the same rate as projected sales. At the end of 2012‚ current liabilities were $1.4 million‚ consisting of $450‚000 of accounts payable‚ $500‚000 of notes payable‚ and $450‚000 of accruals. The after-tax profit margin is forecasted to be 6%‚ and the forecasted payout ratio is 40%. Use the AFN equation to forecast Brous- sard’s additional funds needed for the coming year. Required increase in assets – Increase in spontaneous liabilities – Increase in retained earnings = AFN AFN=($5/$8)*$1.2 – ($1
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standard-setting body in the United States. True T False Internal users are those who manage the business. True T False False An expense paid with cash would result in an equal decrease in liabilities and owner’s equity. True False 1 Wenzhou-Kean University Fall 2013 ACCT 2200 F 9. Liabilities represent the ownership claim on total assets. True F 10. Certified Public Accountants are only permitted to prepare audit reports and tax returns. True F 11. 12. 13. 14. 15. 16. False
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when due. Suppose a company has cash of $40 million‚ accounts payable of $30 million‚ and no other current assets or liabilities. The current ratio and quick ratio would both be 1.33 to 1. Now suppose that the company used $20 million to pay a like amount of accounts payable. This transaction should have no special significance‚ as both the very liquid assets and the current liabilities would be reduced by the
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Chapter 13 Current Liabilities and Contingencies Part A: Current Liabilities * Liabilities and owners’ equity on the right-hand side of the equation represent the two basic sources of the assets on the left-hand side. * Characteristics of Liabilities 1. Are probable‚ future sacrifices of economic benefits. 2. Arise from present obligation (to transfer goods or provide services) to other entities. 3. Result from past transactions or events. * Current Liability * Obligations
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Case Study: TCO‚ E-Commerce Sara Soltanzadeh Fairleigh Dickinson University Table of Contents Introduction Page 3 Background Page 4 Application of Concepts TCO Page 4 E-commerce Page 6 E-commerce advantages and disadvantages Page 6 Treats Page 8 Solution to E-commerce treats Page 9 Conclusion Page 10 References Page 11 Appendix Page 12 Introduction Establishing
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INTRODUCTION British American Tobacco (Malaysia) Berhad (BAT) has a history of over 90 years in Malaysia‚ which is the No.1 Malaysian cigarette company. It conduct imports‚ and sells cigarettes‚ cigars‚ and pipe tobacco under the names Dunhill‚ Kent‚ and Pall Mall‚ among others. These unrivalled portfolios making them the clear market leader in Malaysia with over 60% market share‚ and ranks amongst the top 25 companies on Bursa Malaysia Securities Berhad in terms of market capitalisation. Some quality
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(c) (d) (b) (c) (e) (c) (a) (b) (c) (c) (c) (c) EXERCISE 1. Fill in the Blanks 1.1 (a) Increase in liabilities (b) Increase in Equity (c) Decrease in any other asset 1 “Suggested Solutions to Exercise” in Financial Accounting for Management by Ramachandran & Kakani Authored by Ram Kumar Kakani‚ “Copyright with Tata McGraw Hill Education Private Limited‚ 2011” 1.2 (a) (b) (c) 1.3 Liabilities 1.4 1.5 Asset 1.6 1.7 Increase; decrease 1.8 1.9 Footnotes 1.10 2) True or False Statements
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Student Course Date Instructor Accounting Equation Paper The accounting equation which we know as Assets equals to Liabilities plus Equity for a sole proprietorship and for a corporation we know it as Assets equals to liabilities plus stockholders & equity. Assets are company owned‚ liabilities are what company owes and the difference between the both of them is the owner’s equity‚ these three things are what the companies are measured by in the financial
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(its equity and liabilities). It normally also provides information about the future earnings capacity of a company ’s assets as well as an indication of cash flows that may come from receivables and inventories. Liabilities represent obligations of a company arising from past events‚ the settlement of which is expected to result in an outflow of economic benefits from the entity. First of all‚ the accounts payable is carrying value as of the balance sheet date of liabilities incurred and for
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to the correct address 2. Years customer has been in this business Other – establishes track record and history 3. Total assets and estimates of values of assets in the business Economic – establishes size of asset base of business 4. Total liabilities (total commitments) Economic – establishes how much the business currently owes others to assess the extent of claims against assets 5. Profits of the business for the most recent and previous periods Economic – used to assess whether the business
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