WGU C214 OA Financial Management Retake Exam Latest Questions and Answers (2025 / 2026) (Verified Answers)

WGU C214 OA Financial Management Retake
Exam Latest Questions and Answers ()
(Verified Answers)

1. Whatdoes theForeignCorruptPractices Actforbid U.S.companies to
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do?
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Prohibits U.S. firms and individuals from paying bribes to foreign officials to further business deals.
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2. What are two basic types of financial instruments?
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Stocks and Bonds r r




3. What are secondary markets? r r r




Secondaryfinancialmarketsarewheresecurities aretradedaftertheinitial offering.
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4. What do cash flows from operating activities report?
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Operating –day todayoperations r r r r r




Investing–Property,plant,equipment,longtermitems
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r Financing – debt and equity changes r r r r r




5. What does the statement of cash flows report?
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Cashinflowandcashoutflowofbusinessforperiodoftime
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6. Writethe equation that links the income statement to the balance sheet?
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NewRe=Old RE+NetIncome– dividends
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7.
Netincome
r 2,000
Depreciation 500
Changeinoperatingassetsr r r 400
ChangeinPPE r r 1,000
Changeonlongtermliabilities
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,Dividendspaid r 100

What is the firm’s cash flow from financing activities? CFF
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Increase in debt 600 + (no change in stock) 0 – (dividends paid) 100 = 500
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8. Describe an income statement? r r r




Anincomestatementisafinancialstatementthatshowsyouhowprofitable your businesswasover a given
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reporting period. It shows your revenue, minus your expenses and losses
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, 9. What item is included in the income statement and not included in the
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statement of cash flows.
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Depreciation

10. A company sold goods in 2016 for $30,000 and collected the cash in 2017. In 2016, the
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company incurred and paid $20,000 in expenses related to the goods sold. Howmuch
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income should the company report in 2016 under the accrual basis of accounting?
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30,000-20,000=$10,000 r




11. 11.
EBIT: $1,000,000 r




Depreciation: $30,000 r




Changein working capital($5,000) r r




Net capital expenditures: $10,000
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Tax rate: 40%
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What is the company’s free cash flow?
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1,000,000*(1-.40)+30,000)–(-5,000)–10,000= 625,000 r r r r r r r r




12. Define Free Cash Flow? r r r




Represents thecashavailablefor thecompanytorepaycreditorsor paydividends andinterestto investor r r r r r r r r r r r r r r r r




13. A company reported an increase in accounts payable of $4,000 during the recent
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period. Half of this amount is expected to be paid next period. What is the impact on the
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cash flow from operating activities?
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Increaseof$4000 r r




14. An architect will receive $10,000 per year (at the end of the year) PMT for 10 years. The
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annual interest earned on the investment is 6%. What is the present value of the architect’s
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investment?
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10,000PMT(attheendof eachyear) 6 I/Y r r r r r r r r r




10 N r




CPTPV =-7360008705 r r r




15. An employee wants to retire 20 years from today and would like to have an annual income
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rof $300,000 per year for 10 years starting in exactly 20 years. The discount rate is 6%. What
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is the present value, today?
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