In Class Exercises Using Equity Method SOLUTION Example 1 : Assume B (the investee) has the following simplified balance sheet: Assets $100‚000 Liabilities $ 60‚000 Equity $ 40‚000 Prepare journal entries for the INVESTOR (A) for the following events: (a) A (the investor) pays $10‚000 for a 25% interest in B. A has significant influence. Dr.
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Strategic Management Plan for Union Bank (http://www.unionbankph.com) Prepared by: Geraldine S. Lungay Student number 200701175 – MKA 31 March 12‚ 2013 Table of Contents Title Page Number I. Executive Summary ................................................................................... 10 II. Company Background ............................................................................... 3 III. Competitive
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Case 2-2: 1. With respect to the adjustments related to goodwill‚ answer the following: a. Why does the adjustment for goodwill amortization increase net income under Country A GAAP but decrease net income under Country B GAAP? The adjustment for goodwill amortization increases net income under Country A GAAP but decrease net income under Country B GAAP because of how SKD amortizes goodwill for a period of 20 years while for Country B goodwill is only amortized for a period of 5 years. This leads
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C7 1. Sales - Cost of goods sold = Gross margin 2. Cost of goods sold = Beginning inventory + Purchases – Ending inventory 3. Inventory is reported on the balance sheet at replacement cost when it is less than cost. 4. Inventory turnover (3.79) = Cost of goods sold ($750‚000) ÷ Average inventory ($188‚000 + $208‚000)÷ 2 5. Average days to sell inventory (96.3) = 365 days ÷ Inventory turnover (3.79) 6. Average days to sell inventory (96.3) = 365 days ÷ Inventory turnover (3.79) 7. LIFO cost of goods
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Introduction Starbucks is world brand. Starbucks story began in 1971. Back then we were a roaster and retailer of whole bean and ground coffee‚ tea and spices with single store in Seattle’s Pike Place Market. Today‚ Starbucks are privileged to welcome millions of customers through our doors every day‚ in more than 16000 locations in over 50 countries. Starbucks products are coffee‚ handcrafted beverages‚ merchandise‚ fresh food‚ consumer products and brand portfolio. Starbucks believed in serving
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Ben Castro Period 4 Mr. McManus Rape of Nanking The Rape of Nanking should be turned into the next big blockbuster because of the producers ability to create this movie like no other. This movie could follow the journey of Nazi‚ John Rabe‚ and his journey to prevent exploiting people in the rape of Nanking. Rabe was one of two dozen people in his group or protectors that created a safe haven for Chinese citizens. Rabe ended up saving a total of about 300‚000 men‚ women‚ and children from being
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titles for unlimited monthly DVD rental with free shipping as well as zero late and per title rental fees. It was very attractive for customers to make subscriptions on the spot as they were tempted with the incredible Netflix service. For example‚ Blockbuster subscribers found Netflix ’s offers more appealing and it was easy for them to make the switch. (Wikipedia‚ 2014) Netflix has been always open to new opportunities that Hastings believes it will sustain the company ’s competitive advantage. A new
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Strategic Management 4850 Case Write-up #2 Adidas in 2009: Has Corporate Restructuring Increased Shareholder Value? 1. What generic corporate strategy is Adidas pursuing? Is this strategy the same for all its business units? 2. Was there a common strategic approach utilized in managing the company’s lineup of sporting goods businesses prior to its 2005 – 2006 restructuring (related versus unrelated diversification)? Has the corporate strategy changed with restructuring? Provide examples to
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Los Angeles‚ the largest city in California‚ was founded in 1781 and plays an important role in building the great‚ famous state of California. Many of the things that are associated with the idea of California are centered in Los Angeles. In some ways‚ Los Angeles is California. Los Angeles is an awesome city and one of the best places in the world to live. Despite the traffic which consumes hours of an Angelino’s daily life‚ it is an amazing place. When we talk about Los Angeles‚ we must start
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To: Senior Management Team From: Business Analyst Date: January 1‚ 2007 Subject: Netflix Business Model Analysis Netflix is an online subscription-based DVD rental service that promises to connect their customers to the movies and television shows they love through means of sending discs through the mail or streaming them directly via the internet. For only $7.99 per month‚ Netflix offers their customers unlimited access to their massive video library (>70‚000 titles as of year-end 2006)
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