Professional Documents
Culture Documents
Sba Midterm Merged Reviewer
Sba Midterm Merged Reviewer
S sales grow by 25%% and all assets grow proportionally with sales. The
company normally pays out 50% of their projected net income as dividends
however in order to encourage new investors the pay out dividend will be
increased to sixty percent. If the forecast will materialize, what will be the
company’s additional funds needed?
a. 21.68
b. 99.65
c. 133.06
d. 121.88
2. S Enterprises
Balance Sheet
Current Assets P400 Accounts Payable P145
Fixed Assets 500 Long-term Debt 455
Equity 300
Total P900 Total 900
8. S Enterprises
Balance Sheet :
Current Assets P400 Accounts Payable P145
Fixed Assets 500 Long-term Debt 455
Equity 300
Total P900 Total 900
Company sales grow by 25% ad all assets grow proportionally with sales.
If S pays out 25% of their projected net income as dividends, the profit
margin will bring the additional fund needed to zero is near to?
a. 45
b. 40
c. 52
d. 55
e. 84
9. S Enterprises
Balance Sheet :
Current Assets P400 Accounts Payable P145
Fixed Assets 500 Long-term Debt 455
Equity 300
Total P900 Total 900
10. If sales are expected to grow at 15% what are S’ retained earnings next
year? Assume a constant profit margin and a dividend payout of 50%
a. 123.05
b. 246.10
c. 213.99
d. 102.47
11. S Enterprises
Balance Sheet :
Current Assets P400 Accounts Payable P145
Fixed Assets 500 Long-term Debt 455
Equity 300
Total P900 Total 900
Using the percentage of sales method what will be S net income if sales are
expected to increase by 25%
a. 222.75
b. 562.50
c. 225.00
d. 537.50
Chapter 15—Financial Planning
MULTIPLE CHOICE
3. The statement of the firm’s planned inflows and outflows of cash is called
a(n)
a. income statement
b. balance sheet
c. cash budget
d. none of the above
ANS: C PTS: 1 DIF: E REF: 15.3 Planning and
Control
NAT: Reflective thinking
LOC: acquire knowledge of financial analysis and cash flows
4. The growth rate at which a company can grow without issuing new shares of
common stock while maintaining a constant total asset turnover and equity multiplier is
called a(n)
a. internal growth rate
b. sustainable growth rate
c. optimal growth rate
d. maximal growth rate
ANS: B PTS: 1 DIF: E REF: 15.2 Planning for
Growth
NAT: Reflective thinking
LOC: acquire knowledge of financial analysis and cash flows
5. The method in which pro forma statements are constructed by assuring that
all items grow in proportion to sales is called the
a. percentage of sales method
b. common size method
c. sales dilution method
d. sales receipt method
ANS: A PTS: 1 DIF: E REF: 15.2 Planning for
Growth
NAT: Reflective thinking
LOC: acquire knowledge of financial analysis and cash flows
NARRBEGIN: EFN 1
Smith Enterprises
Balance Sheet
Current Assets $400 Accounts Payable $145
Fixed Assets 500 Long-term Debt 455
Equity 300
Total $900 Total 900
NARREND
6. Using the percentage of sales method what will be Smith’s net income if sales
are expected to increase by 25%?
a. $222.75
b. $562.50
c. $225.00
d. $337.50
ANS: A
new sales = 562.50
new costs = 562.50(180/450) = 225
taxable income = 337.50
taxes = 114.75
new net income = 222.75
7. If Smith pays out 25% of their projected net income as dividends, what will
be the company’s addition to retained earnings, if sales grow by 25% and all items on the
income statement grow proportionally with sales?
a. $222.75
b. $55.68
c. $167.07
d. $107.25
ANS: C
new net income: 222.75
add. to R/E = 222.75(1-.25) = 167.07
8. What is Smith’s sustainable growth rate if the company has a dividend payout
ratio of 75%?
a. 21.70%
b. 25.00%
c. 17.44%
d. 13.58%
ANS: C
m = 178/450 = .396
g = [.396(1-.75)900/300]/[(900/450)-.396(1-.75)900/300]
g = .1744
9. If Smith pays out 75% of net income as dividends and sales are expected to
grow by 25%, what are the external funds required?
a. $133.06
b. $66.88
c. $121.88
d. $225.58
ANS: A
DS = 450(.25) = 112.50
EFR = (900/450)112.50 - (145/450)112.50 - (.396)450(1+.25)(1-.75)
EFR = 133.06
10. If sales are expected to grow at 15% what are Smith’s retained earnings next
year? Assume a constant profit margin and a dividend payout ratio of 50%.
a. $123.05
b. $246.10
c. $213.99
d. $102.47
ANS: D
m =178/450 = .396
R/E = 450(.396)(1+.15)(1-.5) = 102.47
All of Bavarian Brew’s sales are credit sales. The company collects 60% of its sales in the
next month and the remainder in the month after that.
NARREND
12. What is the value of Bavarian Brew's receivables account at the end of
February?
a. $1074
b. $306
c. $204
d. $348
ANS: A
.4(510) + 870 = 1074
14. What is the value of Bavarian Brew's receivables at the end of April?
a. $780
b. $180
c. $600
d. $270
ANS: A
600 + 180 = 780
The company’s purchases are 75% of its sales. Of those purchases 15% are paid in cash, 50%
are paid in the following month and the remainder in the month after that. The company’s
wages and salaries equal 15% of sales each month plus $50. Taxes of $125 are due in April.
The company is going to purchase new machinery worth $1000 in March and pay 50% right
away and the rest in April. In addition, the company will pay a $175 dividend in February.
NARREND
16. What are the cash disbursements for February? Assume Bavarian Brew had
sales of $490 in December.
a. $598.25
b. $773.25
c. $548.25
d. $419.65
ANS: B
.75(870)(.15) + 510(.75)(.5) + 490(.75)(.35) + 50 + 870(.15) + 175 = 773.25
17. What is the value of the Bavarian Brew’s accounts payable at the end of
February? Assume the company had sales of $490 in December.
a. $688.50
b. $738.50
c. $638.50
d. $869.00
ANS: A
510(.75)(.35) + 870(.75)(.85) = 688.50
19. What is the value of Bavarian Brew's accounts payable at the end of April?
a. $346.63
b. $500.63
c. $1,000.63
d. $754.63
a. $346.63
b. $500.63
c. $1,000.63
d. $754.63
ANS: B
600(.75)(.85) + 450(.75)(.35) = 500.63
20. What is the value of Bavarian Brew's accounts payable at the end of March?
a. $515.25
b. $755.25
c. $1,515.25
d. $1,015.25
ANS: D
450(.75)(.85) + 870(.75)(.35) + 1000(.5) = 1,015.25
All of Bavarian Brew’s sales are credit sales. The company collects 60% of its sales in the
next month and the remainder in the month after that.
The company’s purchases are 75% of its sales. Of those purchases 15% are paid in cash, 50%
are paid in the following month and the remainder in the month after that. The company’s
wages and salaries equal 15% of sales each month plus $50. Taxes of $125 are due in April.
The company is going to purchase new machinery worth $1000 in March and pay 50% right
away and the rest in April. In addition, the company will pay a $175 dividend in February.
NARREND
22. If Bavarian Brew starts the year with a cash balance of $500, what is the cash
balance at the end of January? Assume that December sales were $450 and November sales
were $550.
a. $483
b. $493
c. $497
d. $500
ANS: B
in: (.4)550 + (.6)450 = 490
out: (.35)(.75)(550) + (.5)(.75)(450) + (.15)(.75)(510) + 50 + (.15)(510) = 497
cash balance: 500+490-497 =493
24. If the cash balance at the beginning of March is $250, what is Bavarian
Brew's cash balance at the end of the month?
a. $250
b. -$152.25
c. $652.25
d. -$652.25
ANS: A
in: 726
out: 1128.25
cash balance: 250 + 726 - 1128.25 = -152.25
25. Due to a change in economic conditions Bavarian Brew will only be able to
collect 40% of its March sales in April. What is company’s cash net cash flow in April as a
result of this change?
a. $528
b. $1229.63
c. -$701.63
d. $701.63
ANS: C
in .4(870) + .4(450) = 528
out: (.35)(.75)(870) + (.5)(.75)(450) + (.15)(.75)(600) + 50 + (.15)(600) + 125 + (.5)(1000)
= 1229.63
net 528-1229.63 = -701.63
26. Which of the following most likely is not a question asked in long-term
financial planning?
a. What threats to our current business exist?
b. What is (are) our core competency(ies)?
c. Can we do better by leaving markets (selling assets) and
investing elsewhere?
d. Should we acquire new vending machines for the employees’
breakrooms?
