WGU C214 OA Financial Management Retake Exam
Latest Questions and Answers ()
(Verified Answers)
1. What does the Foreign Corrupt Practices 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.
. 1 , . 1 , . 1 , . 1 , . 1 , . 1 , . 1 , . 1 , . 1 , . 1 , . 1 , . 1 , . 1 , . 1 ,
2. What are two basic types of financial instruments?
. 1 , . 1 , . 1 , . 1 , . 1 , . 1 , . 1 ,
Stocks and Bonds . 1 , . 1 ,
3. What are secondary markets? . 1 , . 1 , . 1 ,
Secondaryfinancialmarketsare wheresecurities aretradedaftertheinitial offering. .1, .1, .1, .1, .1, .1, .1, .1, .1, .1, .1,
4. What do cash flows from operating activities report?
. 1 , . 1 , . 1 , . 1 , .1 , . 1 , . 1 ,
Operating –day to day operations .1, .1, .1, .1, .1,
Investing–Property,plant,equipment,longtermitems ,
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.1 ,
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Financing – debt and equity changes
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5. What does the statement of cash flows report?
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Cashinflowandcashoutflowofbusinessforperiodoftime
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.1 ,
.1 .1, ,
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6. Write the equation that .1 , . 1 , . 1 , . 1 , links the income statement to the balance sheet? . 1 , . 1 , . 1 , . 1 , . 1 , . 1 , .1 ,
New Re= Old RE + NetIncome– dividends
.1 , .1, .1 , .1, .1, .1, .1, .1,
7.
Net income
.1, 2,000
Depreciation 500
Changeinoperatingassets ,
.1 ,
.1 ,
.1 400
ChangeinPPE .1, ,
.1 1,000
Changeonlongtermliabilities ,
.1 ,
.1 .1
, .1, 600
,Dividends paid .1, 100
What is the firm’s cash flow from financing activities? CFF
. 1 , .1 , . 1 , . 1 , . 1 , .1 , . 1, .1 , . 1 ,
Increase . 1 , in debt . 1 , . 1 , 600 . 1 , + (no . 1 , . 1 , change . 1 , in stock)
. 1 , . 1 , 0 – (dividends
. 1 , . 1 , . 1 , paid) . 1 , 100 = . 1 ,
.500 1 ,
8. Describe . 1 , an income statement?
. 1 , . 1 ,
Anincomestatementis afinancial statementthatshows you howprofitable your businesswas over a given
.1, .1, .1, .1, .1, .1 , .1, .1, .1, .1 , .1, .1 , .1, .1, .1, .1, .1,
reporting period. It shows your revenue, minus your expenses and losses
.1, .1, .1, .1, .1, .1, .1, .1, .1 , .1, .1 ,
, 9. What item is included in the income statement and not included in the .1, . 1 , .1 , . 1 , .1 , .1, .1 , . 1 , .1, .1, . 1 , .1,
statement of cash flows.
.1, . 1 , .1, . 1 ,
Depreciation
10. A company sold goods in 2016 for $30,000 and collected the cash in 2017. In 2016, the
.1, .1, .1, .1, .1, .1, .1, .1, .1, .1, .1, .1 , .1, .1, .1, .1,
company incurred and paid $20,000 in expenses related to the goods sold. How
.1, .1, . 1 , .1, .1, . 1 , .1 , . 1 , . 1 , .1, .1, .1 , .1,
much income should the company report in 2016 under the accrual basis of accounting?
.1, .1, .1 , .1, .1, .1, .1, .1, .1, .1, .1, .1, . 1 , .1,
30,000-20,000= $10,000 .1,
11. 11.
EBIT: $1,000,000 . 1 ,
Depreciation: $30,000 . 1 ,
Changein working capital($5,000) .1, .1,
Net capital expenditures: $10,000
.1, .1, .1, .1,
Tax rate: 40%
.1, .1 , .1 ,
What is the company’s free cash flow?
