mcqs

The management of the firm's short-term assets and liabilities is called: A. Working capital management. B. Financial depreciation. C. Agency cost analysis. D. Capital budgeting. E. Capital structure.

3-(10 marks)

Which of the following statements concerning auction markets is correct? A. The TSX is an auction market. B. NASDAQ is an auction market. C. All trades involve a dealer in an auction market. D. An auction market is called an over-the-counter market. E. A market where buyers specify the lowest price they are willing to pay and sellers indicate the highest price they are willing to accept.

4-(10 marks)

Swell, Inc. had net fixed assets of $6.5 million on December 31, 2017 and $11 million on December 31, 2018. If Swell's depreciation expense for 2018 was $750,000, what was the firm's 2018 capital spending? A. $3.75 million B. $4.25 million C. $4.50 million D. $5.25 million E. $6.75 million

5- (20 marks)

Aussel Motors, Inc. 2018 statement of comprehensive income ($ in millions)
Net sales	$6,080
Less: Cost of goods sold	3,890
Less: Depreciation	860
Earnings before interest and taxes	1,330
Less: Interest paid	270
Earnings before taxes	1,060
Less: Taxes	360
Net Income	700

Aussel Motors, Inc. 2017 and 2018 statement of financial position ($ in millions)
	2017	2018		2017	2018
Cash	415	560	Accounts payable	540	610
Accounts receivable	860	840	Current portion of LTD	0	50
Inventory	1,270	1,390	Total	540	660
Total	2,545	2,790	Long-term debt	2165	3480
Net fixed assets	3,180	4,660	Common stock	2000	2250
			Retained earnings	1020	1060
Total assets	5,725	7,450	Total liab. & equity	5725	7450