ANS: D PTS: 1 DIF: E
REF: 15.1 Overview of the Planning Process NAT: Reflective thinking
LOC: acquire knowledge of financial analysis and cash flows
28. The rate at which a firm can grow without issuing any new shares of stock
while keeping its dividend policy, financial policy, and profitability constant is the
a. optimal growth rate
b. marginal growth rate
c. sustainable growth rate
d. theoretical growth rate
ANS: C PTS: 1 DIF: E REF: 15.2 Planning for
Growth
NAT: Reflective thinking
LOC: acquire knowledge of financial analysis and cash flows
29. Suppose a firm forecasts sales growth larger than its sustainable growth rate,
but plans to add fewer assets than the current asset to sales ratio implies. If other aspects of
the firm’s performance remain constant, the pro forma external funds required (EFR)
a. will likely be larger than the sustainable growth rate implies.
b. will likely be smaller than the sustainable growth rate implies.
c. will likely be the same as the sustainable growth rate implies.
d. cannot be determined from this information.
ANS: B PTS: 1 DIF: M REF: 15.2 Planning for
Growth
NAT: Reflective thinking
LOC: acquire knowledge of financial analysis and cash flows
32. DigIt! Corporation has the following financial information: its profit margin
is 10%, its total asset turnover is 1.75, its assets to equity ratio is 1.5, and it pays out 35% of
its earnings in dividends. What is its sustainable growth rate?
a. 22.10%
b. 20.57%
c. 9.75%
d. 47.39%
ANS: B PTS: 1 DIF: E REF: 15.2 Planning for
Growth
NAT: Analytic skills
LOC: acquire knowledge of financial analysis and cash flows
33. DigIt! Corporation has the following financial characteristics: its profit
margin is 10%, its total asset turnover is 1.75, its asset to equity ratio is 1.5 and its sustainable
growth rate is 20.6%. What dividend payout ratio is consistent with these values?
a. 45%
b. 55%
c. 65%
d. 35%
ANS: D PTS: 1 DIF: M REF: 15.2 Planning for
Growth
NAT: Analytic skills
LOC: acquire knowledge of financial analysis and cash flows
34. Big Deal, Inc. wants to grow 30% next year. If it maintains its 40% dividend
payout ratio, liabilities to equity ratio of 1, and total asset turnover of 2, what must its profit
margin be to achieve this growth?
a. 9.6%
b. 25.8%
c. 38.5%
d. 51.2%
ANS: A PTS: 1 DIF: M REF: 15.2 Planning for
Growth
NAT: Analytic skills
LOC: acquire knowledge of financial analysis and cash flows
35. If a company has a liabilities to equity ratio of 0.5, then its assets to equity
ratio is
a. 0.5
b. 1.0
c. 1.5
d. 2.0
ANS: C PTS: 1 DIF: M REF: 15.2 Planning for
Growth
NAT: Analytic skills
LOC: acquire knowledge of financial analysis and cash flows
36. MoMoney Co. wants to increase its sustainable growth rate to 10%. If it
maintains its 15% profit margin, 25% retention ratio, and 0.25 liabilities to equity ratio, what
must its total asset turnover value be?
a. 0.42
b. 0.65
c. 1.94
d. 2.37
ANS: C PTS: 1 DIF: H REF: 15.2 Planning for
Growth
NAT: Analytic skills
LOC: acquire knowledge of financial analysis and cash flows
NARRBEGIN: Kooshy
Kooshy Company
Income Statement
December 31, 2005
($ 000,000)
Sales 800.0
Cost of Goods Sold 576.0
Depreciation 55.0
Operating Expenses 88.0
Other Expenses 4.8
EBIT 76.2
Interest Expense 6.9
EBT 69.3
Taxes (40%) 27.7
Net Income 41.6
Dividends 4.16
Balance Sheet
December 31, 2005
($ 000,000)
Cash 10.0 Accounts Payable 63.0
Accounts Receivable 81.0 Notes Payable 42.0
Inventory 69.0 Total Current Liabilities 105.0
Total Current Assets 160.0 Long-term Debt 80.0
Net Fixed Assets 275.0 Owners’ Equity 250.0
Total Assets 435.0 Total Liabilities and Equity 435.0
NARREND
37. If Kooshy Company forecasts a 20% sales increase, what will its pro forma
cost of goods sold be, assuming it remains at the same percent of sales?
a. $576
b. $635
c. $691
d. $720
ANS: C PTS: 1 DIF: E REF: 15.2 Planning for
Growth
NAT: Analytic skills
LOC: acquire knowledge of financial analysis and cash flows
38. Suppose Kooshy wishes to maintain a minimum $10 million cash balance,
accounts receivable are forecast to be 15% of sales, and inventory is expected to be 12% of
forecast sales. Also, the firm plans to add $35 million to fixed assets (depreciate the
additional assets over seven years). What is the pro forma level of total assets if sales are
forecasted to increase 20%?
a. $487
b. $435
c. $519
d. $615
ANS: C PTS: 1 DIF: H REF: 15.2 Planning for
Growth
NAT: Analytic skills
LOC: acquire knowledge of financial analysis and cash flows
39. Refer to Kooshy. Suppose pro forma net income is $50 and pro forma total
assets are $525. If accounts payable maintain the same percent of sales, no new long term
debt is issued, and the only addition to owners’ equity is to retained earnings, what will be
the pro forma balance in notes payable for a forecasted 20% increase in sales? (That is, use
notes payable as the balancing account.)
a. $39
b. $74
c. $83
d. $4
ANS: B PTS: 1 DIF: H REF: 15.2 Planning for
Growth
NAT: Analytic skills
LOC: acquire knowledge of financial analysis and cash flows
40. Kooshy Company wishes to maintain its dividend policy in the upcoming
year. What will be the pro forma addition to retained earnings if sales are forecasted to
increase 20% and all costs are proportional to sales?
a. $5
b. $37
c. $50
d. $45
ANS: D PTS: 1 DIF: M REF: 15.2 Planning for
Growth
NAT: Analytic skills
LOC: acquire knowledge of financial analysis and cash flows
41. Using ratios derived from the income statement and balance sheet above,
what is Kooshy Company’s sustainable growth rate?
a. 10.6%
b. 17.7%
c. 20.00%
d. 8.1%
ANS: B PTS: 1 DIF: M REF: 15.2 Planning for
Growth
NAT: Analytic skills
LOC: acquire knowledge of financial analysis and cash flows
42. Using ratios derived from the income statement and balance sheet above,
what is Kooshy Company’s “shorthand” estimate of external funds required (EFR) for a 20%
increase in sales?
a. -$4
b. $0
c. $29
d. $160
ANS: C PTS: 1 DIF: M REF: 15.2 Planning for
Growth
NAT: Analytic skills
LOC: acquire knowledge of financial analysis and cash flows
Purchases are made at 60% of the next month’s sales forecast, and are paid for in the month
of purchase. Other cash outlays are: rent, $10 monthly; wages and salaries, $50 monthly; a
tax payment of $30 in March; an interest payment of $15 in March; and a planned purchase
of $20 of new fixed assets in January.
