Infiman Lq1 Merged 1

12/16/22, 8:31 PM Quiz 1: [1221_INFIMAN_EB2] - FUNDAMENTALS OF FINANCIAL MANAGEMENT FOR IES
Quiz 1
Due Oct 13 at 8:30pm Points 100.2 Questions 32
Available Oct 13 at 5:55pm - Oct 13 at 8:30pm 2 hours and 35 minutes
Time Limit 150 Minutes
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LATEST Attempt 1 146 minutes 88.9 out of 100.2
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Submitted Oct 13 at 8:30pm
This attempt took 146 minutes.
Question 1 2.5 / 2.5 pts
Your company had the following balance sheet and income statement
information for 2002:
https://dlsu.instructure.com/courses/105708/quizzes/275066 1/32
Balance Sheet:
Cash $ 20
A/R 1,000
Inventories 5,000
Total current assets $6,020 Debt $4,000
Net fixed assets 2,980 Equity 5,000
Total assets $9,000 Total claims $9,000
Income Statement:
Sales $10,000
Cost of goods sold 9,200
EBIT $ 800
Interest (10%) 400
EBT $ 400
Taxes (40%) 160
Net income $ 240
The industry average inventory turnover is 5. You think you can change
your inventory control system so as to cause your turnover to equal the
industry average, and this change is expected to have no effect on either
sales or cost of goods sold. The cash generated from reducing inventories
will be used to buy tax-exempt securities that have a 7 percent rate of
return. What will your profit margin be after the change in inventories is
reflected in the income statement?
4.6%
2.1%
2.4%
5.3%
6.0%
Last year, Owen Technologies reported negative net cash flow and
negative free cash flow. However, its cash on the balance sheet
increased. Which of the following could explain these changes in its cash
position?
The company issued new common stock
The company had a sharp increase in its depreciation and amortization

expenses.
The company had a sharp increase in its inventories.
Both depreciation/amortization expenses and inventories had sharp

increases
Inventories increased as well as new common stocks were issued
Incorrect
Question 3 0 / 2.5 pts
The following data apply to Sinotronics (in millions):
Cash and equivalents 120
Fixed Assets 267.5
Sales 1,100
Net Income 52
Current Liabilities 106.8
Current Ratio 3.1X
DSO 41.25 days
ROE 12.5%
Use a 365-day year
Sinotronics has no preferred stocks- only common equity, current liabilities

and long-term debt.
If Sinotronics’ could reduce its DSO from 41.25 days to 30.4 days while
holding other things constant, this would generate cash. The company
plans to use this cash to buy back common stocks (at book value) thus
reducing common equity. What would be the effect of the buyback of the
common equity on the company's ratios?
ROE, ROA and Financial Leverage would all increase
ROE, ROA and Financial Leverage would all decrease
ROE would increase while ROA and Financial Leverage would decrease
ROE and ROA would increase while Financial Leverage would decrease
ROE and ROA would decrease while Financial Leverage would increase
A stock analyst has acquired the following information for Palmer

Products:
• Retained earnings on the year-end 2001 balance sheet was $700,000.
• The company does not pay dividends.
• The company's depreciation expense is its only non-cash expense.
• The company has no non-cash revenues.
• The company's net cash flow for 2002 was $150,000.
Net cash flow = Net Income + Depreciation and Amoritzation
On the basis of this information, which of the following statements is most

correct?
Palmer Products had negative income in 2002
Palmer Products had positive net income in 2002, but it was less than its
net income in 2001.
Palmer Products' depreciation expense in 2002 was less than $150,000
Palmer Products' cash on the balance sheet at the end of 2002 must be
lower than the cash it had on its balance sheet at the end of 2001.
The information below is taken from the records of two companies in the
same industry:
Company X Company Y
Amt in ‘000 Amt in ‘000
Cash 210 320
Marketable Securities 330 630
Accounts Receivable 1,230 950
Plant and Equipment 1,695 2,400
Total Assets 3,465 4,300
Accounts Payable 900 1,050
Bond-Debentures 500 1,000
Equity Share Capital 1,100 1,750
Retained Earnings 965 500
Total Liabilities/Equities 3,465 4,300
Sales 5,600 8,200
Cost of Goods Sold 4,000 6,480
Operating Expenses 800 860
Interest Expense 40 80
Income Taxes 380 390
Dividends 100 180
Use 360 days per year. Assuming all sales to be credit, which company
collects faster from its customers?
Company Y because its A/R turnover is higher than Company X
Company X because its A/R turnover is higher than Company Y
Company Y because its A/R turnover is lower than Company X
Company X because its A/R turnover is lower than Company Y
Company X because its collection period (or DSO) is higher than Company
Y
Incorrect Question 6 0 / 2.5 pts
You observe that a firm's profit margin is below the industry average, while
its return on equity and debt ratio exceed the industry average. What can
you conclude?
None of the statements given is correct
Return on assets must be above the industry average
Total assets turnover must be above the industry average.
Total assets turnover must be below the industry average.
Both return on asset and total asset turnover are above industry average
Which of the ff firms would have the least liquidity?
Current Ratio=1.2 and quick ratio = 0.6
Current ratio=0.4 and quick ratio = 0.5
Fixed Assets 267.5
Sales 1,100
Net Income 52
Current Ratio 3.1X
DSO 41.25 days
ROE 12.5%

