Describe how the managerial finance function isrelated to economics and accounting.
Q2. Describe the legal forms of business organization.
Q3. Discuss business taxes and their importance in financialdecisions.
Q4. Complete the 2012 balance sheet for O’Keefe Industries usingthe information that follows it.
O’Keefe Industries Balance Sheet December 31, 2012
Assets                                                                                               Liabilities and Stockholders’ Equity
Cash                               $33,720                                                                               Accounts payable $130,000 Marketable securities27,000                                                                           Notes payable ________ Accounts receivable_______                                                                          Accruals               22,000                          Inventories_______                                                                                      Total current liabilities ________ Total current assets_______                                                                 Long-term debt ________
Net fixed assets_______                                                                    Stockholders’ equity $500,000
Total assets………………$                                                            Total liabilities and stockholders’ equity $------
The following financial data for 2012 are also available:
1. Sales totaled $1,800,000.
2. The gross profit margin was 29%.
3. Inventory turnover was 4.0.
4. There are 365 days in the year.
5. The average collection period was 42 days.
6. The current ratio was 1.61.
7. The total asset turnover ratio was 1.22.
8. The debt ratio was 70%.
Q4) Liquidity management Bauman Company’s total current assets,total current liabilities, and inventory for each of the past 4years follow:
Item 2009 2010 2011 2012
Total current assets $16,950 $21,900 $22,500 $27,000
Total current liabilities $9000 $12600 $12600 $17400
Inventory 6000 6900 6900 7200

a. Calculate the firm’s current and quick ratios for each year.Compare the resulting time series for these measures ofliquidity.
b. Comment on the firm’s liquidity over the 2009–2010 period.
Q5) Inventory management Wilkins Manufacturing has annual sales of$4 million and a gross profit margin of 40%. Its end-of-quarterinventories are  
Quarter Inventory
1 $400000
2 800,000

3 1,200,000

4 200,000


a). Find the average quarterly inventory and use it to calculatethe firm’s inventory turnover and the average age ofinventory.
b). Assuming that the company is in an industry with an averageinventory turnover of 2.0, how would you evaluate the activity ofWilkins’ inventory?