BUSI 101 Connect Assignment 7 Quiz solutions complete answers

BUSI 101 Connect Assignment 7 Quiz solutions complete answers 

 

The following information is listed on Beck's Bicycles, Inc.'s balance sheet as of 12/30/2016.

Assets
Liabilities
Current Assets
$
3,000,000.00
Current Liabilitites
 
 
Cash
 
2,000,000.00
Accts. Payable
$
12,000,000.00
Accts. Receivables
 
9,000,000.00
 
 
 
Inventory
 
 
 
 
 
Total current Assets
$
14,000,000.00
Total Current Liabilities
$
12,000,000.00
 
 
 
 
 
 
Fixed Assets
$
125,000,000.00
Long-Term Debt
$
75,000,000.00
 

If Beck's Bicycles, Inc.'s income statement shows gross profit of $350 million, with operating expenses of $120 million, and if Beck's tax rate is 30%, what is the firm's net income after taxes?

 

Darby's company reported net income after taxes of $2,000,000, on sales of $225 million. Her boss asked her to calculate the earnings per share for stockholders. Darby noted that the company's balance sheet showed 44 million shares outstanding. To explain to him that her calculation is correct, Darby's correct response is

 

Financial managers examine the financial data prepared by ________ and make recommendations to top executives about strategies for improving the financial strength of a firm.

 

Mario's Italian Gardens, an authentic Italian restaurant in suburban Chicago, worked with a local bank for a ________. This unsecured source of funds was available for Mario to tap into if he needed immediate funds for the business. He liked the fact that he had a cushion and only used it if he fell short of funds.

 

What is the major problem with selling on credit?

 

Mirembe is interested in receiving income to help save money for her grandson's college education. She is considering investing in the stock of a fast-growing technology company that is promising a rather high dividend rate to shareholders. One thing it will be helpful for Mirembe to remember is

 

Alex Carter wanted to invest in the stock market, but didn't have the entire $10,000 he needed to buy the shares of the company he wanted. Alex does have $7,000, so he decided to borrow the remainder of the stock's purchase price from his broker in order to be able to buy the stock he wanted. Alex is

 

A company that issues _______ has a legal obligation to make regular interest payments and to repay the principal amount at a prescribed time.

 

The best type of bond for an investor to buy who wants extremely low risk is a

 

In a private company's accounting system, inputs are __________ and outputs are _________.

 

Which of the following describes an activity associated with accounting?

 

The primary purpose of accounting is to

 

Buying and selling goods, acquiring insurance and using supplies represent __________ transactions.

 

Ledgers are used to compile information to complete which of the following?

 

The accounting cycle is a six-step process that results in

 

If you were working as a bookkeeper, the first action you would take is to

 

A specialized accounting book in which information is accumulated into specific categories and posted so managers can find all information about one account in the same place is a

 

The recording of business transactions is a basic part of financial reporting and is referred to as

 

Accumulated earnings from a firm's profitable operations that are kept in the business and not paid out to stockholders are called

 

The fundamental accounting equation is

 

Small businesses that are just getting off the ground often have problems with the difference between cash coming into the business and cash going out of the business. For example, if the company allows far too lenient credit sales terms, customers do not pay on time, which could cause cash to come in too slowly. That's why all businesses must keep a careful watch on their

 

Which of the following would be considered a current asset?

 

Which of the following assets would be considered to be the most liquid (able to convert easily to cash) assets?

 

A debt to equity ratio of over 100% would mean

 

Which of the following is most helpful in analyzing the financial performance of a company?

 

Clarissa's boss asked her to determine if their company is operating with too many borrowed funds. Which ratio will Clarissa utilize to help her with her decision?

 

__________ accounting is used to provide information and analysis to managers within the firm to assist them in decision making.

 

A Certified Public Accountant (CPA) is

 

In order for information to be meaningful, a firm's accounting processes and procedures should be certified as accurate by acceptable accounting standards. Companies hire ________ to provide unbiased opinions about the accuracy of a firm's financial statements.

 

What legislation created new government reporting standards for publicly traded companies?

 

Jim Hopson is an accountant who works for a number of businesses as a consultant. He has helped to design an accounting system, provides accounting services, and has analyzed the financial strength of many of his clients. Jim is working as a

 

Which of the following is a major reason why businesses fail financially?



