Math Worksheet Post-Test Answers

1) Given the following formula:

Beginning Retained Earnings (Beg RE) + Net Income (NI) - Dividends (D) = Ending Retained Earnings (End RE)

Determine:

Beg RE = $43,500 NI = $17,400 End RE = $48,900

Dividends = ________________

Answer: $12,000

How?

We are given a formula and all its parts but one, so we use algebra to solve for it. The formula is

Beg RE + NI - D = End RE

Plugging in the values we are given, and keeping the variable D for the unknown Dividends gives

$43,500 + $17,400 - D = $48,900

Now we solve for D, which means use math to get it alone.

$43,500	+ $17,400	- D	=	$48,900			Here is our equation.
- $43,500	- $17,400		=		- $43,500 - $17,400		We want D alone on one side. So we do the opposite of what's done to it. Since $43,000 and $17,400 are added to D, we subtract them. Then we must do this to both sides to keep the equation balanced.
-----------------------------------------------------------------------------------
		- D	=	$48,900 - $43,500 - $17,400			Here we combine the two lines above.
		- D	=	- $12,000			The right side simplifies to one number.
		D	=	$12,000			Since we had - D, and not D yet, we multiply both sides by - 1.

 

 

2) Given:

Cash (C) + Accounts Receivable (A/R) + Inventory = Assets

Determine:

C = $19,000 A/R = $7,900 Assets = $30,100

Inventory = ________________

Answer: $3,200

How?

Again, we are given a formula and we use algebra to solve for part of it. The formula is

C + A/R + Inventory = Assets

Plugging in the values we are given, and keeping the unknown "Inventory" gives

$19,000 + $7,900 + Inventory = $30,100

Now we solve for Inventory, which means use math to get it alone.

$19,000	+ $7,900	+ Inventory		=	$30,100		Here is our equation.
- $19,000	- $7,900			=		- $19,000 - $7,900	We want Inventory alone on one side. So we do the opposite of what's done to it. Since $19,000 and $7,900 are added to Inventory, we subtract them. Then we must do this to both sides to keep the equation balanced.
-----------------------------------------------------------------------------------
			Inventory	=	$30,100 - $19,000 - $7,900		Here we combine the two lines above.
			Inventory	=	$3,200		The right side simplifies to one number.

 

 

3) If the Cash is twice the size of the Accounts Receivable, and A/R is $14,100, Inventory is $9,000, determine the amount of Cash on hand, _____________ , and the total Assets, ___________ .

 

Answer: Cash = $28,200 Assets = $51,300

How?

We first want to find the value of Cash. Let's write the actual description of it and the mathematical equivalent.

Description	Cash	is	twice the size of	the Accounts Receivable
Math equivalent	C	=	2 x	A/R

So we have C = 2 x A/R, and A/R is $14,100

C = 2 x $14,100

C = $28,200

Now we use the same formula as before and we solve for Assets. The formula is

C + A/R + Inventory = Assets

Plugging in the values we are given gives

$28,200 + $14,100 + $9,000 = Assets

$51,300 = Assets

 

 

4) Historically Apex loses 9% of its employees each year. If Apex has 4,312 employees on January 1, how many can the company expect to lose over the next year? _______________

 

Answer: 388

How?

Since Apex loses 9% of its employees each year, it will lose 9% of the 4,312 employees in the year just started. We need to find 9% of 4,312, which we'll translate here into math.

By the way, to translate 9%, think of 9 per cent = 9 per 100 = 9/100 = .09

Description	9%	of	4,312
Math equivalent	.09	x	4,312

The answer is .09 x 4,312 = 388.08. And since the answer describes people, we need to round it off to 388 people.

 

5) Jones Manufacturing has 2400 employees of which 1% are managers. If the company offers stock options to its managers, what is the maximum number of people eligible for the program? ___________

Answer: 24

How?

This is very similar to the last problem. The maximum number of people eligible is the number of managers.

The managers are 1% of 2400, which is .01 x 2400 = 24.

 

 

6) Appletalkcompany took out a 12 month bank loan on January 1. On August 1, what percent of the payments still have to be made? ____________

 

Answer: 42%

How?

When a percentage is asked for you need to determine how many parts of a whole are asked for. Here they ask how many payments still have to be made. These are the payments for August through December, which is five. Then we find that it is out of a whole of 12 payments. So the payments remaining are 5 out of 12, or 5/12 = .416666… = 41.66% which can be rounded to 42%.

By the way, to convert a decimal to percents, move the decimal point two to the right, and attach the percent sign.

 

7) On July 1, Fern Corporation offered its employees the chance to sign up for health insurance. The company required their employees to decide by December 1 whether they will enroll. On September 1 what percent of the enrollment time is left? _____________

 

Answer: 60%

How?

Like the last problem, to find a percent find how many there are out of how many total. The enrollment time left is the months September through November (since they have to know at the very beginning of December), which is 3 months. This is out of the whole time involved of July through November, which is 5 months. So the answer is that 3 out of the total of 5 months is left, which is 3/5 = .6 = .60 = 60%.

 

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