Question 6
A company's main product has not been selling as well as in the past. A manager is tasked with understanding the decreased sales and decides to conduct a focus group of current customers. Is this a good strategy?
Question 7
Which of the following options is the measure of how long it takes from the time a business has to pay for inventory from a supplier until it collects cash from the customer from a sale?
Question 8
A company's retained earnings on Dec. 31st, 2009 to 2013 is as follows:
On the pro-forma income statement for 2014, the net income is $10,000. The expected dividends to be paid in 2014 is $3,500. What is the projected retained earnings on Dec. 31st, 2014?
Question 9
In determining free cash flows, how is the change in net working capital calculated?
Question 10
A company had sales revenue of $500,000 for 2013. During 2013, the company incurred operating expenses of $40,000 and interest expenses of $60,000. The income before taxes was $220,000. What was Cost of Goods Sold (COGS) for the year 2013?