Question 4
When it comes to regulating the stock industry and protecting
investors, one government agency...
Question 4
When it comes to regulating the stock industry and protecting
investors, one government agency stands above the rest. This agency
ensures that companies provide investors with timely and accurate
information. It also helps investors when they have a problem with
a brokerage firm and maintains a data base of complaints lodged
against individual financial professionals. This agency is
called:
NASDAQ
Federal Trade Commission
Federal Deposit Insurance Corporation
Securities and Exchange Commission
Brokerage Board
Question 5
Which of the...
(i)
Company A reports under IFRS and uses the FIFO method of
inventory accounting. Company B...
(i)
Company A reports under IFRS and uses the FIFO method of
inventory accounting. Company B reports under US GAAP and uses the
LIFO method.
Company A
(FIFO)
Company B
(LIFO)
Current assets (includes inventory)
$300,000
$80,000
LIFO reserve
Not applicable
$20,000
Current liabilities
$150,000
$45,000
Based on the data given above, compare the liquidity of the two
companies as measured by the current ratio.
(ii)
An analyst is evaluating the financial statements of two
companies in the same industry....
The financial statements for Royale and Cavalier companies are
summarized here:
Royale
Company
Cavalier
Company
Balance...
The financial statements for Royale and Cavalier companies are
summarized here:
Royale
Company
Cavalier
Company
Balance Sheet
Cash
$
26,000
$
46,000
Accounts Receivable, Net
56,000
17,000
Inventory
112,000
27,000
Equipment, Net
552,000
162,000
Other Assets
141,000
47,000
Total Assets
$
887,000
$
299,000
Current Liabilities
$
122,000
$
17,000
Note Payable (long-term)
192,000
57,000
Common Stock (par $20)
481,000
211,000
Additional Paid-In Capital
51,000
5,000
Retained Earnings
41,000
9,000
Total Liabilities and Stockholders’ Equity
$
887,000
$
299,000
Income...
Accounting for Financial Management: Free Cash
Flow
The focus on traditional financial statements is
-Select-marketaccountingreplacementItem 1...
Accounting for Financial Management: Free Cash
Flow
The focus on traditional financial statements is
-Select-marketaccountingreplacementItem 1 data rather than cash
flow. However, cash flow is important to investors, managers, and
stock analysts. Therefore, decision makers and security analysts
need to modify financial statement data provided to them. An
important modification is the concept of free cash flow (FCF). Many
analysts regard FCF as being the single and most important number
that can be developed from the income statements, even more...
In the reading this week, you have learned about the different
approaches that organizations may use...
In the reading this week, you have learned about the different
approaches that organizations may use in order to align management
compensation with financial performance including the advantages
and disadvantages of such compensation structures.
In this assignment, you will compare and contrast two
organizations that have management compensation plans tied to
organizational performance. You will essentially compare and
analyze one company that you believe has been successful using this
approach and evaluate another company that you believe has failed
or...
6. Market value ratios
Ratios are mostly calculated using data drawn from the financial
statements of...
6. Market value ratios
Ratios are mostly calculated using data drawn from the financial
statements of a firm. However, another group of ratios, called
market value ratios, relate to a firm’s observable market value,
stock prices, and book values, integrating information from both
the market and the firm’s financial statements.
Consider the case of Cute Camel Woodcraft Company:
Cute Camel Woodcraft Company just reported earnings after tax
(also called net income) of $9,250,000 and a current stock price of
$39.50...