and long-term debt. Suppose Filtronics, the erstwhile competitor of
Sinotronics’, has a current ratio of 2.9 and a quick ratio of 2.5. Which of
the ff statement is true?
Sinotronic's current asset holdings are less liquid than those of Filtronic's
Sinotronic's current asset holdings are more liquid than those of Filtronic's
Sinotronics has more outstanding liabilities than Filtronics
Sinotronics has less outstanding liabilities than Filtronics
Sinotronics has more cash holding than Filtronics
same industry:
Company X Company Y
Cash 210 320
Sales 5,600 8,200
Dividends 100 180
Use 360 days per year
If you were to purchase the bonds of a company, which company would it

be and why?
Company X because its interest coverage ratio is higher than Company Y
Company Y because its interest coverage ratio is higher than Company X
Company X because its ROE ratio is higher than Company Y
Company Y because its ROE ratio is higher than Company X
Company Y because its debt ratios are all lower than Company X
The real risk-free rate is expected to remain constant at 3 percent.

Inflation is expected to be 2 percent a year for the next 3 years, and then
4 percent a year thereafter. The maturity risk premium is 0.1%(t - 1),
where t equals the years to maturity of the bond. (The maturity risk
premium on a 5-year bond is 0.4 percent.) A 5-year corporate bond has a
yield of 8.4 percent. What is the yield on a 7-year corporate bond that has
the same default risk and liquidity premiums as the 5-year corporate
bond? Use four decimal places for your computation and answer.
8.94
Lancaster Co. and York Co. both have the same return on assets (ROA).
However, Lancaster has a higher net profit margin and a lower equity
multiplier than York. The ff statements were made:
Statement 1: Lancaster has a higher asset turnover than York.
Statement 2: Lancaster has a lower debt ratio than York.
Statement 3: Lancaster has a higher return on equity (ROE) than York.
Statement 2 is correct
Statements 1 and 2 are correct
All statements are correct.
Which of the following statements is most correct?
Secondary markets are markets where existing securities are traded

among investors.
Money markets are markets for long-term debt and common stocks.
While the distinctions are blurring, investment banks generally specialize in

lending money, whereas commercial banks generally help companies raise
capital from other parties.
Futures market is for physical commodities and securities that will be

traded in the market at the current time.
When a corporate organization approach an insurance company to

purchase its commercial paper in entirety it is actually forming a public
market.
Incorrect
You are an analyst following two companies- Company X and Company Y.

You have collected the ff information:
-The two companies have the same total asets.
-Company X has a higher total assets turnover than Company Y
-Company X has a higher net profit margin than Company Y
-Company Y has a higher inventory turnover ratio than Company X
-Company Y has a higher current ratio than Company X
The ff statement are made:
A. Company X must have a higher net income.
B. Company X must have a higher ROE.

C. Company Y must have a higher ROA.
Only statement A is correct.
Both statements A and B are correct.
Only statement C is correct.
Only statement B is correct
Both statements A and C are correct
same industry:
Company X Company Y
Cash 210 320

Sales 5,600 8,200
Dividends 100 180
Use 360 days per year. Which company is using the owner’s money more
profitably and why?
Company X because its NPM ratio is higher than Company Y
Company Y because its NPM ratio is higher than Company X
Company X because its ROA ratio is higher than Company Y
Fixed Assets 267.5
Sales 1,100
Net Income 52
Current Ratio 3.1X
DSO 41.25 days
ROE 12.5%
Use a 365-day year

and long-term debt. What is the company's total common equity amount?
Express your answer in million
416
Fixed Assets 267.5
Sales 1,100
Net Income 52
Current Ratio 3.1X
DSO 41.25 days
ROE 12.5%
Use a 365-day year

and long-term debt. What is the company's return on assets value? Use
four decimal places for your computation and answer.
8.6872
Solo Company has been depreciating its fixed assets over 15 years. It is
now clear that these assets will only last a total of 10 years. Solo's
accountants have encouraged the firm to revise its annual depreciation to

reflect this new information. Which of the following would occur as a result
of this change?
The company's earnings per share would decrease and its cash position
would increase
The only impact is the company's earnings per share would decrease
The only impact would be that the company's cash position would
increase.
The company's EBIT would increase
None of the given statements are correct
Peterson Packaging Corp. has $9 billion in total assets. The company's

basic earning power (BEP) ratio is 9 percent, and its times interest earned
ratio is 3.0. Peterson's depreciation and amortization expense totals $1
billion. $0.3 billion must go towards principal payments on outstanding
loans and long-term debt. Without tax considerations, what is Peterson's
EBITDA coverage ratio?
3.18
2.06
1.52
2.25
1.83
Incorrect
The yield on a 5-year corporate bond will always exceed the yield on a 4-
year Treasury bond.
The yield on a 3-year Treasury bond cannot exceed the yield on a 5-year
Treasury bond.
year corporate bond.
The yield of a 10 year treasury security will just be the same as that of a 10
Which of the following factors are likely to lead to an increase in nominal

interest rates?
Government is spending more leading to an increase in fiscal deficit
Households decrease their savings rate
Industries in an economy are already stagnating and saturated with market

