STR 581 Week 4 Capstone 2

1
STR 581 Week 4 Capstone 2

• By www.StudentWhiz.com

Copyright. All Rights Reserved by
www.StudentWhiz.com
2

• 1. Internal reports that review the actual impact
  of decisions are prepared by
• the controller
• department heads
• factory workers
• management accountants
• 2. Horizontal analysis is also known as
• trend analysis
• vertical analysis
• linear analysis
• common size analysis
• 3. Which of the following is an advantage of
  corporations relative to partnerships and sole
  proprietorships?
• most common form of organization
• reduced legal liability for investors
• lower taxes
• harder to transfer ownership

Copyright. All Rights Reserved by
www.StudentWhiz.com
3

• 4. Serox stock was selling for 20 two years ago.
  The stock sold for 25 one year ago, and it is
  currently selling for 28. Serox pays a 1.10
  dividend per year. What was the rate of return
  for owning Serox in the most recent year? (Round
  to the nearest percent.)
• 32
• 16
• 12
• 40
• 5. External financing needed Jockey Company has
  total assets worth 4,417,665. At year-end it
  will have net income of 2,771,342 and pay out 60
  percent as dividends. If the firm wants no
  external financing, what is the growth rate it
  can support?
• 30.3
• 27.3
• 32.9
• 25.1
• 6. An unrealistic budget is more likely to result
  when it
• has been developed by all levels of management.
• has been developed in a top down fashion.
• has been developed in a bottom up fashion.
• is developed with performance appraisal usages in
  mind.

Copyright. All Rights Reserved by
www.StudentWhiz.com
4

• To download the complete paper click STR 581 Week
  4 Capstone 2
• 7. Which of the following financial statements is
  concerned with the company at a point in time?
• balance sheet
• retained earnings statement
• statement of cash flows
• income statement
• 8. Next year Jenkins Traders will pay a dividend
  of 3.00. It expects to increase its dividend by
  0.25 in each of the following three years. If
  their required rate of return if 14 percent, what
  is the present value of their dividends over the
  next four years?
• 12.50
• 11.63
• 9.72
• 13.50
• 9. An activity that has a direct cause-effect
  relationship with the resources consumed is
  a(n)
• product activity
• cost driver
• cost pool
• overhead rate

Copyright. All Rights Reserved by
www.StudentWhiz.com
5
Click here to download Complete Answers of STR
581 Week 6 Capstone 3 10. The major element in
budgetary control is the approval of the
budget by the stockholders the valuation of
inventories the preparation of long-term plans
the comparison of actual results with planned
objectives.   11. Tule Time Comics is considering
a new show that will generate annual cash flows
of 100,000 into the infinite future. If the
initial outlay for such a production is
1,500,000 and the appropriate discount rate is 6
percent for the cash flows, then what is the
profitability index for the project? 0.11
1.11 0.90 1.90   12. How firms estimate
their cost of capital The WACC for a firm is
13.00 percent. You know that the firms cost of
debt capital is 10 percent and the cost of equity
capital is 20 What proportion of the firm is
financed with debt? 70 50 33 30
Copyright. All Rights Reserved by
www.StudentWhiz.com
6
13. The most important information needed to
determine if companies can pay their current
obligations is the relationship between
current assets and current liabilities
relationship between short-term and long-term
liabilities projected net income for next year
net income for this year Want to download the
Complete Assignment..?? Click STR 581 Week 4
Capstone 2 14. Process costing is used when
dissimilar products are involved production is
aimed at fulfilling a specific customer order.
the production process is continuous. costs
are to be assigned to specific jobs.   15. A cost
which remains constant per unit at various levels
of activity is a fixed cost mixed cost
manufacturing cost variable cost
Copyright. All Rights Reserved by
www.StudentWhiz.com
7

• 16.The group of users of accounting information
  charged with achieving the goals of the business
  is its
• investors
• auditors
• creditors
• managers
•  
• 17. Teakap, Inc. has current assets of 1,456,312
  and total assets of 4,812,369 for the year
  ending September 30, 2006. It also has current
  liabilities of 1,041,012, common equity of
  1,500,000 and retained earnings of 1,468,347.
  How much long-term debt does the firm have?
• 803,010
• 2,303,010
• 1,844,022
• 2,123,612
•  
• 18. The cash conversion cycle?
• begins when the firm invests cash to purchase the
  raw materials that would be used to produce the
  goods that the firm manufactures.
• estimates how long it takes on average for the
  firm to collect its outstanding accounts
  receivables balance.
• begins when the firm uses its cash to purchase
  raw materials and ends when the firm collects
  cash payments on its credit sales.
• shows how long the firm keeps its inventory
  before selling it.

Copyright. All Rights Reserved by
www.StudentWhiz.com
8

• Click here to download STR 581 Week 4 Capstone 2
• 19. Ajax Corp. is expecting the following cash
  flows - 79,000, 112,000, 164,000, 84,000, and
  242,000 over the next five years. If the
  companys opportunity cost is 15 percent, what is
  the present value of these cash flows? (Round to
  the nearest dollar.)
• 480,906
• 429,560
• 414,322
• 477,235
•  
• 20. Jack Robbins is saving for a new car. He
  needs to have 21,000 for the car in three years.
  How much will he have to invest today in an
  account paying 8 percent annually to achieve his
  target? (Round to nearest dollar)
• 26,454
• 19,444
• 22,680
• 16,670
•  

