MANA 3325 M-W
Summer 2015 Answer Guide
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Student Name: _______________________________
Quiz #6
“Snapshot” best describes which of the following financial statements?
a. __ Income Statement
b. _x_ Balance Sheet
“Sources and Uses of Funds” is another name for which of the following financial statements?
a. __ Income Statement
b. __ Balance Sheet
c. _ x _ Statement of Changes
The Quick Ratio is an example of what type of Ratio?
a. _ x _ Liquidity
The formula (Total Debt / Total Assets) is what kind of ratio?
a. __ Liquidity
b. __ Operating
c. _ x _ Debt
The formula (Total Debt / Tangible Net Worth) is which ratio?
a. __ Current Equity Ratio
b. __ Equity Ratio
c. _ x _ Debt to Net Worth Ratio
The “Net Profit on Sales” (NPOS) ratio would be represented by which of the following formula?
a. __ NPOS = Net Profit / Gross Profit
b. __ NPOS = Net Profit / Gross Expenses
c. _ x _ NPOS = Net Income / Gross Sales
Breakeven is calculated by using which of the following formula?
a. __ BE = 1 – (Variable Expenses / Net Sales Estimate)
b. __ BE = 1 – (Variable Costs / Contribution Margin)
c. __ BE = (Total Fixed Expenses / Variable Expenses)
d. _ x _ BE = (Total Fixed Costs / Contribution Margin)
Calculate the Breakeven Sales Volume for a company with the following data: Total Sales = $150,000 and Gross Profit
Margin = 20% and Fixed Costs = $45,000:
_ x _ $225,000
BE = (Target Profit + Fixed Expenses) / Contribution Margin = 45,000 / .2 = 225,000
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Calculate the Gross Sales needed for a company to make $100,000 in profit based on the following data: Gross Sales =
$200,000 Cost of Sales = $160,000 Net Income = -$60,000 (a loss):
_ x _ $1,000,000
BE = (Target Profit + Fixed Expenses) / Contribution Margin = ($100,000 + $100,000) / .2 = $1,000,000
10) The name of this course is “Entrepreneurship and Venture Management”… not Studies in Entrepreneurship.