2771 words - 12 pages

Ryerson University

CFIN300

Midterm Exam

Spring/Summer 2009

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There are 2.0 hours in this exam.

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Version A

Student Name ____________________________

(Please Print)

Student Number _________________________________

Notes:

1. This is a closed book exam. You may only have pens, pencils and a calculator at

your desk.

2. A formula sheet is attached to the end of the exam. You may detach the formula

sheet from the exam.

3. Please fill out the scanner sheet as you go along in the exam. ...view middle of the document...

If the Operating Cash Flow is $3470 what is the depreciation?

A) $1250

B) $1010

C) $1000

D) $990

E) $1005

2. If Cash Flow to Creditors is $450, what was the interest paid?

A) $800

B) $850

C) $700

D) $750

E) $725

3. What was the dividend paid?

A) $1060

B) $900

C) $790

D $1120

E) $1090

4. What is the level of Net Fixed Assets for 2006 if the Capital Expenditures were $1570?

A) $5000

B) $5200

C) $5400

D) $ 5600\

E) $5800

5. What were the current assets for 2005 if the Change in Net Working Capital was $ 890?

A) $4140

B) $4010

C) $3990

D) $4050

E) $3995

Use the Financial Statements for Smith Co. For Questions 6-12Smith Co.2006 Income Statement |

Net sales | $8,324 |

Cost of goods sold | $4,988 |

Depreciation | $1,190 |

Earnings Before interest and taxes | $2,146 |

Interest paid | $320 |

Taxable income | $1,826 |

Taxes | $621 |

Net income | $1,205 |

Dividends paid | $400 |

Addition to retained earnings | $805 |

Smith Co.Balance Sheets as of December 31, 2005 and 2006 |

| 2005 | 2006 | | | 2005 | 2006 |

Cash | $5,415 | $3,341 | | Accounts payable | $1,110 | $1,650 |

Accounts rec. | $2,460 | $979 | | Notes payable | $2,500 | $1,900 |

Inventory | $2,405 | $2,885 | | Total | $3,610 | $3,550 |

Total | $10,280 | $7,205 | | Long-term debt | $4,800 | $4,600 |

Net fixed assets | $12,300 | $16,720 | | Common stock | $5,100 | $5,900 |

| | | | Retained earnings | $9,070 | $9,875 |

Total assets | $22,580 | $23,925 | | Total liabilities | $22,580 | $23,925 |

| | | | and Owner's equity | | |

6. Assume Smith Co. is expecting a 22% increase in sales and all levels are optimal. What is the External Financing Needed (EFN)?

A) $3215.21

B) $3342.67

C) $3689.9

D) $3918.4

E) $3978.2

7. Assume that while sales are going up by 22% Interest expense will only go up by 8%. What is the EFN?

A) $3799.45

B $3842.53

C) $3898.65

D) $3978.55

E) $4076.12

8. Assume that while sales are going up by 22%, interest expense will only go up by 8%. If Smith Co. is only operating at 94% capacity, what is the EFN?

A) $2588,65

B) $2674.75

C) $2727.38

D) $2834.55

E) $2891.82

9. What is Smiths Internal Growth Rate?

A) 0.03482

B) 0.03914

C) 0.04215

D) 0.07128

E) 0.07514

10. What is Smiths Sustainable Growth Rate?

A) 0.04819

B) 0.05012

C) 0. 05377

D) 0.05912

E) 0.05125

11. The changes in accounts receivable and accounts payable are______and_____ of cash;

A) Source, Source

B) Use, Use

C) Source, Use,

D) Use, Source

E) None of the above

| | | | | | |

12. The changes in inventory and notes payable are______and_____ of cash;

A) Source, Source

B) Use, Use

C) Source, Use,

D) Use, Source

E) None of the above

13. If you receive $33,000 today and invest it at 9% compounded annually what will it be worth in 9 years?

A) $71,672.48

B) $75,174.51

C) $79,542.88

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