FMVA Exam Prep with Questions and Answers

FMVA Exam Prep with Questions and Answers The opening balance of Company A is 25,000, and the repayment is scheduled for 1,000 per month at an annual interest rate of 5%. Use the average debt balance to calculate the interest payment. The closing balance of debt at the end of the month is _____ and the interest payment is _____. ANSWER Closing balance = 25,000 - 1,000 = 24,000Interest payment = (25,000 + 24,000) /2 x 5% /12 = 102 To arrive at operating cash flows, you should start with _______, _______ non-cash items and then adding or subtracting changes in working capital. ANSWER net income, adding The PP&E gross book value at the start of the month is 60,000, and the CAPEX of the month is 12,000. The accumulated depreciation at the start of the month is 25,000; the depreciation expense of the month is 750.The net book value of PP&E calculated from the data above is _____. ANSWER Net book value of PP&E = (60,000 + 12,000) - (25,000 +750) = 46,250