FIN 571 TUTOR Career Path Begins/fin571tutor.com FIN 571 TUTOR Career Path Begins/fin571tutor.com | Page 2

share. Today, you sold all of your shares for $45.13 per share. What is the
total amount of your capital gains on this investment?
10.Which one of these accounts is classified as a current asset on the
balance sheet?
11.Shelton, Inc., has sales of $395,000, costs of $183,000, depreciation
expense of $48,000, interest expense of $29,000, and a tax rate of 40
percent. (Do not round intermediate calculations.)
What is the net income for the firm?
12.On a balance sheet, deferred taxes are classified as:
13. Which one of these equations is an accurate expression of the
balance sheet?
14.Galaxy United, Inc.
2009 Income Statement
15. The Purple Martin has annual sales of $4,600, total debt of $1,230,
total equity of $2,500, and a profit margin of 6 percent. What is the return
on assets?
16.Galaxy United, Inc.
2009 Income Statement
17.Reliable Cars has sales of $3,850, 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?
18. A firm has net working capital of $344, net fixed assets of $2,292,
sales of $6,000, and current liabilities of $800. How many dollars worth of
sales are generated from every $1 in total assets?
19.One of the primary weaknesses of many financial planning models is
that they:
ignore the goals and objectives of senior management.
ignore the size, risk, and timing of cash flows.
are iterative in nature.
rely too much on financial relationships and too little on accounting
relationships.
ignore cash payouts to stockholders.
20.The external funds needed (EFN) equation projects the addition to
retained earnings as:
21.Which account is least apt to vary directly with sales?
accounts payable
inventory
accounts receivable
notes payable
cost of goods sold