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WGU C214 OA Financial Management Retake Exam
Questions and Answers
- What does the Foreign Corrupt Practices Act forbid U.S.
companies to do?
Prohibits U.S. firms and individuals from paying bribes to foreign officials to further business deals.
- What are two basic types of financial instruments?
Stocks and Bonds
- What are secondary markets?
Secondary financial markets are where securities are traded after the initial offering.
- What do cash flows from operating activities report?
Operating – day to day operations
Investing – Property, plant, equipment, long term items Financing – debt and equity changes
- What does the statement of cash flows report?
Cash inflow and cash outflow of business for period of time
- Write the equation that links the income statement to the balance sheet?
New Re= Old RE + Net Income – dividends 7.Net income 2,00
Depreciation 500 Change in operating assets 400 1 / 3
Stuvia.com - The Marketplace to Buy and Sell your Study Material Stuvia.com - The Marketplace to Buy and Sell your Study Material Change in PPE 1,00
Change on long term liabilities 600 Dividends paid 100
What is the firm’s cash flow from financing activities? CFF
Increase in debt 600 + (no change in stock) 0 – (dividends paid) 100 = 500
- Describe an income statement?
An income statement is a financial statement that shows you how profitable your business was over a given reporting period. It shows your revenue, minus your expenses and losses 2 / 3
Stuvia.com - The Marketplace to Buy and Sell your Study Material the present value for 10 of the architect’s investment?years. The annual interest earned on the investment is 6%. What is An architect will receive $10,000 per year (at the end of the year) PMT 14.Stuvia.com - The Marketplace to Buy and Sell your Study Material
- What item is included in the income statement and not included
in the statement of cash flows.
Depreciation
- A company sold goods in 2016 for $30,000 and collected the cash in
- In 2016, the company incurred and paid $20,000 in expenses
related to the goods sold. How much income should the company report in 2016 under the accrual basis of accounting?
30,000-20,000= $10,000
11. 11.
EBIT: $1,000,000
Depreciation: $30,000
Changein working capital($5,000) Net capital
expenditures: $10,000 Tax
rate: 40%
What is the company’s free cash flow?
1,000,000*(1-.40) + 30,000) – (-5,000) – 10,000 = 625,000
- Define Free Cash Flow?
Represents the cash available for the company to repay creditors or pay dividends and interest to investor
- A company reported an increase in accounts payable of $4,000
during the recent period. Half of this amount is expected to be paid next period. What is the impact on the cash flow from operating activities?
Increase of $4000
10,000 PMT (at the end of each year) 6 I/Y 10 N
CPT PV = -7360008705
- An employee wants to retire 20 years from today and would like to have
- / 3
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