NARREND
43. Refer to Silly Sally, Inc. What is the forecasted amount to be collected from
cash sales in March?
a. $450
b. $360
c. $261
d. $180
ANS: D PTS: 1 DIF: M REF: 15.3 Planning and
Control
NAT: Analytic skills
LOC: acquire knowledge of financial analysis and cash flows
44. Refer to Silly Sally, Inc. What are forecasted total cash collection for January?
a. $420
b. $442
c. $168
d. $240
ANS: B PTS: 1 DIF: M REF: 15.3 Planning and
Control
NAT: Analytic skills
LOC: acquire knowledge of financial analysis and cash flows
45. Suppose Silly Sally, Inc. forecasts an ending cash balance of $20, its
minimum desired balance, in January. If February’s forecasted cash expenditures are $400,
which of the following describes the changes to Silly Sally’s cash balance and level of
borrowing, if any, related to its minimum cash balance, at the end of February?
a. net cash flows of $21; borrowing will increase $21
b. net cash flows of $21; borrowing will decrease $21
c. net cash flows of $11; borrowing will increase $9
d. net cash flows of $11; borrowing will decrease $9
ANS: B PTS: 1 DIF: M REF: 15.3 Planning and
Control
NAT: Analytic skills
LOC: acquire knowledge of financial analysis and cash flows
46. What are Silly Sally’s forecasted cash outflows for February?
a. $270
b. $330
c. $395
d. $450
ANS: B PTS: 1 DIF: M REF: 15.3 Planning and
Control
NAT: Analytic skills
LOC: acquire knowledge of financial analysis and cash flows
50. Consider the following information for Smart Products: total assets=$1000;
sales=$1540; net profit margin=12%; dividend payout ratio=40%; equity=$555. What is
Smart Products’ sustainable growth rate?
a. 7%
b. 13%
c. 25%
d. 52%
ANS: C PTS: 1 DIF: M REF: 15.2 Planning for
Growth
NAT: Analytic skills
LOC: acquire knowledge of financial analysis and cash flows
52. Which of the following make(s) the planning process more complex than
simply accepting all projects that look promising?
a. limits on capital
b. limits on production capacity
c. limits on human resources
d. all of the above
ANS: D PTS: 1 DIF: E REF: Introduction
NAT: Reflective thinking
LOC: acquire knowledge of financial analysis and cash flows
53. With regard to planning, the first priority for a firm that competes by
achieving lowest cost production might be
a. to determine whether it should make additional investments in
order to achieve even greater production efficiencies.
b. to assess whether new or expanded marketing programs might
increase the value of the brand relative to those of
competitors.
c. to intensify its efforts to further discriminate its brand from
that of its competitors.
d. all of the above.
ANS: A PTS: 1 DIF: E
REF: 15.1 Overview of the Planning Process NAT: Reflective thinking
LOC: acquire knowledge of financial analysis and cash flows
54. The multiyear action plan for the major investments and competitive initiative
that the firm’s managers believe will drive the future success of the enterprise is called
a. the firm’s rollout plan.
b. the tactical plan.
c. the strategic plan.
d. none of the above.
ANS: C PTS: 1 DIF: E
REF: 15.1 Overview of the Planning Process NAT: Reflective thinking
LOC: acquire knowledge of financial analysis and cash flows
55. The responsibility to assess the feasibility of a strategic plan given a firm’s
existing and prospective sources of funding falls primarily to the
a. senior management of the firm.
b. finance function within the firm.
c. accounting function within the firm.
d. marketing function within the firm.
ANS: B PTS: 1 DIF: E
REF: 15.1 Overview of the Planning Process NAT: Reflective thinking
LOC: acquire knowledge of financial analysis and cash flows
57. For the prior year, Billy Bob’s Dress Shop had a net profit margin of 5%
based upon a sales level of $100,000. It’s total assets are $1,000,000 while its total equity is
$300,000. If Billy Bob pays out 50% of its net income in dividends, then what is the firm’s
sustainable growth rate going forward?
a. .84%
b. 8.00%
c. 8.40%
d. none of the above
ANS: A
g* = {m(1-d)(A/E)} / [(A/S) - {m(1-d)(A/E)}]
g* = .0084 or .84%
58. In the year just ended, Ellie May’s Power Tools had net income of $200,000
based upon a sales level of $1,500,000. It’s total assets are $800,000 while its total equity is
$700,000. If Ellie May pays out 0% of its net income in dividends, then what is the firm’s
sustainable growth rate going forward?
a. .40%
b. 38%
c. 40%
d. none of the above
ANS: C
g* = {m(1-d)(A/E)} / [(A/S) - {m(1-d)(A/E)}]
g* = .4
59. You are a financial consultant to a company that asks you what effect a
change in leverage has on the firm’s sustainable growth. Assuming all other things remain
constant and if the percentage of assets that are financed with debt increases, then how will
that affect the firm’s sustainable growth rate?
a. the sustainable growth rate will decrease
b. the sustainable growth rate will increase
c. the effect is indeterminable
d. the sustainable growth rate will neither decrease or increase
ANS: B PTS: 1 DIF: H REF: 15.2 Planning for
Growth
NAT: Reflective thinking
LOC: acquire knowledge of financial analysis and cash flows
63. The Retail Company currently has assets of $3,000,000 and accounts payable
of $200,000. The firm’s sales last year were $10,000,000 with a net profit margin of 1%. If
the firm anticipates next year’s sales to grow by 8% over that of last year and the firm pays
out 25% of its net income in dividends, then what is the estimated external funds requirement
for Retail?
a. $16,000
b. $81,000
c. $143,000
d. $240,000
ANS: C
EFR = DS (A/S) - DS (AP/S) - mS(1+g)(1-d)
65. Milton Gaming Company currently has assets of $3,000,000 and accounts
payable of $200,000. The firm’s sales last year were $10,000,000. If the firm anticipates
next year’s sales to grow by 8% over that of last year and the firm pays out 25% of its net
income in dividends, then what net profit margin is required in order to have the estimated
external funds required be equal to zero?
a. 27.00%
b. 25.00%
c. 2.77%
d. 2.50%
ANS: C
EFR = DS (A/S) - DS (AP/S) - mS(1+g)(1-d)
67. If a company prefers to finance its required assets with a larger portion of
short-term debt, then that firm is utilizing a(n)
a. conservative financing strategy.
b. aggressive financing strategy.
c. matching strategy.
d. none of the above.
ANS: B PTS: 1 DIF: E REF: 15.3 Planning and
Control
NAT: Reflective thinking
LOC: acquire knowledge of financial analysis and cash flows
68. If a company prefers to finance its required assets with a small portion of
short-term borrowings, then that firm is utilizing a(n)
a. conservative financing strategy.
b. aggressive financing strategy.
c. matching strategy.
d. none of the above.
ANS: A PTS: 1 DIF: E REF: 15.3 Planning and
Control
NAT: Reflective thinking
LOC: acquire knowledge of financial analysis and cash flows
69. A firm that tends to finance permanent assets with long-term debt and
seasonal assets with short-term borrowing is following
a. an aggressive financing strategy.
b. a conservative financing strategy.
c. a matching financing strategy.
d. none of the above.
