Chapter 1 Chapter 2

True or False MC Theory True or False MC Theory

1 1 1B 1 1 1A
2 1 2A 2 0 2B
3 1 3A 3 0 3A
4 1 4D 4 1 4D
5 1 5A 5 1 5B
6 1 6B 6 1 6C
7 1 7C 7 0 7A
8 1 8C 8 1 8A
9 1 9B 9 0 9B
10 1 10 A 10 1 10 B
11 1 11 D 11 1 11 C
12 1 12 A 12 1 12 B
13 0 13 A 13 1 13 C
14 1 14 B 14 0 14 B
15 1 15 B 15 1 15 C
16 0 16 C 16 0 16 D
17 1 17 D 17 1 17 A
18 1 18 C 18 1 18 C
19 1 19 D 19 0 19 D
20 1 20 C 20 0 20 A
21 1 21 A
22 1 22 B
23 1 23 D
24 1 24 A Problems 2-1
25 1 25 B 1. Book Value of Lykajems, Inc 3400000
26 1 26 D
27 1 27 A
28 1 28 C
29 1 29 D
30 1 30 B
31 1
32 1
33 1
34 1
35 1
36 1
37 1
38 1
39 1
40 1
MC Problem
1D 1 120,000 6 Current Assets
2B ÷ 10,000 Non Current Assets
3B 12 Total Assets
4A
5D 2 Current Assets 250,000 Current Liabilities
6C Non Current Assets 760,000 Non current liabilities
7D Total Assets 1,010,000 Total Liabilities
8B
9A Current Liabilities 60,000 Book Value
10 D Non-Current Liabilities 350,000 *Outstanding Shares
11 C Total Liabilities 410,000 Book Value per Share
12 B
13 B Book Value (A-L) 600,000 7 Assets =
14 D 5000000 =
15 C 3 Cash 310,000 Equity
16 C Receivables 320,000 Liabilities
17 A Inventory 200,000
18 A Property,Plant and Equipment 690,000 Book Value
19 C Total Assets 1,520,000 Outstanding Shares
20 B Book Value per Share
Accounts Payable 175,000
Long term Notes Payable 500,000 8 Beg.
Total Liabilities 675,000 Additional
Buy Back
Book Value 845,000
Outstanding Shares 250,000
Book Value per Share 3

4 Current Assets 510,000 9 Current Assets

Non Current Assets 1,065,000 Non Current Assets
Total Assets 1,575,000 Total Assets

Current Liabilities 355,000 Current Liabilities

Non current liabilities 1,000,000 Non current liabilities
Total Liabilities 1,355,000 Total Liabilities

Book Value 220,000 Book Value

Outstanding Shares 500,000
Book Value per Share 0 10 Book Value
 Outstanding Shares
5 Current Assets 950,000 Book Value per Share
Non Current Assets 3,500,000
Total Assets 4,450,000 11 Current Assets
Current Liabilities
Current Liabilities 600,000 Net Working Capital
Non current liabilities 2,000,000
Total Liabilities 2,600,000 12 Total Assets
Total Liabilities
Book Value 1,850,000 Book Value
Outstanding Shares
Book Value per Share
 13
Current Assets 880,000
Non Current Assets 3,000,000
Total Assets 3,880,000
14
Current Liabilities 500,000
Non current liabilities 1,500,000 Weighted Outstanding Shares
Total Liabilities 2,000,000 1,200,000 *12 14,400,000
300,000 *7 2,100,000
Book Value 1,880,000 16,500,000
*Outstanding Shares 1,375,000 ÷ 12
Book Value per Share 1 1,375,000

Liabilities + Equity
1.5E + E
2,000,000
3,000,000

Book Value 2,000,000

Outstanding Shares 200,000
Book Value per Share 10 15

500,000 *12 6,000,000

100,000 *9 900,000
(50,000) *3 (150,000) 16
6,750,000
÷ 12
562,500
17
Current Assets 750,000
Non Current Assets 1,400,000
Total Assets 2,150,000

Current Liabilities 400,000

Non current liabilities 500,000
Total Liabilities 900,000

Book Value 1,250,000

18
Book Value 1,250,000
Outstanding Shares 1,000,000
Book Value per Share 1

Current Assets 937,500

Current Liabilities 440,000 19
Net Working Capital 497,500

Total Assets 2,617,500

Total Liabilities 690,000
Book Value 1,927,500
Outstanding Shares ÷ 1,250,000
Book Value per Share 2
 Solution for Problems 2-1
Property and Plant ₱3,000,000 20 Current Assets ₱1,250,000 2.1.1
Equipment 850,000 Non Current Assets 4,500,000
Non-Current Assets ₱3,850,000 Total Assets ₱5,750,000

Cash ₱240,000 Current Liabilities ₱850,000

Receivables 520,000 Non Current Liabilities 250,000
Inventory 350,000 Total Liabilities ₱1,100,000
Property and plant 3,000,000
Equipment 850,000 Reproduction Value ₱4,650,000
Total Assets ₱4,960,000
2
Accounts Payable ₱400,000
Short Term Notes Payable 500,000
Long term Debt 1,000,000
Total Liabilities ₱1,900,000 2.2.1

Book Value ₱3,060,000

Outstanding Shares 250,000
Book Value per Share ₱12

Property and Plant ₱3,750,000

Equipment 595,000 2
Replacement Value of NCA ₱4,345,000

Replacement Value ₱3,555,000

Outstanding Shares 250,000
Book Value per Share ₱14 3

Current Assets ₱450,000

Non Current Assets 1,334,000
Total Assets ₱1,784,000
4
Current Liabilities ₱300,000
Non Current Liabilities 900,000 5
Total Liabilities ₱1,200,000
6
Replacement Value ₱584,000

Total Assets ₱1,600,000

Total Liabilities 1,200,000
Book Value 400,000
Divide: Outstanding Shares 120,000
Book Value per Share ₱3.33

Current Assets 1,250,000

Non Current Assets 4,000,000
Total Assets 5,250,000

Current Liabilities 850,000

Non Current Liabilities 250,000
Total Liabilities 1,100,000
Book Value 4,150,000
Solution for Problems 2-1
Current Assets 2500000
Non Current Assets 8000000
Total Assets 10500000

Current Liabilities 2100000

Non Current Liabilities 5000000
Total Liabilities 7100000

Book Value 3400000

Book Value 3400000

Divide by: Ordinary Shares 2000000
Book Value per Share 1.7

Cash 50000
Accounts Receivable 70000
Inventory 52000
Marketable Securities 46000
Prepaid Expenses 3000
Total Current Assets 221000

Intangible Assets 70000

Long term investments 150000
Property,plant, equipment 705000
Total non current assets 925000

Accounts Payable 20000

Accrued Liabilities 1000
Notes payable short term 25000
Total Current Liabilities 46000

Long term liabilities 125000

Book Value 975000

Book Value 975000