Managerial Finance Test

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* Question 1
1 out of 1 points
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 | Table 4.4

Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2010, for Hennesaw Lumber, Inc.

Hennesaw Lumber, Inc. estimates that its sales in 2000 will be $4,500,000. Interest expense is to remain unchanged at $105,000 and the firm plans to pay cash dividends of $150,000 during 2010. Hennesaw Lumber, Inc.'s income statement for the year ended December 31, 2009 is shown below. From your preparation of the pro forma income statement, answer the following multiple choice questions.

The pro forma net profits after taxes for 2010 are ________. (See Table 4.4)Answer| | | | | Selected Answer:|   $207,000|
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* Question 2
1 out of 1 points
| |
 | Table 4.4

Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2010, for Hennesaw Lumber, Inc.

Hennesaw Lumber, Inc. estimates that its sales in 2000 will be $4,500,000. Interest expense is to remain unchanged at $105,000 and the firm plans to pay cash dividends of $150,000 during 2010. Hennesaw Lumber, Inc.'s income statement for the year ended December 31, 2009 is shown below. From your preparation of the pro forma income statement, answer the following multiple choice questions.

The pro forma cost of goods sold for 2010 is ________. (See Table 4.4)Answer| | | | | Selected Answer:|   $3,825,000|
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* Question 3
1 out of 1 points
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 | A firm has just ended the calendar year making a sale in the amount of $200,000 of merchandise purchased during the year at a total cost of $150,500. Although the firm paid in full for the merchandise during the year, it has yet to collect at year end from the customer. One possible problem this firm may face isAnswer| | | | | Selected Answer:|   insolvency.|

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* Question 4
1 out of 1 points
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 | A firm has prepared the coming year's...
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