1) Which financial statement presents a summary of revenues and expenses of a
business for a specific period of time, such as a month or year?
2) How should the manager of a cost center be evaluated?
3) Perfecto Products provided the following selected information about its consumer
products division for 2012 .
Required:
Based on this information, calculate the company’s investment amount (amount of
operating assets).
4) List the three categories of cash receipts and cash payments that are reported on the
statement of cash flows.
5) You are evaluating a potential capital investment. You have calculated the net present
value using a minimum rate of return of 10%. Using this rate, the net present value is
negative. What does that fact tell you about the rate of return expected for the project?
6) What were the events that led Congress to pass the Sarbanes-Oxley Act of 2002?
7) Hill Country Corporation has 90,000 shares of $10 par value common stock issued
and outstanding. If Hill Country Corporation issued a 2-for-1 stock split, what dollar
amount would be shown for common stock on the balance sheet after the stock split?
8) Discuss one advantage of issuing bonds versus borrowing money from a bank.