FIN 571 Final Exam | FIN 571 Final Exam Answers | Transweb E Tutors

FIN 571 Final ExamDo you want to have the FIN 571 Final Exam Answers for free? Transweb E Tutors is the Educational Portal who provides the free questions and their answers of FIN 571 Final Exam University of phoenix. Here you can also have the answers of fin 571 final exam 2013 and fin 571 final exam 2015. FIN 571 Final Exam (Newest) 1. In a general partnership, the general partners have _____ liability and have _____ control over day-to-day operations.  limited; no  no; total  unlimited; no  limited; total  unlimited; total 2. Which one of these is a correct definition?  Long-term debt is defined as a residual claim on a firm’s assets.  Net working capital equals current assets plus current liabilities.  Current liabilities are debts that must be repaid in 18 months or less.  Tangible assets are fixed assets such as patents.  Current assets are assets with short lives, such as inventory. 3. The owners of a limited liability company generally prefer:  being taxed personally on all business income.  having liability exposure similar to that of a general partner.  having liability exposure similar to that of a sole proprietor.  being taxed like a corporation.  being taxed like a corporation with liability like a partnership. 4. Which one of the following is least apt to help convince managers to work in the best interest of the stockholders?pay raises based on length of service  implementation of a stock option plan  threat of a proxy fight  management compensation tied to the market value of the firm’s stock  threat of a takeover of the firm by unsatisfied stockholders 5. a. Compute the future value of $2,000 compounded annually for 20 years at 4 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $_________ b. Compute the future value of $2,000 compounded annually for 15 years at 10 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value c. Compute the future value of $2,000 compounded annually for 25 years at 4 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value 6. $_________ $_________ For each of the following, compute the present value (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.): Present Value Years Interest Rate Future value $_________ 14 8% $_________ 5 14 $_________ 30 15 $_________ 35 8 $15,551 $52,557 $887,073 $551,164 7. First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually. If you made a $74,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Difference in accounts $_________ 8. Winslow, Inc. stock is currently selling for $40 a share. The stock has a dividend yield of 3.8 percent. How much dividend income will you receive per year if you purchase 500 shares of this stock?  $1,053  $152  $190  $329  $760 9. You bought 360 shares of stock at a total cost of $7,754.40. You received a total of $403.20 in dividends and sold your shares for $19.98 a share. What was your total rate of return?  5.38%  7.24%  -1.29%  3.67%  -2.04% 10. According to generally accepted accounting principles (GAAP), revenue is recognized as income when:  income taxes are paid on the revenue earned.  the transaction is complete and the goods or services are delivered.  a contract is signed to perform a service or deliver a good.  payment is requested.  managers decide to recognize it. 11. Sankey, Inc., has current assets of $4,230, net fixed assets of $25,700, current liabilities of $3,500, and long-term debt of $14,400. (Do not round intermediate calculations.) What is the value of the shareholders' equity account for this firm? Shareholders' equity $_________ How much is net working capital? Net working capital $_________ 12. The financial statement summarizing a firm's accounting performance over a period of time is the:  statement of equity..  income statement.  tax reconciliation statement.  balance sheet.  statement of cash flows. 13. Net working capital is defined as:  current assets minus current liabilities.  total assets minus total liabilities.  fixed assets minus long-term liabilities.  current assets plus stockholders' equity.  current assets plus fixed assets. 14. Jessica's Boutique has cash of $59, accounts receivable of $62, accounts payable of $210, and inventory of $140. What is the value of the quick ratio?  .30  1.82  .67  .58  1.24 15. Al's Sport Store has sales of $2,940, costs of goods sold of $2,090, inventory of $526, and accounts receivable of $445. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit?  90.6  65.3  119.9  91.9  120.4 16. Galaxy United, Inc.2009 Income Statement($ in millions) Net sales $8,550 Less: Cost of goods sold 7,150 Less: Depreciation 410 Earnings before interest and taxes 990 Less: Interest paid 82 Taxable Income 908 Less: Taxes 318 Net income 590 $ Galaxy United, Inc.2008 and 2009 Balance Sheets($ in millions) 2008 2008 Cash $1,120 Accounts rec. 990 Inventory $3,140 Sub-total 510 Net fixed assets Total assets $5,760 2009 2009 $120 $1,130 940 1,201 1,480 $2,940 $2,540 799 3,220 $5,760 $6,070 $140 Accounts payable 790 Long-term debt 1,520 Common stock $2,450 Retained earnings 3,620 $6,070 What is the return on equity for 2009? Total liab. & equity  14 percent  17 percent  11 percent  16 percent  19 percent 17. Reliable Cars has sales of $3,790, total assets of $3,350, and a profit margin of 5 percent. The firm has a total debt ratio of 41 percent. What is the return on equity?  9.59 percent  12.20 percent  13.80 percent  8.47 percent  5.66 percent 18. A firm has a debt-equity ratio of .41. What is the total debt ratio?  1.44  .31  .29  1.41  .69 19. The return on equity can be calculated as:  ROA × Equity multiplier.  ROA × Debt-equity ratio.  ROA ×(Net income / Total assets).  Profit margin × ROA × Total asset turnover.  Profit margin × ROA. 20. One of the primary weaknesses of many financial planning models is that they:  rely too much on financial relationships and too little on accounting relationships.  are iterative in nature.  ignore the goals and objectives of senior management.  ignore cash payouts to stockholders.  ignore the size, risk, and timing of cash flows. 21. In the financial planning model, the external financing needed (EFN) as shown on a pro forma balance sheet is equal to the changes in assets:  minus the change in retained earnings.  minus the changes in both liabilities and equity.  minus the changes in liabilities.  plus the changes in both liabilities and equity.  plus the changes in liabilities minus the changes in equity. 22. The Wintergrass Company has an ROE of 15.1 percent and a payout ratio of 40 percent. What is the company’s sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate 23. _________% Assume the following ratios are constant: Total asset turnover Profit margin Equity multiplier Payout ratio 2.50 5.4% 1.30 35% What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate _________% 24. The length of time between the acquisition of inventory and its sale is called the:  cash cycle.  accounts payable period.  accounts receivable period.  inventory period.  operating cycle. 25. A prearranged, short-term bank loan made on a formal or informal basis, and typically reviewed for renewal annually, is called a:  compensating balance.  cleanup loan.  roll-over.  line of credit.  letter of credit. 26. Here are the most recent balance sheets for Country Kettles, Inc. Excluding accumulated depreciation, determine whether each item is a source or a use of cash, and the amount. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Input all amounts as positive values): COUNTRY KETTLES, INC. Balance Sheet December 31, 2016 2015 2016 Assets Cash $31,030 $31,800 Accounts receivable 71,300 Inventories 64,625 74,560 62,200 Property, plant, and equipment 172,600 161,000 Less: Accumulated depreciation (51,300) (47,040) Total assets $279,260 $291,515 Liabilities and Equity Accounts payable $48,530 $46,300 Accrued expenses 6,740 7,680 Long-term debt 30,100 27,000 Common stock 35,400 30,000 Accumulated retained earnings 170,745 168,280 Total liabilities and equity $291,515 Item Amount $279,260 Source/Use Cash $_________ Accounts receivable $_________ Inventories $_________ Property, plant, and equipment $_________ Accounts payable $_________ Accrued expenses $_________ Long-term debt $_________ Common stock $_________ Accumulated retained earnings $_________ 27. Consider the following financial statement information for the Rivers Corporation: Item Ending Inventory $11,900 Accounts receivable 6,200 Beginning $10,900 5,900 Accounts payable 8,500 8,100 Net sales $89,000 Cost of goods sold 69,000 Calculate the operating and cash cycles. (Use 365 days a year. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Operating cycle Cash cycle _________days _________days 28. The _____ premium is that portion of the bond yield that represents compensation for potential difficulties that might be encountered should the bond holder wish to sell the bond prior to maturity.  default risk  liquidity  taxability  inflation  interest rate risk 29. How much are you willing to pay for one share of stock if the company just paid an annual dividend of $1.03, the dividends increase by 3 percent annually, and you require a rate of return of 15 percent?  $8.84  $6.87  $9.49  $10.40  $8.58 30. The rate at which a stock's price is expected to appreciate (or depreciate) is called the _____ yield.  total  capital gains  current  earnings  dividend Other available courses at Transweb E Tutor which are similar to the ECO 372 Final Exam is listed below: ECO 372 Final Exam ECO 561 Final Exam FIN 370 Final Exam FIN 571 Final Exam FIN 571 Connect Problems FIN 575 Final Exam LAW 421 Final Exam To find more visit: http://www.transwebetutors.com/