players
There is a decrease in expected inflation.
Incorrect
Weatherford Industries Inc. has the following ratios: ;
profit margin =0.10; and retention ratio = 55%. Sales last year
were $100M. Suppose 40% of the company’s present asset holdings is
fixed asset while the remainder are all current assets which increase
proportionately with sales. If the company is not yet operating at full
capacity and an additional 15% of sales increase next year can be ably
absorbed by the slack capacity, what is projected total asset amount next
year? Express your answer in millions and use four decimal places in your
computation and answer.
6.4
profit margin =0.10; and retention ratio = 55%.
Sales last year were $100M. Suppose financial consultants report (1) that
the inventory turnover ratio: Sales/Inventory = 3X versus an industry
average of 4X and (2) inventories can be reduced and thus raise its
turnover to 4 without affecting sales, profit margin or other asset turnover
ratios. If company succeeds to improve its turnover next year, what is the
new asset to sales proportion? Use four decimal places in your
1.5167
ratios. If company succeeds to improve its turnover next year what
additional external funds would the company require next year to fund its
20% sales growth? Express your answer in millions. Use two decimal
places in your computation and answer.
7.4
absorbed by the slack capacity, determine the additional amount of

external financing needed. Express your answer in millions and use four
decimal places in your computation and answer.
6.4
Incorrect
Sales last year were $100M. Assuming that these ratios remain constant:
What is the total current amount of external financing (total of liabilities

and equities) being employed by the company? Express your answer in
millions.
266.6667
Use the AFN equation to determine the maximum growth rate (sustainable
growth rate) it can achieve without having to employ non-spontaneous
external funds. Use three decimal places for your computation and
answer
0.048
ratios. What is the projected level of inventory if company succeeds to
improve its turnover next year? Express your answer in millions
25
Question 28 5 / 5 pts
INFIMAN Company has the following comparative balances on December

31, 2021 and 2022:
LIABILITIES
ASSETS 2021 2022 AND 2021 2022
EQUITY
Accounts
Cash 120,000 250,000 400,000 450,000
payable
Accounts Accrued
520,000 370,000 88,000 67,000
receivable expenses
Long-term
Inventories 340,000 400,000 300,000 350,000
debt
Fixed Common
200,000 250,000 300,000 300,000
assets, net stock
Other Retained
50,000 45,000 142,000 148,000
assets earnings
TOTAL
TOTAL LIABILITIES
1,230,000 1,315,000 1,230,000 1,315,000
ASSETS AND
EQUITY
The company’s result of operations for the year 2022 is presented below.
Net sales 1,582,000
Less: cost of goods

1,235,000
sold
Gross profit 347,000
Less: operating
258,000
expenses
Operating income 89,000
Less: interest expense 9,000
Net income before tax 80,000
Less: income tax (30%) 24,000
Net income after tax 56,000
The company incurred, as part of operating expenses, depreciation

expense (related to fixed assets) of 35,000, and amortization expense
(related to other assets) of 5,000. All dividends paid during the year are
made in cash.
How much total acquisitions of fixed assets were made during 2022?
85,000

31, 2021 and 2022:
LIABILITIES
ASSETS 2021 2022 AND 2021 2022
EQUITY
Accounts
Cash 120,000 250,000 400,000 450,000
payable
Accounts Accrued
520,000 370,000 88,000 67,000
receivable expenses
Long-term
Inventories 340,000 400,000 300,000 350,000
debt
Fixed Common
200,000 250,000 300,000 300,000
assets, net stock
Other Retained
50,000 45,000 142,000 148,000
assets earnings
TOTAL
TOTAL LIABILITIES
1,230,000 1,315,000 1,230,000 1,315,000
ASSETS AND
EQUITY
Net sales 1,582,000
Less: cost of goods

1,235,000
sold
Less: operating
258,000
expenses

made in cash.
How much are the non-cash expenses added back to net income as part
of operating activities?
40,000

31, 2021 and 2022:
LIABILITIES
ASSETS 2021 2022 AND 2021 2022
EQUITY
Accounts
Cash 120,000 250,000 400,000 450,000
payable
Accounts Accrued
520,000 370,000 88,000 67,000
receivable expenses
Long-term
Inventories 340,000 400,000 300,000 350,000
debt
Fixed Common
200,000 250,000 300,000 300,000
assets, net stock
Other 50,000 45,000 Retained 142,000 148,000

assets earnings
TOTAL
TOTAL LIABILITIES
1,230,000 1,315,000 1,230,000 1,315,000
ASSETS AND
EQUITY
Net sales 1,582,000
Less: cost of goods

1,235,000
sold
Less: operating
258,000
expenses
How much dividends were paid in 2022?
50,000

31, 2021 and 2022:
LIABILITIES
ASSETS 2021 2022 AND 2021 2022
EQUITY
Accounts
Cash 120,000 250,000 400,000 450,000
payable
Accounts Accrued
520,000 370,000 88,000 67,000
receivable expenses
Long-term
Inventories 340,000 400,000 300,000 350,000
debt
Fixed Common
200,000 250,000 300,000 300,000
assets, net stock
Other Retained
50,000 45,000 142,000 148,000
assets earnings
TOTAL
TOTAL LIABILITIES
1,230,000 1,315,000 1,230,000 1,315,000
ASSETS AND
EQUITY
Net sales 1,582,000
Less: cost of goods

1,235,000
sold
Less: operating
258,000
expenses

made in cash.
How much is the net cash provided (+) or used (-) by operating activities?
Indicate whether the answer is positive or negative.
215,000

31, 2021 and 2022:
LIABILITIES
ASSETS 2021 2022 AND 2021 2022
EQUITY
Accounts
Cash 120,000 250,000 400,000 450,000
payable
Accounts Accrued
520,000 370,000 88,000 67,000
receivable expenses
Long-term
Inventories 340,000 400,000 300,000 350,000
debt
Fixed Common
200,000 250,000 300,000 300,000
assets, net stock
Other Retained
50,000 45,000 142,000 148,000
assets earnings
TOTAL
TOTAL LIABILITIES
1,230,000 1,315,000 1,230,000 1,315,000
ASSETS AND
EQUITY
Net sales 1,582,000
Less: cost of goods

