ENT3273 - 1/2 way through course quiz

Calculate the gross profit if sales are $200,000 and the cost of goods sold is $120,000.

• 80000
• 0
• 1
• 200000

Determine the net profit margin from a net profit of $15,000 and revenues of $100,000. Answer as a decimal

• 0.15
• 0
• 1
• 6.7

In the income statement, EBIT stands for Earnings Before Interest and Taxes.

• True
• False

Which statement shows a company's financial position at a specific point in time?

• Balance Sheet
• Income Statement
• Cash Flow Statement
• What Dr.D Says

A high current ratio always indicates a financially healthy company.

• False
• True

Fixed costs vary with the level of production or sales.

• False
• True

How do you calculate break-even in units?

• (Unit price - unit COGS) / operating expenses
• However Dr.D says
• Total assets / liabilities
• Net profit / total revenue

A startup's runway is the time it can continue to operate before it runs out of cash, assuming current income and expenses remain constant and no additional funding is obtained.

• True
• False

Calculate the runway in months for a startup with $120,000 in cash and a monthly burn rate of $10,000.

• 12
• 0.1
• 1
• 6

Calculate the absolute change in sales. Year 1: $5,000 Year 2: $6,000

• 1000
• 1
• 6000