. 1 , .1 , . 1 , . 1 , . 1 , . 1 ,
1,000,000*(1-.40)+30,000)–(-5,000)–10,000= 625,000 ,
.1 .1
, ,
.1 .1, ,
.1 .1, .1, .1,
12. Define Free Cash Flow? . 1 , . 1 , . 1 ,
Represents thecashavailablefor the company torepay creditors or paydividends and interestto investor .1, .1, .1, .1, .1, .1, .1, .1, .1, .1, .1 , .1, .1, .1, .1, .1,
13. A company reported an increase in accounts payable of $4,000 during the recent
.1, .1, .1, .1, .1, .1, .1, .1, .1, .1, .1 , .1,
period. Half of this amount is expected to be paid next period. What is the impact on the
.1, .1, .1 , .1 , .1, .1, .1, .1, .1, .1, .1, .1, .1, .1, .1, .1, .1, .1,
cash flow from operating activities?
.1, .1, .1, .1, .1,
Increase of $4000 .1, .1,
14. An architect will receive $10,000 per year (at the end of the year) PMT for 10
.1, .1, .1, . 1 , . 1 , .1, . 1 , .1 , . 1 , . 1 , .1, . 1 , .1, . 1 , . 1 ,
years. The annual interest earned on the investment is 6%. What is the present value of
.1, .1, .1, .1, .1, .1, .1 , .1, . 1 , .1, .1, .1, .1, .1 , .1, . 1 ,
the architect’s investment?
.1, .1, .1,
10,000PMT(at theend of each year) 6 .1, .1, .1, .1, .1 , .1 , .1 , .1,
I/Y
.1,
10 N .1,
CPT PV = -7360008705 .1 , .1 , .1 ,
15. An employee wants to retire 20 years from today and would like to have an annual
.1, .1, .1, .1, .1, .1, .1, .1, .1 , .1, .1, .1, .1, .1, .1,
income of $300,000 per year for 10 years starting in exactly 20 years. The discount
.1, . 1 , .1, . 1 , . 1 , . 1 , . 1 , .1, .1, . 1 , .1, . 1 , .1, . 1 , .1,
rate is 6%. What is the present value, today?
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Latest Questions and Answers ()
(Verified Answers)
1. What does the Foreign Corrupt Practices Actforbid U.S. companies to
.1, .1, .1, .1 , .1, .1, .1, . 1 , .1, .1,
do?
.1,
Prohibits U.S. firms and individuals from paying bribes to foreign officials to further business deals.
. 1 , . 1 , . 1 , . 1 , . 1 , . 1 , . 1 , . 1 , . 1 , . 1 , . 1 , . 1 , . 1 , . 1 ,
2. What are two basic types of financial instruments?
. 1 , . 1 , . 1 , . 1 , . 1 , . 1 , . 1 ,
Stocks and Bonds . 1 , . 1 ,
3. What are secondary markets? . 1 , . 1 , . 1 ,
Secondaryfinancialmarketsare wheresecurities aretradedaftertheinitial offering. .1, .1, .1, .1, .1, .1, .1, .1, .1, .1, .1,
4. What do cash flows from operating activities report?
. 1 , . 1 , . 1 , . 1 , .1 , . 1 , . 1 ,
Operating –day to day operations .1, .1, .1, .1, .1,
Investing–Property,plant,equipment,longtermitems ,
.1 ,
.1 ,
.1 ,
.1 ,
.1 ,
.1 ,
.1
Financing – debt and equity changes
.1, .1 , .1, .1, .1, .1,
5. What does the statement of cash flows report?
. 1 , . 1 , . 1 , . 1 , . 1 , . 1 , . 1 ,
Cashinflowandcashoutflowofbusinessforperiodoftime
.1, .1, .1, ,
.1 ,
.1 ,
.1 ,
.1 ,
.1 .1, ,
.1
6. Write the equation that .1 , . 1 , . 1 , . 1 , links the income statement to the balance sheet? . 1 , . 1 , . 1 , . 1 , . 1 , . 1 , .1 ,
New Re= Old RE + NetIncome– dividends
.1 , .1, .1 , .1, .1, .1, .1, .1,
7.
