{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-28T06:49:29-04:00", "answer_date": "2024-06-28 06:49:29", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4256190", "url": "\/study-help\/questions\/question-1-333-points-need-help-please-a-cma-performs-4256190", "question_creation_date_js": "2024-06-28T06:49:29-04:00", "question_creation_date": "Jun 28, 2024 06:49 AM", "meta_title": "[Solved] Question 1 (3.33 points) Need help please | SolutionInn", "meta_description": "Answer of - Question 1 (3.33 points) Need help please. A CMA performs a horizontal analysis on Jones Co's historical data. Her res | SolutionInn", "meta_keywords": "question,1,3.33,points,help,cma,performs,horizontal,analysis,jones,s,historical", "question_title_h1": "Question 1 (3.33 points) Need help please. A CMA performs a horizontal analysis on Jones Co's historical data. Her results are shown below (in millions):", "question_title": "Question 1 (3.33 points) Need help please. A CMA performs a horizontal", "question_title_for_js_snippet": "Question 1 (3 33 points) Need help please A CMA performs a horizontal analysis on Jones Co's historical data Her results are shown below (in millions) Year 1Year 2Year 3Year 4Sales250275280285Earnings Before Taxes175185195205Tax Rate35 35 35 20 What is the percentage increase in net income from Year 1 to Year 3 Question 1 options 23 3 26 7 46 7 55 9 Question 2 (3 33 points) A company has a quick ratio of 2 3 and a current ratio of 2 8 Industry averages are 2 0 for the quick ratio and 3 1 for the current ratio Which of the following statements is most likely true Question 2 options The company has less inventory than the industry benchmark The company has more receivables than the industry benchmark The company has less receivables than the industry benchmark The company has more inventory than the industry benchmark Question 3 (3 33 points) Which of the following scenarios would most likely increase financial leverage Question 3 options A company issues bonds to purchase treasury stock A company buys fixed assets with cash A company signs an operating lease agreement for a new manufacturing facility A company increases its dividend payout, making it in cash on the following payment date Question 4 (3 33 points) Bolton Company substantially increased its allowance for bad debt Which of the following effects will occur Question 4 options It will reduce the current ratio It will increase the acid test ratio It will increase working capital It will reduce its dividend payout ratio Question 5 (3 33 points) Which of the following is most likely true concerning the stability and trend of earnings Question 5 options The stability and trend of earnings require at least five years of historical data to be meaningful The stability and trend of earnings are key factors when calculating cost of sales The stability and trend of earnings are not factored in the analysis of revenues The stability and trend of earnings depend on the trend of a single industry Question 6 (3 33 points) An accountant accepts a new job as a forecasting analyst at Rhett Company and is exploring different forecasting techniques Which of the following is most likely true about forecasting models Question 6 options The analyst should always consider factors such as cyclicality and seasonality when analyzing the model's results Forecasting models are often based on historical data, which can include moving averages and exponential smoothing techniques Forecasting models with sensitivity analysis features allow the user to evaluate multiple scenarios by changing input variables All of the above statements are true Question 7 (3 33 points) Which of the following statements explains a decrease in the market equilibrium price for laptops Question 7 options An increase in consumer disposable income when laptops are inferior goods A change in consumer tastes and preferences making cell phones more attractive Improved technology that makes it less expensive to produce laptops An expected increase in the price of laptops in the future Question 8 (3 33 points) James Co produces and distributes auto parts Its strategy is based on the quality of its processes and materials, which are seen as being superior to those products made by its competitors Which of the following is true about James Co's strategy Question 8 options James Co follows a product differentiation strategy James Co follows a price differentiation strategy James Co is a cost leader and follows a target profit approach in its pricing The high quality processes allow James Co to execute a cost leadership strategy Question 9 (3 33 points) Based on the Dividend Discount Model, if a company's projected rate of growth in earnings and dividends is expected to increase, what effect will it have on its stock Question 9 options The value would decrease The value would increase The value would not change It is undeterminable Question 10 (3 33 points) Johnson Company has 3 million shares of preferred stock that pays $5 in dividends per share annually If an investor's required rate of return is 9 , what is the value of Johnson Company's preferred stock per share Question 10 options $0 45 $5 00 $5 56 $55 56 Question 11 (3 33 points) Which of the following changes will result in an increase to a company's sustainable growth rate Question 11 options An increase in dividend payouts An increase in interest expense A decrease in tax expense Question 12 (3 38 points) Smith Company has the following annual cash flows Year 0 173,160 Year 1 614,718 Year 2 726,406 Year 3 285,714 Which discount rate provides a positive net present value (NPV) given this information Question 12 options 15 21 18 Question 13 (3 33 points) A financial analyst has reviewed profit margins for a company for the last three years and comes to the conclusion that they have not changed significantly Based on this analysis, finish the following statement The company's credit risk is Question 13 options not factored into this analysis considered to be low considered to be high Question 14 (3 33 points) SolidCo's balance sheet for the most recent year end is below Current Assets Cash 3,000 Marketable securities 600 Accounts receivable 6,000 Less allowance for bad debt 300 Inventory 1,200 Total Current Assets 10,500 Current Liabilities Accounts payable 4,000 Current portion of notes payable 1,300 Other current accrued expenses 2,000 Total Current Liabilities 7,300 The quick ratio for this company is closest to Question 14 options 1 32 1 27 1 26 Question 15 (3 33 points) Of the following metrics, which is most likely used in present value calculation of equity shares Question 15 options Enterprise value Net assets Free cash flow", "question_description": "Question 1<\/strong>(3.33 points)

