1. What three pieces of information are needed to convert nominal dollars to constant dollars?
2. For restating financial statements to convert to constant dollars, what index is required by the Financial Accounting Standards Board?
3. The HC method, which uses unadjusted historical costs, does not consider depreciation expenses, purchasing power, and unrealized gains in replacement value. Despite these weaknesses as a financial reporting method, the HC method is used more frequently for accounting purposes than other methods, such as the HC-GPL, CV, and CV-GPL methods. Why is this so?
4. What are two major methods of asset valuation?
5. Inflation was 8% during the most recent year and your organization's investment in land rose 12%. If the beginning appraised land value was $1,000,000, what increase in specific prices over general price level would be reported, stated in year-end dollars?
6. You purchased an MRI scanner two years ago for $2.0 million. The MRI has a 5-year depreciable life with no salvage value. If that same MRI now costs $3.0 million, what would be the difference between replacement cost depreciation and historical cost depreciation?
7. What are the four critical questions that must be answered for dashboard reporting?
8. What should be a firm's primary long-term financial objective?
9. What is/are the primary determinant(s) of firm value?
10. Listed below are the financial ratios for Calvin Community Clinic. Calvin improved its overall financial condition from 2008 to 2009. Identify these areas of improvement and attempt to explain how this improvement came about.

11. Listed below are the balance sheet and statement of operations for Wynn Memorial Nursing Home for 2008 and 2009. Compute the following ratios:

1. Current Ratio
2. Acid-test Ratio
3. Days in Accounts Receivable
4. Average Payment Period
5. Long-term Debt to Net Assets Ratio
6. Total Asset Turnover Ratio
7. Fixed Asset Turnover Ratio
8. Return on Total Assets
9. Operating Margin

12. A nursing home projects asset growth at 10% per year over the next 10 years. If it wishes to reduce its reliance on debt financing, what rate of equity growth over the 10-year period will be desired?
13. Your firm reduces its days in receivables from 87 to 67, which generates $3.4 million of new investment funds. Why does growth rate in equity increase?
14. Your firm has $45.0 million invested in accounts receivable, which is 90 days of net revenues. If this value could be reduced to 50 days, what annual increase in income would your firm realize if the increase in cash could be invested at 7.5%?
15. Revenues increased by 30% in your firm during the past year while total assets increased only 5% and Equity Financing Ratios remained constant at 50.0%. Return on Equity remained constant at 12.0%. Why didn't Return on Equity increase?
16. Your firm's strategic plan calls for a net increase in total assets of $100 million during the next five years, which represents an annual compounded growth rate of 15%. Equity growth is also projected to be 15% per year. Assume that the firm's Total Asset Turnover will average 1.0 in each of the five years and Equity Financing percentages will remain constant at 50%. The firm projects Reported Income Index values to be 0.85 each year. What is the required Total Margin that will make this plan financially feasible?
17. Program A has a profit of $5,000 and an investment of $100,000, while program B has a profit of $10,000 and an investment of $220,000. Which program has the better ROI?