1,235,000
sold
Less: operating
258,000
expenses

made in cash.
How much is the net cash provided (+) or used (-) by financing activities?
Indicate whether the answer is positive or negative
Quiz Score: 88.9 out of 100.2

This quiz score has been manually adjusted by +12.0 points.
4/17/23, 7:53 PM Quiz 1 : [1222_INFIMAN_ER1] - FUNDAMENTALS OF FINANCIAL MANAGEMENT FOR IES
Quiz 1
Due Mar 3 at 8:30pm Points 100.04 Questions 33
Available Mar 3 at 5:50pm - Mar 3 at 8:30pm 2 hours and 40 minutes
Time Limit 135 Minutes Allowed Attempts 2
Instructions
This quiz was locked Mar 3 at 8:30pm.
Attempt History
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KEPT Attempt 2 124 minutes 79.39 out of 100.04
Attempt 1 135 minutes 50 out of 100.04
 Correct answers are hidden.
Score for this attempt: 79.39 out of 100.04

Submitted Mar 3 at 7:56pm
Course Chat 

3.18
2.06
1.52
2.25
1.83
Send
Fixed Assets 267.5
Sales 1,100
Net Income 52
Current Ratio 3.1X
DSO 41.25 days
ROE 12.5%
Use a 365-day year

and long-term debt.
same industry:
Company X Company Y
Cash 210 320
Sales 5,600 8,200
Dividends 100 180

profitably and why?
Balance Sheet:
Cash $ 20
A/R 1,000
Inventories 5,000
Income Statement:
Sales $10,000
EBIT $ 800
Interest (10%) 400
EBT $ 400
Taxes (40%) 160
Net income $ 240
4.6%
2.1%
2.4%
5.3%
6.0%
Fixed Assets 267.5
Sales 1,100
Net Income 52
Current Ratio 3.1X
DSO 41.25 days
ROE 12.5%

same industry:
Company X Company Y
Cash 210 320

Sales 5,600 8,200
Dividends 100 180
Y


0.0894

Products:

correct?
net income in 2001.
of this change?
would increase
increase.
you conclude?
year Treasury bond.
Treasury bond.

Fixed Assets 267.5
Sales 1,100
Net Income 52
Current Ratio 3.1X
DSO 41.25 days
ROE 12.5%
Use a 365-day year


416

among investors.



market.
same industry:
Company X Company Y
Cash 210 320
Sales 5,600 8,200
Dividends 100 180

be and why?

interest rates?

players
Fixed Assets 267.5
Sales 1,100
Net Income 52
Current Ratio 3.1X
DSO 41.25 days
ROE 12.5%
Use a 365-day year

0.0869
position?

expenses.

increases
Incorrect
Given below are the financial statements of Jeter Corporation:
JETER CORPORATION
Income Statement
For the Year Ended Dec. 31, 2001
Sales1 $3,300,000
Cost of Goods Sold1 (1,950,000)
Gross Profit 1,350,000
Operating Expenses* (980,000)
Operating Income 470,000
Interest Expense (80,000)

Earning Before Taxes 390,000
Taxes (140,000)
Earnings After Taxes 250,000
Preferred Stock Dividends (10,000)
Earnings Available to Common

240,000
Stockholders
Common Shares Outstanding 150,000 shares
*Includes Depreciation
1
Inclusive of the sale of land owned by the company
Comparative Balance Sheet
For 2000 and 2001
Year-End 2000 Year-End 2001
Assets
Current Assets:
Cash $100,000 $120,000
Accounts Receivable 500,000 510,000
Inventory 610,000 640,000
Prepaid Expenses 60,000 30,000
Total Current Assets 1,270,000 1,300,000
Investments (Long-Term Securities) 90,000 80,000
Land, Plant and Equipment (Net)^ 1,000,000 1,370,000
Total Assets 2,360,000 2,750,000
Liabilities and Stockholders’

Equity
Current Liabilities:
Accounts Payable@ $300,000 $550,000
Notes Payable 500,000 500,000
Accrued Expenses 70,000 50,000
Total Current Liabilities 870,000 1,100,000
Long-Term Liabilities:
Bonds Payable, 2004 100,000 160,000
Total Liabilities 970,000 1,126,000
Stockholders’ Equity:
Preferred Stock, $100 par value 90,000 90,000
Common Stock, $1 par value 150,000 150,000
Capital Paid in Excess of Par* 350,000 350,000
Retained Earnings 800,000 900,000
Total Stockholders’ Equity 1,390,000 1,490,000
Total Liabilities and

2,360,000 2,750,000
Stockholders’ Equity
^ Accumulated Depreciation: Year 2000 = $1,000,000; Year 2001 =

$1,230,000
^ Also, a small plot of land worth $200,000 was sold for $300,000 during
2001.
@
Payments amounting to $350,000 were made to the company’s
suppliers during
2001.
For common stockholders only.
How much did fixed asset (excluding land) change from 2000 to 2001?
(attach '-' sign to your answer if you believe fixed asset holding of the
company decreased).
-600,000
JETER CORPORATION
Income Statement
Sales1 $3,300,000

Taxes (140,000)