ANS: C PTS: 1 DIF: E REF: 15.3 Planning and
Control
NAT: Reflective thinking
LOC: acquire knowledge of financial analysis and cash flows
71. The Little Toy Company will start doing business in February and needs to
forecast its total cash receipts for April. Its projected total sales are $15,000, $20,000, and
$25,000 for February, March and April, respectively. Little Toy anticipates that 50% of sales
will be for cash and 1/2 of credit sales will be collected the month after sale with the
remained being collected 2 months after the sale. What the forecasted cash receipts to Little
Toy in April?
a. $21,250
b. $17,500
c. $8,750
d. none of the above
ANS: A
April cash sales: 25,000 ´ .5 = 12,500
April collections for March sales: 20,000 ´ .5 ´ .5 = 5,000
April collections for Feb sales: 15,000 ´ .5 ´ .5 = 3,750
72. Marsha Start is looking to restart a home economics related business after an
unfortunate incarceration. She forecasts that sales for June, July, and August will be
$100,000, $150,000, and $100,000, respectively. Start expects for cash sales to make up
25% of the sales in each month with 90% of the credit sales collected in the month after the
sale and the remainder 2 months after the sale. What is Start’s estimated total cash collections
for August?
a. $20,000
b. $101,750
c. $133,750
d. none of the above
ANS: C
August cash sales: 100,000 ´ .25 = 25,000
73. Marsha Start is looking to restart a home economics related business after an
unfortunate incarceration. She forecasts that sales for June, July, and August will be
$100,000, $150,000, and $80,000, respectively. Start expects for cash sales to make up 25%
of the sales in each month with 90% of the credit sales collected in the month after the sale
and the remainder 2 months after the sale. What is Start’s estimated total cash collections in
August for June sales?
a. $7,500
b. $101,750
c. $133,750
d. none of the above
ANS: A
June credit sales: .75 ´ 100,000 = 75,000
August collections in June: 75,000 ´ .1 = 7,500
74. Refer to Exhibit 15-1. What is the amount of February sales to be collected in
March for the company?
a. $206,625
b. $105,000
c. $56,250
d. none of the above
ANS: B
Feb Sales: 200,000
Credit sales in Feb: 200,000 ´ .75 = 150,000
Feb sales collections in March: 150,000 ´ .7 = 105,000
75. Refer to Exhibit 15-1. What is the amount of February sales to be collected in
April for the company?
a. $206,625
b. $105,000
c. $45,000
d. none of the above
ANS: C
Feb Sales: 200,000
Credit sales in Feb: 200,000 ´ .75 = 150,000
Feb sales collections in March: 150,000 ´ .3 = 45,000
76. Which of the following roles does finance play in long-term planning?
a. Assessing the likelihood that a given strategic objective can be
achieved.
b. Evaluating the firm's existing and prospective sources of
funding.
c. Preparing and updating cash budgets to ensure the firm does
not face a liquidity crisis.
d. all of the above
e. (b) and (c) only
ANS: D PTS: 1 DIF: M
REF: 15.1 Overview of the Planning Process NAT: Reflective thinking
LOC: acquire knowledge of financial analysis and cash flows
77. Which of the following roles does finance play in long-term planning?
a. Identifying problems that could develop if the firm's strategic
plans do not develop as expected.
b. Evaluating the firm's existing and prospective sources of
funding.
c. Risk management
d. All of the above
e. (a) and (b) only
ANS: D PTS: 1 DIF: M
REF: 15.1 Overview of the Planning Process NAT: Reflective thinking
LOC: acquire knowledge of financial analysis and cash flows
83. If a firm's ending cash balance exceeds the desired minimum cash balance:
a. the firm has an excess cash balance that it can invest in short-
term marketable securities.
b. the firm has a short-term financing need that it can meet using
notes payable.
c. the firm has an excess cash balance that it can meet using
notes payable.
d. the firm has a short-tern financing need that it can meet using
marketable securities.
ANS: A PTS: 1 DIF: E REF: 15.3 Planning and
Control
NAT: Reflective thinking LOC: understand stocks and bonds
85. Consider the cash receipts projections of Emma Inc. that is developing a cash
budget for October , November and December; sales in August and September were
$200,000 and $500,000 respectively. The forecast sales are $800,000, $900,000 and
$200,000 for October, November and December respectively. 15 % of sales are cash sales
and 85% are credit sales; collects about 60% of each month’s sales in the next month but
waiting until the following month for the remaining 25% of sales. Bad debts are negligible.
The Firm is expectsing cash dividend of $25,000 in December from a subsidiary.What are
the accounts receivable collected in October? (In thousands)
a. $350
b. $470
c. $300
d. $0
ANS: A
Aug Sep Oct Nov Dec
Forecast Sales $200 $500 $800 $900 $200
% cash Sales 0.15 $30 $75 $120 $135 $30
Collection of
A/R
Previous 0.6 $120 $300 $480 $540
2 Prior 0.25 $50 $125 $200
Total rec. $350 $605 $740
Collected
Other cash $25
Rec
Total Cash $470 $740 $795
86. Consider the cash receipts projections of Emma Inc. that is developing a cash
budget for October , November and December; sales in August and September were
$200,000 and $500,000 respectively. The forecast sales are $800,000, $900,000 and
$200,000 for October, November and December respectively. 15 % of sales are cash sales
and 85% are credit sales; collects about 60% of each month’s sales in the next month but
waiting until the following month for the remaining 25% of sales. Bad debts are negligible.
The Firm is expectsing cash dividend of $25,000 in December from a subsidiary.What are
the accounts receivable collected in November? (In thousands)
a. $470
b. $605
c. $765
d. $135
ANS: B
Aug Sep Oct Nov Dec
Forecast Sales $200 $500 $800 $900 $200
% cash Sales 0.15 $30 $75 $120 $135 $30
Collection of
A/R
Previous 0.6 $120 $300 $480 $540
2 Prior 0.25 $50 $125 $200
Total rec. $350 $605 $740
Collected
Other cash $25
Rec
Total Cash $470 $740 $795
87. Consider the cash receipts projections of Emma Inc. that is developing a cash
budget for October , November and December; sales in August and September were
$200,000 and $500,000 respectively. The forecast sales are $800,000, $900,000 and
$200,000 for October, November and December respectively. 15 % of sales are cash sales
and 85% are credit sales; collects about 60% of each month’s sales in the next month but
waiting until the following month for the remaining 25% of sales. Bad debts are negligible.
The Firm is expectsing cash dividend of $25,000 in December from a subsidiary.What are
the total cash receipts in October? (In thousands)
a. $630
b. $765
c. $470
d. $765
a. $630
b. $765
c. $470
d. $765
ANS: C
Aug Sep Oct Nov Dec
Forecast Sales $200 $500 $800 $900 $200
% cash Sales 0.15 $30 $75 $120 $135 $30
Collection of
A/R
Previous 0.6 $120 $300 $480 $540
2 Prior 0.25 $50 $125 $200
Total rec. $350 $605 $740
Collected
Other cash $25
Rec
Total Cash $470 $740 $795
88. Consider the cash receipts projections of Emma Inc. that is developing a cash
budget for October , November and December; sales in August and September were
$200,000 and $500,000 respectively. The forecast sales are $800,000, $900,000 and
$200,000 for October, November and December respectively. 15 % of sales are cash sales
and 85% are credit sales; collects about 60% of each month’s sales in the next month but
waiting until the following month for the remaining 25% of sales. Bad debts are negligible.
The Firm is expectsing cash dividend of $25,000 in December from a subsidiary.What are
the total cash receipts in November? (In thousands)
a. $605
b. $470
c. $765
d. $740
ANS: D
Aug Sep Oct Nov Dec
Forecast Sales $200 $500 $800 $900 $200
% cash Sales 0.15 $30 $75 $120 $135 $30
Collection of
A/R
Previous 0.6 $120 $300 $480 $540
2 Prior 0.25 $50 $125 $200
Total rec. $350 $605 $740
Collected
Other cash $25
Rec
Total Cash $470 $740 $795
89. Consider the cash receipts projections of Emma Inc. that is developing a cash
budget for October , November and December; sales in August and September were
$200,000 and $500,000 respectively. The forecast sales are $800,000, $900,000 and
$200,000 for October, November and December respectively. 15 % of sales are cash sales
and 85% are credit sales; collects about 60% of each month’s sales in the next month but
waiting until the following month for the remaining 25% of sales. Bad debts are negligible.
