Finance is

(A) the art and science of managing money. (B) the art of merchandising products and services. (C) science of the production, distribution, and consumption of goods and services. (D) the system of verifying, analyzing, and recording business transactions.

The financial manager makes decisions regarding

(A) sales territories. (B) market campaigns. (C) how transactions are recorded. (D) what type of assets the firm holds.

3.Wealth maximization as the goal of a firm indicates the wealth of ____________.

(A) the CEO (B) the auditors (C) the employees (D) the firm's stockholders

4. Air Taxi, Inc. has equipment with a book value of $600 that could be sold today at a 15% discount. Its inventory is valued at $850 and could be sold to a competitor for that amount. The firm has $400 in cash and customers owe it $250. What is the accounting value of its liquid assets?

(A) $1,340.00 (B) $1,850.00 (C) $1,760.00 (D) $740.00

5. Wing Air, Inc. has a net income of $197 on total sales of $1100. Costs are $725 and depreciation is $182. The tax rate is 0.24. The firm does not have interest expense.

What is the operating cash flow?

(A) $313 (B) $11,515 (C) $437 (D) $196

6. The tax rates are as shown. Your firm currently has taxable income of 78,400.

How Taxable Income Tax Rate

0-50,000 15%

50,001 - 75,000 25%

75,001 - 100,000 34%

100,001 - 335,000 39%

(A) $8,560.00 (B) $8,580.00 (C)$7,188.00 (D) $7,500.00

much additional tax will you owe if you increase your taxable income by 22,000?

7 . Airfoil, Inc. has a beginning long-term debt of $270 and an ending long-term debt of $315.

The beginning and ending total debt balances are $440 and $460, respectively. The interest paid is 15.

What is the amount of the cash flow to creditors?

(A) $675 (B)-$30 (C) -$570 (D) 0

8.Contrail Air, Inc. has sales of $1500, Net income of $300, net fixed assets of $700, and current assets of $300. Inventory totals $250. What is the common-size statement value of inventory?

(A) 63% (B) 14% (C) 25% (D) 70%

9. Wing Air, Inc. has cash of $85, accounts receivable of $80, accounts payable of $350, and inventory of $250. What is the value of the quick ratio?

(A) 1750.00 (B) 19.34 (C) 0.01 (D) 0.47