Following are financial statement numbers and ratios for Harrisburg Corp. for the year ended December 31, 2014. If we expected revenue growth of 2.37% in the next year, what would projected revenue be for 2015?

Total revenue (in millions)	$87,456
Net operating profit margin (NOPM)	8.2%
Net operating asset turnover (NOAT)	6.4

Question 1 options:

A)	$97,740.5 million

B)	$89,528.7 million

C)	$94,627.4 million

D)

$93,053.1 million

Question 2 (1 point)

Which of the following is not a typical adjustment made to the income statement for projection purposes?

Question 2 options:

A)	Adjusting net income for perceived under- or over-accruals

B)	Adjusting revenues to only include organic revenue growth

C)	Separating operating and non-operating items

D)	Removing transitory items such as restructuring charges

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Question 3 (1 point)

Paladino Company reports 2013 and 2014 total revenues of $145 million and $165 million respectively. If we expect prior growth to persist, we would forecast a revenue growth rate of:

Question 3 options:

A)

14%

B)

35%

C)

13%

D)

25%

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Question 4 (1 point)

Tipton Company reports in its 2014 10-K, sales of $96 million, long-term debt of $10 million, and interest expense of $1,000,000. If sales are projected to increase by 4.1% next year, projected interest expense for 2014 will be:

Question 4 options:

A)

$ 900,000

B)	$1,041,000

C)

$ 940,000

D)	$1,000,000

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Question 5 (1 point)

When forecasting balance sheet financials, an unusually high short-term investment balance suggests which of the following?

Question 5 options:

A)	Sales are projected to increase in coming years

B)	The company will need to sell additional stock.

C)	The company could pay off debt in the next year.

D)	Account receivables have dipped to an unacceptable level

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Question 6 (1 point)

The 2014 financial statements of Kroger Co. reported sales of $107,100 million and accounts receivable of $6,047 million. If sales are projected to increase 2% next year, what is the projected accounts receivable balance for 2015?

Question 6 options:

A)	$6,047 million

B)	$6,168 million

C)	$5,928 million

D)	$6,291 million

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Question 7 (1 point)

Phoenix Desert Company has a projected balance sheet that includes the following accounts. What is the projected marketable securities balance?

Cash	$ 100,000
Marketable securities	?
Accounts receivable	1,000,000
Inventory	1,000,000
Non-current assets, net	2,000,000
Total liabilities	1,200,000
Total equity	3,200,000

Question 7 options:

A)

$0

B)

$700,000

C)

$400,000

D)

$300,000

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Question 8 (1 point)

When projecting the balance sheet, what happens when the initial balance sheet yields estimated total assets greater than the sum of total liabilities and equity?

Question 8 options:

A)	The company will need additional financing from external sources

B)	The company will not be able to pay for expenses in the future

C)	The company projected a loss.

D)	The company has negative stockholders equity

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Question 9 (1 point)

Which of the following is a common method for forecasting nonoperating assets?

Question 9 options:

A)	Use prior-year common-sized balance sheet ratio

B)	Apply forecasted sales growth rate to historic balance

C)	Assume no change in the account balance

D)	Plug the amount based on other balance sheet accounts

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Question 10 (1 point)

In its 2014 annual report, Maytag Supplies Company reports the following (in thousands):

	2014	2013
Total revenue	$42,730	$41,862
Property, plant, equipment, gross	10,900	10,306
Property, plant, equipment, net	4,488	4,320
Depreciation expense	426	396

If revenue growth is projected to be 3.4%, the 2015 forecasted depreciation expense to be added back on the statement of cash flows is:

Question 10 options:

A)	$426 thousand

B)	$450 thousand

C)	$444 thousand

D)	$614 thousand