Case 5-1 Stern Corporation (a) Individuel Case Study After the controller of Stern Corporation had ascertained the changes in accounts receivable and the allowance for doubtful accounts in 1998‚ a similar analysis was made of property‚ plant‚ and equipment and accumulated depreciation accounts. Again the controller examined the December 31‚ 1997‚ balance sheet [see Exhibit 1 of Stern Corporation (A)]. Also reviewed were the following company transactions that were found to be applicable to these
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Product Gross Margin Calculation vs. Product Contribution Margin Calculation Assigning the overhead costs to the products shows how profitable the products are after deducting all cost. However‚ it is important to find the appropriate method of overhead cost allocation. In Sippican’s case the traditional accounting method is used‚ which does not reflect the real resource usage of the different product lines. The correct method in this case would be to apply the time-driven ABC approach for cost
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I. INTRODUCTION Monde Nissin Corporation has been giving the Filipino consumers high quality products and excellent service for almost 23 years now. Incorporated in 1979‚ the first Nissin biscuit rolled out of the Laguna Plant in June of 1980. Since then‚ Nissin Biscuits has been a consistent top biscuit player in the market. Among the first fast selling biscuits were Nissin Butter Coconut and Nissin Wafer With the company’s drive for excellence and continuous innovation‚ from the company’s
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Strategic Audit of a Corporation I. Current Situation A. Current Performance . How did the corporation perform the past year overall in terms of return on investment‚ market share‚ and profitability? B. Strategic Posture What are the corporation’s current mission‚ objectives‚ strategies‚ and policies? 1. Are they clearly stated or are they merely implied from performance? 2. Mission: What business(es) is the corporation in? Why? 3. Objectives: What are the corporate‚ business‚ and
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Adjustment 2‚694.80 Investment in Subsidiary 29.50 Cumulative Translation Adjustment 29.50 Investment in Subsidiary 15‚381.80 Cumulative Translation Adjustment 15‚381.80 Lee Corporation Statement of Changes in Stockholder’s Equity For the year ended on December 31‚ 2007 Common Stock Additional Paid-in Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive Income Total Stockholder’s
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CORPORATION LAW INTRODUCTION Definition and attributes of a corporation A corporation is an artificial being created by operation of law‚ having the right of succession and the powers‚ attributes and properties expressly authorized by law or incident to its existence. A corporation‚ being a creature of law‚ "owes its life to the state‚ its birth being purely dependent on its will‚" it is "a creature without any existence until it has received the imprimatur of the state acting
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Compiled by: Mirza Rohail B http://economicpakistan.wordpress.com/2008/01/27/large-scale-manufacturing/ The manufacturing sector grew at an average rate of 8 percent from the sixties to the eighties‚ but fell to 3.9 percent during the nineties. This was mainly caused by reduction in investment levels due to lack of continuity and consistency in policies. Political instability law and order position in the major industrial centers‚ transport bottlenecks‚ as well as unreliability and inadequate
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within the RM3.6bn-3.9bn budget. We upgrade MAHB from Neutral to Outperform as the stock has underperformed by 13% over the past year and could be catalysed by the completion of KLIA2 and Malindo’s surprise entry. The latter leads to a higher DCF‚ against which we factor in a new 10% discount to derive our end-2013 target price until KLIA2 completion risks pass. Our FY12-13 EPS are cut for higher staff costs. 3.9% to 5.3% to account for Malindo’s entry into Malaysia. We are only assuming that Malindo
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Materiality If we were investors in this company‚ we would consider 5% to be material. The company does not seem to have any high risk of fraud or material misstatement‚ so we are very comfortable with the quality of its financial reporting. A misstatement of 5% or above in any of the significant company accounts‚ or a combined misstatement of 5% or above for the company accounts as a whole‚ would require increased investigation and would reduce our confidence in the records. Any misstatement
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Question 1 Harnischfeger’s corporate recovery plan was a four pronged approach that involved (1) changes in top management‚ (2) cost reductions to lower the break-even point‚ (3) reorientation of the company’s business and (4) debt restructuring and recapitalization. These changes at first glance appear to have allowed Harnischfeger to improve its financial performance from a net loss of $3.49 per share in 1983 to a net gain of $1.28 per share in 1984. In addition‚ Harnischfeger has appeared
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