and infectious disease‚ Boeing would need to weigh all considerations before making final decision to proceed the plan. In this case‚ we cautiously made assumptions when estimating cost of debt‚ commercial-defense beta ratio‚ risk free rate and risk premium. And finally estimated the project’s weighted-average cost of capita l(WACC) against the given internal rates of return(IRR). 2. Capital Budgeting Decision Rule According to detailed free cash flow forecast for the
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Mergers & Acquisitions Questions Q.3 The following are the details on two potential merger candidates‚ Northrop and Grumman‚ in 1993: Northrop Grumman Revenues $4‚400.00 $3‚125.00 Cost of Goods Sold (w/o Depreciation) 87.50% 89.00% Depreciation $200.00 $74.00 Tax Rate 35.00% 35.00% Working Capital 10% of Revenue 10% of Revenue Market Value of Equity $2‚000.00 $1‚300.00 Outstanding Debt $160.00 $250.00 Both firms are in steady state and are expected to grow 5% a year in the long term. Capital spending
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Q1: Assume Amazon .com began June with 10 units of inventory that cost a total of $190. During June‚ Amazon purchased and sold goods as follows: June 8 Purchase 30 units @ $20 June 14 Sale 25 units @ $40 June 22 purchase 20 unit @ $22 June 27 Sale 30 unit @ $40 Requirements: Under the FIFO and LIFO method 1. How much is Amazon’s cost of goods sold 2. How much is Amazon’s gross profit or loss 3. Journalize all Amazon’s inventory transactions for June. 4. Which method maximizes gross profit? Q2:
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other than Honda. In addition‚ the company also launched a new model of CD 100 Euro-2 in the year 2009‚ launched a new model of CG 125 Deluxe Euro-2 and acquired ISO 14001-2004 Environment Certificate. MOTORCYCLE INDUSTRY Over all‚ the industry sold 1.2 million bikes in the financial year ended 2010 as
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Storage Kits Due: July 18‚ 2011 Complete the case with these additional instructions: 1. Add the following columns: 2. Part 1 a. Annual Sales b. Annual COGS c. Annual Gross Profit d. Average Inventory Costs e. Gross Margin Ratio f. Markup g. Inventory Turnover h. Days in Inventory 3. Part 2 a. Gross Margin per Unit b. Percent of Sales 4. Provide the Average‚ High & Low for each applicable
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Marketing Effectiveness QUALITATIVE ANALYSIS – Advantages and disadvantages of each alternative Reject the AOL Partnership Pros • Would save $2million that would otherwise be spent on the deal with AOL • Avoids having to pay for cost of exposures on AOL • Is able to retain full control of the company • Can invest the money somewhere else o Print and mail more catalogs o Buy exposure on television Cons • Miss out on a chance of generating more sales o More and more people
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1. The inventory at your company consists of computer software that the company has developed and is selling. You capitalized (rather than expensed) the cost of duplicating the software‚ the instruction manuals‚ and training material that are sold with the software. FASB ASC CITATION: Product Masters 985-330-25-1 The costs incurred for duplicating the computer software‚ documentation‚ and training materials from the product masters and for physically packaging the product for distribution
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Journal Entries for Jan 1‚ 2003 to Dec 31‚ 2003 1/2 | Cash | | 375000 | | | | Capital Stock | | 375000 | 1/2 | Patent | | 125000 | | | | Capital Stock | | 125000 | 1/15 | Inc. Expenses | | 7500 | | | | Cash | | 7500 | 6/15 | PPE | | 62500 | | | | Cash | | 62500 | 6/24 | Inventory | | 75000 | | | | Cash | | 75000 | 7/1 | Service Expense | | 23750 | | | | Cash | | 23750 | 12/31 | Account Receivables | | 69500 | | | Cash | | 685000 | |
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with governments versus vulnerability to political distress in 70’s in Iran‚ Pakistan‚ Libya and Poland. 2. On which assumptions were goals‚ strategy and related risk/return policy based? • Exchange Rate stability (higher UK pound) • Stable cost of goods sold (Diesel Engines in UK) • Political stability in relation to countries in developing countries • Continued economic growth • Limited volatility in cash flows • Customer’s ability to make the principal payments • Stable or declining interest rates
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revenue when the cost of sales is deducted. Also revenue is the money that comes into the business it is also known as income. Net profit is the amount of money that is left when the operating expenses are deducted from the gross profit. The difference between gross profit and net profit is the difference between the total revenue and the total cost which is called gross profit also gross profit only arises when after deducting all the expenses. For example Mr Brown buys his goods for £10‚000 and
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