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MANA 3325 M-W Summer 2015 Answer Guide 1) 2) 3) 4) 5) 6) 7) 8) 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 9) 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.