midterm

Name________________________
Student #_____________________
MGT 181
L. Jean Dunn, Jr.

MIDTERM EXAMINATION

PLEASE SHOW YOUR WORK. IF YOUR WORK IS NOT SHOWN
YOU WILL NOT RECEIVE ANY PARTIAL CREDIT
100 Total Points

1. “Most CEOs come from a finance background. The reason for this is because they know and understand the financials, how the company operates and the language of finance which assists in fund raising.” Please state whether the state whether the statement above is True or False (2.5 points) and the reason why (2.5 points)

False. Most CEOs are from a sales and marketing background. The reason for this is because if there are no sales there is no revenue and no revenue implies no cash flow and no business

2. Draw a typical organization chart for a corporate finance department. Possibilities may or may not include: Chief Financial Officer, Marketing Analyst, Controller,
Sales Administration and Analysis, Accounting Manager, Administrative Assistant,
Accounting Clerk, Treasurer, Information Technology Analyst, Manager of Human
Resources, Director of R&D, Sales Manager, VP Operations and President. (6 points)

Chief Financial Officer
Controller
Accounting Mgr

Accounting
Clerk

Treasurer

Manager of HR

Chief Information Officer
Information Technology
Analyst

3. Calculate the Net Operating Cash Flow for RKZ Corp. using the following figures only: (8 points)
Salaries including benefits
Telephone equipment
Furniture
Cost of Goods Sold
Depreciation
Rent
Marketing expense
Utilities and Internet
Insurance
Revenues
Printers
Travel
Computers
Office supplies
Postage and overnight shipping
Revenues
COGS
Gross Margin

$3,000,000
25,000
125,000
3,500,000
300.000
50,000
600,000
20,000
10,000
8,000,000
15,000
50,000
50,000
5,000
5,000

8,000,000
3,500,000
4,500,000

Salaries
3,000,000
Marketing Expense
600,000
Rent
50,000
Utilities & Internet
20,000
Insurance
10,000
Travel