{"id":4654,"date":"2022-04-18T11:34:56","date_gmt":"2022-04-18T11:34:56","guid":{"rendered":"https:\/\/assignmenttask.com\/answers\/?p=4654"},"modified":"2022-10-12T10:13:35","modified_gmt":"2022-10-12T10:13:35","slug":"accounting-and-financial-management-final-assignment-solution","status":"publish","type":"post","link":"https:\/\/assignmenttask.com\/answers\/accounting-and-financial-management-final-assignment-solution\/","title":{"rendered":"Accounting and Financial Management Final Assignment Solution"},"content":{"rendered":"<h2 style=\"margin-top: 2.6pt;\"><strong><span style=\"text-decoration: none; text-underline: none;\">Accounting and Financial Management: Final Assignment Questions and Answers Help<\/span><\/strong><\/h2>\n<p>&nbsp;<\/p>\n<blockquote><p>Are you looking for <a href=\"https:\/\/assignmenttask.com\/assignment-sample\/accounting-and-finance-management-assignment-sample-pdf\/\"><strong>Accounting and Financial Management<\/strong><\/a> Final Assignment Solution? Get help from our Accounting and Financial Management Experts. Leading MBA\/PhD experts provide <a href=\"https:\/\/assignmenttask.com\/finance\/financial-accounting-assignment-help.html\"><strong>financial Accounting Assignment Help Online<\/strong><\/a> at affordable prices. Get an A+ in your grades. 24*7 availability.<\/p><\/blockquote>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/assignmenttask.com\/order-now.php\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-3656 size-full lazyload\" title=\"Order Now\" data-src=\"https:\/\/assignmenttask.com\/answers\/wp-content\/uploads\/2021\/08\/order-now.jpg\" alt=\"order-now\" width=\"700\" height=\"87\" data-srcset=\"https:\/\/assignmenttask.com\/answers\/wp-content\/uploads\/2021\/08\/order-now.jpg 700w, https:\/\/assignmenttask.com\/answers\/wp-content\/uploads\/2021\/08\/order-now-300x37.jpg 300w, https:\/\/assignmenttask.com\/answers\/wp-content\/uploads\/2021\/08\/order-now-360x45.jpg 360w\" data-sizes=\"(max-width: 700px) 100vw, 700px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 700px; --smush-placeholder-aspect-ratio: 700\/87;\" \/><noscript><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-3656 size-full\" title=\"Order Now\" src=\"https:\/\/assignmenttask.com\/answers\/wp-content\/uploads\/2021\/08\/order-now.jpg\" alt=\"order-now\" width=\"700\" height=\"87\" srcset=\"https:\/\/assignmenttask.com\/answers\/wp-content\/uploads\/2021\/08\/order-now.jpg 700w, https:\/\/assignmenttask.com\/answers\/wp-content\/uploads\/2021\/08\/order-now-300x37.jpg 300w, https:\/\/assignmenttask.com\/answers\/wp-content\/uploads\/2021\/08\/order-now-360x45.jpg 360w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/noscript><\/a><\/p>\n<p>&nbsp;<\/p>\n<h3><strong>INTRODUCTORY ACCOUNTING CONCEPTS<\/strong><\/h3>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong><u>Debits and credits<\/u><\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p>What are the debits and credits for the following transactions?<\/p>\n<ol>\n<li>Sell for cash payment of $60 and AR of $20 inventory with a COGS of $30<\/li>\n<\/ol>\n<p>A.\u00a0 Debit Cash $60<\/p>\n<p>Debit Accounts receivable $20<\/p>\n<p>Credit Inventory $30<\/p>\n<p>Credit Owners equity $50<\/p>\n<p>B.\u00a0 Credit Cash $60<\/p>\n<p>Credit Accounts receivable $20<\/p>\n<p>Debit Inventory $30<\/p>\n<p>Debit Owners equity $50<\/p>\n<p>C.