‫المملكة العربية السعودية‬

Kingdom of Saudi Arabia ‫وزارة التعليم‬

Ministry of Education ‫الجامعة السعودية اإللكترونية‬
Saudi Electronic University

College of Administrative and Financial Sciences

Assignment 1
Principles of Finance
FIN101 (1st Term 2023-2024)
Deadline: 7/10/2023 @ 23:59
Course Name: Principles of Finance Student’s Name:
Course Code: FIN101 Student’s ID Number:
Semester: I CRN:
Academic Year: 2023-24 1st Term

For Instructor’s Use only

Instructor’s Name:
Students’ Grade: / 10 Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY

 This assignment is an individual assignment.
 Due date for Assignment 1 is 7th October 2023.
 The Assignment must be submitted only in WORD format via allocated folder.
 Assignments submitted through email will not be accepted.
 Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover
page.
 Students must mention question number clearly in their answer.
 Late submission will NOT be accepted.
 Avoid plagiarism, the work should be in your own words, copying from students
or other resources without proper referencing will result in ZERO marks. No
exceptions.
 All answered must be typed using Times New Roman (size 12, double-spaced)
font. No pictures containing text will be accepted and will be considered
plagiarism).
Submissions without this cover page will NOT be accepted.
 ‫المملكة العربية السعودية‬
Kingdom of Saudi Arabia ‫وزارة التعليم‬
Ministry of Education ‫الجامعة السعودية اإللكترونية‬
Saudi Electronic University

College of Administrative and Financial Sciences

Assignment Purposes/Learning Outcomes:

No. Course Learning Outcomes (CLOs)
CLO1 Recognize the fundamental financial concepts and the financial environment of the company.
CLO2 Describe the role of Time-Value-of-Money for making decision

Assignment questions: Total grade – 10 points

1. In your own words, Discuss the goals of the firm. (2 marks)

2. Discuss in detail about the efficient market hypothesis. (2 marks
3. XYZ Ltd. has net sales of 5,320,140; net income of 2,145,700; cost of goods sold
1,300,000; and EBIT 2,200,000. Calculate the gross profit and the operating profit
margin for the firm. (Show your calculations) (1.5 Marks)

4. Ali Corp. had cash and marketable securities worth $400,134 accounts payables
worth $2,490,357, inventory of $1,321,500, accounts receivables of $2,188,128,
short-term notes payable worth $120,000, other current liabilities of 200,000, and
other current assets of $521,800. What is the Ali company's net working capital?
(Show your calculations) (1.5 Marks)

5. Riyadh Ltd. generated total sales of $32,565,420 during fiscal 2021. Depreciation and
amortization for the year total $1,278,120, and cost of goods sold was $21,400,000.
Interest expense for the year was $6,341,250 and selling, general, and administrative
expenses total $2,556,610 for the year. If the Riyadh Ltd. tax rate was average 30
percent, what is its net income after taxes? (Show your calculations) (3 Marks)
 ‫المملكة العربية السعودية‬
Kingdom of Saudi Arabia ‫وزارة التعليم‬
Ministry of Education ‫الجامعة السعودية اإللكترونية‬
Saudi Electronic University

College of Administrative and Financial Sciences

Answers: