1 / 11

A Finance Survival Kit

A Finance Survival Kit. GEM2508. Frederick H. Willeboordse frederik@chaos.nus.edu.sg. Exercises for Test 1. Important note: The sample questions provided here are for your reference only. The questions asked during the test will be similar in style but can be very different otherwise.

kaili
Télécharger la présentation

A Finance Survival Kit

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. A Finance Survival Kit GEM2508 Frederick H. Willeboordse frederik@chaos.nus.edu.sg

  2. Exercises for Test 1

  3. Important note: The sample questions provided here are for your reference only. The questions asked during the test will be similar in style but can be very different otherwise.

  4. Examples of MC questions What does a Balance sheet balance: A) Owner’s Equity and Assets B) Owner’s Equity and LiabilitiesC) Assets and Liabilities D) Assets and Depreciation Depreciation is similar to: A) Amortization B) Owner’s Equity C) Interest D) Profit

  5. A ‘$A$1’ in an Excel formula means: A) An absolute reference to cell A1 B) A relative reference to cell A1 C) The number in A1 refers to money D) Nothing – this syntax is invalid The quick ratio is: A) A quick way to calculate a companies’ profit B) Not really a ratio but a shortcutC) Multiplied by the current liabilities equal to Current Assets minus inventories D) Current Liabilities minus Inventory divided by Current Assets

  6. The ‘T’ in EBITDA stands for: A) Total Assets B) TransactionC) Taxes D) Treasury Gross Profit Equals: A) Sales minus cost of Sales B) Net Profit C) The ‘144’ profit method D) EBITDA

  7. Examples of short questions What is Golden Dragon’s Cost of Sales? ? $6,000.-

  8. True or false: Owners Equity is an asset. False. I set up a (wholly owned) company with $20,000 in cash. Since then, I made a profit of $562 and paid out $400 in dividends. What are the retained earnings? $162.- Is it possible to find the Net Cash Flow (which is the sum of the cash flows in the Cash Flow Statement) from the Balance Sheet(s) of a company.YES True or False: Dividends do not appear on the Income Statement and hence not on the Cash Flow Statement either.FALSE ?

  9. What is Aunt Petunia’s Gross Profit Margin? It is: (Sales – Cost of Sales)/Sales = 54.9% A company has sales of $300,000 and a gross margin of 38%. What should be the (average) inventory level so that the company has an inventory turnover ratio of 8? ANSWER= 300,000*0.62/8 = 23,250.-

  10. A company has sales of $123,000. Its cost of sales is 52%. The company pays $1,800 in rent a month and has two employees earning $1,200 and $1,500 a month respectively. The company is fairly cash rich having $391,000 in a savings account earning 1.5% interest a year. This company doesn’t do much and its other expenses are only $240 a year. Assuming that there are no other relevant financial data for this company, What is the Gross Profit of this company? 59,040 What is the Net Profit of this company? 10,665

  11. We have a company which has been and is growing sales at 5% per month. 33% of the sales are paid during the month following the sale. Except for 3% unrecoverables, the remainder is paid during the second month after the sale. Manpower and other costs are 21% of sales and inventory purchases are 39% of the following month’s sales. Assume that the company has sales of $9,901 in April. There are no investing activities and the company is assumed to have an unlimited 0% credit line. What is the net cash flow in the month of May if $1000 of dividends were paid in April? 2,862.- What is the ending Cash balance in May if the starting cash balance is $2980 in the beginning of April? 7,567.-

More Related