Week One Discussion

Week One Discussion
What is free cash flow and how do I calculate it?
A summary provided by
Pamela Peterson Drake, Florida Atlantic University
CONTENTS:
Estimates of cash flows .................................................................................................................... 1
Free cash flow ................................................................................................................................. 2
Free cash flow and agency theory .................................................................................................. 3
Free cash flow to equity ................................................................................................................ 3
Free cash flow to the ... Show more content on Helpwriting.net ...
The calculation uses information from both the company's income statement and its balance sheet:
(EQ 3)
CFO =
Net other non–cash increase in
+ depreciation + amortization + income charges (income) net working capital
Net working capital is defined as:
(EQ 4)
Net working capital = Current assets – current liabilities
Therefore, if net working capital increases, this is an offset to cash flow from operations, whereas if
net working capital decreases, this is an enhancement of the cash flow from operations.
Cash flow from operations is a key indicator of a company's financial health, because without the
ability to generate cash flows from its operations, a company may not be able to survive in the
future: cash flows are the lifeblood of a company.
Free cash flow
It has always been recognized that cash flow, no matter how we calculated it, does not necessarily
reflect what was available for the suppliers of capital (that is, creditors and owners). An alternative
cash flow, known as free cash flow (FCF), is useful in gauging a company's cash flow beyond that
necessary to grow at the current rate. This is because a company must make capital expenditures to
continue to exist and to grow and FCF considers these expenditures.
In analysis and valuation, the essence of free cash flow is expressed as cash flow from operations,
less any capital expenditures necessary to maintain its current growth:

(EQ 5)
Free cash flow = CFO – capital
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Case Study Mr. Ebbers
1.What did the Chief Executive Officer Ebbers cause subordinates to improperly manipulate?
(Refers to complaint 19301) WorldCom's reported revenue, selling, general and administrative
expenses("SG&A"), line cost expenses, net income, earnings per share ("EPS") and earnings before
interest, taxes, depreciation and amortization ("EBITDA"). 2.If you are the subordinate of Mr.
Ebbers, will you comply with Mr. Ebbers? If not, define what you would do to avoid termination. If
yes, provide justification. (Complaint 19301) I wouldn't comply. To avoid termination, I would
notify the management in writing and keep a copy of any letters I send. If this doesn't work, inform
the company's lawyers or auditors. As a last resort, speak to regulatory authorities.

An Annual Report On Balance Sheet And Income Statement
Assignment– Chapter II
Supriya Karki
JWU: J02065735 Date: September 20, 14
(2–1) Define each of the following terms:
a. Annual report; balance sheet; income statement
Annual Report: An annual report is a complete report on the company's activities throughout the
preceding year. Basically an annual report measures a corporation's financial health. They make
prediction about future prospects by focusing on the past and present financial performance of the
company.
Balance Sheet: Balance sheet is a convenient means of organizing and summarizing what a firm
owns (its assets), what a firm owes (its liabilities), and the difference between the two (the firm's
equity) at a given point of time. The accounting equation, also known as the balance sheet identity,
is the basis of accounting system: Assets= Liability + Stockholder's Equity.
Income Statement: Income statement is mainly the report on Income. Its accounting definition is
"Income= Revenue – Expenses". Income statement shows how much it has cost the bank to acquire
its deposits and other funds sources and to generate revenues from the uses the bank has made of
those funds. It is also known as profit and loss statement or Statement of revenue and expense.
b. Common stockholders' equity, or net worth; retained earnings
Common stockholders' equity, or Net worth: As we know that the stockholders' equity represents the
owner's claims on the assets of the business. These claims arise

Financial Analysis Paper for Target
Financial Analysis Paper Zeyuan Liu
Company Profile Target Corporation was founded in 1902 and is headquartered in Minneapolis,
Minnesota. Target Corporation operates general merchandise and food discount stores in the United
States. It operates as two reportable segments: Retail and Credit Card. The company offers
household essentials, including electronics, music, and toys; apparel and accessories; home
furnishings as well as seasonal merchandise. It also sells its merchandise under private–label brands,
such as Archer Farms, etc. Target Corporation operates in–store amenities, such as Target Caféand
Target Clinic as well. Its marketing strategy includes selling its products on its online shopping site
Target.com and its network of ... Show more content on Helpwriting.net ...
As discussed earlier, the liquidity and solvency ratios show that, although Target holds large
amounts of free cash flow to deal with risk and possible acquisition, it still has a high debt to asset
ratio.
Appendix A Ratio Analysis
Profitability ratio Earnings Per Share Book Value per Share Profit margin on sales Return on assets
Return on shareholders' equity Return on Investment: DuPont Model (ROI) Liquidity Ratio Current
ratio Quick ratio (acid test) Working Capital 2009 2008 2007
$3.64 $21.16 4.26% 6.24% 16.56%
6.02%
$1.36 $18.73 3.14% 5.16% 14.27%
4.37%
$2.87 $19.89 4.87% 6.27% 15.58% 5.78%
2009 1.63 0.77 $7,097 2009 2.61times 6.03times 9.67times 9.87times 1.52times 2009 0.66 1.93 0.18
$2,200
$864
$2,450

Asset Management
Fixed Assets Turnover Inventory Turnover Accounts Receivables Turnover Receivables Turnover
Ratio Total Assets Turnover Solvency Total Debt to Asset Ratio Total Debt to Equity Ratio Cash
Debt Coverage Ratio Free Cash Flow
(Millions)
Appendix B Analysis of Results of Operations
Retail Segment Retail Segment Results (millions) Sales Cost of sales Gross margin SG&A expenses
(a) EBITDA

Acc 561 Week 3 Ebta Essay
Wednesday May 25 at 10:01pm Manage Discussion Entry Glenn reply to Instructor follow–up
Question week 3 DQ 2 o EBITDA – Earnings before interest, taxes, depreciation and amortization is
an indicator of a company's financial performance which is calculated in the following manner:
("EBITDA – Earnings Before Interest, Taxes, Depreciation and Amortization Definition |
Investopedia," n.d.) EBITDA = Revenue – Expenses (excluding tax, interest, depreciation and
amortization). EBITDA is essentially net income with interest, taxes, depreciation, and amortization
added back to it, and can be used to analyze and compare profitability between companies and
industries because it eliminates the effects of financing and accounting decisions. ("EBITDA – ...
Show more content on Helpwriting.net ...
EBITDA is a good metric to evaluate profitability, but not cash flow. EBITDA also leaves out the
cash required to fund working capital and the replacement of old equipment, which can be
significant. Consequently, EBITDA is often used as an accounting gimmick to dress up a company's
earnings. When using this metric, it's key that investors also focus on other performance measures to
make sure the company is not trying to hide something with EBITDA. ("EBITDA – Earnings Before
Interest, Taxes, Depreciation and Amortization Definition | Investopedia," n.d.) I would not use
EBITDA in my analysis for picking a portfolio. EBITDA figures can be highly misleading, it's easy
to manipulate and should be taken with a pinch of salt. This can be said for most financial metrics,
but few are as easily and frequently manipulated as EBITDA. ("EBITDA – Earnings Before Interest,
Taxes, Depreciation and Amortization Definition | Investopedia," n.d.) Warren Buffett and other
famous investors have spoken out about their dislike of the EBITDA standard. Buffett in particular
wrote about the financial metric within his 2000 and 2002 annual reports to Berkshire Hathaway
shareholders: (Hargreaves,