240,000
Stockholders
1Inclusive of the sale of land owned by the company
For 2000 and 2001
Assets
Current Assets:
Cash $100,000 $120,000
Inventory 610,000 640,000
Total Assets 2,360,000 2,750,000

Equity
Bonds Payable, 2004 100,000 160,000

2,360,000 2,750,000

$1,230,000
2001.
@
suppliers during
2001.
What is the amount of net cash generated by the company's financing

activities? (attach a '-' sign if you believe it was a net use of cash rather
than net generation of cash)
-90,000
JETER CORPORATION
Income Statement
Sales1 $3,300,000
Taxes (140,000)

240,000
Stockholders
1
For 2000 and 2001
Assets
Current Assets:
Cash $100,000 $120,000
Inventory 610,000 640,000
Total Assets 2,360,000 2,750,000

Equity
Bonds Payable, 2004 100,000 160,000

2,360,000 2,750,000

$1,230,000
2001.
@
suppliers during
2001.
What is the amount of net cash generated by the company's investment

-590,000
JETER CORPORATION
Income Statement
Sales1 $3,300,000
Taxes (140,000)

240,000
Stockholders
1
For 2000 and 2001
Assets
Current Assets:
Cash $100,000 $120,000
Inventory 610,000 640,000
Total Assets 2,360,000 2,750,000

Equity
Bonds Payable, 2004 100,000 160,000

2,360,000 2,750,000

$1,230,000
2001.
@
suppliers during
2001.
What is the amount of net cash generated by the company's operating

activities? (attach '-' sign if you believe it was a net use of cash rather than
net generation of cash)
700,000
JETER CORPORATION
Income Statement
Sales1 $3,300,000
Taxes (140,000)


240,000
Stockholders
1
For 2000 and 2001
Assets
Current Assets:
Cash $100,000 $120,000
Inventory 610,000 640,000
Total Assets 2,360,000 2,750,000


Equity
Bonds Payable, 2004 100,000 160,000

2,360,000 2,750,000

$1,230,000
2001.
@
suppliers during
2001.
How much common stock dividends were given out?
140,000
Symbolic Logic Corporation (SLC) is a technological leader in the

application of surface mount technology in the manufacture of printed
circuit boards used in the personal computer industry. The firm has
recently patented an advanced version of its original path-breaking
technology and expects sales to grow from their present level of USD 5M
to USD 8M by the end of the coming year. The firm is at present operating
at full capacity, it expects to increase its investment in current assets in
proportion to the predicted increase in sales while a USD 1M has to be
added to its fixed asset holding.
The firm’s net profit were 7% of current year’s sales but are expected to
rise to 8% of next year’s sales. To help support its anticipated growth in
asset needs next year, the firm decided to slash cash dividends by half. In
years past a USD 1.25 per share dividend has been paid annually. Tax
rate stands at 20%.
Account Present Level (in USD millions)
Current Assets 2.5
Net Fixed Assets 3.0
Total 5.5
Accounts Payable 1.0
Accrued Expenses 0.5
Notes Payable -
Long-Term Debt 2.0
Common Stock (at USD 1 par value

0.5
each)
Retained Earnings 1.5
Common Equity 2.0
Total 5.5
Industry current ratio is 1.5 while debt ratio is 60%. If SLC wants to be at
par with industry, how should it adjust its financing strategy, this time using
all external and interest-bearing financing (N/P, LTD, C/S)? What is the
new Common Stock amount?

rate stands at 20%.
Current Assets 2.5
Total 5.5
Notes Payable -
Long-Term Debt 2.0


0.5
each)
Common Equity 2.0
Total 5.5
Make a projected/pro forma income statement. What is the income after

tax?
0.6

rate stands at 20%.
Current Assets 2.5
Total 5.5
Notes Payable -
Long-Term Debt 2.0

0.5
each)
Common Equity 2.0
Total 5.5
new Long Term debt amount?

rate stands at 20%.
Current Assets 2.5
Total 5.5
Notes Payable -
Long-Term Debt 2.0


0.5
each)
Common Equity 2.0
Total 5.5
What is the AFN amount using the AFN equation?
1.25

rate stands at 20%.
Current Assets 2.5
Total 5.5
Notes Payable -
Long-Term Debt 2.0

0.5
each)
Common Equity 2.0
Total 5.5
What is the additional total asset requirement in relation to the expected

increase in sales?
2.5

rate stands at 20%.
Current Assets 2.5
Total 5.5
Notes Payable -
Long-Term Debt 2.0

0.5
each)
Common Equity 2.0
Total 5.5
new Notes Payable amount?
1.26

rate stands at 20%.
Current Assets 2.5
Total 5.5
Notes Payable -
Long-Term Debt 2.0

0.5
each)
Common Equity 2.0
Total 5.5
Make a projected balance sheet for the coming year. Use notes payable
account as the balancing item. What is the new notes payable balance or
amount?
1.26

rate stands at 20%.
Current Assets 2.5
Total 5.5
Notes Payable -
Long-Term Debt 2.0

0.5
each)
Common Equity 2.0
Total 5.5
If you construct a projected/pro forma balance sheet, what would be the

amount for retained earnings (R/E)?
1.5
Quiz 1
Due Jun 9 at 8:30pm Points 100.04 Questions 33
Available Jun 9 at 5:50pm - Jun 9 at 8:30pm 2 hours and 40 minutes
Instructions
Attempt History
Attempt Time Score
 Correct answers are hidden.