Net income
.1, 2,000
Depreciation 500
Changeinoperatingassets ,
.1 ,
.1 ,
.1 400
ChangeinPPE .1, ,
.1 1,000
Changeonlongtermliabilities ,
.1 ,
.1 .1
, .1, 600
,Dividends paid .1, 100
What is the firm’s cash flow from financing activities? CFF
. 1 , .1 , . 1 , . 1 , . 1 , .1 , . 1, .1 , . 1 ,
Increase . 1 , in debt . 1 , . 1 , 600 . 1 , + (no . 1 , . 1 , change . 1 , in stock)
. 1 , . 1 , 0 – (dividends
. 1 , . 1 , . 1 , paid) . 1 , 100 = . 1 ,
.500 1 ,
8. Describe . 1 , an income statement?
. 1 , . 1 ,
Anincomestatementis afinancial statementthatshows you howprofitable your businesswas over a given
.1, .1, .1, .1, .1, .1 , .1, .1, .1, .1 , .1, .1 , .1, .1, .1, .1, .1,
reporting period. It shows your revenue, minus your expenses and losses
.1, .1, .1, .1, .1, .1, .1, .1, .1 , .1, .1 ,
, 9. What item is included in the income statement and not included in the .1, . 1 , .1 , . 1 , .1 , .1, .1 , . 1 , .1, .1, . 1 , .1,
statement of cash flows.
.1, . 1 , .1, . 1 ,
Depreciation
10. A company sold goods in 2016 for $30,000 and collected the cash in 2017. In 2016, the
.1, .1, .1, .1, .1, .1, .1, .1, .1, .1, .1, .1 , .1, .1, .1, .1,
company incurred and paid $20,000 in expenses related to the goods sold. How
.1, .1, . 1 , .1, .1, . 1 , .1 , . 1 , . 1 , .1, .1, .1 , .1,
much income should the company report in 2016 under the accrual basis of accounting?
.1, .1, .1 , .1, .1, .1, .1, .1, .1, .1, .1, .1, . 1 , .1,
30,000-20,000= $10,000 .1,
11. 11.
EBIT: $1,000,000 . 1 ,
Depreciation: $30,000 . 1 ,
Changein working capital($5,000) .1, .1,
Net capital expenditures: $10,000
.1, .1, .1, .1,
Tax rate: 40%
.1, .1 , .1 ,
What is the company’s free cash flow?
. 1 , .1 , . 1 , . 1 , . 1 , . 1 ,
1,000,000*(1-.40)+30,000)–(-5,000)–10,000= 625,000 ,
.1 .1
, ,
.1 .1, ,
.1 .1, .1, .1,
12. Define Free Cash Flow? . 1 , . 1 , . 1 ,
Represents thecashavailablefor the company torepay creditors or paydividends and interestto investor .1, .1, .1, .1, .1, .1, .1, .1, .1, .1, .1 , .1, .1, .1, .1, .1,
13. A company reported an increase in accounts payable of $4,000 during the recent
.1, .1, .1, .1, .1, .1, .1, .1, .1, .1, .1 , .1,
period. Half of this amount is expected to be paid next period. What is the impact on the
.1, .1, .1 , .1 , .1, .1, .1, .1, .1, .1, .1, .1, .1, .1, .1, .1, .1, .1,
cash flow from operating activities?
.1, .1, .1, .1, .1,
Increase of $4000 .1, .1,
14. An architect will receive $10,000 per year (at the end of the year) PMT for 10
.1, .1, .1, . 1 , . 1 , .1, . 1 , .1 , . 1 , . 1 , .1, . 1 , .1, . 1 , . 1 ,
years. The annual interest earned on the investment is 6%. What is the present value of
.1, .1, .1, .1, .1, .1, .1 , .1, . 1 , .1, .1, .1, .1, .1 , .1, . 1 ,
the architect’s investment?
.1, .1, .1,
10,000PMT(at theend of each year) 6 .1, .1, .1, .1, .1 , .1 , .1 , .1,
I/Y
.1,
10 N .1,
CPT PV = -7360008705 .1 , .1 , .1 ,
15. An employee wants to retire 20 years from today and would like to have an annual
.1, .1, .1, .1, .1, .1, .1, .1, .1 , .1, .1, .1, .1, .1, .1,
income of $300,000 per year for 10 years starting in exactly 20 years. The discount
.1, . 1 , .1, . 1 , . 1 , . 1 , . 1 , .1, .1, . 1 , .1, . 1 , .1, . 1 , .1,
rate is 6%. What is the present value, today?
.1, .1, .1, .1 , .1, .1, .1, .1, .1,