The Firm is expectsing cash dividend of $25,000 in December from a subsidiary.What are
the total cash receipts in November? (In thousands)
a. $795
b. $770
c. $740
d. $825
ANS: A
Aug Sep Oct Nov Dec
Forecast Sales $200 $500 $800 $900 $200
% cash Sales 0.15 $30 $75 $120 $135 $30
Collection of
A/R
Previous 0.6 $120 $300 $480 $540
2 Prior 0.25 $50 $125 $200
Total rec. $350 $605 $740
Collected
Other cash $25
Rec
Total Cash $470 $740 $795
Forecast Sales $200 $500 $800 $900 $200
% cash Sales 0.15 $30 $75 $120 $135 $30
Collection of
A/R
Previous 0.6 $120 $300 $480 $540
2 Prior 0.25 $50 $125 $200
Total rec. $350 $605 $740
Collected
Other cash $25
Rec
Total Cash $470 $740 $795
90. Consider the cash receipts projections of Roxy Inc. that is developing a cash
budget for October , November and December; sales in August and September were
$600,000 and $500,000 respectively. The forecast sales are $400,000, $300,000 and
$200,000 for October, November and December respectively. 20 % of sales are cash sales
and 80% are credit sales; collects about 70% of each month’s sales in the next month but
waiting until the following month for the remaining 10% of sales. Bad debts are negligible.
The Firm is expectsing cash dividend of $10,000 in December from a subsidiary. (In
thousands)
a. $410
b. $490
c. $350
d. $390
ANS: A
Aug Sep Oct Nov Dec
Forecast Sales $600 $500 $400 $300 $200
% cash Sales 0.2 $120 $100 $80 $60 $40
Collection of
A/R
Previous 0.7 $420 $350 $280 $210
2 Prior 0.1 $60 $50 $40
Total rec. $410 $330 $250
Collected
Other cash $10
Rec
Total Cash $490 $390 $300
91. Consider the cash receipts projections of Roxy Inc. that is developing a cash
budget for October , November and December; sales in August and September were
$600,000 and $500,000 respectively. The forecast sales are $400,000, $300,000 and
$200,000 for October, November and December respectively. 20 % of sales are cash sales
and 80% are credit sales; collects about 70% of each month’s sales in the next month but
waiting until the following month for the remaining 10% of sales. Bad debts are negligible.
The Firm is expectsing cash dividend of $10,000 in December from a subsidiary.What are
the accounts receivable collected in October? (In thousands)
a. $410
b. $490
c. $350
d. $390
ANS: A
Aug Sep Oct Nov Dec
Forecast Sales $600 $500 $400 $300 $200
% cash Sales 0.2 $120 $100 $80 $60 $40
Collection of
A/R
Previous 0.7 $420 $350 $280 $210
2 Prior 0.1 $60 $50 $40
Total rec. $410 $330 $250
Collected
Other cash $10
Rec
Total Cash $490 $390 $300
92. Consider the cash receipts projections of Roxy Inc. that is developing a cash
budget for October , November and December; sales in August and September were
$600,000 and $500,000 respectively. The forecast sales are $400,000, $300,000 and
$200,000 for October, November and December respectively. 20 % of sales are cash sales
and 80% are credit sales; collects about 70% of each month’s sales in the next month but
waiting until the following month for the remaining 10% of sales. Bad debts are negligible.
The Firm is expectsing cash dividend of $10,000 in December from a subsidiary.What are
the accounts receivable collected in November? (In thousands)
a. $330
b. $490
c. $255
d. $ 60
ANS: A
Aug Sep Oct Nov Dec
Forecast Sales $600 $500 $400 $300 $200
% cash Sales 0.2 $120 $100 $80 $60 $40
Collection of
A/R
Previous 0.7 $420 $350 $280 $210
2 Prior 0.1 $60 $50 $40
Total rec. $410 $330 $250
Collected
Other cash $10
Rec
Total Cash $490 $390 $300
93. Consider the cash receipts projections of Roxy Inc. that is developing a cash
budget for October , November and December; sales in August and September were
$600,000 and $500,000 respectively. The forecast sales are $400,000, $300,000 and
$200,000 for October, November and December respectively. 20 % of sales are cash sales
and 80% are credit sales; collects about 70% of each month’s sales in the next month but
waiting until the following month for the remaining 10% of sales. Bad debts are negligible.
The Firm is expectsing cash dividend of $10,000 in December from a subsidiary. What are
the total cash receipts in October? (In thousands)
a. $330
b. $490
c. $255
d. $ 60
ANS: B
Aug Sep Oct Nov Dec
Forecast Sales $600 $500 $400 $300 $200
% cash Sales 0.2 $120 $100 $80 $60 $40
Collection of
A/R
Previous 0.7 $420 $350 $280 $210
2 Prior 0.1 $60 $50 $40
Total rec. $410 $330 $250
Collected
Other cash $10
Rec
Total Cash $490 $390 $300
94. Consider the cash receipts projections of Roxy Inc. that is developing a cash
budget for October , November and December; sales in August and September were
$600,000 and $500,000 respectively. The forecast sales are $400,000, $300,000 and
$200,000 for October, November and December respectively. 20 % of sales are cash sales
and 80% are credit sales; collects about 70% of each month’s sales in the next month but
waiting until the following month for the remaining 10% of sales. Bad debts are negligible.
The Firm is expectsing cash dividend of $10,000 in December from a subsidiary. What are
the total cash receipts in November? (In thousands)
a. $330
b. $490
c. $255
d. $ 60
ANS: C
Aug Sep Oct Nov Dec
Forecast Sales $600 $500 $400 $300 $200
% cash Sales 0.2 $120 $100 $80 $60 $40
Collection of
A/R
Previous 0.7 $420 $350 $280 $210
2 Prior 0.1 $60 $50 $40
Total rec. $410 $330 $250
Collected
Other cash $10
Rec
Total Cash $490 $390 $300
Aug Sep Oct Nov Dec
Forecast Sales $600 $500 $400 $300 $200
% cash Sales 0.2 $120 $100 $80 $60 $40
Collection of
A/R
Previous 0.7 $420 $350 $280 $210
2 Prior 0.1 $60 $50 $40
Total rec. $410 $330 $250
Collected
Other cash $10
Rec
Total Cash $490 $390 $300
95. Consider the cash receipts projections of Roxy Inc. that is developing a cash
budget for October , November and December; sales in August and September were
$600,000 and $500,000 respectively. The forecast sales are $400,000, $300,000 and
$200,000 for October, November and December respectively. 20 % of sales are cash sales
and 80% are credit sales; collects about 70% of each month’s sales in the next month but
waiting until the following month for the remaining 10% of sales. Bad debts are negligible.
The Firm is expectsing cash dividend of $10,000 in December from a subsidiary.What are
the total cash receipts in December? (In thousands)
a. $300
b. $290
c. $250
d. $340
ANS: A
Aug Sep Oct Nov Dec
Forecast Sales $600 $500 $400 $300 $200
% cash Sales 0.2 $120 $100 $80 $60 $40
Collection of
A/R
Previous 0.7 $420 $350 $280 $210
2 Prior 0.1 $60 $50 $40
Total rec. $410 $330 $250
Collected
Other cash $10
Rec
Total Cash $490 $390 $300
MT Quiz - 1 E
Due
Mar 18 at 4:40pm
Points
15
Questions
10
Available
until Mar 18 at 4:40pm
Time Limit
60 Minutes
Instructions
Choose the best answer. INTEGRITY IS A VIRTUE.
Attempt History
Attempt Time Score
LATEST Attempt 1
48 minutes 11 out of 15
Question 1 0
/ 2 pts
K Company
Income Statement
https://ue.instructure.com/courses/24327/quizzes/128104 1/13
3/21/22, 3:49 PM MT Quiz - 1 E: BSA_3206 : Strategic Business Analysis
(P 000,000)
Sales 800.0
Depreciation 55.0
EBIT 76.2
EBT 69.3
Dividends 4.16
Balance Sheet
(P 000,000)
https://ue.instructure.com/courses/24327/quizzes/128104 2/13
3/21/22, 3:49 PM MT Quiz - 1 E: BSA_3206 : Strategic Business Analysis
Refer to K Company. Suppose pro forma net income is P50 and pro forma
total assets are P525. If accounts payable maintain the same percent of
sales, no new long term debt is issued, and the only addition to owners’
equity is to retained earnings, what will be the pro forma balance in notes
payable for a forecasted twenty percent increase in sales and a dividend
pay out ratio of also twenty percent? ( Use notes payable as the
balancing account.)
a. P39.0
b. P74.4
c. P83.0
d. P79.4
C
orrect Answer
D
ou Answered
B
A
https://ue.instructure.com/courses/24327/quizzes/128104 3/13
3/21/22, 3:49 PM MT Quiz - 1 E: BSA_3206 : Strategic Business Analysis
Question 2 2
/ 2 pts
a. P16,000
b. P81,000
c. P143,000
d. P153,800
e. P 149,000
A
C
Correct!
