1) Johnson, Inc. has just ended the calendar year making a sale in the amount of $10,000 of

merchandise purchased during the year at a total cost of $7,000. Although the firm paid in full for

the merchandise during the year, it has yet to collect at year end from the customer. The net profit

and cash flow from this sale for the year are

A) $3,000 and $7,000, respectively. B) $3,000 and -$7,000, respectively.

C) $3,000 and $10,000, respectively. D) $7,000 and -$3,000, respectively.

2) A firm has just ended its calendar year making a sale in the amount of $150,000 of merchandise

purchased during the year at a total cost of $112,500. Although the firm paid in full for the

merchandise during the year, it has yet to collect at year end from the customer. The net profit and

cash flow from this sale for the year are

A) $37,500 and -$112,500, respectively. B) $37,500 and -$150,000, respectively.

C) $0 and $150,000, respectively. D) $150,000 and $112,500, respectively.

TRUE/FALSE. Write ‘T’ if the statement is true and ‘F’ if the statement is false.

3) Dividend payments change directly with changes in earnings per share. F

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

4) The primary goal of the financial manager is

A) minimizing risk. B) maximizing profit.

C) minimizing return. D) maximizing wealth.

5) A financial manager must choose between three alternative investments. Each asset is expected to

provide earnings over a three-year period as described below. Based on the wealth maximization

goal, the financial manager would

Year Asset 1 Asset 2 Asset 3

1 $21,000 $ 9,000 $15,000

2 15,000 15,000 15,000

3 9,000 21,000 15,000

$ 45,000 $45,000 $45,000

A) choose Asset 1.

B) choose Asset 2.

C) choose Asset 3.

D) be indifferent between Asset 1 and Asset 2.

6) The ________ provides a financial summary of the firm’s operating results during a specified

period.

A) statement of cash flows B) balance sheet

C) income statement D) statement of retained earnings

7) Earnings available to common shareholders are defined as net profits

A) before taxes. B) after taxes minus common dividends.

C) after taxes. D) after taxes minus preferred dividends.

8) A firm had the following accounts and financial data for 2005.

Sales Revenue $3,060 Cost of goods sold $1,800

Accounts Receivable 500 Preferred stock dividends 18

Interest expense 126 Tax rate 40%

Total oper. expenses 600 Number of shares of common 1,000

Accounts payable 240 stocks outstanding

The firm’s earnings available to common shareholders for 2005 were ________.

A) $302.40 B) $516.60 C) $195.40 D) -$224.25

ESSAY. Write your answer on a separate sheet of paper.

9) At the end of 2005, the Long Life Light Bulb Company announced it had produced a gross profit of $1 million.

The company has also established that over the course of this year it has incurred $345,000 in operating

expenses and $125,000 in interest expenses. The company is subject to a 30% tax rate and has declared $57,000

total preferred stock dividends.

(a) How much is the earnings available for common stockholders?

(b) Compute the increased retained earnings for 2005 if the company were to declare a $4.25 common stock

dividend. The company has 15,000 shares of common stock outstanding.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

10) The two basic measures of liquidity are

A) inventory turnover and current ratio. B) current ratio and total asset turnover.

C) gross profit margin and ROE. D) current ratio and quick ratio.

11) As a firm’s cash flows become more predictable,

A) the return on equity should increase. B) the current ratio should expand.

C) current liabilities should decrease. D) current assets should decrease.

12) If Nico Corporation has annual purchases of $300,000 and accounts payable of $30,000, then

average purchases per day are ________ and the average payment period is ________.

A) 821.9; 36.5 B) 833.3; 36.0 C) 36.0; 833.3 D) 36.5; 821.9

13) The ________ is a popular approach for evaluating profitability in relation to sales by expressing

each item on the income statement as a percent of sales.

A) source and use statement B) retained earnings statement

C) profit and loss statement D) common-size income statement

14) A firm with a gross profit margin which meets industry standard and a net profit margin which is

below industry standard must have excessive

A) principal payments. B) cost of goods sold.

C) general and administrative expenses. D) dividend payments.

15) Examples of sophisticated capital budgeting techniques include all of the following EXCEPT

A) annualized net present value. B) payback period.

C) net present value. D) internal rate of return.

16) A firm is evaluating a proposal which has an initial investment of $50,000 and has cash flows of

$15,000 per year for five years. The payback period of the project is

A) 1.5 years. B) 4 years. C) 3.3 years. D) 2 years.

