Using only the information provided in the following worksheet, what is the correct formula

1. Using only the information provided in the following worksheet, what is the correct formula to calculate the total cash flows from financing?
a. =(B2-C2)-(B4+(B3-C3))
b. =(B2-C2)+(B4-(B3-C3))
c. =(B3-C3)-(B4-(B2-C2))
d. =(B2-C2)-(B4-(B3-C3))
e. =(B2+C2)-(B4+(B3+C3))

2. What is the correct formula to calculate the percentage change in prepaid expenses from 2010 to 2011 using
horizontal analysis with percentages as solution?
A

B

C

D

Account

2011

2010

$ 10,000

$ 26,000

2 Accounts Receivable

49,600

35,460

3 Inventory

25,000

25,450

4 Prepaid Expenses

22,400

32,400

5 Notes Payable

52,000

52,000

6 Common Stock

34,000

45,000

7 Retained Earnings

21,000

22,310

1 Cash

a. (C4/D4)/2
b. C4/D4
c. C4*D4/2
d. (C4-D4)/D4
e. (D4-D5)/D5

(Format as a percentage)
(Format as a percentage)
(Format as a percentage)
(Format as a percentage)
(Format as a percentage)

3. Assume that this data represents all of the assets, liabilities and capital of a company. What is the formula to
calculate the number in vertical analysis for Inventory for 2011?
A

B

C

D

Account

2011

2010

1 Cash

$ 10,000

$ 26,000

2 Accounts Receivable

49,600

35,460

3 Inventory

15,000

25,450

4 Prepaid Expenses

32,400

32,400

5 Notes Payable

52,000

52,000

6 Common Stock

34,000

45,000

7 Retained Earnings

21,000

22,310

 
a. C3/(C1+C2+C3+C4) (Format as a percentage)
b. C3/SUM(C1..C4)
(Format as a percentage)
c. C3/D3
(Format as a percentage)
d. SUM(C1..C3)/D3
(Format as a percentage)
e. Both a and b
(Format as a percentage)
4. Which is the correct formula for cell B6 that will allow you to determine how many years will it take to quadruple your savings at 11 percent compounded quarterly?
a. =NPER(B4/B5,0,-B2,4*B3,0)/4
b. =NPER(B4/B5,0,-B2,B2,0)
c. =NPER(B4/B5,0,-B2,B2,0)/4
d. =NPER(B4/B5,0,-B2,4*B2,0)
e. =NPER(B4/B5,0,-B2,4*B2,0)/4
Remember that the basic syntax of the NPER function is: NPER(rate,pmt,pv,fv,type)

5. What should be the outcome of cell B? Remember that the basic syntax of the IRR function is:
IRR(values,guess)
a. “Accept”
b. “Reject”
c. "Indifferent"

6. Which is the correct formula in cell B4 to calculate the future value of $1,000 invested at 15% annual rate after 2 years using continuous compounding?
a. =B3*EXP(B1*B2)
b. =B2*EXP(B1*B3)
c. =B1*EXP(B2*B3)
d. =B1/EXP(B2*B3)
e. =B1*EXP(B2+B3)
7. Which should be the right formula for cell B5?
a. =(B2*C2)-(B3*C3)+(1-B2+B3)*C4
b. =(B2*C2)-(B3*C3)-(1-B2-B3)*C4
c. =(B2/C2)+(B3/C3)+(1-B2-B3)/C4
d. =(B2*C2)+(B3*C3)+(1-B2-B3)*C4
e. =(B2*C2)+(B3*C3)+(1+B2+B3)*C4

8. What should be the formula on cell B5?
a. =(B3*B4)/(B2+B3)
b. =B1*B4/B2+B3
c. =(B1+B4)/(B2*B3)
d. =(B1*B4)/(B2+B3)
e. =(B3*B4)/(B2-B3)
 
9. What should be the formula on cell B5?
A
B
Fixed Costs
$
1,500,000
Estimated Sales in Units
100,000
Price per Unit
$50
Variable Costs per Unit
$20
Operating Breakeven Point
in Revenue Dollars
?
a. =B1/(B3-B4)/B3
b. =B1/B3-B4*B3
c. =(B1/B3)-B4*B3
d. =B1/((B3-B4)/B3)
e. =B1/(B3+B4)*B3

10. Which of the following would be the correct formula for cell B7?
a. =-B2/B3
b. =FAME_Payback(B2:B6)
c. =FAME_Payback(B2:B6,0)
d. =2-(B2+B3+B4)/B5
e. A and D