WARF COMPUTERS‚ INC. Financial Analysis Hirra Zahir‚ Marcus Vaughn‚ Alejandro Romero‚ Kevin Zabihi WARF COMPUTERS | Statement of Cash Flows | 2012 | ($ in thousands) | | | | | | | | | | Operations | | | | | | | | | Net income | | | | | $ | 896 | | Depreciation | | | | | | 191 | | Deferred taxes | | | | | | 130 | | Change in assets and liabilities | | | | | | | | Accounts receivable | | | | | (37) | | | Inventories
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total present value of the perpetuity: PV = (1/.10)/(1.10)7 = 10/2= $5 (approximately). c. A perpetuity paying $1 starting now would be worth $10‚ whereas a perpetuity starting in year 8 would be worth roughly $5. The difference between these cash flows is therefore approximately $5. PV = $10 – $5= $5 (approximately). d. PV = C/(r − g) = 10‚000/(.10-.05) = $200‚000. Est time: 06-10 9. a. PV = 600‚000/(1.055) = `470‚115.7 (assuming the cost of the car does not appreciate over those
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Introduction/Background Since Amazon.com’s founding in 1994 it has gone from a company that sold books out of a garage to a multinational e-commerce juggernaut that now boast over $61 Billion dollars in revenue. Founded by Jeff Bezos in 1994‚ and launched in 1995 Amazon.com began as an online bookstore that quickly diversified to an array of different products such as toys‚ VHS‚ music etc. This diversification has helped Amazon grow in the past two decades. When the dot-com bubble burst in the late
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projects‚ balancing cash inflow & cash outflow and developing future financial strategy of the company. Managers believe that finance promotes a better understanding among departments and assist them to achieve corporate strategy (Shim & Siegel‚ 2008‚ p.5-7). There are different tools through which the management analyses the efficiency of their financial management strategy. Few of the commonly used tools are ratio analysis‚ budget forecasting and analysing‚ net future cash flow though NPV. Management
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six days a week. Because of the change in the use of the building‚ Bateman is evaluating the building for possible impairment. Bateman estimates that the building has a remaining useful life of 10 years‚ that its residual value will be zero‚ that net cash inflow from the building will be $400‚000 per year‚ and that the current fair value of the building is $2‚500‚000. Required. a. How much impairment loss should be recorded? b. Record depreciation expense for 2013. 1 2 Problem 2 The Pentella
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Clarkson Lumber’s Company Case Analysis Part 2 GROUP A: ANA GABRIELA SOTILLO JOHNSON FABIAN FREIHERR VON ROSEN IMRE IGNACIO SZAPARY GIL-CASARES RAYAN SEIF STEFAN RADISAVLJEVIC VERENA RIEDHART YANIS ALEM IE business School Section 4 September 2014 Question 1. How attractive is it to take the trade discounts? In order to determine how attractive it is to avail the trade discounts‚ Clarkson should calculate his annualized interest rate which he can get in return if he avails the trade
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implementing the system. Some of which included cash-flow problems and having to retrain and hire new staff with the necessary expertise to operate such a system. A2. Key Stakeholders and their Preferences The Chairman and the board are key stakeholders because if the system succeeds or fails will have direct impact on company financial results‚ which impacts compensation/career. Salman Rehmatallah‚ CIO and Atif Ameen‚ ERP manager (recently quit due to cash constraints) are in charge of implementing
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and monitoring cash and businesses and “right-sizing” Williams to reflect the new scope of operations. However‚ Williams had a substantial amount of short-term and long-term debt maturing in the second half of 2002. In addition‚ its credit and commercial paper facilities needed to be renewed about the same time. With approximately $450 million dollars of cash on hand and only one undrawn revolving credit facility‚ Williams sought external financing to help meet its current cash flow needs. One
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making a capital investment decision‚ should we focus on cash flows or accounting profits. The book is stating “In measuring wealth or value‚ we will use cash flows‚ not accounting profits‚ as our measurement tool. That is‚ we will be concerned with when the money hits our hand‚ when we can invest it and start earning interest on it‚ and when we can give it back to the shareholders in the form of dividends. Remember‚ it is the cash flows‚ not profits that are actually received by the firm and can
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complete. They later sold EA’s valid in 2016 for $2 million. The total costs for the equipment upgrades are expected to be $15 million. In ASC 230-10-45‚ which deals with the overall presentation of the statement of cash flows‚ Paragraph 13c says that “… the following are cash outflows for investing activities: c. Payments at the time of purchase or soon before or after purchase to acquire property‚ plant‚ and equipment and other productive assets…” To confirm that an EA is a productive asset
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