observations has been done for 40 companies. The capital structure is determine by debt ratio as expressed by total debt divided by total assets. Seven independent variables has been used included firm size‚ asset structure‚ profitability‚ growth‚ liquidity‚ return on investment and net working asset. For the firm size‚ it is measured by log of the total assets. The positive relationship shows that bigger firms has higher leverage as compared to smaller firms. Lenders have higher confidence to
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Financial Analysis XACC/280 February 05‚ 2012 The two major companies that manufacture beverages are PepsiCo and the Cocoa-Cola Co. These two companies have been in competition for many years and both companies have a variety of choices when purchasing one of their beverages. These companies can be identified through their products such as; if a person were to buy a Pepsi the person
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associated with it. 1. Research and Development CostsAmortizationFranchiseGoodwillIntangible Assets Rights‚ privileges‚ and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance. 2. FranchiseGoodwillIntangible AssetsResearch and Development CostsAmortization The allocation of the cost of an intangible asset to expense in a rational and systematic manner. 3. AmortizationResearch and Development CostsIntangible
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depreciation is still being charged for the machines even though they are now being measured under the revaluation model. Answer- Depreciation means expiration of the cost of the fixed assets concerned during the period for which accounts are being prepared in other words it means the cost of the fixed assets used up during the period. This must be treated as cost or expense and debited to the profit & loss Account otherwise the profit will not be assessed correctly. Under revaluation model also
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Actual As of April 30‚ 2016 Apr 30‚ 16 ASSETS Current Assets Checking/Savings Bank of Florida Short-Term Investments $ Over Budget % of Budget 76‚237.45 19‚600.00 60‚000.00 30‚000.00 16‚237.45 -10‚400.00 127.1% 65.3% Total Checking/Savings 95‚837.45 90‚000.00 5‚837.45 106.5% Accounts Receivable Accounts Receivable 492‚017.50 500‚000.00 -7‚982.50 98.4% Total Accounts Receivable 492‚017.50 500‚000.00 -7‚982.50 98.4% Other Current Assets Inventory Boats Inventory Parts Prepaid
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are recognizes in A/R control account (general ledger) & A/R subsidiary ledger—initially recognized when the sale occurs‚ at invoice amount (less sales R&A) ! Amounts owed by customers are reported on: (1)The statement of financial position(current asset section)—but at what amount(value)? Some will not pay (2)this involves choosing one of the 2 methods to account for these uncollectable accounts (bad debts) Direct write-off method & Allowance method 3. Decision Flowchart ! 1. Direct write-‐off
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Coca Cola’s Financial Analysis Coca Cola’s Financial Analysis Danielle Nicole Lewis Hawaii Pacific University Coca Cola’s Financial Analysis: History and Current Introduction History The Coca Cola Corporation is an American Icon of business that has established a new direction for American Industry operations in the 20th century. According to Moxley (2002)‚ “Beginning with its invention in 1886 by druggist John “Doc” Pemberton in Atlanta‚ the development of the product is shown‚ along
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is: a) Earnings before Interest/Sales * Sales/Assets * Assets/Equity * Earnings before interest/Net Income b) Net income*asset turnover*tax rate c) Return on Assets (ROA)*financial leverage d) Both a) and c) 2. Which of the following is true a) Return on Assets is influenced by financing activities b) ROE is not affected by financial structure c) Profit margin is a measure of asset efficiency d) None of the above 3. Assume
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various topics. As a Staff employee‚ there must be precise communication with clients regarding topics that include adjusting lowering cost of market inventory on valuation‚ capitalizing interest on building construction‚ recording gain or loss on asset disposal and adjusting goodwill for impairment. Market Inventory There are various ways to lower the market inventory on valuation. In some cases it is permissible to reduce the recorded value of inventory to the lower of its cost or market value
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Ratio=Current Assets/Current Liabilites i. Chem Med’s Current Ration=1720/593=2.9 j. Pharmacia is given as 2.8 k. Industry average given as 2.4 l. Chem Med’s predicted 2010 Current Ration=1.98 m. The problem overlooked: Dr. Swan’s banker required a current ratio of 2.25/1 to be MAINTAINED. 4. Using the debt to total assets ratio on pg 63 of the text (Total liabilities is the same as total debts in Figure 2): 2007 Debt to total assets ratio=Total Debt/Total Assets
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