For a start-up company

Question 1

For a start-up company, what would you expect in it's pattern of cash flows?
Answer

a.       +Operating, +Investing, +Financing

b.      -Operating, +Investing, +Financing

c.       -Operating, -Investing, +Financing,

d.      -Operating, -Investing, -Financing




Question 2

Which type of lease would provide the lowest cost if sales are estimated to be $110,000, the fixed payment is $5,000 and the variable payment is 4%?
Answer

a.       Variable

b.      Mixed

c.       Fixed

d.      Unable to determine

Question 3

Calculate the net cash flow for the second month on the following:

Credit sales $100,000, with 40% paid in the month of sales, and the balance the second month.
Credit purchases $60,000, with 50% paid in the first month and the balance the second month.

Answer

a.       -30,000

b.      +10000

c.       -10000

d.      +30,000

Room Sales                                                         $1,850,000

Food Sales                                                          525,000

Food Cost                                                            300,000

Statistical Data:

115 rooms available daily for sale

Paid rooms occupied annually:                   33,580

Covers:                                                                                 34,425

The Average Room Rate is:
Answer

a.        $55.09

b.      $65.09

c.       $44.07

d.      $60.10