Finance > QUESTIONS & ANSWERS > Sophia Finance Milestone 1a Latest 2022 Already Passed! (All)

Sophia Finance Milestone 1a Latest 2022 Already Passed!

Document Content and Description Below

Sophia Principles of Finance Milestone 1 1 For which company can trend analysis be most useful? A ride-sharing company whose business model has been rapidly adapting to market conditions An insu... rance company that has recently been subject to new accounting laws An established hotel company that has made very few changes to its business model A manufacturing company that has recently expanded into mining as well CONCEPT Using Financial Ratios for Analysis 2 Xander is looking for ways to reduce his non-operating expenses to improve his company's overall financial performance, so he consults his most recent income statement. Which of the following should he focus on? Wages Amortization Income taxes Depreciation CONCEPT The Income Statement 3 If Company A has a lower debt ratio than Company B, then Company A is likely to have __________ than Company B. a greater ability to borrow a higher level of financial risk more total assets less financial flexibility CONCEPT Debt Management Ratios 4 Thomas is concerned about his company's ability to pay off its short-term debts. If he wants to know more about his company's liquidity, what should he do? Calculate his total liabilities Calculate his total assets Calculate his net working capital Calculate his debt to equity ratio CONCEPT The Balance Sheet 5 If equity is $2 million and total revenue is $1.3 million, then ROE is __________. incalculable without net profit data 65% incalculable without EBIT data 35% CONCEPT Profitability Ratios 6 In the United States, the role of corporate governance is to maximize __________. market value and stakeholder value market value and shareholder value shareholder value and stakeholder value fundamental value and shareholder value CONCEPT Goals of Financial Management 7 What is a question that should be asked about accounts payable when forecasting? How will our cash inflows be affected? How much product on hand is too much? What is the cash conversion cycle? How quickly can we replenish goods? CONCEPT Analyzing Forecasts 8 Consider the following information: Total current assets $62,301 Deferred income taxes $1,345 Inventories $5,664 Prepaid expenses $2,034 Other assets $2,906 Total current liabilities $29,748 [Show More]

Last updated: 2 years ago

Preview 1 out of 19 pages

Buy Now

Instant download

We Accept: