000: $185,000
5. With the accompanying information on page 5, what is the cash flow
frominvesting in millions?
a.)
($1,430)
b.) $1,430
, c.) ($1,039)
d.) $1,039: ($1,430)
6. With the accompanying information on page 6, what is the correct
timesinterest earned?
a.) 1.50
b.) 2.05
c.) 2.91
d.) 3.59
e.) 6.99: 6.99
7. Match the following ratios with the appropriate ratio formulas.
Average collection period, fixed asset turnover, return on equity,
inventoryturnover, and quick ratio.
a.) Sales/Fixed assets, COGS/Inventory, AR/Daily credit sales, Net
income/To-tal equity, and (Current assets - Inventory)/Current
liabilities
C708 Pre-Assessment Questions And 100% Correct 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: $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 $40.2million.
What is the company's net income if the tax rate is 35%? (Round your
answerto the nearest decimal place.)
,a.) $407.0
million
b.) $217.0
million
c.) $114.9
million
d.) $187.6 million: $114.9 million
3. Which item from a company's financial statement is
considered anon-cash item?
a. )
Interest
b. )
Taxes
c. Utiliti
es
d.) Intangibles: d.
4. With the accompanying information on page 4, what is the cash
,flow fromfinancing?
a.) $185,000
b.) ($19,000)
c.) ($17,000)
d.) $194,000: $185,000
5. With the accompanying information on page 5, what is the cash flow
frominvesting in millions?
a.)
($1,430)
b.) $1,430
, c.) ($1,039)
d.) $1,039: ($1,430)
6. With the accompanying information on page 6, what is the correct
timesinterest earned?
a.) 1.50
b.) 2.05
c.) 2.91
d.) 3.59
e.) 6.99: 6.99
7. Match the following ratios with the appropriate ratio formulas.
Average collection period, fixed asset turnover, return on equity,
inventoryturnover, and quick ratio.
a.) Sales/Fixed assets, COGS/Inventory, AR/Daily credit sales, Net
income/To-tal equity, and (Current assets - Inventory)/Current
liabilities