ACC 291 Final Exam
ACC 291 Final Exam
Copy this link to your browser to download:
http://www.finalexamguide.com/ACC–291–Final–Exam–1–3.htm
1. On January 1, a machine with a useful life of five years and a residual value of $40,000 was
purchased for $120,000. What is the depreciation expense for year 2 under the double–declining–
balance method of depreciation?
2. As a recent graduate of State University you 're aware that IFRS requires component depreciation
for plant assets. A friend has asked you to succinctly explain what component depreciation means.
Which of the following correctly describes component depreciation?
3. Given the following account balances at year end, compute the total intangible assets on the
balance sheet of Janssen ... Show more content on Helpwriting.net ...
If Brevard Corporation uses straight–line depreciation, what annual depreciation will Brevard report
for 2014?
18. On July 1, 2014, Fleming Company sells machinery for $120,000. The machinery originally cost
$300,000, had an estimated 5–year life and an expected salvage value of $50,000. The Accumulated
Depreciation account had a balance of $175,000 on January 1, 2014, using the straight–line method.
The gain or loss on disposal is
19. On July 1, 2014, Linden Company purchased the copyright to Norman Computer Tutorials for
$140,000. It is estimated that the copyright will have a useful life of 5 years. The amount of
Amortization Expense recognized for the year 2014 would be
20. The following totals for the month of April were taken from the payroll records of Metz
Company.
Salaries $30,000
FICA taxes withheld 2,295
Income taxes withheld 6,600
Medical insurance deductions 1,200
Federal unemployment taxes 240
State unemployment taxes 1,500
The entry to record accrual of employer's payroll taxes would include a
21. Thayer Company purchased a building on January 2 by signing a long–term $2,520,000
mortgage with monthly payments of $23,100. The mortgage carries an interest rate of 10 percent.
The amount owed on the mortgage after the first payment will be
22. The following data is available for BOX Corporation at December 31,

The Ethics Of Healthcare Reform, Issues And Issues In...
Review of two articles touching on the use of statistical analysis to help determine the future impact
and creating more financial stability in their healthcare system. Finance ethics is more important
than ever due to the importance of the conflicting fundamentals that most Americans want out of
healthcare. The first article, The Ethics of Healthcare Reform, Issues in Emergency Medicine
discusses those fundamentals and how cost containment can help the healthcare industry meet all
four. The second article discusses the different creative approaches to prevent foreclosure for small
community hospitals.
A balance sheet is the most basic and essential financial statement for any organization. It contains
the basic ... Show more content on Helpwriting.net ...
Financial benchmarking involves running a financial analysis and making a comparison of the
results in order to assess a company's overall competitiveness, efficiency and productivity.
The information gained from such a comparison allows firms to determine how well they perform in
comparison with the "best" and, in turn, develop new and better strategies to work towards making
improvements or adopting certain best practices. Benchmarking is usually an ongoing process in
which companies continuously seek the improvement of their practices. (Debitoor, 2017)
Trend analysis reviews past data and tries to predict the future . A ratio analysis is a quantitative
analysis of information contained in a company's financial statements. Ratio analysis is based on
line items in financial statements like the balance sheet, income statement and cash flow statement;
the ratios of one item – or a combination of items – to another item or combination are then
calculated. Ratio analysis is used to evaluate various aspects of a company's operating and financial
performance such as its efficiency, liquidity, profitability and solvency. The trend of these ratios
over time is studied to check whether they are improving or deteriorating.
(https://www.investopedia.com/terms/c/capitalization–ratios.asp)
The role of finance ethics is becoming increasingly important as more hospitals are faced with
financial challenges under the affordable care act. As referenced in The Ethics

Free Cash Flow
Free cash flow
In corporate finance, free cash flow (FCF) is cash flow available for distribution among all the
securities holders of an organization. They include equity holders, debt holders, preferred stock
holders, convertible security holders, and so on.
G. Bennett Stewart – the "economic model of value holds that share prices are determined by just
two things: the cash to be generated over the lifetime of a business and the risk of the cash receipts".
GSB (1990), "The Quest for Value"
FCF is the cashflow generated by a company's operations that is free, or net, of the new capital
invested for growth. Imagine all a company's cash receipts are deposited in a cigar box, and that all
of its cash operating outlays are taken ... Show more content on Helpwriting.net ...
The first is the accounting for the consumption of capital goods. The Net Income measure uses
depreciation, while the Free Cash Flow measure uses last period 's net capital purchases.
Measurement Type | Component | Advantage | Disadvantage | Free Cash Flow | Prior period net
investment spending | Spending is in current dollars | Capital investments are at the discretion of
management, so spending may be sporadic. | Net Income | Depreciation charge | Charges are
smoothed, related to cumulative prior purchases | Allowing for typical 2% inflation per year,
equipment purchased 10 years ago for $100 would now cost about $122. With 10 year straight line
depreciation the old machine would have an annual depreciation of $10, but the new, identical
machine would have depreciation of $12.2, or 22% more. |
The second difference is that the Free Cash Flow measurement deducts

Finance 340
FINC 340 Financial Management
Homework Assignment I
You can provide your answers by expanding the space between questions.
You must show your work and/or explain your answers sufficiently to get credit.
Points for each question are the same.
Chapter 01 1. What is the goal of the firm? Explain. Ans: A firm's goals usually include (1)
stockholder wealth maximization, (2) profit maximization, (3) Managerial reward maximization, (4)
behavioral goals, and (5) social responsibility. However, the primary goal of the business is to
maximize the wealth of its stockholders, which translates into maximizing the price of the firm's
common stock. The traditional goal frequently stressed by economists––profit maximization––is not
... Show more content on Helpwriting.net ...
Smith Company
Balance Sheet (in millions of USD)
December 31, 2XX1 And 2XX2 Assets | 2XX2 | 2XX1 | Liabilities and Equity | 2XX2 | 2XX1 |
Current Assets | | | Current Liabilities | | | Cash | $270 | $305 | Accounts Payable | $200 | $150 |
Accounts Receivables | 290 | 275 | Income Tax Payable | 0 | 0 | Inventories | 630 | 600 | Accrued
Wages and Salaries | 0 | 0 | Other Current Assets | 0 | 0 | Notes Payable (interest bearing) | 0 | 125 |
Total Current Assets | $1,190 | $1,180 | Total Current Liabilities* | $200 | $275 | Fixed Assets | | |
Long–Term Debt | 500 | 500 | Plant and Equipment | $1,990 | $1,700 | Total Liabilities | $700 | $775 |
Accumulated Depreciation | –700 | –500 | Common Stock | $1,080 | $940 | Patents | 0 | 0 | Retained
Earnings | 700 | 665 | Total Net Fixed Assets | $1,290 | $1,200 | Total Stockholder's Equity | $1,780 |
$1,605 | Total Assets | $2,480 | $2,380 | Total L. & Equity | $2,480 | $2,380 |
Smith Company
Income Statement (in millions of USD) December 31, 2XX2 | | | Sales | | $1,330 | Cost of Goods
Sold | | 760 | Gross Profit on Sales | | 570 | Operating Expenses | | | Marketing Expenses | $15 | |
General and Administrative | 15 | | Depreciation | 200 | | Total Operating Expenses | $230 | $230 |
Earnings Before Interest and Taxes (EBIT) or Operating

Financial Statement Analysis Essay
Financial Statement Analysis
MBA 6150
Financial Statement Analysis – Verizon Communications
Abstract The process of developing financial statements for a business is to provide supporting
documentation to what has been reported as annual or quarterly income. Within the financial
statement analysis strengths and weaknesses are identified through the comparison of data from the
balance sheet. There are many different ways to interpret the data that is utilized for the analysis;
those include but are not limited to comparative statements, schedule of changes in working capital,
common size percentages, and ratio analysis. The following paper will be reviewing the financial
data from Verizon Communications (VZ). Through the ... Show more content on Helpwriting.net ...
However, with the increasingly tough economic times there is a risk that employees will feel that the
implementation of a union will help their cause.
2. 2009 was Verizon (Wireless') first attack on the competition through advertising. As a result of the
advertising the competitor (AT&T) filed an injunction to stop the ads. To date the cease and desist
request was denied; however, with this new advertising the company is at a greater risk for
litigation.
3. In an attempt to increase profitability the company has implemented the requirement for certain
cellular devices to have data plans. This new requirement could potentially cause frustration to
consumers and increase the level of churn that the company sees.
4. Verizon Communications has also built bundles to provide a suite of services, voice, Internet and
television. In the event that licenses cannot be obtained to provide wireline services in all areas, this
launch could be potentially catastrophic.
5. In addition to the wireline service availability the decision to work with FiOS also places the
company in a precarious situation. Should consumers sign up for the relatively new service, and
there be problems or system hiccups, the consumer will become jaded about the experience and it
could potentially destroy the success of the FiOS line.
6. The wireless side launching another new product that fails. In early 2008, Verizon Wireless
launched the HUB, and there were too many problems to make the

