C214 Financial Management WGU (COMPLETE ANSWERS) Semester 1 2024 - DUE 21 February 2024

C214 Financial Management WGU (COMPLETE ANSWERS) Semester 1 2024 - DUE 21 February 2024 Trading on the NYSE is executed without a specialist T or F - ANSWER False What are 2 types of financial instruments - ANSWER Stocks and BondsM When revenue is matched with cost of sales in an income statement it is called? - ANSWER matching principle A high quality customer just purchased $500,000 worth of product from your company. The contract calls for immediate delivery of this product with a cash payment of $300,000 today and $200,000 in the next 60 days. The expense associated with the product if $300,000, of which $100, has not been paid to your supplier. Under the accrual based accounting system you will most likely report Revenues of ___________________________Expenses of _______________________________ - ANSWER Revenue $500,000, Expenses of 300,000 A firm reported retained earnings of $300 12/31/2021. For 12/31/2021, the firm reports retained earnings of $400 and pays dividends of $25. What was the net income in 2023? - ANSWER Beg RE 300, NI = 125, Div -25, RE 400. A basic equation of the balance sheet is - ANSWER Assets = equity - liabilities Sales minus cost of sales minus other expenses equals what? - ANSWER Operating income or EBIT What is the balance sheet known as a permanent statement? - ANSWER Because the other statements are reset at the end of the year. How do you calculated the change in retained earning? - ANSWER Net income - dividends name four accounts that are a part of total assets - ANSWER cash accounts receivable, inventory, long term assets. Sales misnus cost of sales minuss other expenses equals what? - ANSWER Operating Income or EBIT Name 3 accounts that are part of current assets? - ANSWER Inventory, Cash, accounts receivables, short term investments name 4 accounts that re part of total liabilities - ANSWER Bonds, accounts payable, mortgage Intel reported the following for 2014: Net Income 100,000 Depreciation 20,000 Change in A/R 10,000 What is the cash flow from operating activities? - ANSWER 100 + 20 - 10 = 110 name 3 accounts that are only included in Cash Flow from Financing CFF - ANSWER Common stock, dividends paid, bonds payable Define the statement of cash flows - ANSWER calculated for the same period of time as the Income Statement is calculated based on the Income Statement and the changes in the balance sheet is one of the 3 basic accounting statements