1. Business Decision Making

2. a. Measuring financial data b. Interpreting financial data c. Communicating financial data d. All of the above

3. a. Finance Accounting Standards (FAS) b. Generally Accepted Accounting Principles (GAAP) c. Public Oversight Committee Rules (POCR) d. Good guesses

4.  Cash flows, statement of owners equity, profit statement  Income statement, Equity statement, Debit Review statement  Audit report, Annual report, Income report,  Income statement, Balance sheet, Cash Flow

5. a. Assets = Liabilities + Equities b. Debits = Credits plus fudge factor c. Sales = Credit sales collected + Cash sales d. Profits = Sales x Profit Margin

6. a. Shows a company’s financial position on a certain date b. Shows what a company has in storage c. Shows check transactions across a year d. Presents the income of the company over a time frame

7. a. Make a lot of money b. Increase the value of the firm c. Appease shareholders d. Help the environment

8. a. How much does this company own? b. How much do they owe? c. Are they a Corporation?

9. a. What is the largest cost for the company? b. What is another name for the variable costs that relate to making the product? c. List one way to increase profits for this company. d. If each company could decrease all selling costs by 10%, what would the new level of profits be?

10. a. What is the largest use of cash for this company? b. Where is the biggest source of cash for this company?

11.  If the product costs $23 to produce in material, labor, and other costs, what is the lowest price that can be charged for the product?

12. a. What is ROS? b. Should ROS be high or low? c. What is ROA? d. Should it be high or low? e. What is ROE? f. Should it be high or low?

13.  What are the three basic ways to raise funds for a business?  If a company needs money for the next two weeks, how could it raise the funds?  If a company needs money for ten years, how could it raise the funds?

14. a. List two impacts on a company from issuing more stock. b. List two impacts of using long-term debt. c. List two consequences of issuing dividends.

15. a. If you were to develop a forecast/budget for the next year, what things would be calculated? b. What would be the benefit of having a forecast? (Are the pro formas helpful?)

16.  If the game were to have foreign competition, list three things that could impact the company’s financial performance.