Domain 4 Review

T/F: Investors and businesses use a cash flow analysis to understand how much cash they generate and spends over a period of time.

• True
• False

Nike is trying to set a selling price for their new shoe coming out next year. It cost $23 to produce and they want a profit of 300%. What is their selling price?

• $6,900
• $6,923
• $92
• $69

Ben owns a shoe store. He has a new line of limited-edition running shoes that he will be selling in his store soon. The cost of manufacturing the shoes was $18 per pair, and he wants to make a 20% profit on each pair he sells. What is Ben’s selling price?

• 21.6
• $21.60
• 30
• 65

Adam owns a restaurant. A new dish is being added to the restaurant’s menu. The cost of making the dish is$6.75, and he wants to make a 33% profit on each dish he sells. What is Adam’s selling price?

• $9.23
• $8.98
• 85.21

Mallory owns an auto repair shop. She has $12,000 in cash, $8,000 in inventory, a $4,000 credit card balance, and $3,500 in long-term debt. What is Mallory’s equity?

• $12,500
• 47500
• $78,125

Mindy owns a restaurant. She has $14,200 in cash, $2,600 in inventory, $5,000 in equipment, a $3,800 credit card balance, and $1,400 in long-term debt. What is Mindy’s equity?

• $15,871
• $16,600
• $17,845

Mallory sells hats. Last month, Mallory had an income of $3,800, her cost of goods was $875, and her total expenses were $1,400. What was Mallory’s gross income?

• $365,125
• $2,925
• 2925

Jane owns a dress-making business. Her income last quarter was $8,000, her cost of goods was $1,500, and her total expenses were $3,000. What were Jane’s gross income and net income?

• Net: $3,500 Gross: $6,500
• Net: $6,500 Gross: $3,500
• Net $7846 gross: 87513

Chuck owns a pizza shop. He only sells large pizzas and charges $18 per pizza. His total monthly cost is $2,600.How many pizzas does Chuck have to sell to break even each month?

• 145
• 264
• 154
• 984

Gabe owns a candied nut cart. He sells his cup of nuts for $6, and his monthly cost is $810. How many cups of candied nuts does Gabe need to sell to break even?

• 6587
• 654
• 135