\u00a0 Debit Cash $20<\/p>\n<p>Debit Accounts receivable $60<\/p>\n<p>Credit Inventory $50<\/p>\n<p>Credit Owners equity $30<\/p>\n<p>&nbsp;<\/p>\n<p style=\"padding-left: 40px;\">2.\u00a0 Write down inventory by $70<\/p>\n<p>A.\u00a0 Debit Inventory $70<\/p>\n<p>Credit Owners equity $70<\/p>\n<p>B.\u00a0 Credit inventory $70<\/p>\n<p>Debit Owners equity $70<\/p>\n<p>C.\u00a0 Credit Inventory $70<\/p>\n<p>Debit PPE $70<\/p>\n<p>&nbsp;<\/p>\n<p style=\"padding-left: 40px;\">3.\u00a0 \u00a0 Sell for $90 cash PPE that has a book cost of $50 and tax cost of $10. Show both book and tax debits and credits <strong>net of tax <\/strong>assuming 35% tax Which answer is correct?<\/p>\n<p>A.<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"2\" width=\"137\"><strong><u>Book<\/u><\/strong><\/td>\n<td width=\"15\"><\/td>\n<td colspan=\"2\" width=\"141\"><strong><u>Tax<\/u><\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"99\">Debit Cash<\/td>\n<td width=\"39\">$76<\/td>\n<td width=\"15\"><\/td>\n<td width=\"102\">Debit Cash<\/td>\n<td width=\"39\">$62<\/td>\n<\/tr>\n<tr>\n<td width=\"99\">Credit PPE<\/td>\n<td width=\"39\">$50<\/td>\n<td width=\"15\"><\/td>\n<td width=\"102\">Credit PPE<\/td>\n<td width=\"39\">$10<\/td>\n<\/tr>\n<tr>\n<td width=\"99\">Credit Equity<\/td>\n<td width=\"39\">$26<\/td>\n<td width=\"15\"><\/td>\n<td width=\"102\">Credit Equity<\/td>\n<td width=\"39\">$52<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p>B.<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"2\" width=\"137\">Book<\/td>\n<td width=\"15\"><\/td>\n<td colspan=\"2\" width=\"141\">Tax<\/td>\n<\/tr>\n<tr>\n<td width=\"99\">Debit Cash<\/td>\n<td width=\"39\">$90<\/td>\n<td width=\"15\"><\/td>\n<td width=\"102\">Debit Cash<\/td>\n<td width=\"39\">$90<\/td>\n<\/tr>\n<tr>\n<td width=\"99\">Credit PPE<\/td>\n<td width=\"39\">$50<\/td>\n<td width=\"15\"><\/td>\n<td width=\"102\">Credit PPE<\/td>\n<td width=\"39\">$10<\/td>\n<\/tr>\n<tr>\n<td width=\"99\">Credit Equity<\/td>\n<td width=\"39\">$40<\/td>\n<td width=\"15\"><\/td>\n<td width=\"102\">Credit Equity<\/td>\n<td width=\"39\">$80<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p>C.<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"2\" width=\"137\"><strong><u>Book<\/u><\/strong><\/td>\n<td width=\"15\"><\/td>\n<td colspan=\"2\" width=\"141\"><strong><u>Tax<\/u><\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"99\">Debit Cash<\/td>\n<td width=\"39\">$90<\/td>\n<td width=\"15\"><\/td>\n<td width=\"102\">Debit Cash<\/td>\n<td width=\"39\">$90<\/td>\n<\/tr>\n<tr>\n<td width=\"99\">Credit PPE<\/td>\n<td width=\"39\">$50<\/td>\n<td width=\"15\"><\/td>\n<td width=\"102\">Credit PPE<\/td>\n<td width=\"39\">$50<\/td>\n<\/tr>\n<tr>\n<td width=\"99\">Credit Equity<\/td>\n<td width=\"39\">$40<\/td>\n<td width=\"15\"><\/td>\n<td width=\"102\">Credit Equity<\/td>\n<td width=\"39\">$40<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h3 style=\"margin-top: .05pt;\"><strong>Accrual accounting<\/strong><\/h3>\n<p style=\"padding-left: 40px;\">4.\u00a0 \u00a0Assume a fiscal year end of December<\/p>\n<p>Company X purchases $100 worth of inventory on December 30, 2016. Company X purchases $100 worth of inventory on December 31, 2016. Company X purchases $100 worth of inventory on January 1, 2017.