Project on Chipotle and Red Robin
APPENDIX–A BALANCE SHEET ANALYSIS | | | Chipotle | 2011 | 2010 | Total liabilities |
381,082 | 310,732 | Total Shareholder 's Equity | 1,044,226 | 810,873 | Debt ratio | 27.70% | 26.73% |
Debt to Equity ratio | 0.34 | 0.001 | | | | Current asset | 501,192 | 406,221 | Current liabilities | 157,453
| 123,054 | Working capital | 343,739 | 282,554 | Current ratio | 3.3 | 3.18 | Acid test ratio | 0.55 | 0.26
| Red Robin | 2011 | 2010 | Total liablities | 298,278 | 278,596 | Total Shareholder 's Equity | 294,698
| 300,661 | Debt ratio | 50.30% | 48.10% | Debt to Equity ratio | 0.95 | 0.93 | | | | Current asset | 80,647
| 53,625 | Current liablities | 106,486 | 97,416 | Working capital | ... Show more content on
Helpwriting.net ...
31, 2011 | | Dec. 31, 2010 | | In Thousands, unless otherwise specified | | % | | % | Assets | | | | | Cash
and cash equivalents | $401,243 | 28.15 | $224,838 | 20.05 | Accounts receivable, net of allowance
for doubtful accounts of $208 and $102 as of December 31, 2011 and 2010, respectively | 8,389 |
0.58 | 5,658 | 0.5 | Inventory | 8,913 | 0.63 | 7,098 | 0.63 | Current deferred tax asset | 6,238 | 0.44 |
4,317 | 0.38 | Prepaid expenses and other current assets | 21,404 | 1.5 | 16,016 | 1.43 | Income tax
receivable | | | 23,528 | 2.1 | Investments | 55,005 | 0.04 | 124,766 | 11.12 | Total current assets |
501,192 | 35.16 | 406,221 | 36.21 | Leasehold improvements, property and equipment, net | 751,951 |
52.76 | 676,881 | 60.34 | Long term investments | 128,241 | 8.99 | | | Other assets | 21,985 | 1.54 |
16,564 | 1.48 | Goodwill | 21,939 | 9 | 21,939 | 1.96 | Total assets | 1,425,308 | 100% | 1,121,605 |
100% | Liabilities and shareholders ' equity | | | | | Accounts payable | 46,382 | 3.25 | 33,705 | 3 |
Accrued payroll and benefits | 60,241 | 4.23 | 50,336 | 4.49 | Accrued liabilities | 46,456 | 3.26 |
38,892 | 3.47 | Current portion of deemed landlord financing | 133 | 0.009 |

Summer 2014 Exam 3 ANSWERS Essay
Name:
Use the following information for the next two questions.
Napier Co. provided the following information on selected transactions during 2013:
Purchase of land by issuing bonds $500,000
Proceeds from issuing bonds 1,000,000
Purchases of inventory 1,900,000
Purchases of treasury stock 300,000
Loans made to affiliated corporations 700,000
Dividends paid to preferred stockholders 200,000
Proceeds from issuing preferred stock 800,000
Proceeds from sale of equipment 100,000
1. The net cash provided (used) by investing activities during 2013 is
a. $100,000.
b. $(600,000).
c. $(1,100,000).
d. $(2,500,000).
e. None of the above.
2. The net cash provided by financing activities during 2013 is
a. $1,100,000.
b. $1,300,000.
c. ... Show more content on Helpwriting.net ...
$2,040,000.
b. $90,000.
c. $(330,000).
d. $240,000.
10. A segment of a business enterprise is to be reported separately when the revenues of the segment
exceed 10 percent of the
a. total combined revenues of all segments reporting profits.
b. total export and foreign sales.
c. combined net income of all segments reporting profits.

d. total revenues of all the enterprise's segments.
11. The MD&A section of a company's annual report is to cover the following three items:
a. income statement, balance sheet, and statement of owners' equity.
b. income statement, balance sheet, and statement of cash flows.
c. liquidity, capital resources, and results of operations.
d. changes in the stock price, mergers, and acquisitions.
Use the following information for the following five questions.
Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA. One
statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial
statements of Harlan Mining Co. for 2013 and 2012 are provided below.
BALANCE SHEETS 12/31/13 12/31/12
Cash $306,000 $ 144,000
Accounts receivable 270,000 162,000
Merchandise

Managing Cash Flow By John Olson
MANAGING CASH FLOW
"Follow the money"–William Goldman, All the President 's Men
Imagine you are John Olson, an energy analyst for Merrill Lynch. Your boss, Donald Sanders, shows
you a handwritten note from one of Merrill's largest customers. It reads in part, ' 'Don –– John Olson
has been wrong about ... (our company) ... for over 10 years and is still wrong ... Ken. ' ' Merrill
subsequently fired Olson because he refused to endorse the customer's exaggerated profit claims.
The Ken, of course, is Ken Lay of Enron fame; the analyst was John Olson, by his own description
an old–fashioned analyst who refused merely to promote stocks, relying instead on fundamental
analysis to assess the companies he examined.
Ironically, he was the only analyst who used Enron's Cash Flow Activities to correctly identify the
scam. Using Cash Flow Analysis, he determined the firm had few tangible assets and generated
sham profits spawned by contrived financial flimflam generated by hundreds of off–balance sheet
entities.
Visualize Enron as a major client owing you a significant chunk of money in Receivables. Where
would you be if you had wholeheartedly endorsed Enron the way Henry Blodgett of Merrill Lynch
and Mary Meeker of Morgan Stanley did?
This is why we will conduct a separate section on Accounting on Cash Flow Analysis as the key to
understanding solvency, both your customers and your own, and not a broader overview of the
Accounting process.
Why cash Flow?
We like Cash Flow Analysis because

Angus Cartwright III Essay
9 –3 7 5 –3 7 6
REV: SEPTEMBER 30, 2004
Angus Cartwright III
People
Angus Cartwright, III, an investment advisor, was based in Arlington, Virginia, the home of many
members of the DeRight family. In September 2003 his attention focused on the needs of two
cousins at different stages of their lives. John DeRight had recently sold his business to a medium–
sized public company in exchange for $18 million of the company's stock. He then retired and
expected to live comfortably on the $500,000 in dividends paid on the stock plus retirement and
other income he had of an equal amount. He felt the need to diversify his investments, however, and
planned to sell up to half of his stock and reinvest it in real estate and other investments. Even ...
The land value of the property, for purposes of depreciation, was estimated at
$2,100,000 and the depreciation period (cost recovery period) for the building would be 27.5 years.
Nearby was the second property, a five–story, 75,000 square foot office building, 900 Stony Walk,
with 67,000 square feet of rentable space. The building was rented to lawyers, accountants, and
small service firms which each rented between 5,000 and 7,500 square feet. 900 Stony Walk was
completed in 1998 and had been operating at a 95% occupancy level since its initial rentup. The
asking price was
$11.6 million, but the broker believed a price of $11.5 million would be accepted. The projected
gross rental income for 900 Stony Walk was $1,742,000 with cash flow before financing of
$1,057,200. A new $8 million mortgage at a 6.5% interest rate had been arranged. The term was 10
years with amortization over 20 years. The land value for purposes of depreciation was estimated at
$3,500,000.
Since it was a nonresidential building, 900 Stony Walk would have to be depreciated on a
straightline basis over 39 years. Like Alison Green, real estate taxes would be at a rate of 12% of
gross rent.
The third property was Ivy Terrace, an 80–unit garden apartment project under construction near
Arlington, Virginia. The property was for sale for $8.6 million, but the broker was certain it could be
purchased for $8.4 million. A 10–year, $5.5

