Background Coca-Cola Coca-Cola was founded in 1886 by John Pemberton who was a civil war veteran and Atlanta pharmacist. Today‚ Coca-Cola company is the world’s leading manufacturer‚ marketer‚ and distributor of nonalcoholic beverage concentrates and syrups‚ over 10 billion gallons‚ used to produce nearly 400 beverage brands. Also‚ Coca-Cola has been ranked the best value of brand name on the world for more than 10 years. Pepsi Pepsi-Cola was created in the late 1890s by Caleb Bradham‚ a New
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280‚000 Cost of Pairs Sold 150‚000 Warehouse Expenses 15‚000 Marketing Expenses 35‚000 Administrative Expenses 8‚000 Operating Profit (Loss) 72‚000 Interest Income (expenses) (10‚000) Pre-tax Profit (Loss) 62‚000 Income Taxes 18‚600 Net Profit (Loss) $ 43‚400 Based on the above income statement data (assume interest income is zero)‚ the company’s interest coverage ratio is 28.0. 280.0. 4.34. 7.20. 6.20 2. Which of the following statements about striving to reduce labor costs per
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Step 2: $416‚684/ 365 = 1142 $379183/365 = 1039 Step 3: Step 3: 59‚787/1142 = 52.35 days 37‚666/1039= 36.25 days 5. Solvency Ratio: Debt Service Coverage Ratio (DSCR) Change in Unrestricted Net Assets (net income) + Interest‚ Depreciation‚ Amortization/ Maximum Annual Debt Service 2009: 2008: $168‚611/$14‚609=11.54 158‚578/$4‚195=37.80 6. Liabilities to Fund Balance: Total Liabilities / Unrestricted Fund Balances 2009: 2008: $462‚153/126‚564
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can be made into earnings before taxes (EBT) by multiplying the three-step equation by 1 minus the company’s tax rate: ROE = (earnings before tax / sales) * (sales / assets) * (assets / equity) * (1 – tax rate) We can break this down one more time‚ since earnings before taxes is simply earnings before interest and taxes (EBIT) minus the company’s interest expense. So‚ if a substitution is made for the interest expense‚ we get: ROE = [(EBIT / sales) * (sales / assets) – (interest expense / assets)]
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9) Industrial goods manufacturer Carterpilla Company earned $10‚501‚000 in net income. It paid out a cash dividend of $2‚100‚000 only to its preferred stockholders. If the firm has 750‚000 shares of common stock outstanding‚ what is the firm’s earnings per share on the common stock? a. $14.00/share b. $16.80/share c. $11.20/share d. $2.80/share e. None of the above (Use the following
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BUSI 3013 ACCOUNTING CONCEPTS FOR FINANCIAL DECISIONS Mid-term Exam 1 - Chapters 1 8 PRACTICE March 5‚ 2013 Name: ___________________________________ 1. Carter Corporation has some money to invest‚ and its treasurer is choosing between City of Chicago municipal bonds and U.S. Treasury bonds. Both have the same maturity‚ and they are equally risky and liquid. If Treasury bonds yield 6 percent‚ and Carter’s marginal income tax rate is 40 percent‚ what yield on the Chicago municipal
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The Coca-Cola Company and Subsidiaries Financial Review Incorporating Management’s Discussion and Analysis We exist for one reason: to maximize share-owner value over time. To accomplish this mission‚ The Coca-Cola Company and its subsidiaries (our Company) have developed a comprehensive business strategy focused on four key objectives: (1) increasing volume‚ (2) expanding share of worldwide beverage sales‚ (3) maximizing long-term cash flows‚ and (4) improving economic profit and creating economic
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financials to their benefit‚ they would naturally prepare a yearly budget and most likely a five-year budget with expected sales and costs‚ as well as the direction of the company and a growth plan. Custom Snowboards should clean up their financials before pursuing an expansion. A clean-up should begin well in advance to requesting funding for growth or expansion. One way to make the financials look better might be to care less inventory on-hand by using Just-It-Time (JIT) models. Custom Snowboards
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investing in product innovation and marketing its core brands.It has also recently expanded its product set to include lower-priced products (which are subject to a lower tax rate) thereby earning solid sales growth and further operating margin expansion in its cigarette business‚ despite rising cigarette taxes. Analysis Y/e 31 Mar (Rs m) | FY12 | FY13 | FY14E | | Revenues | 2‚47‚984 | 2‚96‚056 | 3‚48‚005 | | yoy growth (%) | 17.2 | 19.4 | 17.5 | | Operating profit | 84‚996 | 1‚03‚318
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000 | | $ 120‚000 | | $ 2‚520‚000 | | Administrative | $ 1‚800‚000 | | $ 1‚800‚000 | | $ 1‚725‚000 | | Interest | $ 540‚000 | | $ 540‚000 | | $ 540‚000 | | Total Fixed Expenses | $ 4‚800‚000 | | $ 4‚800‚000 | | $ 7‚125‚000 | | Income before Income Taxes | $ 1‚600‚000 | | $ 800‚000 | | $ 475‚000 | | Income Tax (30%) | $ 480‚000 | | $ 240‚000 | | $
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