Test 4

Question 1

Breakeven Point

Answer 1

FC/(SP-VC)

Question 2

Fixed Cost

Answer 2

Fixed and cost of equipment divided by depreciation

Question 3

Selling Price

Answer 3

Stated

Question 4

Variable Cost

Answer 4

VC plus material cost per unit

Question 5

Variable Costing

Answer 5

Treat interest as FC . = RD * Equity

Question 6

Net Profit

Answer 6

(SP-vc) * units - FC) *(1-t)

Question 7

Net Profit Margin

Answer 7

np/sales (income statement)

Question 8

Asset Turnover

Answer 8

sales/total assets

Question 9

Interest Cover

Answer 9

operating profit/interest

Question 10

ROE

Answer 10

net profit before tax/ OE

Question 11

ROA

Answer 11

net profit before tax/total assets

Question 12

Current Ratio

Answer 12

current assets/current liabilities

Question 13

NPV

Answer 13

Year 0 cashflow + Present value collum

Question 14

IRR

Answer 14

(10+10/NPV1+NPV2)*NPV 1)

Question 15

Payback Period

Answer 15

Need what you were given. Then year 1 , year 1 +year 2, etc.

Question 16

Generated Cash Flow

Answer 16

NP = Stated at bottom
+ Depreciation
Changes in WC
Materials -(Opening - Closing)
FG = - Closing
Taxes = Above NP
Cash Generated = Cash on Balance Sheet