1. Using only the information provided in the following worksheet, what is the correct formula to calculate the total cash flows from financing? a. =(B2-C2)-(B4+(B3-C3)) b. =(B2-C2)+(B4-(B3-C3)) c. =(B3-C3)-(B4-(B2-C2)) d. =(B2-C2)-(B4-(B3-C3)) e. =(B2+C2)-(B4+(B3+C3)) 2. What is the correct formula to calculate the percentage change in prepaid expenses from 2010 to 2011 using horizontal analysis with percentages as solution? A B C D Account 2011 2010 $ 10,000 $ 26,000 2 Accounts Receivable 49,600 35,460 3 Inventory 25,000 25,450 4 Prepaid Expenses 22,400 32,400 5 Notes Payable 52,000 52,000 6 Common Stock 34,000 45,000 7 Retained Earnings 21,000 22,310 1 Cash a. (C4/D4)/2 b. C4/D4 c. C4*D4/2 d. (C4-D4)/D4 e. (D4-D5)/D5 (Format as a percentage) (Format as a percentage) (Format as a percentage) (Format as a percentage) (Format as a percentage) 3. Assume that this data represents all of the assets, liabilities and capital of a company. What is the formula to calculate the number in vertical analysis for Inventory for 2011? A B C D Account 2011 2010 1 Cash $ 10,000 $ 26,000 2 Accounts Receivable 49,600 35,460 3 Inventory 15,000 25,450 4 Prepaid Expenses 32,400 32,400 5 Notes Payable 52,000 52,000 6 Common Stock 34,000 45,000 7 Retained Earnings 21,000 22,310 a. C3/(C1+C2+C3+C4) (Format as a percentage) b. C3/SUM(C1..C4) (Format as a percentage) c. C3/D3 (Format as a percentage) d. SUM(C1..C3)/D3 (Format as a percentage) e. Both a and b (Format as a percentage) 4. Which is the correct formula for cell B6 that will allow you
to determine how many years will it take to quadruple your savings at 11 percent compounded quarterly? a. =NPER(B4/B5,0,-B2,4*B3,0)/4 b. =NPER(B4/B5,0,-B2,B2,0) c. =NPER(B4/B5,0,-B2,B2,0)/4 d. =NPER(B4/B5,0,-B2,4*B2,0) e. =NPER(B4/B5,0,-B2,4*B2,0)/4 Remember that the basic syntax of the NPER function is: NPER(rate,pmt,pv,fv,type) 5. What should be the outcome of cell B? Remember that the basic syntax of the IRR function is: IRR(values,guess) a. “Accept” b. “Reject” c. “Indifferent” 6. Which is the correct formula in cell B4 to calculate the future value of $1,000 invested at 15% annual rate after 2 years using continuous compounding? a. =B3*EXP(B1*B2) b. =B2*EXP(B1*B3) c. =B1*EXP(B2*B3) d. =B1/EXP(B2*B3) e. =B1*EXP(B2+B3) 7. Which should be the right formula for cell B5? a. =(B2*C2)-(B3*C3)+(1-B2+B3)*C4 b. =(B2*C2)-(B3*C3)-(1-B2-B3)*C4 c. =(B2/C2)+(B3/C3)+(1-B2-B3)/C4 d. =(B2*C2)+(B3*C3)+(1-B2-B3)*C4 e. =(B2*C2)+(B3*C3)+(1+B2+B3)*C4 8. What should be the formula on cell B5? a. =(B3*B4)/(B2+B3) b. =B1*B4/B2+B3 c. =(B1+B4)/(B2*B3) d. =(B1*B4)/(B2+B3) e. =(B3*B4)/(B2-B3) 9. What should be the formula on cell B5? A B Fixed Costs $ 1,500,000 Estimated Sales in Units 100,000 Price per Unit $50 Variable Costs per Unit $20 Operating Breakeven Point in Revenue Dollars ? a. =B1/(B3-B4)/B3 b. =B1/B3-B4*B3 c. =(B1/B3)-B4*B3 d. =B1/((B3-B4)/B3) e. =B1/(B3+B4)*B3 10. Which of the following would be the correct formula for cell B7? a. =-B2/B3 b. =FAME_Payback(B2:B6) c. =FAME_Payback(B2:B6,0) d. =2-(B2+B3+B4)/B5 e. A and D