Essay on Benihana
Benihana –––––––––––––––––––––––––––––––––––––––––––––––––
–––––––––––––––––––––––––––––––––––––––––––––––––
––––––––––––––––––––––––––––––––––––––––––––––––– 1.
––––––––––––––––––––––––––––––––––––––––––––––––– What is the Benihana concept?
Benihana restaurants are traditional Japanese hibachi steakhouses, which feature the Japanese
cooking method known as teppanyaki. There are key attributes that separate Benihana from other
restaurants. One is true Japanese authenticity. Every item that is used in construction of a restaurant
is 100% authentic and imported from Japan. In addition, each restaurant is built by Japanese
carpenters. All chefs at Benihana are native Japanese with three year formal apprenticeship. The ...
Besides being profitable, we can measure Benihana's success by customer satisfaction. According to
exhibit 4, over 46% of customers come to Benihana for good food, with 13% for atmosphere and
food preparation. Over 77% of customers rate food as being excellent and 71% rate service to be
excellent. There are certain areas of operational improvement that can make Benihana even more
successful. As atmosphere / ambiance are only a small portion of why people come to eat at
Benihana, I don't think that Americans really appreciate that every item at the restaurant is imported
from Japan. Benihana should use locally available materials and carpenters. By doing so, Benihana
can dramatically reduce its cost to of setup and will allow for faster expansion. The cost factor is one
of the major concerns for Benihana's growth. Each new unit costs $300,000. In order to reduce the
startup cost, Benihana must find revisit its operating model and re–evaluate what is the most
important to the customers. Looking back at exhibit 4, majority of respondents valued quality and
taste of the food, service and preparation of food. These are the qualities that truly separate
Benihana from other restaurants. Changing Benihana's staffing model, including training, and the
use of materials and labor from Japan, will most certainly minimize new unit cost.
––––––––––––––––––––––––––––––––––––––––––––––––– 3. Prepare an

Essay on Fi 360 Midterm
Unit 5 : Week Five – Midterm
Time Remaining:
1. The ultimate owner(s) of an ongoing corporation are (Points : 2) the federal government. the debt
holders. the equity holders. the executive staff of the corporation.
2. Which of the following is a valid criticism concerning the goal of firms to maximize profits?
(Points : 2) profit maximization ignores expenses profit maximization is completely unrelated to
shareholder wealth profit maximization may ignore the timing of those profits there are no valid
criticisms of profit maximizing firms
3.
Balance Sheet: 12/31/04
Assets
2004
2003
Cash and Marketable Securities
10
80 ... Show more content on Helpwriting.net ...
Balance Sheet: 12/31/04
Assets
2004
2003
Cash and Marketable Securities

10
80
Accounts Receivable
375
315
Inventories
615
415
Total Current Assets
1,000
810
Net plant and equipment
1,000
870
TOTAL ASSETS
2,000
1,680
Liabilities and Equity
2004
2003
Accounts Payable
60
40

Income For The 2016 Fiscal Year Essay
Net Income for the 2016 Fiscal Year (FY) Table 1: Statement of Income for the 2016 Fiscal Year
Fiscal year from February 2015 – January 2016 $ Billion Net Revenues or Sales 39.53B Cost Of
Goods Sold 30.34B Gross Profit 9.19B Expenses from Research & Development – Administration
& Selling General expense 7.82B Income before Depreciation Depletion Amortization 1.38B
Depreciation Depletion Amortization – Non–Operating Income 0.015B Expense from Interest
0.080B Gross Profit/(Loss) before income tax 1.31B Income Taxes Provision 0.503B Interest from
Minority – Investment Gains (Losses) – Income from other sources – Income Before Disc
Operations & Extra ordinaries 0.807B Discontinued Operations & Extraordinary Items 0.090B Net
Income (Profit/Loss) for the year 0.897B Relevance of changes in net income to investors From
Table 1 above the net income for the 2016 fiscal year is $ 0.897 Billion or $ 897 Million
(Amigobulls, 2016), which has drastically dropped from the previous financial year that is 2015
fiscal year which recorded a net income of $ 1.23 Billion (Best Buy, 2015). Investors use financial
statements to identify if the company is making losses or profit thus is an indicator of whether a
company is growing or not. Net income provides information to current and future investors as to
whether the company or business is making money or not and this information provides insight on
the likelihood or the business succeeding or failing in the long. For example if a

Midterm: Generally Accepted Accounting Principles and...
Name________________________ Student #_____________________
MGT 181
L. Jean Dunn, Jr.
MIDTERM EXAMINATION
1. Describe the following finance career opportunities. (5 points)
Hedge Fund Manager Manage funds for high net worth individuals, family trusts and pension funds.
Investment Banker: An intermediary who arranges the sale of stock and bonds to raise capital for
corporations. Also involved in arranging mergers and acquisitions of companies.
2. Draw a typical organization chart for a corporate finance department. Possibilities may or may not
include: Chief Financial Officer, Marketing Analyst, Controller, Sales Administration and Analysis,
Accounting Manager, Administrative Assistant, Accounting ... Show more content on
Helpwriting.net ...
.31 | | $ 4.03 | | $ 3.31 | | Diluted earnings per share | | $ 4.28 | | $ 4.00 | | $ 3.30 | | Weighted average
common shares outstanding | | | | | | | | | Basic | | 679.1 | | 723.6 | | 752.0 | | | Diluted | | 683.9 | | 729.4 | |
754.8 | |
Consolidated Statements of Financial Position Balance Sheet | | | | January 28, | | January 29, |
(millions, except footnotes) | | 2012 | | 2011 | Assets | | | | | Cash and cash equivalents, including
marketable securities of $194 and $1,129 | | $ 794 | | $ 1,712 | Credit card receivables, net of
allowance of $430 and $690 | | 5,927 | | 6,153 | Inventory | | 7,918 | | 7,596 | Other current assets | |
1,810 | | 1,752 | | Total current assets | | 16,449 | | 17,213 | Property and equipment | | | | | | Land | |
6,122 | | 5,928 | | Buildings and improvements | | 26,837 | | 23,081 | | Fixtures and equipment | | 5,141
| | 4,939 | | Computer hardware and software | | 2,468 |

Riordan Financial Ratios Bsa500
Running head: WEEK 5 Financial Ratios Analysis
Week 5 Financial Ratios Analysis
University of Phoenix
Business Systems I
BSA/500
This is a brief analysis and comparison of select financial ratios of four companies: two in the
manufacturing and two in the retail food industries. The financial ratios analyzed are the current
ratio, debt ratio, profit margin, return on assets. I should point out that I used the most recent
financial reports provided for each company, although in some cases they may not represent the
same years. All dollar figures are in thousands. Riordan Manufacturing, based in San Diego,
California, is a leading manufacturer in the plastics injection molding industry. Riordan's most
recent financial reports ... Show more content on Helpwriting.net ...
Finance. (2010). Winn–Dixie Stores, Inc. Retrieved from http://finance.yahoo.com/q?s=WINN
Riordan Manufacturing, Inc. | Income Statement
For the 12 months ending September 30, 2005 | | | 2005 | 2004 | | Sales | $50,823,685 | $46,044,288 |
Direct Cost of Goods Sold | $42,037,624 | $37,480,050 | Gross Margin | $8,786,061 | $8,564,238 | |
Operating Expenses | | Sales, Marketing & Other | $1,012,974 | $920,886 | Depreciation |
$343,445 | $349,937 | Quality Assurance | $1,139,688 | $1,095,854 | Research & Development |
$911,676 | $828,797 | General & Administrative | $1,706,953 | $1,524,066 | Machining &
Systems | $628,505 | $598,576 | Total Operating Expenses | $5,743,241 | $5,318,115 | Profit Before
Interest & Taxes | $3,042,820 | $3,246,122 | | Non–Operating Expenses | | Interest Expense |
$143,175 | $230,221 | Taxes | $943,274 | $1,025,406 | Total Non–Operating Expenses | $1,086,449 |
$1,255,628 | Net Profit After Taxes | $1,956,371 | $1,990,495 | |
Riordan Manufacturing, Inc. | Consolidated Balance Sheet | | | Fiscal Year Ending
September 30th | | 2005 | 2004 | | Assets | | Current Assets | | Cash | | $305,563 | $357,216 | Accounts
Receivable | | $6,062,838 | $5,657,216 | Current Portion of Notes Receivable | | $70,825 | $117,888 |
Inventories | |