<\/p>\n<p>Company X sells one-third of their inventory on December 31, 2017 and the other two- thirds of their inventory on January 1, 2018.<\/p>\n<p>What amount, if any, would appear on the 2017 income statement (as cost of goods sold)?<\/p>\n<p>What amount, if any, would appear on the 2017 cash flow statement (as increase in inventory)?<\/p>\n<p style=\"padding-left: 40px;\">A.\u00a0 COGS: $50; Cash flow: $50<\/p>\n<p style=\"padding-left: 40px;\">B.\u00a0 COGS: $60; Cash flow: $180<\/p>\n<p style=\"padding-left: 40px;\">C.\u00a0 COGS: $100; Cash flow: $0<\/p>\n<p style=\"padding-left: 40px;\">D.\u00a0 COGS: $100; Cash flow: $100<\/p>\n<h3><strong>INCOME STATEMENT<\/strong><\/h3>\n<p><strong><u>Revenue &#8211; EBITDA<\/u><\/strong><\/p>\n<p style=\"margin-top: 2.6pt;\"><strong>Table 1<\/strong><\/p>\n<table>\n<tbody>\n<tr>\n<td width=\"71\"><\/td>\n<td width=\"63\"><strong><u>2009<\/u><\/strong><\/td>\n<td width=\"62\"><strong><u>2010<\/u><\/strong><\/td>\n<td width=\"59\"><strong><u>2011<\/u><\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"71\">Revenue<\/td>\n<td width=\"63\">$1,000<\/td>\n<td width=\"62\">$1,100<\/td>\n<td width=\"59\">$1,200<\/td>\n<\/tr>\n<tr>\n<td width=\"71\">COGS<\/td>\n<td width=\"63\">$600<\/td>\n<td width=\"62\">$660<\/td>\n<td width=\"59\">$660<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p style=\"padding-left: 40px;\">5.\u00a0 In the results in Table 1, is the increase in 2011 revenue price or volume driven?<\/p>\n<p>A.\u00a0 Price<\/p>\n<p>B.\u00a0 Volume<\/p>\n<p>C.\u00a0 Both price and volume<\/p>\n<p>D.\u00a0 Can\u2019t be determined<\/p>\n<p style=\"padding-left: 40px;\">6.\u00a0 In Table 1, is sales growth rate increasing or decreasing?<\/p>\n<p>A.\u00a0 Increasing<\/p>\n<p>B.\u00a0 Decreasing<\/p>\n<p style=\"padding-left: 40px;\">7.\u00a0 Which is a cash costs in S,G&amp;A<\/p>\n<p>A.\u00a0 Stock based pay<\/p>\n<p>B.\u00a0 Provision for doubtful accounts<\/p>\n<p>C.\u00a0 Depreciation and amortization<\/p>\n<p>D.\u00a0 Rent, insurance, salaries<\/p>\n<p style=\"padding-left: 40px;\">8.\u00a0 You must calculate EBITDA for Company X for 2017. What is the correct EBITDA for 2017?<\/p>\n<table>\n<tbody>\n<tr>\n<td width=\"218\"><\/td>\n<td colspan=\"3\" width=\"142\"><strong><u>2019 10-K<\/u><\/strong><\/td>\n<td rowspan=\"9\" width=\"15\"><\/td>\n<td colspan=\"3\" width=\"141\"><strong><u>2017 10-K<\/u><\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"218\"><\/td>\n<td width=\"47\"><strong><u>2019<\/u><\/strong><\/td>\n<td width=\"47\"><strong><u>2018<\/u><\/strong><\/td>\n<td width=\"48\"><strong><u>2017<\/u><\/strong><\/td>\n<td width=\"47\"><strong><u>2017<\/u><\/strong><\/td>\n<td width=\"47\"><strong><u>2016<\/u><\/strong><\/td>\n<td width=\"47\"><strong><u>2015<\/u><\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"218\"><strong><u>Income statement<\/u><\/strong><\/td>\n<td width=\"47\"><\/td>\n<td width=\"47\"><\/td>\n<td width=\"48\"><\/td>\n<td width=\"47\"><\/td>\n<td width=\"47\"><\/td>\n<td width=\"47\"><\/td>\n<\/tr>\n<tr>\n<td width=\"218\">Operating income<\/td>\n<td width=\"47\">$150<\/td>\n<td width=\"47\">$140<\/td>\n<td width=\"48\">$130<\/td>\n<td width=\"47\">$125<\/td>\n<td width=\"47\">$120<\/td>\n<td width=\"47\">$115<\/td>\n<\/tr>\n<tr>\n<td width=\"218\"><strong><u>Cash flow statement<\/u><\/strong><\/td>\n<td width=\"47\"><\/td>\n<td width=\"47\"><\/td>\n<td