Busıness Fınance I Ara 3. Deneme Sınavı
Toplam 11 Soru1.Soru
Determine the margin of safety ratio given following data:
Sales Price is $15, Variable Cost per unit is $ 10, number of units sold is 1,000 and Fixed Costs are $ 60,000.
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0.2 |
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0.25 |
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0.3 |
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0.35 |
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0.4 |
Break-even sales = Fixed Costs / (P-VC) = 60,000 / (15-10) = 60,000 / 5 = 12,000
Actual Sales = Price * Quantity sold = 15 * 1,000 = 15,000
Margin of Safety (in dollars) = Total actual sales - Break-even sales = 15,000 -12,000 =3,000
Margin of Safety = Margin of safety in dollars / Total actual sales = 3,000 / 15,000 = 0.2
2.Soru
Which of the following shows the degree of operating leverage?
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The percentage change in the net income as the result of the percentage change in the sales volume |
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The percentage change in the operating income as the result of the percentage change in the sales volume |
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The percentage change in the net income as the result of the percentage change in the variable costs |
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The percentage change in the sales volume as the result of the percentage change in cost of the goods sold |
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The percentage change in the sales volume as the result of the percentage change in the sales price |
The degree of operating leverage is a concept widely used to assess the operating risk of a business stemming from its cost structure. Basically, the degree of operating leverage shows how much the operating income of the business changes with a relative change in its sales. In fact it is a multiple depicting how many times the operating income of a business changes in relation to a percentage change in the sales.
3.Soru
I. Comparing ratios for the company’s current year with those of preceding years
II. Comparing ratios of the company with those of its competitors
III. Comparing the company’s ratios with ratios for the industry in which the company operates
Which of the statements given above are among the factors that needs to be considered when using financial ratios?
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Only I |
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I and II |
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I and III |
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II and III |
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I, II and III |
When using financial ratios, factors that needs to be considered are;
• Comparing ratios for the company’s current year with those of preceding years, e.g., 5 to 10 years;
• Comparing ratios of the company with those of its competitors (These can be obtained from the published financial statements of competitors); and
• Comparing the company’s ratios with ratios for the industry in which the company operates. (Industry statistics can be obtained from annual publications of trade associations; for example, TUSIAD publishes such ratios for various industries. For some of the ratios, data can be obtained from weekly stock exchange magazines or internet databases.)
Therefore, the correct answer is E.
4.Soru
A pen producer corporation sales its products $2/unit. It has variable costs of $1.2 per unit and total fixed cost of $50,000. What is the break-even sales in dollars?
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$100,000 |
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$125,000 |
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$140,000 |
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$165,000 |
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$175,000 |
First we need to calculate contribution margin ratio as:
($2-$1.2)/$2=0.4
Then we need to divide total fixed cost by contribution margin ratio as:
$50,000/0.4=$125,000
5.Soru
I. Investing decisions
II. Financing decisions
III. Dividend decisions
Which of these can be seen a decision-making process a financial manager should make?
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I only |
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II only |
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I and II only |
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II and III only |
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I, II and III |
Financial decision-making includes three kinds of company decisions; investing, financing, and decisions about dividends with balancing benefits and costs for the good of company they are working at.
6.Soru
Svpam Corp. has a break-even point of 10,000 units, which sell for $12 per. The company’s total sales are $300,000. What is the company’s margin of safety ratio?
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1.2 |
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1.5 |
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1.7 |
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0.9 |
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0.6 |
$300,000 - ($10 * $12) = $180,000
$180,000 / $300,000 = 0.6
7.Soru
What is the amount of net working capital of the firm?
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$20.000 |
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$25.000 |
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$30.000 |
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$35.000 |
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$40.000 |
Net working capital = Current assets - current liabilities = $100.000 - $70.000 = $30.000
8.Soru
Higher business risk is is related to the use of additional __________.
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Fixed costs |
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Variable costs |
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Debt financing |
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Common equity financing |
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Dividend payment |
A higher DOL implies a higher business risk. For companies with high fixed costs, the DOL will be automatically higher.
9.Soru
Which of the following are the assets that are expected to be converted into cash within the next year or within the next operating cycle, whichever is longer?
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Current Assets |
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Current Liabilities |
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Long-term assets |
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Short-term assets |
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Long-term liabilities |
Current assets are the assets that are expected to be converted into cash within the next year or within the next operating cycle, whichever is longer. Common types of current assets are; cash and cash equivalents, trade receivables, inventories, and prepaid expenses.The correct answer is A.
10.Soru
when the initial amount borrowed and interest is repaid in equal periodic instalments, the name of this loan is,
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Discount loan |
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Pure discount loan |
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Secured loan |
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Commercial loan |
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Amortizing loan |
Amortizing loans is another common type of loan where the initial amount borrowed and interest is repaid in equal periodic installments.
11.Soru
Which of the following doesn't have to be known to measure quick ratio?
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Cash and cash equivalents |
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Trading securities |
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Accounts Receivable |
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Current Liabilities |
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Long-term liabilities |
QuickRatio= (Cash+CashEquiv.+TradingSec.+Accts.Rec.+NotesRec.) / Current Liabilities