Submitted Jun 9 at 7:34pm
Balance Sheet:
Course Chat 
Cash $ 20
A/R 1,000
Inventories 5,000
Income Statement:
Send
Sales $10,000
EBIT $ 800
Interest (10%) 400
EBT $ 400
Taxes (40%) 160
Net income $ 240
4.6%
2.1%
2.4%
5.3%
6.0%
position?

expenses.

increases
Incorrect
you conclude?
Fixed Assets 267.5
Sales 1,100
Net Income 52
Current Ratio 3.1X
DSO 41.25 days
ROE 12.5%
Use a 365-day year

and long-term debt.
Fixed Assets 267.5
Sales 1,100
Net Income 52
Current Ratio 3.1X
DSO 41.25 days
ROE 12.5%

Fixed Assets 267.5
Sales 1,100
Net Income 52
Current Ratio 3.1X
DSO 41.25 days
ROE 12.5%
Use a 365-day year
Sinotronics has no preferred stocks- only common equity, current

liabilities and long-term debt. What is the company's total common
equity amount? Express your answer in million
416
Fixed Assets 267.5
Sales 1,100
Net Income 52
Current Ratio 3.1X
DSO 41.25 days
ROE 12.5%
Use a 365-day year

0.0869
same industry:
Company X Company Y
Cash 210 320
Sales 5,600 8,200
Dividends 100 180
Y

Products:

correct?
net income in 2001.


0.0894
same industry:
Company X Company Y
Cash 210 320
Sales 5,600 8,200

Dividends 100 180
profitably and why?
same industry:
Company X Company Y
Cash 210 320
Sales 5,600 8,200
Dividends 100 180

be and why?

of this change?
would increase
increase.

interest rates?

players

3.18
2.06
1.52
2.25
1.83

among investors.



market.
year Treasury bond.
Treasury bond.
JETER CORPORATION
Income Statement
Sales1 $3,300,000
Taxes (140,000)

240,000
Stockholders
For 2000 and 2001
Assets
Current Assets:
Cash $100,000 $120,000
Inventory 610,000 640,000
Total Assets 2,360,000 2,750,000

Equity
Bonds Payable, 2004 100,000 160,000

2,360,000 2,750,000

$1,230,000
2001.
@Payments amounting to $350,000 were made to the company’s
suppliers during
2001.
What is the amount of net cash generated by the company's investment

-590,000
Incorrect Question 22 0 / 5 pts
JETER CORPORATION
Income Statement
Sales1 $3,300,000
Taxes (140,000)


240,000
Stockholders
1
For 2000 and 2001
Assets
Current Assets:
Cash $100,000 $120,000
Inventory 610,000 640,000
Total Assets 2,360,000 2,750,000


Equity
Bonds Payable, 2004 100,000 160,000

2,360,000 2,750,000

$1,230,000
2001.
@
suppliers during
2001.
What is the amount of net cash generated by the company's operating

activities? (attach '-' sign if you believe it was a net use of cash rather than
net generation of cash)
600,000
JETER CORPORATION
Income Statement
Sales1 $3,300,000
Taxes (140,000)

240,000
Stockholders
1
For 2000 and 2001
Assets
Current Assets:
Cash $100,000 $120,000
Inventory 610,000 640,000
Total Assets 2,360,000 2,750,000

Equity
Bonds Payable, 2004 100,000 160,000

2,360,000 2,750,000

$1,230,000
2001.
suppliers during
2001.
How much common stock dividends were given out?
140,000
JETER CORPORATION
Income Statement
Sales1 $3,300,000
Taxes (140,000)

240,000
Stockholders
For 2000 and 2001
Assets
Current Assets:
Cash $100,000 $120,000
Inventory 610,000 640,000
Total Assets 2,360,000 2,750,000

Equity
Bonds Payable, 2004 100,000 160,000

2,360,000 2,750,000

$1,230,000
2001.
@
suppliers during
2001.
How much did fixed asset (excluding land) change from 2000 to 2001?
(attach '-' sign to your answer if you believe fixed asset holding of the
company decreased).
800,000
JETER CORPORATION
Income Statement
Sales1 $3,300,000
Taxes (140,000)

240,000
Stockholders
1
For 2000 and 2001
Assets
Current Assets:
Cash $100,000 $120,000
Inventory 610,000 640,000
Total Assets 2,360,000 2,750,000

Equity
Bonds Payable, 2004 100,000 160,000

2,360,000 2,750,000

$1,230,000
2001.
suppliers during
2001.
What is the amount of net cash generated by the company's financing

-90,000

rate stands at 20%.
Current Assets 2.5
Total 5.5

Notes Payable -
Long-Term Debt 2.0

0.5
each)
Common Equity 2.0
Total 5.5
Make a projected/pro forma income statement. What is the income after

tax?
640,000

rate stands at 20%.
Current Assets 2.5
Total 5.5
Notes Payable -
Long-Term Debt 2.0

0.5
each)
Common Equity 2.0
Total 5.5
new Notes Payable amount?
2,133,333.33

rate stands at 20%.
Current Assets 2.5
Total 5.5
Notes Payable -
Long-Term Debt 2.0

0.5
each)
Common Equity 2.0
Total 5.5
What is the AFN amount using the AFN equation?
1,272,500

rate stands at 20%.
Current Assets 2.5
Total 5.5
Notes Payable -
Long-Term Debt 2.0

