Contents Introduction1 Fundamental Analysis1 Prospect Analysis3 Financial Analysis4 Investment Analysis4 Operating Policy7 Conclusion8 Appendix Introduction Ocean Carrier Inc. owned and operated cape-size dry bulk carriers worldwide. Major Cargo type is iron ore and coal. Vessel sizes are 80‚000 DWT to 210‚000 DWT. Cape-size carriers travel around Cape Horn rather than the Panama Canal due to size constraints. The cargo operations include maintenance‚ repairs‚ insurance‚ supplying of
Premium Supply and demand Ship Depreciation
ACC3120 Advanced financial accounting Week 11 Tutorial: Extractive Industries 1 HPHAH‚ chapter 20‚ question 1 Outline the five phases of a company’s operations in the extractive industries. Answer: It has been suggested that there are five identifiable phases in the discovery and recovery of minerals‚ oil and natural gas. Four of these phases are “pre-production” phases‚ which means that they occur before production begins. The pre-production phases are exploration‚ evaluation‚ development and
Premium Asset Depreciation Mining
2 3 4 5 6 7 8 9 mental Earnings Forecast ($000s) Sales of Mini Mochi Munch 9‚000 7‚000 Other Sales 2‚000 2‚000 Cost of Goods Sold (7‚350) (6‚050) 3 4 5 6 Gross Profit 3‚650 2‚950 Selling‚ General & Admin. (5‚000) - Depreciation - - 7 8 9 EBIT (1‚350) 2‚950 Income tax at 35% 473 (1‚033) 10 11 Unlevered Net Income (878) 1‚918 7-9. Elmdale Enterprises is deciding whether to expand its production facilities. Although long-term
Premium Depreciation Stock
A311: Final Exam Review Chapter 10 1. Interest Capitalization Delmar Corporation borrowed $200‚000 at 12% interest from state Bank on January 1‚ 2013‚ for the specific purpose of constructing special-purpose equipment to be used in its operations. Construction on the equipment began on 1/1/13‚ and the following expenditures were made prior to the project’s completion on 12/31/13: Expenditures Made in 2013 January 1 $100‚000 April 30 150‚000 November 1 300‚000 December 31 100‚000 Total Expenditures
Premium Depreciation Asset
What is a rights issue? Distinguish between a renounceable and a non-renounceable rights issue. How would a company account for such issues? A rights issue is an issue of new shares to existing shareholders whereby they are given the right to purchase additional shares in proportion to their current shareholdings. Usually the issue price is set below the current market price of the company’s shares. A renounceable rights issue allows the shareholder to take up the rights issue‚ let it lapse
Premium Stock market Depreciation Stock
Questions for Chapter 6 **ANSWERS ARE HIGHLIGHTED 1. A truck was purchased for $25‚000. It has a six-year life and a $4‚000 salvage value. Using straight-line depreciation‚ what is the asset’s carrying value (book value) after 2 years? d. $18‚000. 2. The sale for $2‚000 of equipment that cost $8‚000 and has accumulated depreciation of $6‚700 would result in what reflected in the income statement? d. loss of $1‚300. The following information pertains to the next two questions. Z Company
Premium Depreciation Generally Accepted Accounting Principles Expense
omissions of previous years but it does not include correction of accounting estimates made in earlier years. 5. AS 6: Depreciation Accounting- * It states the amount of depreciation of some assets to be charged. It is calculated using the Straight Line Method‚ Written down Value or any other method carefully selected. When the method of calculating depreciation is changed it must be applied to all previous years and deficiency or surplus due to change must be adjusted in the profit and
Premium Balance sheet Generally Accepted Accounting Principles Depreciation
calculate the corporate taxes is different compared to that of the production director’s. The pre-tax profits of the two approaches are different which lead to different after-tax profits. The methods for depreciation are different. That is： 1. Their depreciation methods are different. Depreciation is the reduction in the book value of an asset due to usage
Premium Depreciation Net present value
Dep. Machine and Equip- Business reason: had more machines and thus higher depreciation; client error: Not using the correct depreciation rates (too high for purchases) Auto Equip- Business reason: Purchased company car (sedan); Client error: classified personal automotive expenses to the company Acc Dep. Auto Equip- Business reason: More cars increased the depreciation amount; client error: not using the correct depreciation rates (too high to justify purchase) Accounts Payable- Business reason: Purchased
Premium Balance sheet Accounts receivable Depreciation
through 5 and how do these cash flows differ from accounting profits or earnings? Free cash flows differ from accounting profits because they incorporate depreciation back into the equation. It is important to add back in the depreciation expense‚ since the item was actually purchased using cash previously and depreciation is not a cash-flow (Titman‚ Keown‚ & Martin‚ 2011). Free cash flows also look at the Capital Expenditures (CAPEX) and Working Capital. The CAPEX includes initial project
Premium Rate of return Net present value Cash flow