WGU C708 Principles of Finance | Pre-Assessment Questions & Answers Study Guide

WGU Principles of Finance
C708 Pre-Assessment Questions And 100% Correct Answers



1. A company has fixed assets of $509 million, total equity of $218

million,current liabilities of $128 million, and long-term debt of

$390 million. What is the total for the company's current assets?

a.) $262

million

b.) $119

million

c.) $128

million

d.) $227 million: $227 million

2. A company has just reported sales of $557 million, costs of goods

sold of $150 million, depreciation of $190 million and interest

expense of $40.2million.

What is the company's net income if the tax rate is 35%? (Round your

answerto the nearest decimal place.)



,a.) $407.0

million

b.) $217.0

million

c.) $114.9

million

d.) $187.6 million: $114.9 million

3. Which item from a company's financial statement is

considered anon-cash item?



a. )

Interest

b. )

Taxes

c. Utiliti

es

d.) Intangibles: d.

4. With the accompanying information on page 4, what is the cash



,flow fromfinancing?



a.) $185,000

b.) ($19,000)

c.) ($17,000)

d.) $194,000: $185,000

5. With the accompanying information on page 5, what is the cash flow

frominvesting in millions?



a.)

($1,430)

b.) $1,430






, c.) ($1,039)

d.) $1,039: ($1,430)

6. With the accompanying information on page 6, what is the correct

timesinterest earned?



a.) 1.50

b.) 2.05

c.) 2.91

d.) 3.59

e.) 6.99: 6.99

7. Match the following ratios with the appropriate ratio formulas.



Average collection period, fixed asset turnover, return on equity,

inventoryturnover, and quick ratio.



a.) Sales/Fixed assets, COGS/Inventory, AR/Daily credit sales, Net

income/To-tal equity, and (Current assets - Inventory)/Current

liabilities