03 May QuestionCMR 302
Question
CMR 302
TEST 3
Financing Operations
1. What forms of financing would a company pursue in Growth 2 of the Financing life cycle?
2. List an advantage and disadvantage of obtaining funds from “Angel Investors”
3. Companies continue to receive funds in the Secondary Market? T F
4. Identify a primary difference between common and preferred stock.
5. Which financing life cycle phase would a company pursue an IPO?
Breakeven Analysis
6. Fixed Expenses change in total when there is a modest change in sales. TRUE FALSE
7. An example of a fixed expense would be a 5% sales commission. TRUE FALSE
8. Property taxes and rent are often considered variable expenses. TRUE FALSE
9. Variable expenses change in total as volume changes. TRUE FALSE
10. If a company requires a profit of $30,000 (instead of breaking even), the $30,000 should be combined with the fixed expenses in order to compute the point at which the company will earn $30,000. TRUE FALSE
11. The contribution margin per unit is the selling price per unit minus the fixed expenses per unit. TRUE FALSE
Use this information to answer questions 12 through 14: SHOW YOUR WORK http://www.accountingcoach.com/wp-content/uploads/images/quiz-tables/break-even-point-q15-17.png
12. What is the company’s contribution margin?
13. What is the break-even point in units?
14. If the company wants to earn a profit of $ 20,000 instead of breaking even, what is the number of units the company must sell?
Business Cash Flow
15. From a cash flow perspective, what does it mean to “train your customers”?
16. How can a business use vendors to help with the cash flow of a business?
Internal Control
17. Separation of Duties in a small business is not a practical internal control solution due to the small number of employees T F
18. Identify two prevention techniques that a small business owner might employ to prevent fraud
19. What is the number one way that fraud is detected?
20. The company accountant should open and reconcile the monthly bank statement before anyone else can gain access to the data in order to prevent fraud. T F
Breakeven Analysis
Your client manages a daycare center. Costs are as follows:
Food costs $ 90
Rent 36,000
Salaries 80,000
Material costs 60
Taxes 20,000
Insurance 12,000
Miscellaneous 8,000
You currently charge $ 500 per month per child. You plan a profit of $ 25,000 per year.
Using the Breakeven analysis spreadsheet, complete the analysis and save the file as BE1. Submit via Canvas.
Answer the following questions
Total Variable Costs ___________
Total Fixed Costs ___________
Breakeven Point in Units per year ___________
Breakeven Point in Dollars per year ___________
Your friend is considering moving the business location to a more expensive neighborhood. Costs will change as follows:
Food costs $ 120
Rent 50,000
Salaries 100,000
Material costs 75
Taxes 30,000
Insurance 14,000
Miscellaneous 12,000
The monthly fee per child would be $ 700 and the profit component would increase to $ 50,000.
Answer the following questions
Total Variable Costs ___________
Total Fixed Costs ___________
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.