B)

TRUE/FALSE. Write ‘T’ if the statement is true and ‘F’ if the statement is false.

17) If the NPV is greater than the cost of capital, a project should be accepted.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

18) A firm is evaluating three capital projects. The net present values for the projects are as follows:

Project NPV

1 $100

2 $0

3 $100

The firm should

A) accept Projects 1 and 2 and reject Project 3.

B) accept Projects 1 and 3 and reject Project 2.

C) reject all projects.

D) accept Project 1 and reject Projects 2 and 3.

19) What is the NPV for the following project if its cost of capital is 15 percent and its initial after tax

cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year

1, $1,900,000 in year 2, $1,700,000 in year 3 and $1,300,000 in year 4?

A) $1,700,000. B) ($137,053).

C) $371,764. D) None of the above.

TRUE/FALSE. Write ‘T’ if the statement is true and ‘F’ if the statement is false.

20) If its IRR is greater than the cost of capital, a project should be accepted.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

21) What is the IRR for the following project if its initial after tax cost is $5,000,000 and it is expected to

provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in

year 3 and $1,300,000 in year 4?

A) 13.57%. B) 15.57%.

C) 0.00%. D) None of the above.

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

22) Tangshan Mining Company is considering investing in a new mining project. The firm’s cost of capital is 12 percent and the project is expected to have an initial after tax cost of $5,000,000. Furthermore, the project is expected to provide after-tax operating cash flows of $2,500,000 in year 1, $2,300,000 in year 2, $2,200,000 in year 3 and ($1,300,000) in year 4?

(a) Calculate the project’s NPV.

(b) Calculate the project’s IRR.

(c) Should the firm make the investment?

A drug may be either extracted from a plant or produced synthetically in the laboratory. Which method is likely to result in a compound that may be toxic to the body?

1- List the intended use, mechanism of action (how does the drug work), type of controlled release and/or targeting used, and the company that produces each of the following formulations:

Ambien-CR

Depakote-ER

Effexor-XR

Sinemet-CR

Paxil-CR

2- A “health guru” has stated that “the makeup you put on your skin goes into your bloodstream”. Using what you know about the relationship between molecular weight and lipophilicity and skin permeation, discuss the conditions under which this statement may be correct.

3- A drug may be either extracted from a plant or produced synthetically in the laboratory. Which method is likely to result in a compound that may be toxic to the body?

What techniques and equipment are used when the bacteria are observed as being purple and red? How are these findings reported?
What are the stages of processing a blood sample Using the 5 I’s of culturing?

Please read the following case study and answer the questions.

Staining Helps Identify an Infectious Agent Case Study

A 94-year-old woman went to her local hospital emergency department in mid-November 2001 complaining of a 5-day history of weakness, fever, nonproductive cough, and generalized myalgia (muscle aches). Otherwise, for a person her age she was fairly healthy, although she did suffer from chronic obstructive pulmonary disease, hypertension, and chronic kidney failure.

On physical examination, her heart rate was above normal and she had a fever of 102.3°F

(39.1°C). The rest of her physical examination was normal. Initial laboratory studies of blood cell count, blood chemistries, and chest X ray were also normal except for the chemical urine testing. This finding along with the fever suggested an infection, so the patient was admitted to the hospital. Samples of blood and urine were sent to the microbiology laboratory and set up appropriately.

The next day, microscopic evaluation of the urine culture revealed rod-shaped bacteria that stained red, and the blood culture revealed rods that stained purple. The liquid blood culture was then transferred to appropriate solid media. This finding in the blood was unusual, so a sample culture was sent to the state health department laboratory. Antibiotic therapy was adjusted, yet the patient’s condition deteriorated. Her most serious symptoms localized to her chest, and she was transferred to the intensive care unit. Four days after admission, the health

department announced that the bacteria found in the patient’s blood were Bacillus anthracis.

She was suffering from inhalation anthrax. Further testing showed these bacteria to be of the same strain that had been involved in the recent bioterrorist attack. Despite treatment, the patient died on the fifth day after admission.

What techniques and equipment are used when the bacteria are observed as being purple and red? How are these findings reported?
What are the stages of processing a blood sample Using the 5 I’s of culturing?
3-4 sentence for each quistion answer , no source limited , mla formate