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Need help please.<\/p>

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A CMA performs a horizontal analysis on Jones Co's historical data. Her results are shown below (in millions):<\/p>

Year 1Year 2Year 3Year 4Sales250275280285Earnings Before Taxes175185195205Tax Rate35%35%35%20%<\/p>

What is the percentage increase in net income from Year 1 to Year 3?<\/p>

Question 1 options:<\/p>

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23.3%<\/p>

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26.7%<\/p>

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46.7%<\/p>

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55.9%<\/p> Question 2<\/strong>(3.33 points)

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A company has a quick ratio of 2.3 and a current ratio of 2.8. Industry averages are 2.0 for the quick ratio and 3.1 for the current ratio. Which of the following statements is most likely true?<\/p>

Question 2 options:<\/p>

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The company has less inventory than the industry benchmark.<\/p>

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The company has more receivables than the industry benchmark.<\/p>

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The company has less receivables than the industry benchmark.<\/p>

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The company has more inventory than the industry benchmark.<\/p> Question 3<\/strong>(3.33 points)

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Which of the following scenarios would most likely increase financial leverage?<\/p>

Question 3 options:<\/p>

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A company issues bonds to purchase treasury stock.<\/p>

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A company buys fixed assets with cash.<\/p>

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A company signs an operating lease agreement for a new manufacturing facility.<\/p>

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A company increases its dividend payout, making it in cash on the following payment date.<\/p> Question 4<\/strong>(3.33 points)

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Bolton Company substantially increased its allowance for bad debt. Which of the following effects will occur?<\/p>

Question 4 options:<\/p>

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It will reduce the current ratio.<\/p>

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It will increase the acid test ratio.<\/p>

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It will increase working capital.<\/p>

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It will reduce its dividend payout ratio.<\/p> Question 5<\/strong>(3.33 points)

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Which of the following is most likely true concerning the stability and trend of earnings?<\/p>

Question 5 options:<\/p>

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The stability and trend of earnings require at least five years of historical data to be meaningful.<\/p>

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The stability and trend of earnings are key factors when calculating cost of sales.<\/p>

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The stability and trend of earnings are not factored in the analysis of revenues.<\/p>

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The stability and trend of earnings depend on the trend of a single industry.<\/p> Question 6<\/strong>(3.33 points)

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An accountant accepts a new job as a forecasting analyst at Rhett Company and is exploring different forecasting techniques. Which of the following is most likely true about forecasting models?<\/p>

Question 6 options:<\/p>

<\/p>

The analyst should always consider factors such as cyclicality and seasonality when analyzing the model's results.<\/p>

