| 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 | | Save 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: Save 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: Save 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 | | Save 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: Save 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: Save 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 | | Save 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 | | Save 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: |
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