width=\"48\"><\/td>\n<td width=\"47\"><\/td>\n<td width=\"47\"><\/td>\n<td width=\"47\"><\/td>\n<\/tr>\n<tr>\n<td width=\"218\">Depreciation<\/td>\n<td width=\"47\">$20<\/td>\n<td width=\"47\">$15<\/td>\n<td width=\"48\">$10<\/td>\n<td width=\"47\">$9<\/td>\n<td width=\"47\">$8<\/td>\n<td width=\"47\">$6<\/td>\n<\/tr>\n<tr>\n<td width=\"218\">Stock-based pay<\/td>\n<td width=\"47\">$7<\/td>\n<td width=\"47\">$6<\/td>\n<td width=\"48\">$5<\/td>\n<td width=\"47\">$6<\/td>\n<td width=\"47\">$7<\/td>\n<td width=\"47\">$5<\/td>\n<\/tr>\n<tr>\n<td width=\"218\">Provision for doubtful accounts<\/td>\n<td width=\"47\">$3<\/td>\n<td width=\"47\">$4<\/td>\n<td width=\"48\">$2<\/td>\n<td width=\"47\">$3<\/td>\n<td width=\"47\">$3<\/td>\n<td width=\"47\">$2<\/td>\n<\/tr>\n<tr>\n<td width=\"218\">Deferred taxes<\/td>\n<td width=\"47\">$14<\/td>\n<td width=\"47\">$11<\/td>\n<td width=\"48\">($10)<\/td>\n<td width=\"47\">($8)<\/td>\n<td width=\"47\">$2<\/td>\n<td width=\"47\">$3<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p>A.\u00a0 $137<\/p>\n<p>B.\u00a0 $143<\/p>\n<p>C.\u00a0 $147<\/p>\n<p>D.\u00a0 $135<\/p>\n<p>&nbsp;<\/p>\n<blockquote><p><strong>Also Read:\u00a0<a href=\"https:\/\/assignmenttask.com\/answers\/financial-management-assignment-questions-with-answers-for-finance-students\/\">Financial Management Assignment Questions with Answers<\/a><\/strong><\/p><\/blockquote>\n<p>&nbsp;<\/p>\n<h3><strong>EBIT &#8211; EPS<\/strong><\/h3>\n<p style=\"padding-left: 40px;\">9.\u00a0 You purchase a 5 year asset for $1,500.<\/p>\n<p style=\"padding-left: 40px;\">Pretax pre-depreciation income is $500.<\/p>\n<p style=\"padding-left: 40px;\">The tax rate is 35%.<\/p>\n<p>In year 5 what is the $ difference between book and cash (tax) taxes?<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"2\" width=\"402\">5-year accelerated depreciation schedule for TAX purposes:<\/td>\n<\/tr>\n<tr>\n<td width=\"189\">Year 1<\/td>\n<td width=\"213\">25.76%<\/td>\n<\/tr>\n<tr>\n<td width=\"189\">Year 2<\/td>\n<td width=\"213\">32.00%<\/td>\n<\/tr>\n<tr>\n<td width=\"189\">Year 3<\/td>\n<td width=\"213\">19.20%<\/td>\n<\/tr>\n<tr>\n<td width=\"189\">Year 4<\/td>\n<td width=\"213\">13.52%<\/td>\n<\/tr>\n<tr>\n<td width=\"189\">Year 5<\/td>\n<td width=\"213\">9.52%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p>A.\u00a0 Book taxes are higher by $55.02<\/p>\n<p>B.\u00a0 Cash taxes are higher by $55.02<\/p>\n<p>C.\u00a0 Cash taxes are lower by $127.20<\/p>\n<p>D.\u00a0 Book taxes are lower by $127.20<\/p>\n<p>&nbsp;<\/p>\n<h3 style=\"margin-top: 5.15pt;\"><strong>Fully diluted EPS<\/strong><\/h3>\n<p style=\"padding-left: 40px;\">10.\u00a0 A company states 2 EPS numbers: $1.75\/share and $1.65\/share. Which is most likely the fully diluted EPS?<\/p>\n<p>&nbsp;<\/p>\n<p>A.\u00a0 $1.75<\/p>\n<p>B.\u00a0 $1.65<\/p>\n<p><strong>BS ASSETS<\/strong><\/p>\n<p><strong><u>Current assets<\/u><\/strong><\/p>\n<p style=\"padding-left: 40px;\">11.\u00a0 You purchase marketable securities for $1,000. 1 week later they are worth $900. You do make a change to the BS?<\/p>\n<p>A.\u00a0 True<\/p>\n<p>B.\u00a0 False<\/p>\n<p>&nbsp;<\/p>\n<blockquote><p><strong>Get Answer on <a href=\"https:\/\/assignmenttask.com\/answers\/acct-606-financial-management-for-accountants-assignment-answer\/\">ACCT 606 Financial Management for Accountants<\/a><\/strong><\/p><\/blockquote>\n<h3><strong>Accounts receivable<\/strong><\/h3>\n<p style=\"padding-left: 40px;\">12.