D
E
B
Question 3 2
/ 2 pts
anticipates next year’s sales to grow by 8% over that of last year and the
firm pays out fifty percent of its net income in dividends, then what net
profit margin is required in order to have the estimated external funds
required be equal to zero?
a. 27.00%
b. 25.00%
c. 2.77%
d. 2.50%
e. 4.15%
A
C
Correct!
E
B
D
Question 4 0
/ 2 pts
K Company
Income Statement
(P 000,000)
Sales 800.0
https://ue.instructure.com/courses/24327/quizzes/128104 5/13
3/21/22, 3:49 PM MT Quiz - 1 E: BSA_3206 : Strategic Business Analysis
Depreciation 55.0
EBIT 76.2
EBT 69.3
Dividends 4.16
Balance Sheet
(P 000,000)
https://ue.instructure.com/courses/24327/quizzes/128104 6/13
3/21/22, 3:49 PM MT Quiz - 1 E: BSA_3206 : Strategic Business Analysis
a. P 21.68
b. P 99.65
c. P 15.28
d. P 20.35
e. P 27.96
B
orrect Answer
E
ou Answered
C
A
D
Question 5 2
/ 2 pts
K Company
Income Statement
https://ue.instructure.com/courses/24327/quizzes/128104 7/13
3/21/22, 3:49 PM MT Quiz - 1 E: BSA_3206 : Strategic Business Analysis
(P 000,000)
Sales 800.0
Depreciation 55.0
EBIT 76.2
EBT 69.3
Dividends 4.16
Balance Sheet
(P 000,000)
https://ue.instructure.com/courses/24327/quizzes/128104 8/13
3/21/22, 3:49 PM MT Quiz - 1 E: BSA_3206 : Strategic Business Analysis
a. 6.875%
b. 8.25%
c. 4.15%
d. 9.17%
e. 7.64%
Correct!
D
A
C
B
E
Question 6 1
/ 1 pts
https://ue.instructure.com/courses/24327/quizzes/128104 9/13
3/21/22, 3:49 PM MT Quiz - 1 E: BSA_3206 : Strategic Business Analysis
Holding all other variables constant, which of the following would increase
a firm's external funding requirements in the planning period?
A. An increase in assets
C. A decrease in accruals
C
A
Correct!
D
B
E
Question 7 1
/ 1 pts
https://ue.instructure.com/courses/24327/quizzes/128104 10/13
3/21/22, 3:49 PM MT Quiz - 1 E: BSA_3206 : Strategic Business Analysis
D. Funds that a firm must raise externally through current asset financing
or by selling new common or preferred stock.
E
B
C
Correct!
A
D
Question 8 1
/ 1 pts
D. The dozens of separate projections that may be made during this trial-
and-error process generate a heavy load of arithmetic and paperwork.
D
Correct!
B
C
https://ue.instructure.com/courses/24327/quizzes/128104 11/13
3/21/22, 3:49 PM MT Quiz - 1 E: BSA_3206 : Strategic Business Analysis
A
Question 9 1
/ 1 pts
B. Suppose a firm is operating its fixed assets below 100 percent capacity
but is at 100 percent with respect to current assets. If sales grow, the firm
can offset the needed increase in current assets with its idle fixed assets
capacity.
B
A
Correct!
D
C
Question 10 1
/ 1 pts
https://ue.instructure.com/courses/24327/quizzes/128104 12/13
3/21/22, 3:49 PM MT Quiz - 1 E: BSA_3206 : Strategic Business Analysis
A. The plan assumes that sales are determined by assets that determine
the external funds needed.
B. The plan assumes that the external funds needed impact assets which
in turn drive sales.
C. The plan assumes that sales determine assets that determine the
external funding needed.
D
B
Correct!
C
A
Quiz Score:
11 out of 15
https://ue.instructure.com/courses/24327/quizzes/128104 13/13
01ÿ3456ÿ7ÿ8ÿ9
94
ÿ
ÿÿ
ÿ ÿ5ÿ ÿ34
5ÿ
5!
ÿ"#$%ÿ
ÿÿ
ÿ ÿ15&
ÿ'5&5ÿ(ÿ$#")*
+,4-5
D/33*)ÿ/)ÿC)*ÿ
#*2)7ÿ+E1=FG+1Hÿ+<ÿÿI+G1J=K
./)ÿ0"$1ÿ43#*$**ÿ3@ÿÿ$)*
ÿ"%$%)ÿD/3$4)ÿL")*$3#*ÿ./)3$)*ÿÿÿ3$#*
ÿ"%$%)ÿD/3$4)ÿL")*$3#*ÿMÿN3C%)*ÿÿÿÿ3$#*
O3"P)ÿQ$R)#ÿ3#)ÿSTÿ
)ÿ3#%:
.$)ÿU$$ÿ(ÿ$#")*
8R
$%
C$%$:ÿ3@ÿ0"$1ÿ$*ÿ3#%:ÿ@3ÿ>NÿMÿNVÿ
@)ÿ2/$4/ÿ$ÿ2$%%ÿ
"3M*"C$7ÿ
./)ÿ0"$1ÿ2$%%ÿ*/32ÿ3#)ÿ0")*$3#ÿ
ÿ
ÿ$)7ÿ
8#*2)*ÿ
)ÿUWDXYZÿ
@)ÿ
#*2)$#Q7ÿ
8*ÿ/)ÿ@
4"%:ÿ2$%%ÿWZY[8.Yÿ/)ÿ0"$1Vÿ*"6)#*ÿ*/3"%6ÿC)ÿ3#M%$#)ÿ
ÿ/)ÿ6)*$Q#
)6ÿ$)7
A43)*ÿ23#PÿC)ÿ*/32#ÿ"#$%ÿ
#6ÿ
@)ÿ
%%ÿ/
R)ÿ
5)#ÿ/)ÿ0"$17ÿ
./$*ÿ0"$1ÿ2
*ÿ%345)6ÿ
ÿÿ
ÿ7
8)ÿ9$*3:
&; 15&
<-,
'1=<1
&;ÿ7ÿ >?ÿ$#")* ÿ3"ÿ3@ÿ
A43)ÿ@3ÿ/$*ÿ0"$1ÿ7Bÿ3"ÿ3@ÿ
A"C$)6ÿ
ÿÿ
ÿ
./$*ÿ
)ÿ335ÿ>?ÿ$#")*7
34
5ÿ7 \ÿ]ÿ\ÿ;
^ÿÿ_&;`
+-&
ÿ<
&
01213415ÿ789ÿ
ÿ9
ÿÿÿ !"
#$%&''(
)$%'(*ÿ+,$(
)-%ÿ+,$( ÿÿÿÿ.
+/01 !"2
0(%ÿ+,$( ÿÿÿÿ"3
+/1 "34
1,ÿ5.67 ÿÿ2!!