0.5
each)
Common Equity 2.0
Total 5.5
What is the additional total asset requirement in relation to the expected

increase in sales?
1,272,500

rate stands at 20%.
Current Assets 2.5
Total 5.5
Notes Payable -
Long-Term Debt 2.0

0.5
each)
Common Equity 2.0
Total 5.5
Make a projected balance sheet for the coming year. Use notes payable
account as the balancing item. What is the new notes payable balance or
amount?
266,666.67

rate stands at 20%.
Current Assets 2.5
Total 5.5
Notes Payable -
Long-Term Debt 2.0

0.5
each)
Common Equity 2.0
Total 5.5
new Long Term debt amount?
266,666.67

rate stands at 20%.
Current Assets 2.5
Total 5.5
Notes Payable -
Long-Term Debt 2.0

0.5
each)
Common Equity 2.0
Total 5.5
new Common Stock amount?
1,327,500


rate stands at 20%.
Current Assets 2.5
Total 5.5
Notes Payable -
Long-Term Debt 2.0

0.5
each)
Common Equity 2.0
Total 5.5
If you construct a projected/pro forma balance sheet, what would be the

amount for retained earnings (R/E)?
1,827,500
Quiz 1
Due Oct 13 at 8:30pm Points 100.2 Questions 32
Available Oct 13 at 5:55pm - Oct 13 at 8:30pm 2 hours and 35 minutes
Instructions
This quiz was locked Oct 13 at 8:30pm.
Attempt History
Attempt Time Score
 Correct answers are hidden.

Submitted Oct 13 at 8:30pm
Balance Sheet:
Cash $ 20
A/R 1,000
Inventories 5,000
Income Statement:
Sales $10,000
EBIT $ 800
Interest (10%) 400
EBT $ 400
Taxes (40%) 160
Net income $ 240
4.6%
2.1%
2.4%
5.3%
6.0%
position?

expenses.

increases
Incorrect
Fixed Assets 267.5
Sales 1,100
Net Income 52
Current Ratio 3.1X
DSO 41.25 days
ROE 12.5%
Use a 365-day year

and long-term debt.

Products:

correct?
net income in 2001.
same industry:
Company X Company Y
Cash 210 320
Sales 5,600 8,200
Dividends 100 180
Y
you conclude?
Fixed Assets 267.5
Sales 1,100
Net Income 52
Current Ratio 3.1X
DSO 41.25 days
ROE 12.5%

same industry:
Company X Company Y
Cash 210 320
Sales 5,600 8,200
Dividends 100 180

be and why?

8.94

among investors.



market.
Incorrect


same industry:
Company X Company Y
Cash 210 320

Sales 5,600 8,200
Dividends 100 180
profitably and why?
Fixed Assets 267.5
Sales 1,100
Net Income 52
Current Ratio 3.1X
DSO 41.25 days
ROE 12.5%
Use a 365-day year

416
Fixed Assets 267.5
Sales 1,100
Net Income 52
Current Ratio 3.1X
DSO 41.25 days
ROE 12.5%
Use a 365-day year

8.6872

of this change?
would increase
increase.

3.18
2.06
1.52
2.25
1.83
Incorrect
year Treasury bond.
Treasury bond.

interest rates?

players
Incorrect
absorbed by the slack capacity, what is projected total asset amount next
year? Express your answer in millions and use four decimal places in your
6.4
ratios. If company succeeds to improve its turnover next year, what is the
new asset to sales proportion? Use four decimal places in your
1.5167
ratios. If company succeeds to improve its turnover next year what
additional external funds would the company require next year to fund its
20% sales growth? Express your answer in millions. Use two decimal
places in your computation and answer.
7.4
absorbed by the slack capacity, determine the additional amount of

external financing needed. Express your answer in millions and use four
decimal places in your computation and answer.
6.4
Incorrect
What is the total current amount of external financing (total of liabilities

and equities) being employed by the company? Express your answer in
millions.
266.6667
Use the AFN equation to determine the maximum growth rate (sustainable
growth rate) it can achieve without having to employ non-spontaneous
external funds. Use three decimal places for your computation and
answer
0.048
ratios. What is the projected level of inventory if company succeeds to
improve its turnover next year? Express your answer in millions
25

31, 2021 and 2022:
LIABILITIES
ASSETS 2021 2022 AND 2021 2022
EQUITY
Accounts
Cash 120,000 250,000 400,000 450,000
payable
Accounts Accrued
520,000 370,000 88,000 67,000
receivable expenses
Long-term
Inventories 340,000 400,000 300,000 350,000
debt
Fixed Common
200,000 250,000 300,000 300,000
assets, net stock
Other Retained
50,000 45,000 142,000 148,000
assets earnings
TOTAL
TOTAL LIABILITIES
1,230,000 1,315,000 1,230,000 1,315,000
ASSETS AND
EQUITY
Net sales 1,582,000
Less: cost of goods

1,235,000
sold
Less: operating
258,000
expenses

made in cash.
How much total acquisitions of fixed assets were made during 2022?
85,000

31, 2021 and 2022:
LIABILITIES
ASSETS 2021 2022 AND 2021 2022
EQUITY
Accounts
Cash 120,000 250,000 400,000 450,000
payable
Accounts Accrued
520,000 370,000 88,000 67,000
receivable expenses
Long-term
Inventories 340,000 400,000 300,000 350,000
debt
Fixed Common
200,000 250,000 300,000 300,000
assets, net stock
Other Retained
50,000 45,000 142,000 148,000
assets earnings
TOTAL
TOTAL LIABILITIES
1,230,000 1,315,000 1,230,000 1,315,000
ASSETS AND
EQUITY
Net sales 1,582,000
Less: cost of goods