Reflection Paper
ACC 321 Reflection Essay After I take ACC 221 and ACC 222, this semester I decide to take ACC
321. The name of the class is intermediate financial accounting. Before I took the class, I heard the
class is the most difficult class among accounting class because of there is a lot of materials to cover
in very short time. There are around 15 chapters to cover in a semester so that we have to learn a
chapter in a week because we have to use some classes to take the exams and quizzes. And if I want
to learn this course well and get a good grade as what I did in ACC221 and ACC222. I will have to
read the book, listen to the teacher carefully, do the quiz well, prepare for the exam well and finish
all the homework online. It is very important to ... Show more content on Helpwriting.net ...
In chapter 3, we learned the adjusting entries in the end of an accounting period and we also kind
like review the content of accounting 221 class. A lot of the materials were covered in accounting
221 class. But we also learned a few new account names such as prepaid insurance, income
summary, and so on. And we also learned how to make an income statement given a trial balance
and some other information, which is very useful. In chapter 4, we learned a lot about net income,
comprehensive income, other comprehensive income and accumulated comprehensive income.
Comprehensive income is the sum of net income and other items that must bypass the income
statement because they have not been realized. Including the items like an unrealized holding gain
and loss from available for sales securities and foreign transaction gains and losses. We also learned
earning management, which is "Earnings management is often defined as the planned timing of
revenues, expenses, gains and losses to smooth out bumps in earnings. In most cases, earnings
management is used to increase income in the current year at the expense of income in future years.
For example, companies prematurely recognize sales in order to boost earnings. Earnings
management can also be used to decrease current earnings in order to increase income in the future.
The classic case is the use of "cookie jar" reserves, which are established

Corporate Valuation
Methods of Corporate Valuation Prof. Ian H. Giddy, New York University | What is my company
worth? What are the ratios used by analysts to determine whether a stock is undervalued or
overvalued? How valid is the discounted present value approach? How can one value a company as
a going concern, and how does this change in the context of a potential acquisition, or when the
company faces financial stress? Finding a value for a company is no easy task –– but doing so is an
essential component of effective management. The reason: it's easy to destroy value with ill–judged
acquisitions, investments or financing methods. This article will take readers through the process of
valuing a company, starting with simple financial statements and ... Show more content on
Helpwriting.net ...
Book value is actually somewhat skeptically viewed in this day and age, since most companies have
latitude in valuing their inventory, as well as inflation or deflation of real estate depending on what
tax consequences the company is trying to avoid. However, with financial companies like banks,
consumer loan concerns, brokerages and credit card companies, the book value is extremely
relevant. For instance, in the banking industry, takeovers are often priced based on book value, with
banks or savings & loans being taken over at multiples of between 1.7 to 2.0 times book value.
Another use of shareholder's equity is to determine return on equity , or ROE. Return on equity is a
measure of how much in earnings a company generates in four quarters compared to its
shareholder's equity. It is measured as a percentage. For instance, if XYZ Corp. made a million
dollars in the past year and has a shareholder's equity of ten million, then the ROE is 10%. Some use
ROE as a screen to find companies that can generate large profits with little in the way of capital
investment. Coca Cola, for instance, does not require constant spending to upgrade equipment ––
the syrup–making process does not regularly move ahead by technological leaps and bounds. In fact,
high ROE companies are so attractive to some investors that they will take the ROE and average it
with the expected earnings growth in order to figure out a fair multiple. This is why a

Managing Cash Flow By John Olson
Managing Cash Flow
Imagine you were John Olson. You are an energy analyst for Merrill Lynch. Your boss, Donald
Sanders, shows you a hand–written note from one of Merrill's largest customers. It reads in part, '
'Don –– John Olson has been wrong about ... our company... for over 10 years and is still wrong, ...
Ken ' ' Merrill subsequently fired him because he refused to endorse the customer's exaggerated
profit claims.
The Ken, of course, is Ken Lay of Enron fame; the analyst was John Olson, by his own description
an old–fashioned analyst who refused merely to promote stocks, but relied on fundamental analysis
to assess the companies he examined.
Ironically, he was the only analyst who used Enron's cash flow chicanery to correctly identify the
scam. Using cash flow analysis, he determined the firm had few tangible assets and generated sham
profits spawned by contrived financial flimflam produced with hundreds of off–balance sheet
entities.
Visualize Enron as a major client owing you a significant chunk of your receivables.
This is why our discussion of accounting will be focused on cash flow analysis as the key to
understanding solvency, both your customers and your own.
We like cash flow because it permits us to "follow the money" rather than the accrual–based
numbers favored by Wall Street. Cash flow provides us a good way for investors to evaluate a
company 's financial well–being and operational sturdiness.
Cash Flow is composed of revenue or expense streams that change cash

BA 620 exam
CHAPTER 2
FINANCIAL STATEMENTS, CASH FLOW, AND TAXES
True/False
Easy:
(2.1) Annual report F K
Answer: a
EASY
1.
The annual report contains four basic financial statements: the income statement, balance sheet,
statement of cash flows, and statement of stockholders' equity.
a.
True
b.
False
(2.1) Annual report and expectations F K
Answer: a
EASY
2.
The primary reason the annual report is important in finance is that it is used by investors when they
form expectations about the firm 's future earnings and dividends, and the riskiness of those cash
flows.
a.
True
b.
False
(2.2) ... Show more content on Helpwriting.net ...

True
b.
False
(2.9) Federal income taxes:int expense and dividends FK
Answer: b
EASY
12.
The interest and dividends paid by a corporation are considered to be deductible operating expenses,
hence they decrease the firm 's tax liability.
a.
True
b.
False
(Comp: 2.2,2.3) Financial statements F K
Answer: b
EASY
13.
The balance sheet is a financial statement that measures the flow of funds into and out of various
accounts over time, while the income statement measures the firm 's financial position at a point in
time.
a.
True
b.
False
Medium:
(2.4) Retained earnings F K
Answer: b
MEDIUM
14.
Its retained earnings is the actual cash that the firm has generated through operations less the cash
that has been paid out to stockholders as dividends. Retained earnings are kept in cash or near cash
accounts and, thus, these cash accounts, when added together, will always be equal to the firm 's
total retained earnings.
a.
True

b.
False
(2.4) Retained earnings F K
Answer: a
MEDIUM
15.
The retained earnings account on the balance sheet does not represent cash. Rather, it represents part
of stockholders ' claims against the firm 's existing assets. This implies that retained earnings are in
fact

Finance and Accounting for ABC Complete Kitchen Inc. Essay...
We have already discussed the new plants organizations ethical and social obligations for the
corporation on a global aspect, and the international management. Next our attention will be drawn
to the finance and accounting for the plant (CFO). Organizations use financial statements to show
how well they are performing in the market, and to convey with its stockholders and backers. In this
memo, we will be examining key information in the new strategic financial project illustrate the
several types of financial and accounting key functions.
Financial Statements
It is mandatory for ABC Complete Kitchen Inc. to file their financial statements with the United
States Securities and Exchange Commission (SEC). Financial Statements are ... Show more content
on Helpwriting.net ...
The assets show the type of resource that the organization use; the other side shows the type of
resources, and how much money it needs to take care of expenses. In Figure 1, it shows an example
of a balance sheet for ABC. Assets
On some balance sheets assets are split into current and long–term assets as seen in Figure 1.
Current assets are asset that are readily liquidated for money within a year, for example: cash,
money markets, accounts receivable, inventory, and other current (Edition, 2011). Other current
assets group is for prepaid expenses. Under long–term asset is land, plant, building, which refers to
real estate machinery. For equipment that possibly has wear and tear or become out of date, is less
depreciation. "The book value of an asset is equal to its acquisition cost less accumulated
depreciation. Net property, plant, and equipment shows the book value of these assets" (Edition,
2011, p. 750). If you notice in Figure 1, goodwill and intangible asset are part of long–term assets.
The last two entries recorded as part of long–term asset are other long–term assets and amortization.
Other long–term assets are intangible assets that the company obtained through an acquisition such
as "brand names, trademarks, patents, customer relationships, and employee" (Edition, 2011, p.
750). As a replacement for depreciation, when the value of the assets decline over time, it is
recorded as an amortization or as impaired charges

Basic Accounting Principles
Name: __________________________ Date: _____________
Use the following to answer questions 1–3:
The following data are for the pension plan for the employees of Lockett Company.
1/1/14
12/31/14
12/31/15
Accumulated benefit obligation
$2,500,000
$2,600,000
$3,400,000
Projected benefit obligation
2,700,000
2,800,000
3,700,000
Plan assets (at fair value)
2,300,000
3,000,000
3,300,000
AOCL – net loss
–0–
480,000
500,000
Settlement rate (for year)
10%
9%
Expected rate of return (for year)
8%
7%
Lockett's contribution was $420,000 in 2015 and benefits paid were $375,000. Lockett estimates
that the average remaining service life is 15 years.

