When a company reports a deferred tax asset it means that the company will receive a tax benefit in the future

QUESTION 1 When a company reports a deferred tax asset it means that the company will receive a tax benefit in" rel="nofollow">in the future. o True o False QUESTION 2 To forecast future performance, we should first create a set of fin" rel="nofollow">inancial statements that reflects items we expect to persist. o True o False QUESTION 3 The parsimonious projection method relies on sales growth, net operatin" rel="nofollow">ing profit margin" rel="nofollow">in (NOPM), and asset turnover (AT) to project net operatin" rel="nofollow">ing profit after tax and net operatin" rel="nofollow">ing assets. o True o False QUESTION 4 An unbiased approach to forecastin" rel="nofollow">ing future revenues gives equal weight to historical organic revenue growth and revenue growth from mergers and acquisitions. o True o False QUESTION 5 The usual fin" rel="nofollow">inancial statement projection process is completed in" rel="nofollow">in the followin" rel="nofollow">ing order: balance sheet, in" rel="nofollow">income statement, statement of cash flows. o True o False QUESTION 6 When forecastin" rel="nofollow">ing future events, it is better to take a more conservative view for items such as revenue growth and profit margin" rel="nofollow">ins. o True o False QUESTION 8 Best Tacos Company reports 2011 and 2012 total revenues of $55 million and $66 million respectively. If we expect prior growth to persist, we would forecast a revenue growth rate of: o 15% o 35% o 20% o 25% o None of the above QUESTION 9 Followin" rel="nofollow">ing are fin" rel="nofollow">inancial statement numbers and ratios for Lockheed Martin" rel="nofollow">in Corp. for the year ended December 31, 2011. If we expected revenue growth of 2.67% in" rel="nofollow">in the next year, what would projected revenue be for 2012? Total revenue (in" rel="nofollow">in millions) $46,499 Net operatin" rel="nofollow">ing profit margin" rel="nofollow">in (NOPM) 8.2% Net operatin" rel="nofollow">ing asset turnover (NOAT) 6.4 o $47,740.5 million o $50,311.9 million o $45,289.8 million o $49,474.9 million o None of the above QUESTION 10 RsQ_010Followin" rel="nofollow">ing are fin" rel="nofollow">inancial statement numbers and ratios for Snap-On Incorporated for the year ended January 1, 2011 (in" rel="nofollow">in millions). If we expected revenue growth of 2% in" rel="nofollow">in the next year, what would projected revenue be for the year ended December 30, 2011? NOPAT 322.6 NOA 2,345.8 Net operatin" rel="nofollow">ing profit margin" rel="nofollow">in (NOPM) 11.3% Net operatin" rel="nofollow">ing asset turnover (NOAT) 1.31 o $3,176.7 million o $3,739.0 million o $2,854.2 million o $2,911.3 million o None of the above QUESTION 11 CVS Caremark reported sales of $107,100 million and property, plant and equipment (PPE), net of $8,467 million in" rel="nofollow">in 2011. If sales are projected to in" rel="nofollow">increase 10% per year over the next five years, what is the projected capital expenditures (purchases of new PPE) for 2012? o $ 8,467 million o $ 9,314 million o $10,710 million o $ 9,000 million o There is not enough in" rel="nofollow">information to determin" rel="nofollow">ine the amount. QUESTION 14 Usin" rel="nofollow">ing the in" rel="nofollow">information in" rel="nofollow">in the table calculate Michalko's cost of debt capital, 11.5% o 11.5% o 10.0% o 7.2% o 4.3% 76.0%