1,235,000
sold
Less: operating
258,000
expenses

made in cash.
How much are the non-cash expenses added back to net income as part
of operating activities?
40,000

31, 2021 and 2022:
LIABILITIES
ASSETS 2021 2022 AND 2021 2022
EQUITY
Accounts
Cash 120,000 250,000 400,000 450,000
payable
Accounts Accrued
520,000 370,000 88,000 67,000
receivable expenses
Long-term
Inventories 340,000 400,000 300,000 350,000
debt
Fixed Common
200,000 250,000 300,000 300,000
assets, net stock
Other 50,000 45,000 Retained 142,000 148,000

assets earnings
TOTAL
TOTAL LIABILITIES
1,230,000 1,315,000 1,230,000 1,315,000
ASSETS AND
EQUITY
Net sales 1,582,000
Less: cost of goods

1,235,000
sold
Less: operating
258,000
expenses
How much dividends were paid in 2022?
50,000

31, 2021 and 2022:
LIABILITIES
ASSETS 2021 2022 AND 2021 2022
EQUITY
Accounts
Cash 120,000 250,000 400,000 450,000
payable
Accounts Accrued
520,000 370,000 88,000 67,000
receivable expenses
Long-term
Inventories 340,000 400,000 300,000 350,000
debt
Fixed Common
200,000 250,000 300,000 300,000
assets, net stock
Other Retained
50,000 45,000 142,000 148,000
assets earnings
TOTAL
TOTAL LIABILITIES
1,230,000 1,315,000 1,230,000 1,315,000
ASSETS AND
EQUITY
Net sales 1,582,000
Less: cost of goods

1,235,000
sold
Less: operating
258,000
expenses

made in cash.
How much is the net cash provided (+) or used (-) by operating activities?
Indicate whether the answer is positive or negative.
215,000

31, 2021 and 2022:
LIABILITIES
ASSETS 2021 2022 AND 2021 2022
EQUITY
Accounts
Cash 120,000 250,000 400,000 450,000
payable
Accounts Accrued
520,000 370,000 88,000 67,000
receivable expenses
Long-term
Inventories 340,000 400,000 300,000 350,000
debt
Fixed Common
200,000 250,000 300,000 300,000
assets, net stock
Other Retained
50,000 45,000 142,000 148,000
assets earnings
TOTAL
TOTAL LIABILITIES
1,230,000 1,315,000 1,230,000 1,315,000
ASSETS AND
EQUITY
Net sales 1,582,000
Less: cost of goods

1,235,000
sold
Less: operating
258,000
expenses

made in cash.
How much is the net cash provided (+) or used (-) by financing activities?
Indicate whether the answer is positive or negative

This quiz score has been manually adjusted by +12.0 points.

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12/16/22, 8:31 PM Quiz 1: [1221_INFIMAN_EB2] - FUNDAMENTALS OF FINANCIAL MANAGEMENT FOR IES

2, This exam is good for only 2 hours.

3. This is a closed notes, closed books exam.

This quiz was locked Oct 13 at 8:30pm.

 Correct answers are hidden.

Score for this quiz: 88.9 out of 100.2

Question 1 2.5 / 2.5 pts

Total current assets $6,020 Debt $4,000

Net fixed assets 2,980 Equity 5,000

Total assets $9,000 Total claims $9,000

Cost of goods sold 9,200

Interest (10%) 400

Taxes (40%) 160

Net income $ 240

Question 2 2.5 / 2.5 pts

The company issued new common stock

The company had a sharp increase in its depreciation and amortization

The company had a sharp increase in its inventories.

Both depreciation/amortization expenses and inventories had sharp

Inventories increased as well as new common stocks were issued

The following data apply to Sinotronics (in millions):

Cash and equivalents 120

Fixed Assets 267.5

Current Liabilities 106.8

Current Ratio 3.1X

DSO 41.25 days

Use a 365-day year

Sinotronics has no preferred stocks- only common equity, current liabilities

ROE, ROA and Financial Leverage would all increase

ROE, ROA and Financial Leverage would all decrease

Question 4 2.5 / 2.5 pts

A stock analyst has acquired the following information for Palmer

• Retained earnings on the year-end 2001 balance sheet was $700,000.

• Retained earnings on the year-end 2002 balance sheet was $320,000.

• The company does not pay dividends.

• The company's depreciation expense is its only non-cash expense.

• The company has no non-cash revenues.

• The company's net cash flow for 2002 was $150,000.

Net cash flow = Net Income + Depreciation and Amoritzation

On the basis of this information, which of the following statements is most

Palmer Products had negative income in 2002

Palmer Products' depreciation expense in 2002 was less than $150,000

Question 5 2.5 / 2.5 pts

Amt in ‘000 Amt in ‘000

Cash 210 320

Marketable Securities 330 630

Accounts Receivable 1,230 950

Plant and Equipment 1,695 2,400

Total Assets 3,465 4,300

Accounts Payable 900 1,050

Bond-Debentures 500 1,000

Equity Share Capital 1,100 1,750

Retained Earnings 965 500

Total Liabilities/Equities 3,465 4,300

Sales 5,600 8,200

Cost of Goods Sold 4,000 6,480

Operating Expenses 800 860

Income Taxes 380 390

Dividends 100 180

Company Y because its A/R turnover is higher than Company X