8ÿ0(&9 .:"
ÿ ÿ
#';'( .:"
<=>=?21ÿ@A11B
01213415ÿ789ÿ
ÿ9
- : C&&D(ÿEFG "4
C&&D(ÿH&';G : 8ÿEFG ÿÿ.2
012314567 ÿÿ9
54ÿ66314ÿ43
ÿÿÿ
54ÿ66314ÿ34 9 ÿÿÿ51436ÿ34
34ÿ3!ÿ34 "# $%136&ÿ'(47 "
ÿÿÿ
54ÿ34 )* ÿÿÿ
54ÿ43ÿ1! )*
'(47
+ÿ5,17ÿ%ÿ154ÿ,7ÿ!2!31!ÿ1ÿ4-3ÿ,.51ÿ736ÿ54/ÿ454
34ÿ1!ÿ.66314ÿ43ÿ63ÿ,65,56451ÿ45ÿ4-3ÿ"ÿ0ÿ1.633ÿ1
3ÿ15%ÿ.-ÿÿ!!451ÿ21!ÿ133!3!ÿ345ÿ
6ÿ"9
6ÿ
9
.6ÿ"
!6ÿ"*
3ÿÿ6ÿ"#
9
7899:;<= ÿÿÿ
CD:B<E8Fÿ> >ÿ@ÿ>ÿA<B
01ÿ3456789ÿ
89ÿ7ÿ7
ÿ4ÿÿ78ÿ7
48ÿ6797
ÿ4
1ÿ
ÿ5ÿ7
ÿ7ÿ9
7ÿ
ÿ1ÿÿ
ÿ5
78
67
ÿ8
ÿ9
7ÿ7
ÿ4ÿ!4ÿ9ÿ"#ÿ4$
ÿ7ÿ4ÿ7ÿ9
7ÿ78ÿ
5ÿ679ÿ4ÿ%#ÿ4ÿÿ8
ÿ8
45
ÿ8ÿ$
8ÿ
8ÿ7ÿ8
ÿ64
57!8ÿÿ
&
ÿ8ÿ4
ÿ4ÿ7$
ÿ
ÿ
57
ÿ
87ÿ8ÿ
&
ÿ
&7ÿ4ÿ'
4(
71)1#
1%1#
11))#
11%#
1ÿÿÿÿ*1%#
+,--./01 ÿÿ3ÿ
78.609,:ÿ; 2ÿ4ÿ2ÿ506
<ÿÿ+,=5>:?
@:/,=.ÿA0>0.=.:0
B./.=C.-ÿ;DEÿ2FGH
IJÿFFFEFFFK
01234 56676
894
ÿ9ÿ
994ÿ092 76
331
9 76
31
ÿ3434 5576
3ÿ3434 ÿÿÿÿ75
7!
334
ÿ343 ÿÿÿÿ7"
"7#
134ÿ$6%& ÿÿ!7
'3
ÿ9(3 )7
ÿ ÿ
*34 7)
+,-,./0ÿ23004
50/06708ÿ9:;ÿ<=>?
@Aÿ===;===B
814 )676 C9D
4ÿE1F1G23 #76
C9D
4ÿH33*1G23 5)76 '9
34ÿE1F1G23 ÿÿ!76
*3
9F ÿÿ"76 9
12ÿ8D3
ÿI1G2
34 )676
ÿÿÿ12345ÿ67889
3ÿ93
ÿÿÿ2
398ÿ93
93ÿ9ÿ93 !
98"ÿ#$73%
ÿÿÿ12345ÿ93 &' ÿÿÿ12345ÿ4539ÿ4
&'
#$73%
(ÿ62)4
%ÿ)4%273ÿ8432ÿ
ÿ3*9ÿ7)+2
ÿ%948ÿÿ,283%ÿ)98+9
3ÿ623-ÿ32345
493ÿ4
ÿ+7889
3ÿ54539ÿ489ÿ)82)2832
45ÿ32ÿ3*9ÿÿ.ÿ
+8949ÿ
4566789: ÿÿ2ÿ
@A7?9B5CÿD ;ÿ=ÿ;ÿ>9?
Eÿÿ45F>GCH
IC85F7ÿJ9G97F7C9
K787FL76ÿMNOÿ;PQR
01ÿ33343335
6789
ÿÿ
ÿ68
997
97ÿ!9
9
"9ÿ!9
9
ÿÿÿÿ#
$%&
'
%99
ÿ!9
9 ÿÿÿÿ
(
$& (
)
&7!9
ÿ*#+, ÿÿ'
-9ÿ%.9 #/
ÿ ÿ
09
#
/
1232456ÿ78669
:656;<6=ÿ>?4ÿ@3AB
01ÿ33343335
7
" /
CD
ÿE7F7G89 )
CD
ÿH9907G89 /
-9
ÿE7F7G89 ÿÿ#'
%09F ÿÿ(
&78ÿD9ÿI7G89
/
ÿÿÿ12345ÿ67889
3ÿ93
ÿÿÿ2
398ÿ93
93ÿ9ÿ93 !
98"ÿ#$73%
ÿÿÿ12345ÿ93 &' ÿÿÿ12345ÿ4539ÿ4
&'
#$73%
(9)98ÿ32ÿ*ÿ62+4
%ÿ,7++29ÿ+82ÿ)284ÿ
93ÿ
-29ÿÿ.ÿ4
ÿ+82ÿ)284
32345ÿ493ÿ489ÿ.ÿ/)ÿ4--27
3ÿ+4%459ÿ4
34
ÿ309ÿ49ÿ+98-9
3ÿ2)
4591ÿ
2ÿ
9!ÿ52
ÿ398ÿ93ÿÿ791ÿ4
ÿ309ÿ2
5%ÿ432
ÿ32ÿ2!
98"
9$73%ÿÿ32ÿ8934
9ÿ948
1ÿ!043ÿ!55ÿ9ÿ309ÿ+82ÿ)284ÿ454
-9ÿ
ÿ
239
+4%459ÿ)28ÿ4ÿ)289-439ÿ2ÿ
-8949ÿ
ÿ4593ÿ4ÿ59ÿ
239ÿ+4%459ÿ4
309ÿ454
-
ÿ4--27
3ÿ4
ÿ93
ÿ8432ÿ)82ÿ69
ÿ34399
37
4.'8
.&
-.'
.&
:;<<=>?@ ÿÿ9ÿ
FG=E?H;IÿJ AÿCÿAÿD?E
012ÿ4ÿ56789
ÿ
2
ÿ19ÿ92ÿ6ÿÿ9
ÿ96
8992ÿ6ÿÿ012ÿ7ÿ92ÿ9ÿ29ÿ22ÿÿ1ÿ9
2ÿ86ÿ79
ÿ6ÿ ÿ!ÿ12ÿ7ÿ9
892ÿ
2"ÿ29ÿ92ÿ6ÿ6ÿ
# ÿ6$2ÿ19ÿ6ÿ9ÿ29ÿ9
ÿ12ÿ7ÿ89ÿ6
ÿ2
%$2ÿ822
ÿ6ÿ
2ÿ
672ÿ
ÿ$2
ÿ12
ÿ19ÿÿ12ÿ2792ÿ2"2
9ÿ
2&
272
ÿ6ÿ4'
9(
#
)
*#
2ÿÿÿ)+
,-../012 ÿÿ5ÿ
89/71:-;ÿ< 3ÿ5ÿ3ÿ617
=6
9ÿ
ÿ
222ÿ92ÿ2ÿ2
2ÿ9>
01ÿ34567ÿ89
8ÿ
ÿ
8
56ÿ
48
8
ÿ
ÿ
485ÿ47577
8
57
8
571
1ÿ34567ÿ89
8ÿ
ÿÿ478ÿ
7ÿ85
ÿ89
49ÿ
5ÿ
ÿÿ75
5ÿ
5ÿ
ÿ6ÿ78
1
1ÿ34567ÿ89
8ÿ
ÿÿ478ÿ
7ÿ585
ÿ89
49ÿ
5ÿ
ÿÿ75
5ÿ
5ÿ
ÿ6ÿ78
1
1ÿ9ÿ
458ÿ
ÿ
79ÿ5
86ÿ5ÿ
ÿ5ÿ
ÿ547ÿ89ÿ
458ÿ
79ÿ566ÿ8
ÿ5
5ÿ89ÿ
668
5
ÿ
8
ÿ56847ÿ
56ÿ
5
8
ÿ566ÿ8
ÿ74
8ÿ89ÿ7ÿ
891
1ÿ34567ÿ89
8ÿ
ÿÿ478ÿ
7ÿ85
ÿ89
49ÿ458ÿ
778ÿ5
55
ÿÿ75ÿ5ÿ
5ÿ
ÿ6ÿ78
1
!"##$%&' ÿÿÿ
-.$,&/"0ÿ1 (ÿ*ÿ(ÿ+&,
ÿÿÿ
ÿ ÿÿÿ
7ÿ!"ÿ
5ÿ"!##!$7%3ÿ4!#56ÿ0!56ÿ"7%2%5ÿÿ7%ÿ#!%3'
54(ÿ%%7%3)
21 *6
65667%3ÿ
5ÿ#7+5#7!!0ÿ
2
ÿ2ÿ3785%ÿ6
42
537ÿ!,-5
785ÿ2%ÿ,5
2758501
,1.82#/2
7%3ÿ
5ÿ"74(06ÿ5176
7%3ÿ2%0ÿ&4!6&5
785ÿ6!/456ÿ!"ÿ"/%07%31
1 245&247%3ÿ2%0ÿ/&02
7%3ÿ26ÿ,/035
6ÿ
!ÿ5%6/45ÿ
5ÿ"74(ÿ0!56ÿ%!