1.
The actual return on plan assets in 2015 was
A)
$300,000.
B)
$255,000.
C)
$200,000.
D) ... Show more content on Helpwriting.net ...
Fair value of the land at time of the sale was $40,000. The lease is a 10–year, noncancelable lease.
Gage uses straight–line depreciation for its other various business holdings. The economic life of the
facility is 15 years with zero salvage value. Title to the facility and land will pass to Gage at
termination of the lease. A partial amortization schedule for this lease is as follows:
Payments Interest
Amortization
Balance
Jan. 2, 2014
$400,000.00
Dec. 31, 2014
$65,098.13
$40,000.00
$25,098.13
374,901.87
Dec. 31, 2015
65,098.13
37,490.19
27,607.94
347,293.93
Dec. 31, 2016
65,098.13
34,729.39
30,368.74
316,925.19
13.
From the viewpoint of the lessor, what type of lease is involved above?
A)
Sales–type lease
B)
Sale–leaseback
C)
Direct–financing lease
D)

Operating lease
14.
What is the discount rate implicit in the amortization schedule presented above?
A)
12%
B)
10%
C)
8%
D)
6%
15.
The total lease–related expenses recognized by the lessee during 2015 is which of the following?
(Rounded to the nearest dollar.)
A)
$64,000
B)
$65,098
C)
$73,490
D)
$61,490
16.
What is the amount of the lessee's liability to the lessor after the December 31, 2016 payment?
(Rounded to the nearest dollar.)
A)
$400,000
B)
$374,902
C)
$347,294
D)
$316,925
17.
The total lease–related income

Ch10 Beechy3e case 3 solution Essay
Solutions for some acct 400 cases here –
http://novellaqalive2.mheducation.com/sites/dl/premium/0070930317/instructor/237732/
Chapter 10 Suggested Time
Case 10–1 Good Quality Auto Parts 10–2 Canadian Wilderness Wonders Inc 10–3 Provincial Hydro
10–4 May Company
10–5 Canadian Energy Corporation
Assignment 10–1 Amortization policy 10 10–2 Amortization policy 15 10–3 Amortization
computation 15 10–4 Amortization computation (*W) 25 10–5 Amortization schedule 30 10–6
Analysis of four amortization methods–maximize income (*W) 20 10–7 Interpreting amortization
disclosures 20 10–8 Identify amortization methods–amortization schedules 15 10–9 Identify,
recalculate amortization 20 10–10 ... Show more content on Helpwriting.net ...
If rates are different for similar assets, comparability is also hurt; again, disclosure is important.
7. A firm would consider the following factors in their choice of amortization methods: nature and
use of asset, corporate reporting objectives, industry norms, parent company preferences, the desire
to minimize future (deferred) taxes, and the accounting system costs associated with a given
method.
8. An asset with a thirty–year life will be amortized over a shorter period when it is expected to be
used (will generate revenue) for the shorter period.
9. The straight–line method reports depreciation as a variable amount per unit of output and a fixed
amount per period, whereas the productive output method reports depreciation as a fixed amount per
unit of output and a variable amount per period.
10. Straight–line amortization is likely popular because it is simple to calculate, logically appealing,
rational and systematic, often portrays the pattern of benefits received (equal each period), and
because it provides a stable expense pattern.
11. Accelerated methods of amortization result in a periodic amortization charge that is less in each
succeeding period than the prior period. There are a number of variations of the accelerated
methods, such as the declining balance method and the sum–of–the–years'–digits method. These
methods are appropriate when an asset contributes to revenue

Essay on Learnrite.Com Minicase
LearnRite.com offers e–commerce service for children's edutainment products and services. The
word edutainment is used to describe software that combines educational and entertainment
components. Valuable product information and detailed editorial comments are combined with a
wide selection of products for purchase to help families make their children's edutainment decisions.
A team of leading educators and journalists provide editorial comments on the products sold by the
firm. LearnRite targets highly educated, convenience–oriented, and value–conscious families with
children under the age of twelve, estimated to be about 35 percent of Internet users.
The firm's warehouse distribution model results in higher net margins, as well as ... Show more
content on Helpwriting.net ...
He holds a BS degree in electrical engineering from an Indian technology institute and an MBA
from a major U.S. university. Sean Davidson, director of technology, has more than ten years of
experience in software development and integration. Walter Vu has almost ten years of experience in
sales and business development in the software industry, including positions at Claris and Maxis.
Mitch Feldman, director of marketing, was responsible for the marketing communications function
and the Internet operations of a large software company for six years. Management strives for
continual improvement in ease of user interface, personalized services, and amount of information
supplied to customers.
The total market for children's entertainment is estimated to be $35 billion annually. Toys account
for about $20 billion in annual spending. Summer camps are estimated to generate $6 billion
annually. This is followed by children's videos and video games at $4 billion each. Children's
software sales currently generate about $1 billion per year in revenues, and industry sales are
expected to grow at a 30 percent annual rate over the next several years.
LearnRite has made the following five–year revenue projections:
A. Project industry sales for children's software through 2015 based on the information provided
above.
B. Calculate the year–to–year annual sales growth rates for LearnRite.
C. Estimate LearnRite's expected market share in each year

Sports Direct
Contents Page Introduction 3 Background 3 Part B Financial Highlights 3 Cash Flow 3 Part C
Chairman's Statement 4 Co–operate Governance 4 Consolidated Five Year Statement 5 Part D
Current Assets Property, Plant and Equipment 6 Deferred Tax Assets 6 Non–Current Assets
Inventories 7 Cash and Cash Equivalents 7 Conclusion Bibliography Introduction In this the
coursework, it will present financial information relating back from Sports Direct Annual Report
2012 alongside a brief history of Sports Direct with additional information about how the group
generates revenue. Background Sports Direct is the UK's largest ... Show more content on
Helpwriting.net ...
In FY15 the corporation Net Debt should be 1.5x or less The Chairman mentions the Bonus Share
Scheme for the 190,000 employees in the statement, as the employees who partook in this will
benefit from reading the annual report as the outcome of achievement for the group is due to their
determination of meeting company objectives. The schemes intention is to deliver employees with
an honest and extensive connection with the group's performance and their individual pay. (Ref:
Page 41) The group identifies that it is essential to communicate with the shareholders, this is
through annual report, trading updates, financial statements and the vital way is through the website
as it contains all information and regards to London Stock Exchange. Thus helps the shareholders to
understand how their investment is performing. Cooperate Governance As the financial year ended
on 29th April 2012, the organization had reassessed the company's governance policy and
procedures. Overall they believe to have abided by the requirements of the Code, however apart
from the following: Provision B.1.1 states "The Board should state its reasons if it determines that a
director is independent notwithstanding the existence of relationships or circumstances which may
appear relevant to its determination, including if the director: has received or receives additional
remuneration from the company apart from

Financial Statement and Cash Flow Analysis
Chapters 3 and 13 Financial Statement and Cash Flow Analysis Balance Sheet Assets Cash
Inventory Accounts Receivable Property Plant Equipment Liabilities and Shareholder's Equity
Accounts Payable Notes Payable Accrued Wages Bank Loans Bonds Common Stock Retained
Earnings Total Liabilities and Shareholder's Equity Total Assets Income Statement Used to figure
out how much money we are earning for: (a) (b) (c) (d) vendors, employees, etc – Cost of Goods
Sold, Operating Expenses lenders, bondholders – Interest, government – Taxes, owners/stockholders
– Dividends/Retained Earnings Sales (–) Cost of Goods Sold (–) Operating Expenses (–)
Depreciation EBIT (–) Interest EBT (–) Taxes Net Income (–) Dividends Additions to R/E revenues
cost to ... Show more content on Helpwriting.net ...
Adds back in noncash items. Net Operating Working Capital = Operating Current Assets –
Operating Current Liabilities Operating = those flows from normal operations Operating Current
Assets = Cash, A/R, Inv Operating Current Liabilities = A/P, Accruals Net Operating Profit after
Taxes (NOPAT) = EBIT ( 1 – tax rate ) Free Cash Flow (FCF) = NOPAT – Net investment in
operating capital Net investment in operating capital = – change in current assets (operating) +
change in current liabilities (operating) – change in net capital assets Current asset increase
represents an investment Current liability increase represents borrowing Net capital assets =
Increase in PPE – Depreciation Market Value Added (MVA) Consistent with shareholder wealth
maximization MVA = market value of common stock – initial value of equity capital example:
Google, Inc. Google went public (IPO) on August 19, 2004 at $85 per share Google stock value on
June 16, 2008 was $366.00 Shares Outstanding = 1.2B MVAGOOG = $439.2B – $102B = $337.2B
Economic Value Added (EVA) EVA

