2016 part 2 wiley CMAexcel learning system exam review self study guide

WILEY CMAEXCEL LEARNING SYSTEM EXAM REVIEW 2016: SELF-STUDY GUIDE Part 2: Financial Decision Making ISBN 978-1-119-05632-4 (Part 2) ERRATA Added text is underlined Deleted text is struck out Modified text is in bold In some cases, additional text, before and/or after the change, may be included to clarify the context or specific location Italicized text is FYI Section A: Financial Statement Analysis Topic 2: Financial Ratios Page: Solvency is a company's ability to meet its long-term obligations as they come due and continue its business Page: 45 Remove “$” from the denominator Fully Diluted EPS = $50,000,000 - $5,000,000 + $30,000 3,920,000 + 50,000 + 1,000,000 Page: 50 Please note the revised calculation found in the paragraph beginning, “If Company A were to add provision…” The $50,000 net positive interest should be a reduction (i.e., $500,000 - $50,000) not an addition In addition, we have added a parenthesis (in bold) to ensure the mathematical operators are performed in the correct order (($10,000,000 - ($4,500,000 + $3,500,000) - ($500,000 - $50,000)) / $10,000,000 = $1,550,000 / $10,000,000 = 15.5%) Topic 3: Profitability Analysis Page: 65 ROE = Net Income/Average Assets Stockholders’ Equity Page: 67 Gross Profit Margin = Sales – Cost of Sales Gross Profit Margin = Gross Profit / Sales Section C: Decision Analysis Topic 1: Cost/Volume/Profit Analysis Page: 318 Revisions to the following equation as follows: 0.6 × $47 $52 + 0.4 × $52 $47 = $50 Topic 3: Pricing Page: 362 There is an inverse relationship between a shift in the supply curve and the equilibrium price, and equilibrium quantity but a direct relationship with the equilibrium quantity 4/24/2017 | Page | John Wiley and Sons, Inc WILEY CMAEXCEL LEARNING SYSTEM EXAM REVIEW 2016: SELF-STUDY GUIDE Part 2: Financial Decision Making ISBN 978-1-119-05632-4 (Part 2) Answers to Section Practice Questions Page: 638 Delete Question 2A3-LS11 and explanation (question does not appear in the practice exam) 4/24/2017 | Page | John Wiley and Sons, Inc  .. .WILEY CMAEXCEL LEARNING SYSTEM EXAM REVIEW 20 16: SELF- STUDY GUIDE Part 2: Financial Decision Making ISBN 978-1-119-056 32- 4 (Part 2) Answers to Section Practice... Section Practice Questions Page: 638 Delete Question 2A3-LS11 and explanation (question does not appear in the practice exam) 4 /24 /20 17 | Page | John Wiley and Sons, Inc