CHAPTER 13 NON-FINANCIAL AND Current liabilitieS SOLUTIONS TO EXERCISES EXERCISE 13-1 (10-15 minutes) (a) Classifications on balance sheet prepared under ASPE: 1. Current liability; financial liability. 2. Current asset. 3. Current liability or long-term liability depending on term of warranty; not a financial liability. 4. Current liability; financial liability. A company would have an obligation to pay cash to the bank for any overdraft and this would result from the contractual
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unsure of her decision on Nike stock; she proceeded to ask Joanna Cohen to estimate Nike’s weighted average cost of capital. IV. Constraints on Solution Cohen calculated a weighted average cost of capital of 8.4 percent by using the capital asset pricing model for Nike Inc. Cohen’s calculations are incorrect because she used the book value for both debt and equity. When calculating cost of capital‚ the
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L.L. Bean‚ Inc. Case Study 1. What item costs and revenues are relevant to the decision of how many units of that item to stock? The two main basic components that are relevant in determining how many units of an item that L.L Bean should stock are the cost of the item for L.L. Bean and also the price at which they can sell the item. Calculating these two figures‚ selling price minus the item’s cost‚ will give L.L. Bean their profit margin‚ which in turn relates to the cost of understocking
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1. What factors contributed to Andrew Keller starting the biodiesel business? Were you surprised at the reasons he gave for starting the business? Do you think the decision to start the business was wise? Why or why not? There were a number of factors that contributed to Andrew Keller starting the biodiesel business. Keller had always been concerned with the environment. He was interested in coming up with a greener alternative to home heating and fueling. This was a business venture that not
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Bean Zone Internal (Part Two) Perpetual Inventory System How does it work? The perpetual inventory system keeps a running record of all inventory that should be on hand. The system requires the use of inventory cards (or other ledger accounts) that record whenever inventory‚ e.g. Arabica beans‚ are bought or sold‚ to keep a record of the inventory the business (Bean Zone) should have by increasing or decreasing the inventory account. In addition‚ it keeps a running record of cost of goods sold
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“HIGH EXPECTATIONS OF CUSTOMERS AND GROWING UNCERTAINITIES IN COSTS MAKES IT IMPERATIVE TO CUT COSTS WITH OPERATIONAL EXCELLENCE USING LEAN TECHNIQUES” Analytically examine this statement and explain importance of Lean in Today’s Global uncertainties. Along with the economical uncertainties‚ several market drivers are putting companies under strong pressure. Regulators are strongly encouraging companies to reduce their operating costs for regulated businesses (i.e. transport and distribution of
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. Introduction The common bean (Phaseolus vulgaris L.) is the most important food legume crop grown worldwide (Wortmann and Allen‚ 1994; Wortmann et al.‚ 1998; Buruchara‚ 2006). Beans are considered by many to be the perfect food as they are nutrient dense with high contents of protein‚ micronutrients especially iron and zinc‚ vitamins‚ and dietary fibre (Wortmann and Allen‚ 1994; Bennink‚ 2005; Widers‚ 2006). The crop is currently the second most important source of human dietary protein (Buruchara
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1. How successful has L.L. Bean been? L.L. Bean has been emerging as the market leader in mail-order companies that are specializing in outdoor apparel and equipments. As recorded by the company’s Customer Awareness Survey‚ it is the most well-known mail-order company setting the pace in the market with the reputation of having efficient delivery of good quality good s to the customers. From 1976 to 1980‚ the number of new L.L. Bean customers had been increased to 650‚000; by 1980 sales had risen
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Cafeteria Food in Schools Ariana Rodriguez English 1301-102 Professor Lewis December 1‚ 2010 Cafeteria Food in Schools For many years people tend to worry about health and how it affects their children. Health has been a huge issue due to the fact that 9 million adolescents are considered overweight. More and more children are being diagnosed with diabetes‚ hypertension‚ mellitus‚ sleep apnea‚ cardiovascular disease‚ kidney disease‚ osteoarthritis‚ cancer‚ depression‚ and other psychosocial
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“The Cost of Balancing Academia and Racism” by Adrienne Green and “Yes‚ Schools Do Discriminate Against Students of Color” by Joy Resmovits. The article “The Cost of Balancing Academia and Racism”‚ which was written by Adrienne Green‚ speaks about the struggles of African Americans trying to get an education at a college or university. The author brings in statistics which show that African Americans tend to have a worse college experience than white people. Near the end of the article‚ Green begins
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