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Q Corp

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1. Q Corp. reflects the following data: Units sold 2011 = 1,200,000 2012 = 1,300,000 Average price per unit 2011 = $3.50 2012= $3.55 How much of the change in 2012 sales is due to volume changes and how much is due to price changes?
2. All of the following statements are true regarding ratios and forecasts except:
   A.) Ratios cannot confirm whether forecast assumptions will turn out to be correct.
   B.) Ratios can tell whether future sales growth was accurately captured.
   C.) Ratios cannot tell whether assumptions about future cash flows are realistic.
   D.) Ratios can tell whether growth rates for sales are consistent with past sales growth performance.
3. if a firm competes in a capital-intensive industry with excess capacity, all of the following are true EXCEPT:
   A.) price increases will be less likely.
   B.) price increases will be more likely.
   C.) companies in competitive industries face high exit barriers.
   D.) companies in competitive industries may experience future price decreases.
4. Card Sharks, Inc. sells baseball cards and other memorabilia. The company tries to maintain a cash balance equivalent to approximately 30 days of sales. Sales in 2011 amounted to $352,412 and the company expects growth in 2012 of 33% and in 2013 of 40%. Given the information provided about Card Sharks, what is the company's 2013 projected annual sales?
5. Financial statement forecasts rely on additivity within financial statements and articulation across financial statements. Given this information forecasts of future growth in inventory will most likely affect growth in what?
6. When projecting operating expenses it is important to determine the mix of fixed and variable costs, one clue suggesting the presence of fixed costs is
7. All of the following are true regarding projected financial statements except:
   A.) The statement of cash flows is the most critical forecast since it reflects profitability rather than viability.
   B.) Preparing projected financial statements must incorporate a company's past performance records.
   C.) Preparing projected financial statements must incorporate a company's current performance records.
   D.) The income statement demonstrates immediate capability to service debt for banks or real potential for growth in returns for venture capital.
8. Nichols and Wahlen's 2004 study showed that superior forecasting provides the potential to earn superior security returns. Nichols and Wahlen's findings indicate what?
9. To ensure that the financial statements balance, it is important that the change in the cash balance on the balance sheet each year agrees with what?
10. Sparky's sells auto parts. Provided below is selected financial information from the company's 2012 annual report (amounts in thousands of dollars): Net sales 2012 = $125,410 2011 = $106,380 Cost of Goods Sold 2012 = 104,090 2011 = 89,359 Gross Profit 2012 = $21,320 2011 = $17,021 Inventory 2012 = $31,353 2011 = $30,850 What is the company's inventory turnover ratio for 2012?