February 10, 2022
EXAM 1 – MBA 601
Spring, 2022
Name:_____________________________________________________________
Multiple choice (2 points each) answer the numbers 1 – 37 on a scantron.
1. Which of the following statements are correct (select all that apply):
A) A balance sheet reports on income generating activities.
B) An income statement reports on financing activities.
C) The statement of equity reports on changes in the common and preferred stock accounts,
but not retained earnings.
D) The statement of cash flows reports on cash flows from operating, investing, and
financing activities over a period of time.
E) A balance sheet reports on a company’s assets and liabilities over a period of time.
2. Which of the following items would not be found on a balance sheet? (Select all that apply)
A) Stockholders’ Equity
B) Property, plant and equipment
C) Nonowner financing
D) Cash
E) Dividends
3. A company’s net cash flow will equal its net income …
A) Almost always
B) Rarely
C) Occasionally
D) Only when the company has no investing cash flow for the period
E) Only when the company has no investing or financing cash flow for the period
4. The Goodyear Tire & Rubber Company’s December 31, 2016 financial statements reported the
following (in millions):
Total assets $16,511
Total liabilities 11,786
Total shareholders’ equity 4,725
Dividends 82
Net income (loss) 1,264
Retained earnings, December 31, 2015 4,570
What did Goodyear report for retained earnings at December 31, 2016?
A) $5,907 million
B) $5,752 million
C) $5,916 million
D) $5,834 million
E) There is not enough information to determine the answer.
1
, February 10, 2022
5. On October 2, 2016 Starbucks Corporation reported, on its Form 10-K, the following (in millions):
Total assets $14,329.5
Total stockholders’ equity 5,890.7
Total current liabilities 4,546.9
What did Starbucks report as total liabilities on October 2, 2016?
A) $ 12,516.7 million
B) $ 6,377.3 million
C) $ 995.0 million
D) $ 8,438.8 million
E) None of the above
6. In its 2016 annual report, Kohl’s Corporation reported the following (in millions):
Total assets $13,574
Total shareholders’ equity $ 5,177
Total liabilities $ 8,397
What proportion of Kohl’s Corporation is financed by nonowners?
A) 61.9%
B) 44.2%
C) 53.5%
D) 77.0%
E) None of the above
7. The Goodyear Tire & Rubber Company’s December 31, 2016 financial statements reported the
following (in millions)
Sales $15,158
Cost of sales $10,972
Other expenses (excluding cost of sales) $ 2,902
What did Goodyear report for net income for the year ending December 31, 2016?
A) $ 29,032 million
B) $ 1,284 million
C) $ 4,186 million
D) $ 13,874 million
E) $ 8,070 million
8. Intel Corporation reported the following on its 2016 income statement (in millions)
Sales revenue $59,387
Gross profit $36,191
Total expenses $23,317
What did Intel report for cost of goods sold during 2016?
A) $ 23,196 million
B) $ 15,502 million
C) $ 36,478 million
D) $ 12,874 million
E) None of the above
2
EXAM 1 – MBA 601
Spring, 2022
Name:_____________________________________________________________
Multiple choice (2 points each) answer the numbers 1 – 37 on a scantron.
1. Which of the following statements are correct (select all that apply):
A) A balance sheet reports on income generating activities.
B) An income statement reports on financing activities.
C) The statement of equity reports on changes in the common and preferred stock accounts,
but not retained earnings.
D) The statement of cash flows reports on cash flows from operating, investing, and
financing activities over a period of time.
E) A balance sheet reports on a company’s assets and liabilities over a period of time.
2. Which of the following items would not be found on a balance sheet? (Select all that apply)
A) Stockholders’ Equity
B) Property, plant and equipment
C) Nonowner financing
D) Cash
E) Dividends
3. A company’s net cash flow will equal its net income …
A) Almost always
B) Rarely
C) Occasionally
D) Only when the company has no investing cash flow for the period
E) Only when the company has no investing or financing cash flow for the period
4. The Goodyear Tire & Rubber Company’s December 31, 2016 financial statements reported the
following (in millions):
Total assets $16,511
Total liabilities 11,786
Total shareholders’ equity 4,725
Dividends 82
Net income (loss) 1,264
Retained earnings, December 31, 2015 4,570
What did Goodyear report for retained earnings at December 31, 2016?
A) $5,907 million
B) $5,752 million
C) $5,916 million
D) $5,834 million
E) There is not enough information to determine the answer.
1
, February 10, 2022
5. On October 2, 2016 Starbucks Corporation reported, on its Form 10-K, the following (in millions):
Total assets $14,329.5
Total stockholders’ equity 5,890.7
Total current liabilities 4,546.9
What did Starbucks report as total liabilities on October 2, 2016?
A) $ 12,516.7 million
B) $ 6,377.3 million
C) $ 995.0 million
D) $ 8,438.8 million
E) None of the above
6. In its 2016 annual report, Kohl’s Corporation reported the following (in millions):
Total assets $13,574
Total shareholders’ equity $ 5,177
Total liabilities $ 8,397
What proportion of Kohl’s Corporation is financed by nonowners?
A) 61.9%
B) 44.2%
C) 53.5%
D) 77.0%
E) None of the above
7. The Goodyear Tire & Rubber Company’s December 31, 2016 financial statements reported the
following (in millions)
Sales $15,158
Cost of sales $10,972
Other expenses (excluding cost of sales) $ 2,902
What did Goodyear report for net income for the year ending December 31, 2016?
A) $ 29,032 million
B) $ 1,284 million
C) $ 4,186 million
D) $ 13,874 million
E) $ 8,070 million
8. Intel Corporation reported the following on its 2016 income statement (in millions)
Sales revenue $59,387
Gross profit $36,191
Total expenses $23,317
What did Intel report for cost of goods sold during 2016?
A) $ 23,196 million
B) $ 15,502 million
C) $ 36,478 million
D) $ 12,874 million
E) None of the above
2