\u00a0 Regarding accounts receivable, &#8220;Provision for doubtful accounts&#8221; represent a cash expense.<\/p>\n<p>A.\u00a0 True<\/p>\n<p>B.\u00a0 False<\/p>\n<h3><strong>Aging of receivables<\/strong><\/h3>\n<p>The following is true of Company X accounts receivable: (use for next 2 questions)<\/p>\n<table>\n<tbody>\n<tr>\n<td width=\"78\">Customer<\/td>\n<td width=\"27\">A<\/td>\n<td width=\"65\">Bought<\/td>\n<td width=\"51\">$900<\/td>\n<td width=\"134\">in merchandise on<\/td>\n<td width=\"59\">5-Dec<\/td>\n<td width=\"47\">2016<\/td>\n<\/tr>\n<tr>\n<td width=\"78\">Customer<\/td>\n<td width=\"27\">A<\/td>\n<td width=\"65\">Repaid<\/td>\n<td width=\"51\">$400<\/td>\n<td width=\"134\">that she owed<\/td>\n<td width=\"59\">28-Jan<\/td>\n<td width=\"47\">2017<\/td>\n<\/tr>\n<tr>\n<td width=\"78\">Customer<\/td>\n<td width=\"27\">B<\/td>\n<td width=\"65\">Bought<\/td>\n<td width=\"51\">$800<\/td>\n<td width=\"134\">in merchandise on<\/td>\n<td width=\"59\">15-Jan<\/td>\n<td width=\"47\">2017<\/td>\n<\/tr>\n<tr>\n<td width=\"78\">Customer<\/td>\n<td width=\"27\">C<\/td>\n<td width=\"65\">Bought<\/td>\n<td width=\"51\">$600<\/td>\n<td width=\"134\">in merchandise on<\/td>\n<td width=\"59\">20-Jan<\/td>\n<td width=\"47\">2017<\/td>\n<\/tr>\n<tr>\n<td width=\"78\">Customer<\/td>\n<td width=\"27\">D<\/td>\n<td width=\"65\">Bought<\/td>\n<td width=\"51\">$700<\/td>\n<td width=\"134\">in merchandise on<\/td>\n<td width=\"59\">15-Feb<\/td>\n<td width=\"47\">2017<\/td>\n<\/tr>\n<tr>\n<td width=\"78\">Customer<\/td>\n<td width=\"27\">B<\/td>\n<td width=\"65\">Repaid<\/td>\n<td width=\"51\">$200<\/td>\n<td width=\"134\">that he owed<\/td>\n<td width=\"59\">1-Mar<\/td>\n<td width=\"47\">2017<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p style=\"padding-left: 40px;\">13.\u00a0 Today is March 1, 2021. What % of receivables is between 31-60 days overdue?<\/p>\n<p>A.\u00a0 16%<\/p>\n<p>B.\u00a0 40%<\/p>\n<p>C.\u00a0 50%<\/p>\n<p>D.\u00a0 58%<\/p>\n<p>&nbsp;<\/p>\n<h3 style=\"margin-right: 399.65pt;\"><strong>Inventory <\/strong><\/h3>\n<h3 style=\"margin-right: 399.65pt;\"><strong><span style=\"letter-spacing: -.15pt;\">FIFO, <\/span><span style=\"letter-spacing: -.1pt;\">LIFO<\/span><\/strong><\/h3>\n<p style=\"padding-left: 40px;\">14.\u00a0 You operate a convenience store. In 2017 you used FIFO inventory accounting. You bought a can of Coke on Jan 1 for $0.70, Jan 2 for $0.70 and Jan 3 for $0.80. You sold a can of Coke on Jan 5 for $1.00 and Jan 6 for $1.05. In 2011 you switch to LIFO inventory accounting and must restate 2010 to determine if a tax refund or payment is due. Is restated taxable income higher or lower using LIFO as applied to 2017?<\/p>\n<p>A.\u00a0 Lower by $0.10<\/p>\n<p>B.\u00a0 Higher by $0.10<\/p>\n<p>C.\u00a0 The same<\/p>\n<p>D.\u00a0 Lower by $0.20<\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Intangible assets and goodwill<\/strong><\/h3>\n<p style=\"padding-left: 40px;\">15.\u00a0 Goodwill is an intangible asset and valued just like patents and trademarks.<\/p>\n<p>A.\u00a0 True<\/p>\n<p>B.\u00a0 False<\/p>\n<h3><strong><span style=\"text-decoration: none; text-underline: none;\">BS LIABILITIES<\/span><\/strong><\/h3>\n<p><strong><u>Current liabilities<\/u><\/strong><\/p>\n<p><strong>Short term debt<\/strong><\/p>\n<p style=\"padding-left: 40px;\">16.