Four Simple Finance MCQs

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

+Operating, +Investing, +Financing

-Operating, +Investing, +Financing

-Operating, -Investing, +Financing,

-Operating, -Investing, -Financing

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

Variable

Mixed

Fixed

Unable to determine

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

-30,000

+10000

-10000

+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