Bear & Co
Bear Stearns & Co
Bear Stearns & Co
Answer the following 10 questions, using the financial statement data from Blockbuster
Entertainment Corporation. Show your work (i.e., note what numbers you're using).
On May 9, 1989, Bear Stearns & Co. issued a report on Blockbuster Entertainment Corp., which is
reproduced in part below.
Blockbuster–Entertainment (Ticker symbol: BV, Price per share: $33 ½) increased owned and
franchised video stores from 19 at the end of 1986 to 415 at December 31, 1988. In the same period
revenue jumped from $7.4 million to $136.9 million. Reported earnings also leaped; from $.34 per
share in 1986 to
$.57 per share in 1988. The stock carries an historical Price to Earnings ratio of 59, and there were ...
Page 1 of 10
Bear Stearns & Co
6) What was the effect on earnings per share of these sales to franchisees?
E) BV charges franchisees various fees and discloses them in a somewhat confusing manner. The
income statement shows, in revenues:
Royalties and other fees $8,142,000
However, Note 1 to the financial statements lists:
Royalties and other fees $7,590,000
Area Development fees 550,000
Initial franchise fees
2,415,000
The first two items total to the income statement amount, the third seems to be buried, inexplicably,
in rental revenues.
7) What was the effect on 1988 earnings per share, of the non–recurring items: area development
fees and initial franchise fees?
8) What would BV's 1988 earnings per share be after all of the above adjustments?
9) Ignoring #3 above, what would BV's 1988 earnings per share be after the above adjustments?
10) What would BV's Price/Earnings ratio be, given all of the above adjustments (including #3)?

of 10
Bear Stearns & Co
Exhibit 2
Selected Excerpts: Blockbuster Entertainment Corporation 1988 Annual Report
BLOCKBUSTER ENTERTAINMENT CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
For the Years ended December 31,
(in thousands, except per share data)
1988
1987
1986
$87,299
41,452
8,142
136,893
$19,009
21.546
2,673
43,228
$ 2,893
4,247
298
7,438
31,343
63,638
15,567
15,923
16,429
4,162
3,511
5,152

Accounting: Questions and Answers
An aging of a company's accounts receivable indicates that $4,500 are estimated to be uncollectible.
If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts
for the period will require a debit to Allowance for Doubtful Accounts for $3,300. debit to Bad Debt
Expense for $4,500. credit to Allowance for Doubtful Accounts for $4,500. debit to Bad Debt
Expense for $3,300. The financial statements of the Melton Manufacturing Company reports net
sales of $300,000 and accounts receivable of $50,000 and $30,000 at the beginning of the year and
end of year, respectively. What is the average collection period for accounts receivable in days? 96.1
48.7 36.5 60.8 Stine Company purchased ... Show more content on Helpwriting.net ...
The journal entry to record the sale will include a debit to Cash for €16,000. a credit to Share
Capital–Ordinary for €88,000. a debit to Retained Earnings for €72,000. a credit to Share Premium–
Ordinary for €72,000. Zoum Corporation had the following transactions during 2014: 1. Issued
$125,000 of par value common stock for cash. 2. Recorded and paid wages expense of $60,000. 3.
Acquired land by issuing common stock of par value $50,000. 4. Declared and paid a cash dividend
of $10,000. 5. Sold a long–term investment (cost $3,000) for cash of $3,000. 6. Recorded cash sales
of $400,000. 7. Bought inventory for cash of $160,000. 8. Acquired an investment in Zynga stock
for cash of $21,000. 9. Converted bonds payable to common stock in the amount of $500,000. 10.
Repaid a 6 year note payable in the amount of $220,000. What is the net cash provided by financing
activities? $115,000. $<105,000>. $395,000. $<605,000>. Colie Company had an increase in
inventory of $120,000. The cost of goods sold was $490,000. There was a $30,000 decrease in
accounts payable from the prior period. Using the direct method of reporting cash flows from
operating activities, what were Colie's cash payments to suppliers? $370,000. $310,000. $640,000.
$580,000. Each of the following items may be classified as operating or financing activities under
IFRS except all of

Relative Financial Norms And Standards Within The Hospital...
Relative Financial Norms and Standards within the Hospital Industry
Hospitals and health systems in the U.S. are experiencing a remarkable transformation in their
business models directed from numerous influences that are projected to ultimately turn the industry
around. Pressures include providers troubled with the quantity of services they are responsible for,
to providers who concentrate on presenting high–cost services that give emphasis to sustaining
healthy populations (Dunn & Becker, 2013).
The hospital industry consist of privately and publicly owned and operated hospitals and medical
facilities. The financial backgrounds of these assorted categories of organizations are sizeable and
contrasted. Therefore, industry ratios are to be considered and evaluated from a greater proportion in
order to identify with the financial data involving the industry as a whole (Dunn & Becker, 2013).
Based on analysis and evaluation of the financial ratios gained from Nasdaq and Google Finance, it
is apparent that the hospital industry is gradually rising and supports increase in profitability. These
ratios are divided into several categories: Growth rates, financial strength, valuation, profitability,
efficiency, dividends, and management effectiveness.
The growth category is analyzed through the earnings per share (EPS) growth rate. The EPS five–
year growth rate of the hospital industry is 10.93% ("Price earnings ratios," n.d.).This ratio is a
widespread marker of industry

Chapter 8 assignment
Description / Instructions: Complete the following Week 1 Assignment in WileyPLUS: * Exercise
8–4 * Exercise 8–11 * BYP 8–1 * BYP 8–2 Question 1 The ledger of Wainwright Company at the
end of the current year shows Accounts Receivable $78,000; Credit Sales $810,000; and Sales
Returns and Allowances $40,000. (Credit account titles are automatically indented when amount is
entered. Do not indent manually.) (a) If Wainwright uses the direct write–off method to account for
uncollectible accounts, journalize the adjusting entry at December 31, assuming Wainwright
determines that Hiller's $900 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a
credit balance of $1,100 in the trial balance, journalize the adjusting ... Show more content on
Helpwriting.net ...
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF Cash Flows (in thousands) For the
year ended December 31, 2011 2010 2009 CASH FLOWS FROM OPERATING ACTIVITIES: Net
earnings $43,938 $53,063 $53,157 Adjustments to reconcile net earnings to net cash provided by
operating activities: Depreciation 19,229 18,279 17,862 Impairment charges – – 14,000 Impairment
of equity method investment – – 4,400 Loss from equity method investment 194 342 233
Amortization of marketable security premiums 1,267 522 320 Changes in operating assets and
liabilities: Accounts receivable (5,448 ) 717 (5,899 ) Other receivables 3,963 (2,373 ) (2,088 )

