term lenders o Will be most interested in ▪ Debt to total assets but also in ▪ Liquidity ratios • Current ratio • Quick ratio • As they want to be sure the business can meet its commitments ▪ Profitability ratios • Profit margin • Return on assets • Return on equity • As they are interested
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statements‚ I then computed the liquidity‚ asset management and profitability ratios. I then compared McDonald’s to the industry ratios to see how they compared to their competition. Finally I will answer these questions: (1) If you were an investor‚ would you buy this company’s stock? Why or why not? (2) If you were a commercial lender‚ would you approve a loan for this company? Why or why not? Liquidity Liquidity ratios look at a company ability to turn an asset into cash quickly so they are able
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for the cruise ship as of December 31‚ 2010? In addressing this question‚ consider: The following are the required steps to identify‚ recognize and measure the impairment of a long-lived asset (group) to be held and used: Step 1: Indicators of impairment — FASB ASC 360-10-35-21 “A long-lived asset (asset group) shall be tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable.” In this case‚ there is a possibility of
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According to FASB ASC 715-30-35 35-22 Gains and Losses Asset gains and losses are differences between the actual return on plan assets during a period and the expected return on plan assets for that period. Asset gains and losses include both changes reflected in the market-related value of plan assets and changes not yet reflected in the market-related value (that is‚ the difference between the fair value of assets and the market-related value). Gains or losses on transferable securities
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reporting purposes. For example‚ an inventory item originally purchased for $50 that has a current market value of $30 would appear on an entity’s balance sheet at $30. The use of lower of cost or market is considered a conservative method of valuing assets. Because inventory value may fluctuate over a period of time‚ due to things like theft‚ depreciation and because demand for a particular inventory item may not be as high as it once was‚ there needs to be a system that takes all of these factors
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Najmun Nahar Srity Return on Asset (ROA): ID.No.091-11-924 Figure: Return on Asset (ROA) Interpretation: ROA (Return on Asset): ROA is a indicator of managerial efficiency‚ it indicates how capable the management of bank has been converting the institution’s assets into net earnings. In this example‚ the DBBL earned in year
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Balance sheet As at Dec 31‚ 2012 (millions) Assets Current Assets Cash 8‚442 Short-term Investments and Marketable Securities 8‚109 Inventories 3‚264 Prepaid Expenses 2‚781 Other Current Assets
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capitalized. Meanwhile‚ Zynga’s R&D costs are directly related to the production of the games hence generating profits. It is a resource of future economic benefit that owned and under control of the company‚ therefore economically could be treated as assets. Q2. By a 3-year straight-line depreciation method‚ the revised R&D cost is calculated by 1/3*Rt+1/3*Rt-1 + 1/3*Rt-2 Rev | $ 19.41 | $ 121.47 | $ 597.46 | $ 1‚140.10 | Cost of Rev | $ (10.02) | $ (56.71) | $
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bad idea. Some things I am going to consider are Apple’s assets‚ liabilities‚ and shareholder’s equity. These areas should give me insight to how the best quarter in Apple history came to be. Looking at the current assets of Apple‚ cash and cash equivalents went down from 11.8 billion dollars to 4.4 billion dollars. This may look bad at first‚ but all of the other assets must be added to this in order to get an overall picture of the assets. Short-term marketable securities went up from 10.2 billion
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Amount % Ratio Assets Current Assets 26‚965 23‚823 3142 13% 1.13 Financial assets at fair value through profit or loss 186 237 -51 -22% 0.78 Available-for-sale financial assets 51 - Trade and other receivables-net 57‚731 26‚605 31126 117% 2.17 Inventories 49‚582 37‚763 11819 31% 1.31 Other current assets 10‚750 8‚178 2572 31% 1.31 145‚265 96‚606 48659 50% 1.50 Assets held for sale 588 10 578 5780% 58.80 Total Current Assets 145‚853 96‚616 49237 51% 1.51 Noncurrent Assets 860 1‚036 -176
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