"25ÿ2ÿ#73/707
ÿ476761
014,5ÿ2%0ÿ45ÿ!%#
512##ÿ!"ÿ
5ÿ2,!85
23445678 ÿÿ1ÿ
ÿÿÿ!ÿÿÿÿ"ÿ#ÿÿ$!ÿ%ÿ&'
#"ÿÿÿ%ÿ##"ÿ"ÿ%ÿ%ÿ#ÿÿ(ÿ)%%ÿ
%ÿ""*!ÿÿÿ"+"ÿÿÿ%ÿ##"ÿ$#ÿ##
,&'-.
(ÿ/%ÿÿ%ÿÿ"ÿÿ0ÿ(
1(ÿ/%ÿÿ%ÿÿ%!%ÿ#2##ÿ$ÿ(
3(ÿ/%ÿÿ%ÿÿ"ÿÿ$ÿ"4"ÿ%ÿÿÿ"
(
5(ÿ/%ÿÿ%ÿÿ%!%ÿÿ!(
1(ÿ""ÿÿ%ÿÿ42ÿÿ(
23445678 ÿÿ1ÿ
678549
ÿ0 0ÿ2ÿ0ÿ345
ÿÿÿÿÿÿÿ
4ÿÿ ÿ!ÿÿ"#
ÿ$%
&
ÿ#ÿÿ #ÿ##ÿ' ÿ(%
'&
ÿÿ)#*ÿ #ÿ#ÿ$)*%
& + ÿÿ!ÿ'#ÿ'ÿ,ÿ#ÿ)ÿ*ÿ!ÿ,
#%
ÿÿÿÿÿÿÿÿÿÿ
0
118243 ÿÿ/ÿ
4 5ÿ-#6ÿ07ÿ ÿÿ89
3/21/22, 9:57 AM MT Quiz 1 - A: BSA_3206 : Strategic Business Analysis
MT Quiz 1 - A
Due
Mar 16 at 10:50am
Points
15
Questions
10
Available
until Mar 16 at 10:50am
Time Limit
60 Minutes
Instructions
Choose the best answer. INTEGRITY IS A VIRTUE.
Attempt History
Attempt Time Score
LATEST Attempt 1
53 minutes 6 out of 15
Question 1 0
/ 2 pts
S Enterprises
Balance Sheet
https://ue.instructure.com/courses/24327/assignments/431771/submissions/28817 1/13
3/21/22, 9:57 AM MT Quiz 1 - A: BSA_3206 : Strategic Business Analysis
Equity 300
Sales P450
Costs 180
S' sales grow by 25% and all assets grow proportionally with sales. The
company normally pays out 50% of their projected net income as
dividends however in order to encourage new investors the pay out
dividend will be increased to sixty percent. Based on information
provided, the profit margin that will bring the additional needed to zero is
near to?
a. 45%
b. 40%
c. 84%
d. 53%
https://ue.instructure.com/courses/24327/assignments/431771/submissions/28817 2/13
3/21/22, 9:57 AM MT Quiz 1 - A: BSA_3206 : Strategic Business Analysis
ou Answered
B
A
orrect Answer
C
D
Question 2 2
/ 2 pts
S Enterprises
Balance Sheet
Equity 300
Sales P450
Costs 180
https://ue.instructure.com/courses/24327/assignments/431771/submissions/28817 3/13
3/21/22, 9:57 AM MT Quiz 1 - A: BSA_3206 : Strategic Business Analysis
If sales are expected to grow at 30% what are S' retained earnings next
year? Assume a constant profit margin and a dividend payout ratio of
40%.
a. P 138.90
b. P 102.47
c. P 213.99
d. P 438.90
e. P 402.47
C
D
B
E
Correct!
A
Question 3 0
/ 2 pts
S Enterprises
Balance Sheet
Equity 300
Sales P450
Costs 180
If S pays out 50% of their projected net income as dividends, what will be
the company’s additional funds needed, if sales grow by 25% and all
assets grow proportionally with sales?
a. P 21.68
b. P 22.25
c. P 57.93
d. P 77.38
https://ue.instructure.com/courses/24327/assignments/431771/submissions/28817 5/13
3/21/22, 9:57 AM MT Quiz 1 - A: BSA_3206 : Strategic Business Analysis
A
C
orrect Answer
D
ou Answered
B
Question 4 2
/ 2 pts
S Enterprises
Balance Sheet
Equity 300
Sales P450
Costs 180
https://ue.instructure.com/courses/24327/assignments/431771/submissions/28817 6/13
3/21/22, 9:57 AM MT Quiz 1 - A: BSA_3206 : Strategic Business Analysis
S' sales grow by 25% and all assets grow proportionally with sales. The
company normally pays out 50% of their projected net income as
dividends however in order to encourage new investors the pay out
dividend will be increased to sixty percent. If the forecast will materialize,
what will be the company’s additional funds needed?
a. P 21.68
b. P 99.65
c. P 133.06
d. P 121.88
Correct!
B
D
C
A
Question 5 0
/ 2 pts
S Enterprises
Balance Sheet
https://ue.instructure.com/courses/24327/assignments/431771/submissions/28817 7/13
3/21/22, 9:57 AM MT Quiz 1 - A: BSA_3206 : Strategic Business Analysis
Equity 300
Sales P450
Costs 180
Using the percentage of sales method what will be S' increase in taxes if
sales are expected to increase by 25%?
a. 40%
b. 24.7%
c. 39.6%
d. 19.8%
orrect Answer
B
https://ue.instructure.com/courses/24327/assignments/431771/submissions/28817 8/13
3/21/22, 9:57 AM MT Quiz 1 - A: BSA_3206 : Strategic Business Analysis
C
A
ou Answered
D
Question 6 1
/ 1 pts
Correct!
D
A
B
C
Question 7 0
/ 1 pts
https://ue.instructure.com/courses/24327/assignments/431771/submissions/28817 9/13
3/21/22, 9:57 AM MT Quiz 1 - A: BSA_3206 : Strategic Business Analysis
a. an increase in liabilities.
orrect Answer
D
ou Answered
B
A
C
Question 8 0
/ 1 pts
https://ue.instructure.com/courses/24327/assignments/431771/submissions/28817 10/13
3/21/22, 9:57 AM MT Quiz 1 - A: BSA_3206 : Strategic Business Analysis
ou Answered
C
A
B
orrect Answer
D
Question 9 0
/ 1 pts
Preparing and updating cash budgets to ensure the firm does not
c.
face a liquidity crisis.
orrect Answer
E
C
B
ou Answered
D
A
Question 10 1
/ 1 pts
A
https://ue.instructure.com/courses/24327/assignments/431771/submissions/28817 12/13
3/21/22, 9:57 AM MT Quiz 1 - A: BSA_3206 : Strategic Business Analysis
D
C
Correct!
B
Quiz Score:
6 out of 15
https://ue.instructure.com/courses/24327/assignments/431771/submissions/28817 13/13