Copyright. All Rights Reserved by
www.StudentWhiz.com
9

• 21. Which of the following presents a summary of
  changes in a firms balance sheet from the
  beginning of an accounting period to the end of
  that accounting period?
• the statement of net worth
• the statement of cash flows
• the statement of working capital
• the statement of retained earnings
• 22. MM Proposition 1 Dynamo Corp. produces
  annual cash flows of 150 and is expected to
  exist forever. The company is currently financed
  with 75 percent equity and 25 percent debt. Your
  analysis tells you that the appropriate discount
  rates are 10 percent for the cash flows, and 7
  percent for the debt. You currently own 10
  percent of the stock.
• If Dynamo wishes to change its capital structure
  from 75 percent equity to 60 percent equity and
  use the debt proceeds to pay a special dividend
  to shareholders, how much debt should they use?
• 225
• 600
• 375
• 321
• Click here to download STR 581 Week 4 Capstone 2

Copyright. All Rights Reserved by
www.StudentWhiz.com
10

• 23. Horizontal analysis is a technique for
  evaluating a series of financial statement data
  over a period of time
• that has been arranged from the highest number to
  the lowest number.
• to determine the amount and/or percentage
  increase or decrease that has taken place.
• to determine which items are in error.
• that has been arranged from the lowest number to
  the highest number.
•  
• 24. Jayadev Athreya has started his first job. He
  will invest 5,000 at the end of each year for
  the next 45 years in a fund that will earn a
  return of 10 percent. How much will Jayadev have
  at the end of 45 years?
• 2,667,904
• 5,233,442
• 1,745,600
• 3,594,524
•  
• 25. Turnbull Corp. had an EBIT of 247 million in
  the last fiscal year. Its depreciation and
  amortization expenses amounted to 84 million.
  The firm has 135 million shares outstanding and a
  share price of 12.80. A competing firm that is
  very similar to Turnbull has an enterprise
  value/EBITDA multiple of 5.40.
• What is the enterprise value of Turnbull Corp.?
  Round to the nearest million dollars.
• 1,344 million
• 453.6 million
• 1,315 million
• 1,787 million

Copyright. All Rights Reserved by
www.StudentWhiz.com
11

• 26. Firms that achieve higher growth rates
  without seeking external financing
• Have a low plowback ratio
• are highly leveraged
• have less equity and/or are able to generate high
  net income leading to a high ROE.
• None of these
•  
• 27. In a process cost system, product costs are
  summarized
• on job cost sheets.
• when the products are sold.
• after each unit is produced.
• on production cost reports.
•  
• 28. The convention of consistency refers to
  consistent use of accounting principles
• within industries
• among accounting periods
• throughout the accounting period
• among firms
• Click here to download STR 581 Week 6 Capstone 3

Copyright. All Rights Reserved by
www.StudentWhiz.com
12

• 30. Your firm has an equity multiplier of 2.47.
  What is the debt-to-equity ratio?
• 0
• 1.74
• 0.60
• 1.47
•  
• 31. The accumulation of accounting data on the
  basis of the individual manager who has the
  authority to make day-to-day decisions about
  activities in an area is called
• master budgeting
• static reporting
• responsibility accounting
• flexible accounting
•  
• 32. Regatta, Inc., has six-year bonds outstanding
  that pay a 8.25 percent coupon rate. Investors
  buying the bond today can expect to earn a yield
  to maturity of 6.875 percent. What should the
  companys bonds be priced at today? Assume annual
  coupon payments. (Round to the nearest dollar.)
• 1014
• 972
• 923
• 1,066
•  

Copyright. All Rights Reserved by
www.StudentWhiz.com
13

• 33. Variance reports are
• internal reports for management
• SEC financial reports
• external financial reports
• all of these
• Want to see the complete Capstone..?? Click STR
  581 All Capstones (Week 2 Capstone 1, Week 4
  Capstone 2, and Week 6 Capstone 3)
• 34. The break-even point is where
• contribution margin equals total fixed costs.
• total sales equal total variable costs.
• total sales equal total fixed costs.
• total variable costs equal total fixed costs.
•  
• 35. When a company assigns the costs of direct
  materials, direct labor, and both variable and
  fixed manufacturing overhead to products, that
  company is using
• operations costing
• product costing
• absorption costing
• variable costing

Copyright. All Rights Reserved by
www.StudentWhiz.com
14

• 36. Which of the following is considered a hybrid
  organizational form?
• sole proprietorship
• partnership
• limited liability partnership
• corporation
•  
• 37. Gateway, Corp. has an inventory turnover of
  5.6. What is the firms dayss sales in
  inventory?
• 57.9
• 61.7
• 65.2
• 64.3
•  
• 38. The process of evaluating financial data that
  change under alternative courses of action is
  called
• incremental analysis
• contribution margin analysis
• cost-benefit analysis
• double entry analysis
• Want to check out the complete paper..?? Visit
  STR 581 Week 2 Capstone 1

Copyright. All Rights Reserved by
www.StudentWhiz.com
15

• 39. What decision criteria should managers use in
  selecting projects when there is not enough
  capital to invest in all available positive NPV
  projects?
• the modified internal rate of return
• the profitability index
• the discounted payback
• the internal rate of return
• About Author
• This article covers the topic for the University
  Of Phoenix STR 581 Week 4 Capstone 2. The author
  is working in the field of education from last 5
  years. This article covers the basic of STR 581
  Week 4 Capstone 2 from UOP. Other topics in the
  class are as follows
• STR 581 Week 2 Capstone 1
• STR 581 Week 4 Capstone 2
• STR 581 Week 6 Capstone 3
• STR 581 All Capstones (Week 2 Capstone 1, Week 4
  Capstone 2, and Week 6 Capstone 3)
• For further information on the above topics you
  can always visit the website www.StudentWhiz.com

Copyright. All Rights Reserved by
www.StudentWhiz.com