\u00a0 Notes payable often called revolving credit is NOT generally used for:<\/p>\n<p>A.\u00a0 Buying inventory<\/p>\n<p>B.\u00a0 Meeting payroll<\/p>\n<p>C.\u00a0 Making payments to suppliers<\/p>\n<p>D.\u00a0 Buying PPE<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Also Read:\u00a0<a href=\"https:\/\/assignmenttask.com\/answers\/tag\/acct-606-financial-management-for-accountants-assignment-answer\/\">ACCT 606 Financial Management for Accountants Assignment<\/a><\/strong><\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Long term liabilities<\/strong><\/h3>\n<p><strong>Long term debt covenants (and default)<\/strong><\/p>\n<p style=\"padding-left: 40px;\">17.\u00a0 A debt covenant states that the borrower must maintain the ratio of EBITDA\/Interest expense &gt; 2:1. If EBITDA is $100 and interest expense is $60, is the company in technical default?<\/p>\n<p>A.\u00a0 Yes<\/p>\n<p>B.\u00a0 No<\/p>\n<p>C.\u00a0 Can\u2019t be determined<\/p>\n<p>D.\u00a0 Depends on other covenants<\/p>\n<p>&nbsp;<\/p>\n<h3><strong><span style=\"text-decoration: none; text-underline: none;\">STOCKHOLDERS EQUITY<\/span><\/strong><\/h3>\n<p><strong><u>Preferred stock<\/u><\/strong><\/p>\n<p style=\"padding-left: 40px;\">18.\u00a0 A company issues an 8% dividend paying preferred stock that matures with a change of control (must be paid off) and with a liquidation preference of $100,000,000 at a time when the company\u2019s public equity value (stock price * shares outstanding) = $500,000,000. Five years later, the company is sold (a change of control requiring repayment of preferred) for $1,500,000,000. In this case the preferred would receive:<\/p>\n<p>A.\u00a0 $300,000,000 (1\/5 * $1,500,000,000)<\/p>\n<p>B.\u00a0 $100,000,000<\/p>\n<p>C.\u00a0 $750,000,000<\/p>\n<p>D.\u00a0 $0<\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Common stock<\/strong><\/h3>\n<p style=\"padding-left: 40px;\">19.\u00a0 There are 100 shares of Company X. Company X will 1) raise new money by selling new shares and 2) current shareholders will sell 10 of their shares. The new owners will control 25% of the company. How many NEW shares will Company X issue? (Hint: 90 shares will own 75% of company at offering).<\/p>\n<p>A.\u00a0 10<\/p>\n<p>B.\u00a0 20<\/p>\n<p>C.\u00a0 25<\/p>\n<p>D.\u00a0 120<\/p>\n<p>&nbsp;<\/p>\n<h3 style=\"margin-top: 15.95pt;\"><strong>Retained earnings<\/strong><\/h3>\n<p style=\"padding-left: 40px;\">20.\u00a0 Retained earnings is not to be confused with cash. Retained earnings represents all wealth earned by company but not paid out. It is NOT cash but an accounting concept. If retained earnings at 12\/31\/18 is $400 and during 2014 the company 1) earns (net income) $130 and 2) pays a CASH dividend of $1 share (300 shares outstanding), how much will retained earnings be at 12\/31\/19?<\/p>\n<p>A.\u00a0 $400<\/p>\n<p>B.\u00a0 $620<\/p>\n<p>C.\u00a0 $230<\/p>\n<p>D.\u00a0 $830<\/p>\n<p>&nbsp;<\/p>\n<p style=\"padding-left: 40px;\">21.\u00a0 A company\u2019s public equity (stock price * shares outstanding) = $1,000,000,000 while its book equity (Assets \u2013 Liabilities) = $400,000,000. What causes the difference?<\/p>\n<p>A.\u00a0 Market value of company Assets are worth more than book value on balance<\/p>\n<p>B.\u00a0 Future earning potential by effectively using the assets (making software within the office building) exceeds the current market value of the<\/p>\n<p>C.\u00a0 Investors are foolish and sometimes pay excessive prices for<\/p>\n<p>D.\u00a0 A or B<\/p>\n<p>&nbsp;<\/p>\n<h3><strong><span style=\"text-decoration: none; text-underline: none;\">CASH FLOW STATEMENT<\/span><\/strong><\/h3>\n<p style=\"padding-left: 40px;\">22.\u00a0 Cash inflows less cash outflows excluding financing inflows will equal the change in the cash account on the BS from one period to the next.<\/p>\n<p>A.\u00a0 True<\/p>\n<p>B.\u00a0 False<\/p>\n<p style=\"padding-left: 40px;\">23.\u00a0 The cash flow statement is dividend into 3 parts \u2013 cash flow from 1) operations, 2) investing, 3) financing.<\/p>\n<p>A.\u00a0 True<\/p>\n<p>B.\u00a0 False<\/p>\n<p style=\"padding-left: 40px;\">24.\u00a0 CF from operations equals cash generated or used in the course of operating the It is derived from adding to net income non-cash components of net income including deferred taxes plus net change in working capital. Which of the 2 parts of CF from operations directly results from accrual accounting?<\/p>\n<p>A.\u00a0 Adding deferred taxes to non-cash components of net income<\/p>\n<p>B.\u00a0 Changes in working capital<\/p>\n<p style=\"padding-left: 40px;\">25.\u00a0 If cash flow from investing (purchase of property, plant and equipment) exceeds cash flow from operations, the company must either<u> ________<\/u>or<u>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/u>.<\/p>\n<p>A.\u00a0 Not make the investment; go bankrupt<\/p>\n<p>B.\u00a0 Borrow; use balance sheet cash<\/p>\n<p>C.\u00a0 Lend; accumulate balance sheet cash<\/p>\n<p>D.\u00a0 It could never be the case that cash flow from investing exceeds cash flow from operations<\/p>\n<p style=\"padding-left: 40px;\">26.\u00a0 Which of the following line items directly affects all three statements (IS, BS, CF).<\/p>\n<p>A.\u00a0 Depreciation<\/p>\n<p>B.\u00a0 Net income<\/p>\n<p>C.\u00a0 COGS<\/p>\n<p>D.\u00a0 A &amp; B<\/p>\n<p style=\"padding-left: 40px;\">27.\u00a0 Both of the following companies generate the same cash flow in Does that mean that they are equally successful?<\/p>\n<table>\n<tbody>\n<tr>\n<td width=\"187\"><\/td>\n<td width=\"89\"><strong><u>Company 1<\/u><\/strong><\/td>\n<td width=\"89\"><strong><u>Company 2<\/u><\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"187\">Cash flow from operations<\/td>\n<td width=\"89\">$800<\/td>\n<td width=\"89\">$200<\/td>\n<\/tr>\n<tr>\n<td width=\"187\">Cash flow from investing<\/td>\n<td width=\"89\">($200)<\/td>\n<td width=\"89\">($100)<\/td>\n<\/tr>\n<tr>\n<td width=\"187\">Cash flow from financing<\/td>\n<td width=\"89\"><u>$300<\/u><\/td>\n<td width=\"89\"><u>$800<\/u><\/td>\n<\/tr>\n<tr>\n<td width=\"187\">Total<\/td>\n<td width=\"89\">$900<\/td>\n<td width=\"89\">$900<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>A.\u00a0 No, Company 1 generated more cash flow from operations. It is superior.<\/p>\n<p>B.\u00a0 No, Company 2 borrowed more money meaning it is a better credit risk.<\/p>\n<p>C.\u00a0 Company one was required to invest more, a negative.<\/p>\n<p>D.\u00a0 Both are equal<\/p>\n<h3 style=\"margin-top: 2.6pt;\"><strong>FINANCIAL STATEMENT ANALYSIS<\/strong><\/h3>\n<p style=\"padding-left: 40px;\">28.