WGU C214 Finance Exam Questions and Answers All Correct

WGU C214 Finance Exam Questions and Answers All Correct Current Ratio - ANSWER =Current Assets/Current Liabilities Quick Ratio - ANSWER = (Current Assets - Inventory) / Current Liabilities Accounts Receivable (AR) Turnover - ANSWER = Credit Sales / AR Average Collection Period (ACP) - ANSWER = 365 / AR Turnover Net Working Capital to Total Asset Ratio - ANSWER =Current Assets-Current Liabilities/Total Assets Days on Hand (DOH) - ANSWER = 365 / Inventory Turnover Liquidity - ANSWER Measure of the firm's ability to meet its short term obligations CFO - ANSWER = Net Income + depreciation expense CFF - ANSWER = change in equity + change in debt - dividends Change in retained earnings - ANSWER = Net Income - Dividends CFI - ANSWER = Change in Net PP&E + Depreciation Expense CFI - ANSWER = Gross PP&E (end) - Gross PP&E (begin) NOPAT - ANSWER Net Operating Profit After Taxes FCFF (Free Cash Flow to the Firm) - ANSWER = EBIT (1-tax rate) + Depreciation - CAPEX - Increases in NWC