Reitmans Case Analysis
Reitmans is Canada's leading specialty retailer and was founded in 1926. This company is value
oriented, customer driven, and committed to excellence. The company strives to attend their
customers to the best products and services on the market by promoting innovation, growth and
teamwork. Reitmans has 867 stores across Canada including Smart Set, RW & CO., Thyme
Penningtons, and Addition Elle. They have approximately 566,000 sq. ft. of distribution space in
Montreal where they are capable of processing more than 55,000,000 units of merchandise per year.
It is the preferred destination for women looking to update their wardrobe with the latest styles and
colors for an affordable price.
During the fiscal period of 2005, sales increased ... Show more content on Helpwriting.net ...
Future income tax assets and liabilities are measured using enacted income tax rates expected to
apply to taxable income in the years in which temporary differences are expected to be recovered or
settled. Deferred financing costs, included in other assets, are amortized on a straight–line basis over
the term of the bank financing. Reitmans accounts for stock–based compensation and other stock–
based payments use the fair value based method. Basic earnings per share is determined with the
weighted average number of non–voting and common shares outstanding during the period. When
calculating diluted earnings per share, the weighted average shares outstanding are increased to
include additional shares from the expected exercise of options. The number of additional shares is
calculated by assuming that the proceeds from such exercises are used to repurchase non–voting and
common shares at the average market price during the reporting period. Deferred licensing revenue
is amortized on a straight–line basis. The financial statements and accompanying notes have been
prepared on a consolidated basis and reflect the consolidated financial position of Reitmans and its
wholly–owned subsidiaries. Merchandise inventories are valued at the lower of cost, determined
principally on an average basis using the retail inventory method and net realizable value. Income is
recorded on the accrual basis. Capital

Chapter 2
Ryan Jobe
Chapter 2
Problems 1–11
1. An investor recently purchased a corporate bond that yields 9%. The investor is in the 36%
combined federal and state tax bracket. What is the bond's after–tax yield?
Corporate Bond yield is 9%
The after tax yield is the return after taxes are deducted.
Therefore the bonds after tax yield = 9% (1–T) = 9% (1–.36)
Or 5.76%
2. Corporate bonds issued by Johnson Corporation currently yield 8%. Municipal bonds of equal
risk currently yield 6%. At what tax rate would an investor be indifferent between these two bonds?
You want the rate that equals the municipal tax exempt yield to the corporate after tax yield. 8% (1–
T) = after tax corporate yield 6% = municipal tax exempt yield ... Show more content on
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Assume the firm receives an additional $1 million of interest income from some bonds it owns.
What is the tax on this interest income?
Tax =.35 ($1,000,000) = $350,000
c. Now assume that Wendt does not receive the interest income but does receive an additional $1
million as dividends on some stock it owns. What is the tax on this dividend income?
Tax = .35 (.30 * $1,000,000)
Tax = .35 ($300,000)
Tax = $105,000
9. The Shrieves Corporation has $10,000 that it plans to invest in marketable securities. It is
choosing among AT&T bonds, which yield 7.5%, state of Florida municipal bonds, which yield
5% (but are not taxable), and AT&T preferred stock, with a dividend yield of 6%. Shrieves's
corporate tax rate is 35%, and 70% of the dividends received are tax exempt. Find the after–tax rates
of return on all three securities.

The after tax yield on the Florida Municipal bonds = 5%
The after tax yield on the AT&T Corporate binds = 7.5% (1–.35) = 4.875%
After tax yield AT&T preferred: $1,000 of preferred
Annual Dividend: $1,000 * 6% = $60 $60 * 70% = $42 is exempt from taxes
$60 – $42 = $18 is taxable, your tax is $18 * .35 = $6.30
Net after tax dividend = $60 – $6.30 = $53.70
Your after tax yield on of AT&T preferred = $53.70 / $1,000 = 5.37%
AT&T preferred stock is the best alternative
10. The Moore Corporation has operating income (EBIT) of

Financial Management Of Health Care Sector
Financial management in health care sector has become vital in various ways. The choices in
financing have an impact on the efficiency on the production and supply of health care services.
With the growth of the healthcare industry has come the need for healthcare administrators to make
increasing use of financial information and techniques in their decision making. Although
organizations have individuals who focus almost exclusively on financial operations, managers in
any area of operations are expected to make decisions based on financial information and generally
accepted accounting principles. This paper discusses challenges, responsibilities, and financial
analysis tools available in developing a comprehensive understanding of the ... Show more content
on Helpwriting.net ...
Overall, the interviews suggest a portrait of the ethically intelligent financial executive. Ideally, the
executive will have received some training or education to provide increased sophistication
regarding the area of ethics and concrete tools to assist in maintaining one's integrity and resolve
ethical dilemmas. Self–confidence and related competencies such as assertiveness, communication
skills, self–control, and stress management can be critical in maintaining ones integrity especially
when navigating ethical behavior.
The second article provides a review of the most useful financial analysis tools available to achieve
objective is benchmarking, a well–established and long accepted process of financial analysis that
can assist managers and their professional advisors, including valuators, in developing a
comprehensive understanding of the operating performance and financial status of their organization
as a Subject Entity. Benchmarking techniques are often used to determine the degree to which the
Subject Entity varies from comparable healthcare industry norms, as well as to provide vital
information regarding its trends in internal operational performance and financial status. An
appropriate and successful application of benchmarking

CompExam E Accepted Essay
COMPREHENSIVE EXAMINATION E
PART 5
(Chapters 18–21)
Approximate
Problem Topic Time E–I Long–Term Contracts. 15 min. E–II Installment Sales Method. 20 min. E–
III Deferred Income Taxes. 25 min. E–IV Pensions. 15 min. E–V Leases. 25 min. 100 min.
Problem E–I – Long–Term Contracts.
Edwards Company contracted on 4/1/14 to construct a building for $2,400,000. The project was
completed in 2016. Additional data follow:
2014 2015 2016 Costs incurred to date $ 560,000 $1,350,000 $1,900,000 Estimated cost to complete
1,040,000 450,000 – Billings to date 500,000 1,900,000 2,400,000 Collections to date 400,000
1,300,000 2,200,000
Instructions
(a) Calculate the income recognized by ... Show more content on Helpwriting.net ...
(Note: this lease was an operating lease and Dexter classified the unearned rent as a current liability
on its balance sheet.)
4. Dexter owns $200,000 of bonds issued by the State of Oregon upon which 5% interest is paid
annually. In 2015, Dexter showed $10,000 of income from the bonds on its income statement but
did not show any of this amount on its tax return. (Note: these bonds are classified as long–term
investments on Dexter's balance sheet.)
5. In 2015, Dexter insured the lives of its chief executives. The premiums paid amounted to $12,000
and this amount was shown as an expense on the income statement. However, this amount was not
deducted on the tax return. The company is the beneficiary.
Problem E–III (cont.)
Instructions
Assuming that the income statement of Dexter Company showed "Income before income taxes" of
$1,500,000; that the enacted tax rates are 30% for all years; and that no other differences between
book and taxable incomes existed, except for those mentioned above:

(a) Compute the income taxes payable.
(b) Prepare a schedule of future taxable and (deductible) amounts at the end of 2015.
(c) Prepare a schedule of deferred tax (asset) and liability at the end of 2015.
(d) Compute the net deferred tax expense (benefit) for 2015.
(e) Make the journal entry recording income tax expense, income taxes payable, and deferred
income taxes for 2015.
(f) Indicate how income tax expense and any deferred income taxes

Kohl's & Dillards'
FINANCIAL ACCOUNTING
Kohl's Corporation and Dillard's Inc. – Financial Statement Analysis
A.
Kohl's Corporation and Dillard's Inc. are in the retail industry which is a highly competitive
industry. There are a high number of retail stores, department stores which compete between each
other on local, regional and national level. That competitiveness is highly influencing operating
results of the company.
The importance of the retail industry emphasizes the sentence below:
"An estimated two–thirds of the U.S. gross domestic product (GDP) comes from retail consumption.
Therefore, store closings and openings are an indicator of how well the U.S. economy is recovering
after the Great Recession in the late 2000's."[1] ... Show more content on Helpwriting.net ...
|
| Loss on disposal on assets |–0.2% |–0.2% |0.0% |
| Asset impairment and store closing charges |0.3% |0.0% |0.8% |
|Operating Income |2.1% |4.4% |3.0% |
|Other expenses interest |1.2% |1.1% |1.4% |
|Income before income taxes |0.8% |3.3% |1.6% |
|Provision for income taxes |0.2% |0.3% |0.2% |
|Equity of earning in joint ventures |0.1% |0.2% |0.1% |
|Net income |0.7% |3.1% |1.6% |
KOHL'S CORPORATION COMMON – SIZED BALANCE SHEET
|Current Assets | Feb 2, 2008 | Feb 3, 2007 | Jan 28, 2006 |
| | | | | |
| |Cash |1.7%

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