Section 2 Practice Exam

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Section 2 Practice Exam


Pages:
2
School:
University of Texas at Austin
Course:
Fin 320f - Foundations of Finance
Foundations of Finance Documents

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FIN 320F Foundations of Finance Section 2 Practice Exam Variety Research, Inc. is preparing its financial reports. Please help Variety by putting the data below in the proper places. Use the results to answer the first 4 questions. Current Liabilities $1,600,000 Accounts Receivable $2,750,000 Operating Expenses $500,000 Net Fixed Assets $3,850,000 Retained Earnings $3,400,000 Marketable Securities $1,000,000 Cost of Goods Sold $3,750,000 Long-Term Liabilities $2,000,000 Tax Expense $260,000 Interest Expense $100,000 Common Stock $2,000,000 Cash $300,000 Inventory $1,100,000 Sales Revenue $5,000,000 1. How much did Variety earn in Net Income? a) $1,250,000 b) $750,000 c) $650,000 d) $490,000 e) $390,000 2. How much Total Equity should Variety report? a) $2,000,000 b) $2,400,000 c) $3,400,000 d) $5,400,000 e) $9,000,000 3. What was Total Current Assets? a) $9,000,000 b) $5,150,000 c) $4,150,000 d) $3,050,000 e) $300,000 4. If Variety chooses to pay a dividend, what is the maximum total amount they could pay? a) $300,000 b) $390,000 c) $1,300,000 d) $3,400,000 e) $5,150,000 SourceDocument.docx Page 1 of 2



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