ESB PREP-EXAM REVIEW#1 HHS

James owns a restaurant with beginning cash balance of $5,000, $30,000 in sales, $2,000 in utilities, $6,000 in loans and $4,000 in marketing. What is James ending cash balance?

• $23,000

• $35,000

• $12,000

• $16,500

Shelly owns a car dealership. She just received a shipment of Teslas and paid $70,000 for each one and wants to make 25%. What should her selling price be?

• $87,500

• $70,000

• $119,000

• $85,000

TRUE OR FALSE: Mortgage Payments are Long Term Liabilities

• TRUE

• FALSE

ROI is calculated by ...

• Net Profit / Cost of Investment X 100

• Current Revenue X 12

• Assets-Liabilities

• Gross Profit X Tax Rate

Run Rate is calculated by ...

• Current Revenue for one month X 12

• Starting Balance-Ending Balance

• Total Cash-Total Costs

• Total Cost/Selling Price

Michelle owns a bakery shop. Her revenue at the end of last month was $6,000. What is Michelle's run rate?

• $72,000

• $6,000

• $24,000

• $67,000

Anthony owns a bike shop. His monthly cost is $2,750.00. Each bike costs $275.00. How many bikes does he have to sell to break even?

• 10

• 12

• 8

• 20

How does an entrepreneur determine his / her selling price?

• selling price = cost X desired profit margin + cost

• Current Revenue X 12

• Income-Cost of Goods

• Assets-Liabilities

TRUE OF FALSE: Equity = Assets + Liabilities

• FALSE

• TRUE

________ is the owner's remaining value after all liabilities have been deducted.

• Equity

• Assets

• Selling Price

• Long term loan