Exam 1

Question 1

Internal Rate of Return %

Answer 1

Future value / present value ^ 1 / periods - 1

Question 2

Days in AR

Answer 2

AR at year end / (annual sales / 365)

Question 3

Accounts receivable

Answer 3

Days in AR x (annual sales / 365)

Question 4

Sales

Answer 4

(Accounts receivable at year end / days in AR) x 365

Question 5

Days in inventory

Answer 5

Inventory at year end / (annual cost of sales / 365)

Question 6

Inventory

Answer 6

Days in inventory x (annual cost of sales / 365)

Question 7

Cost of Sales

Answer 7

(Inventory at year end / days in inventory) x 365

Question 8

Days in AP

Answer 8

Accounts payable at year end / (annual cost of sales / 365)

Question 9

Accounts payable

Answer 9

Days in AP x (annual cost of sales / 365)

Question 10

Cost of sales (#2)

Answer 10

(Accounts payable at year end / days in AP) x 365

Question 11

PPE

Answer 11

beginning of year PPE + gross PPE additions for year - PPE retirements for year - depreciation expense for the year

Question 12

Intangible assets

Answer 12

beginning of year intangible asset balance + gross additions - retirements - amortization expense

Question 13

Long-term debt

Answer 13

beginning of year debt - ((monthly payment of principal and interest x 12) + annual interest expense) - current portion of long term debt

Question 14

Retained earnings

Answer 14

Retained earnings beginning of year + annual net income or loss - dividends

Question 15

Operating cash cycle

Answer 15

Days in AR + days in inventory

Question 16

CCC

Answer 16

OCC - days in AP

Question 17

Gross profit %

Answer 17

Mark up % / (1 + mark up %)

Question 18

Gross profit $

Answer 18

Sales x gross profit % or (sales - cost of sales)

Question 19

Cost of sales %

Answer 19

Cost of sales / sales

Question 20

Cost of sales $

Answer 20

Sales x cost of sales % of (sales - gross profit $)

Question 21

Mark up %

Answer 21

Gross profit % / (1 - gross profit %)