Corporate Finance Exam 2026 | All Questions
and Correct Answers | Graded A+ | Verified
Answers | Just Released
What formula below can be used to forecast inventory? ---------CORRECT
ANSWER-----------------(Inventory days / 365) x Cost of sales
Which of the following items can be found in a published cash flow statement
under "operating activities"? Select ALL correct answers. ---------CORRECT
ANSWER-----------------Depreciation Changes in operating assets and liabilities
What is the total cash from operating activities based on the information below?
Net income: 500
Depreciation: 80
Increase in receivables: 100
Increase in inventory: 50
Increase in payables: 60 ---------CORRECT ANSWER-----------------490
Calculate the end of the year cash balance based on the information below:
Beginning of the year cash balance: 2,000
Net income: 300
,Depreciation: 140
Increase in accounts payable: 60
Acquisitions of PP&E: 580
Dividends paid in the current year: 130
Increase in long-term debt: 200 ---------CORRECT ANSWER-----------------1,990
Which Excel function or tool will you use to display the cells that are referred to
by a formula in the selected cell? ---------CORRECT ANSWER-----------------Trace
Precedents
What is the forecasted value of property, plan and equipment (PP&E) based on
the following information:
Capital asset turnover ratio: 2.5
Forecasted revenues: $120
Forecasted costs of goods sold: $80 ---------CORRECT ANSWER-----------------48
What is the impact on cash flow from operations in the current year based on the
change in operating assets and liabilities listed below? ---------CORRECT ANSWER--
----------------200
What's the forecasted capital expenditure based on the information below?
Net PP&E beginning of period: 15,000
,Net PP&E end of period: 17,500
Depreciation expenses: 2,400 ---------CORRECT ANSWER-----------------4,900
What's the retained earnings end of period based on the information below?
Retained earnings beginning of period: 7,500
Net income: 2,300
Dividends paid: 1,700 ---------CORRECT ANSWER-----------------8,100
What's the depreciation expense based on the information below?
Depreciation (percent of sales): 4%
Revenues: 60,000
Gross profit: 25,000
PP&E: 40,000 ---------CORRECT ANSWER-----------------2,400
What's the forecasted EBIT based on the information below?
Revenues: 56,000
Cost of goods sold: 32,000
SG&A: 8,500
Depreciation: 2,700
Interest: 1,200
Taxes: 3,800 ---------CORRECT ANSWER-----------------12,800
, Budgets must link ________ to objectives, so budgeting is a tactical
implementation of the ________. ---------CORRECT ANSWER-----------------
Strategies, business plan
Identify which of the following is NOT a good way for managers to use a budget. --
-------CORRECT ANSWER-----------------Managers can use budgets alone to estimate
how well they perform over a period of time
Which of the following is the best key performance indicator (KPI) for measuring
customer satisfaction? ---------CORRECT ANSWER-----------------Customer retention
rate
Which of the following components is not necessary to have in every master
budget? ---------CORRECT ANSWER-----------------Direct material purchases budget
Which of the following describes the correct budgeting process? ---------CORRECT
ANSWER-----------------Planning & communication - Establish objectives & targets -
Develop a detailed budget - Review & approval - Implementation and
management
and Correct Answers | Graded A+ | Verified
Answers | Just Released
What formula below can be used to forecast inventory? ---------CORRECT
ANSWER-----------------(Inventory days / 365) x Cost of sales
Which of the following items can be found in a published cash flow statement
under "operating activities"? Select ALL correct answers. ---------CORRECT
ANSWER-----------------Depreciation Changes in operating assets and liabilities
What is the total cash from operating activities based on the information below?
Net income: 500
Depreciation: 80
Increase in receivables: 100
Increase in inventory: 50
Increase in payables: 60 ---------CORRECT ANSWER-----------------490
Calculate the end of the year cash balance based on the information below:
Beginning of the year cash balance: 2,000
Net income: 300
,Depreciation: 140
Increase in accounts payable: 60
Acquisitions of PP&E: 580
Dividends paid in the current year: 130
Increase in long-term debt: 200 ---------CORRECT ANSWER-----------------1,990
Which Excel function or tool will you use to display the cells that are referred to
by a formula in the selected cell? ---------CORRECT ANSWER-----------------Trace
Precedents
What is the forecasted value of property, plan and equipment (PP&E) based on
the following information:
Capital asset turnover ratio: 2.5
Forecasted revenues: $120
Forecasted costs of goods sold: $80 ---------CORRECT ANSWER-----------------48
What is the impact on cash flow from operations in the current year based on the
change in operating assets and liabilities listed below? ---------CORRECT ANSWER--
----------------200
What's the forecasted capital expenditure based on the information below?
Net PP&E beginning of period: 15,000
,Net PP&E end of period: 17,500
Depreciation expenses: 2,400 ---------CORRECT ANSWER-----------------4,900
What's the retained earnings end of period based on the information below?
Retained earnings beginning of period: 7,500
Net income: 2,300
Dividends paid: 1,700 ---------CORRECT ANSWER-----------------8,100
What's the depreciation expense based on the information below?
Depreciation (percent of sales): 4%
Revenues: 60,000
Gross profit: 25,000
PP&E: 40,000 ---------CORRECT ANSWER-----------------2,400
What's the forecasted EBIT based on the information below?
Revenues: 56,000
Cost of goods sold: 32,000
SG&A: 8,500
Depreciation: 2,700
Interest: 1,200
Taxes: 3,800 ---------CORRECT ANSWER-----------------12,800
, Budgets must link ________ to objectives, so budgeting is a tactical
implementation of the ________. ---------CORRECT ANSWER-----------------
Strategies, business plan
Identify which of the following is NOT a good way for managers to use a budget. --
-------CORRECT ANSWER-----------------Managers can use budgets alone to estimate
how well they perform over a period of time
Which of the following is the best key performance indicator (KPI) for measuring
customer satisfaction? ---------CORRECT ANSWER-----------------Customer retention
rate
Which of the following components is not necessary to have in every master
budget? ---------CORRECT ANSWER-----------------Direct material purchases budget
Which of the following describes the correct budgeting process? ---------CORRECT
ANSWER-----------------Planning & communication - Establish objectives & targets -
Develop a detailed budget - Review & approval - Implementation and
management