\u00a0 You analyze an income statement in a growing company in which gross margin is increasing while the operating income margin is This means that:<\/p>\n<p>A.\u00a0 Fixed costs grew faster than variable costs<\/p>\n<p>B.\u00a0 Variable costs grew faster than fixed costs<\/p>\n<p>C.\u00a0 Both variable and fixed costs grew at the same rate<\/p>\n<p>D.\u00a0 Prices declined<\/p>\n<p style=\"padding-left: 40px;\">29.\u00a0 You analyze a wholesale business that shows increasing days receivable. This means that:<\/p>\n<p>A.\u00a0 Customers are paying their bills faster<\/p>\n<p>B.\u00a0 The wholesaler may have switched to higher margin items<\/p>\n<p>C.\u00a0 Days payable will certainly also increase<\/p>\n<p>D.\u00a0 All business is cash on delivery<\/p>\n<p style=\"padding-left: 40px;\">30.\u00a0 Days inventory on hand is increasing from 30 to 40 but margins also increase from 15% to 30%. A plausible explanation for the increasing days inventory is:<\/p>\n<p>A.\u00a0 Selling higher margin harder to sell<\/p>\n<p>B.\u00a0 Raised prices on current merchandise making it harder to sell<\/p>\n<p>C.\u00a0 Selling lower margin but unpopular goods that take longer to sell<\/p>\n<p>D.\u00a0 A or B<\/p>\n<p>E.\u00a0 A or C<\/p>\n<p>F.\u00a0 B or C<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>For REF&#8230; Use: <span style=\"text-decoration: underline; color: #008000;\">#getanswers2002086<\/span><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Accounting and Financial Management: Final Assignment Questions and Answers Help &nbsp; Are you looking for Accounting and Financial Management Final Assignment Solution? Get help from our Accounting and Financial Management Experts. Leading MBA\/PhD experts provide financial Accounting Assignment Help Online at affordable prices. Get an A+ in your grades. 24*7 availability. &nbsp; &nbsp; INTRODUCTORY ACCOUNTING CONCEPTS \u00a0 Debits and credits \u00a0 What are the debits and credits for the following transactions? Sell for cash payment of $60 and AR of $20 inventory with a COGS of $30 A.\u00a0 Debit Cash $60 Debit Accounts receivable $20 Credit Inventory $30 Credit Owners <a href=\"https:\/\/assignmenttask.com\/answers\/accounting-and-financial-management-final-assignment-solution\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[655],"tags":[6678,331,6679,6681,6680,6682,6683,6684],"_links":{"self":[{"href":"https:\/\/assignmenttask.com\/answers\/wp-json\/wp\/v2\/posts\/4654"}],"collection":[{"href":"https:\/\/assignmenttask.com\/answers\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttask.com\/answers\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttask.com\/answers\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttask.com\/answers\/wp-json\/wp\/v2\/comments?post=4654"}],"version-history":[{"count":2,"href":"https:\/\/assignmenttask.com\/answers\/wp-json\/wp\/v2\/posts\/4654\/revisions"}],"predecessor-version":[{"id":4832,"href":"https:\/\/assignmenttask.com\/answers\/wp-json\/wp\/v2\/posts\/4654\/revisions\/4832"}],"wp:attachment":[{"href":"https:\/\/assignmenttask.com\/answers\/wp-json\/wp\/v2\/media?parent=4654"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttask.com\/answers\/wp-json\/wp\/v2\/categories?post=4654"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttask.com\/answers\/wp-json\/wp\/v2\/tags?post=4654"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}