Trivia #2

Calculate the Current Ratio given the following: Current Assets = $200,000, Current Liabilities = $80,000.

A company’s Return on Equity (ROE) is 15%. What does this mean in terms of shareholder investment?

• The company has a 15% debt-to-equity ratio.
• Shareholders will receive a 15% dividend payout.
• For every dollar of equity, the company is generating $0.15 in profit.

• The company is valued at 15% more than its assets.

What is the purpose of a Cash Flow Statement?

• To summarize a company's revenue for the year.
• To track the company's stock price changes.
• To show how changes in balance sheet accounts affect cash and cash equivalents, breaking down cash flow into operating, investing, and financing activities.

• To provide a detailed analysis of market trends.

Calculate the Break-Even Sales given the following: Fixed Costs = $50,000, Selling Price per unit = $100, Variable Cost per unit = $60.

What is the formula for calculating the current ratio?

Answer explanation

The current ratio is calculated by dividing current assets by current liabilities. This ratio measures a company's ability to pay short-term obligations, making the correct formula \( \frac{\text{Current Assets}}{\text{Current Liabilities}} \).

Ratio analysis calculations measure an organization's financial health.

• True

• False

What is the formula for calculating the Profit Margin?

• Profit Margin = (Total Revenue - Net Profit) x 100
• Profit Margin = (Net Profit / Total Revenue) x 100
• Profit Margin = (Gross Profit / Total Assets) x 100
• Profit Margin = (Net Profit / Total Expenses) x 100

How do you calculate the Gross Profit Margin?

• Gross Profit Margin = (Gross Profit / Revenue) x 100
• Gross Profit Margin = (Net Income / Total Assets) x 100
• Gross Profit Margin = (Revenue - Expenses) x 100
• Gross Profit Margin = (Sales - Cost of Goods Sold) / Total Revenue

Which speaker was the CEO of AGI Beacon?

• James Feudo

• Jeff DeSocio

• Connor Fitzgerald

• Parker Freedman

What is the difference between a startup accelerator vs. incubator?

• Incubators focus on rapid growth and mentorship in a fixed-term program.
• A startup accelerator focuses on rapid growth and mentorship in a fixed-term program, while an incubator provides a longer-term nurturing environment for early-stage ideas.
• Accelerators provide funding while incubators do not.
• Both accelerators and incubators are the same and offer identical services.