BRAINSCAPE1
WGU - D366 Exam with complete solutions
latest version
1. A financial analyst is required to analyze the financial statements of Alliah
Company. While analyzing, the analyst discovered that the company does not
have adequate current assets to meet its total current liabilities. Thus, the
company might face difficulties in meeting its upcoming payments toward its
current liabilities. Which method did the financial analyst use to make this
analysis?: The financial analyst calculated various short-term liquidity ratios.
2. A financial analyst who was analyzing Company P's financial statements con-
cluded that this year, the company's revenue increased by 20%, gross income by
16%, and net income by 10%. Last year, the same items increased by 12%, 6%,
and 4%, respectively. Which financial statement analysis tool did the financial
analyst use to conclude?: Percentage change financial statements
3. A company evaluates the industry's economic conditions using Porter's five
forces model. Using the analysis, the company wishes to identify the vertical
competition in the value chain and its impact on its performance. Which one
of Porter's five forces should the company refer to?: Buyer power
4. A start-up's chief executive officer (CEO) plans to expand the business by ac-
quisition of a mature company. The CEO is particularly interested in companies
that exhibit superior sales volume and market share and is willing to accept low
profit margins.Which company meets the CEO's investment criteria based on
the framework for strategic analysis?: A company that sells nonditterentiated products
5. Corollary Marketing has prepared the common-size balance sheet for the
current year and has determined the following percentages:
Cash and equivalents: 15%
Receivables: 20%
, BRAINSCAPE1
Property, plant, and equipment: 12%
Accumulated depreciation: (5%)
Accounts payable: 9%
How does Corollary Marketing calculate these percentages?: All items are a percentage
of total assets.
6. Orange Zest Company specializes in household goods and appliances. In
recent years, the market has become increasingly competitive with the emer-
gence of new entrants. In light of this, the business decided to continue selling
WGU - D366 Exam with complete solutions
latest version
1. A financial analyst is required to analyze the financial statements of Alliah
Company. While analyzing, the analyst discovered that the company does not
have adequate current assets to meet its total current liabilities. Thus, the
company might face difficulties in meeting its upcoming payments toward its
current liabilities. Which method did the financial analyst use to make this
analysis?: The financial analyst calculated various short-term liquidity ratios.
2. A financial analyst who was analyzing Company P's financial statements con-
cluded that this year, the company's revenue increased by 20%, gross income by
16%, and net income by 10%. Last year, the same items increased by 12%, 6%,
and 4%, respectively. Which financial statement analysis tool did the financial
analyst use to conclude?: Percentage change financial statements
3. A company evaluates the industry's economic conditions using Porter's five
forces model. Using the analysis, the company wishes to identify the vertical
competition in the value chain and its impact on its performance. Which one
of Porter's five forces should the company refer to?: Buyer power
4. A start-up's chief executive officer (CEO) plans to expand the business by ac-
quisition of a mature company. The CEO is particularly interested in companies
that exhibit superior sales volume and market share and is willing to accept low
profit margins.Which company meets the CEO's investment criteria based on
the framework for strategic analysis?: A company that sells nonditterentiated products
5. Corollary Marketing has prepared the common-size balance sheet for the
current year and has determined the following percentages:
Cash and equivalents: 15%
Receivables: 20%
, BRAINSCAPE1
Property, plant, and equipment: 12%
Accumulated depreciation: (5%)
Accounts payable: 9%
How does Corollary Marketing calculate these percentages?: All items are a percentage
of total assets.
6. Orange Zest Company specializes in household goods and appliances. In
recent years, the market has become increasingly competitive with the emer-
gence of new entrants. In light of this, the business decided to continue selling