<\/p>

Forecasting models are often based on historical data, which can include moving averages and exponential smoothing techniques.<\/p>

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Forecasting models with sensitivity analysis features allow the user to evaluate multiple scenarios by changing input variables.<\/p>

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All of the above statements are true.<\/p> Question 7<\/strong>(3.33 points)

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Which of the following statements explains a decrease in the market equilibrium price for laptops?<\/p>

Question 7 options:<\/p>

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An increase in consumer disposable income when laptops are inferior goods.<\/p>

<\/p>

A change in consumer tastes and preferences making cell phones more attractive.<\/p>

<\/p>

Improved technology that makes it less expensive to produce laptops.<\/p>

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An expected increase in the price of laptops in the future.<\/p> Question 8<\/strong>(3.33 points)

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James Co produces and distributes auto parts. Its strategy is based on the quality of its processes and materials, which are seen as being superior to those products made by its competitors. Which of the following is true about James Co's strategy?<\/p>

Question 8 options:<\/p>

<\/p>

James Co follows a product differentiation strategy.<\/p>

<\/p>

James Co follows a price differentiation strategy.<\/p>

<\/p>

James Co is a cost leader and follows a target-profit approach in its pricing.<\/p>

<\/p>

The high-quality processes allow James Co to execute a cost leadership strategy.<\/p> Question 9<\/strong>(3.33 points)

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Based on the Dividend Discount Model, if a company's projected rate of growth in earnings and dividends is expected to increase, what effect will it have on its stock?<\/p>

Question 9 options:<\/p>

<\/p>

The value would decrease.<\/p>

<\/p>

The value would increase.<\/p>

<\/p>

The value would not change.<\/p>

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It is undeterminable.<\/p> Question 10<\/strong>(3.33 points)

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Johnson Company has 3 million shares of preferred stock that pays $5 in dividends per share annually. If an investor's required rate of return is 9%, what is the value of Johnson Company's preferred stock per share?<\/p>

Question 10 options:<\/p>

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$0.45<\/p>

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$5.00<\/p>

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$5.56<\/p>

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$55.56<\/p> Question 11<\/strong>(3.33 points)

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Which of the following changes will result in an increase to a company's sustainable growth rate?<\/p>

Question 11 options:<\/p>

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An increase in dividend payouts<\/p>

<\/p>

An increase in interest expense<\/p>

<\/p>

A decrease in tax expense<\/p> Question 12<\/strong>(3.38 points)

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Smith Company has the following annual cash flows:<\/p>

Year 0:-173,160<\/p>

Year 1:614,718<\/p>

Year 2:-726,406<\/p>

Year 3:285,714<\/p>

Which discount rate provides a positive net present value (NPV) given this information?<\/p>

Question 12 options:<\/p>

<\/p>

15%<\/p>

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21%<\/p>

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18%<\/p> Question 13<\/strong>(3.33 points)

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A financial analyst has reviewed profit margins for a company for the last three years and comes to the conclusion that they have not changed significantly. Based on this analysis, finish the following statement: The company's credit risk is:<\/p>

Question 13 options:<\/p>

<\/p>

not factored into this analysis.<\/p>

<\/p>

considered to be low.<\/p>

<\/p>

considered to be high.<\/p> Question 14<\/strong>(3.33 points)

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SolidCo's balance sheet for the most recent year end is below.<\/p>

Current Assets<\/strong><\/p>

Cash: 3,000<\/p>

Marketable securities: 600<\/p>

Accounts receivable: 6,000<\/p>

Less allowance for bad debt: -300<\/p>

Inventory: 1,200<\/p>

Total Current Assets: 10,500<\/strong><\/p>

Current Liabilities<\/strong><\/p>

Accounts payable: 4,000<\/p>

Current portion of notes payable: 1,300<\/p>

Other current accrued expenses: 2,000<\/p>

Total Current Liabilities: 7,300<\/strong><\/p>

The quick ratio for this company is closest to:<\/p>

Question 14 options:<\/p>

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1.32<\/p>

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1.27<\/p>

<\/p>

1.26<\/p> Question 15<\/strong>(3.33 points)

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Of the following metrics, which is most likely used in present value calculation of equity shares?<\/p>