Taxes represent 



Internal audits are important because



Jaydyn Johnson is a finance manager for Pretty Poseys, a wholesale florist. As finance manager, which of the following would be one of Jaydyn's responsibilities?



Short-term forecasts are based on



Financial controls are designed to help managers to



Takisha Jorimoto works in finance for a small microbrewery. This week Takisha is working on a budget for the next 12 months. She has been doing research to determine prices for the new equipment the company will need in the next 12 months to stay competitive in this market. Which of the steps in financial planning is Takisha involved in?



Guillermo is currently in the process of projecting how much his firm will have to spend on supplies, travel, rent, advertising, and salaries for the coming financial year. Guillermo is working on the



If your job is to compare actual expenses incurred by your company with financial projections previously created, you are performing the task of



The time value of money means that



Accepting bank credit cards represents one way to decrease



Companies must have a carefully constructed inventory policy in order to



Debt financing 



Commercial finance companies accept more risk than banks, and the interest rates they charge are usually ________ than commercial banks.



What is a type of short-term financing that consists of unsecured promissory notes that mature in 270 days or less?



Bargain Books, Inc., an eclectic book and music store near a large college campus, is a reseller. The operation buys books almost every day. Deliveries are constantly part of the day-to-day operation of the firm. The transportation company that delivers to Bargain Books provides this service on trade credit terms of 3/5, net 30. This means the firm



Which of the following is a long-term debt obligation of a corporation or government?



The financial manager for Eastern Bay Brewery is working with the firm's marketing department to bring out a new line of pumpkin ale. The new product development and subsequent production will require a long-term investment of funds by the company. Which of the following sources of financing would be representative of such a long-term funding requirement?



One advantage in using retained earnings as a long-term source of funds is



Idle Time Gaming, Inc., knows that its stockholders expect a return on their investment. The expected return that stockholders anticipate translates into the company's ________. Essentially, this is the amount that the investment funds are costing the firm.



One of the consequences of the financial crisis that began in 2008 was



Issuing stock as a source of funding is referred to as



What is one of the major functions of the securities markets?

 

An investment-banking firm underwrites a new issue of stocks and bonds by?

 

________ and their members provide value because they buy and sell securities on behalf of the companies and individuals they represent.

 

Which of the following is a network of several thousand brokers who maintain contact with one another and buy and sell securities not listed on the national exchanges through a nationwide electronic system?

 

What is the federal regulating body for the securities markets?

 

Tara works as a programmer for XYZ Electronics Company. About one month ago, Tara bought 500 shares of a small start-up firm with great technology because she heard rumors from the CFO's secretary that XYZ was planning to purchase the smaller company and give it an infusion of cash. Yesterday, XYZ announced the decision to buy the small firm, which significantly increased the small company's stock price. Tara most likely performed her trade based upon?

 

The most basic form of ownership in a firm consists of?

 

One of the disadvantages of issuing stock is that?

 

Dividends are paid?

 

Nguyen was trying to decide between purchasing the common stock shares of McAlister Manufacturing, or preferred shares of the same company. As a student of business, you provide the following accurate information that?

 

On the maturity date of a bond, the issuing company will pay?

 

Leslie Halverson is considering investing in the stock market. She wants to be sure to be able to get her money back whenever she wants. Leslie is concerned with?

 

An older person nearing retirement might typically find it better to invest in ________ since they generally seek less risk with their investments.

 

Marta Chesky is interested in investing in the stock of a corporation that pays regular dividends and generates consistent growth in the price of a share. Marta is interested in purchasing ________ stocks.

 

A bond that sells for less than its face value is called a ________ bond.

 

Anthony is contemplating selling the bonds he holds prior to their date of maturity. Which of the following may result in Anthony's bonds being worth less than their face value, if he decides to sell prior to the maturity date?

 

Bonds with high risk and high default rates are called ________ bonds.

 

The benefit of a mutual fund for investors is that?

 

ABC's investment managers buy an assortment of stocks and bonds or other investments and then repackage them into different products investors may wish to purchase. The company then sells shares of their ________ to interested investors.

 

An average of the cost of 30 industrial stocks, the purpose of the Dow Jones Industrial Average is to?

 

Unlike the market for shirts at the local department store, the market for securities can experience significant upswings and downswings in values in the same day. Program trading allows for thousands of trades to occur simultaneously. To prevent large, sudden drops in the value of securities markets, electronic systems rely on ________ to temporarily close program trading.