Question 15 options:<\/p>

<\/p>

Enterprise value<\/p>

<\/p>

Net assets<\/p>

<\/p>

Free cash flow<\/p>", "transcribed_text": "", "related_book": { "title": "Auditing Cases An Active Learning Approach", "isbn": "0130674842, 978-0130674845", "edition": "2nd Edition", "authors": "Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/64ed8a8041add_6938.jpg", "uri": "\/textbooks\/abnormal-psychology-clinical-perspectives-on-psychological-disorders-1st-edition-9781266566899", "see_more_uri": "" }, "free_related_book": { "isbn": "1986596923", "uri": "\/textbooks\/when-words-collide-resolving-insurance-coverage-and-claims-disputes-1st-edition-978-1986596923-279803", "name": "When Words Collide Resolving Insurance Coverage And Claims Disputes", "edition": "1st Edition" }, "question_posted": "2024-06-28 06:49:29", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/to-prevent-overfishing-could-regulators-set-a-tax-on-fish", "description": "To prevent overfishing, could regulators set a tax on fish or on boats? Explain and illustrate with a graph.", "stars": 3 }, { "url": "\/study-help\/psychology\/explain-the-importance-of-intersectionality-in-sampling-1980013", "description": "Explain the importance of intersectionality in sampling.", "stars": 3 }, { "url": "\/the-cash-account-for-bonita-medical-co-at-september-30", "description": "The cash account for Bonita Medical Co. at September 30, 2008, indicated a balance of $5,335.30. The bank statement indicated a balance of $5,604.60 on September 30, 2008. Comparing the bank...", "stars": 3 }, { "url": "\/study-help\/questions\/scenario-you-recently-became-a-partner-in-firm-after-working-9863615", "description": "Scenario: You recently became a partner in firm. After working there for six months as a partner, you attend a meeting regarding a business loan that is up for renewal. You discover that the...", "stars": 3 }, { "url": "\/study-help\/questions\/imperial-jewelers-manufactures-and-sells-a-gold-bracelet-for-40100-8587117", "description": "Imperial Jewelers manufactures and sells a gold bracelet for $401.00. The company's accounting system says that the unit product cost for this bracelet is $270.00 as shown below: Direct naterials...", "stars": 3 }, { "url": "\/study-help\/questions\/7-you-as-a-newly-hired-quality-manager-would-like-1005517", "description": "7) You, as a newly hired quality manager, would like to develop a presentation to convince the top management members to pursue ISO 901-20150 registration. Explain four important points of benefits...", "stars": 3 }, { "url": "\/study-help\/questions\/read-and-score-the-conflict-styles-inventory-by-gordy-curphy-1006535", "description": "Read and score the Conflict Styles Inventory by Gordy Curphy. W-rite a report discussing what you have learned from the Conflict Styles Inventory results and discuss the advantages and disadvantages...", "stars": 3 }, { "url": "\/study-help\/questions\/reminder-your-answers-will-be-assessed-based-on-content-ie-1007282", "description": "Reminder: Your answers will be assessed based on content (i.e., the quality of the information presented; integration of class and text material), and organization. Your answers must make explicit...", "stars": 3 }, { "url": "\/study-help\/questions\/just-clear-organized-easy-answers-to-each-question-attached-below-1007935", "description": "Just clear organized easy answers to each question attached below, please. No copy paste. You are considering organizing an event to raise funds for a special cause (children living in poverty,...", "stars": 3 }, { "url": "\/study-help\/questions\/data-is-collected-from-250-college-students-to-determine-if-1001589", "description": "Data is collected from 250 college students to determine if regular class attendance is related to overall Grade Point Average (GPA). The results are below. Percentage of Class Meetings Attended...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/salge-inc-bases-its-manufacturing-overhead-budget-on-budgeted-direct-4256189", "next": "\/study-help\/questions\/mc-qu-833-fort-smith-technologies-fort-smith-technologies-incurred-4256191" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "Question 1 (3.33 points) Need help please. A CMA performs a horizontal", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/question-1-333-points-need-help-please-a-cma-performs-4256190" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } } } }