University of Waterloo Final Examination Term: Fall Student Name Year: 2005 Solution UW Student ID Number Course Abbreviation and Number AFM 101 Course Title Core Concepts of Accounting Information Section(s) 001‚ 002‚ 003‚ 004 Instructor Duane Kennedy Date of Exam Wednesday‚ December 14‚ 2005 Time Period Start time: Duration of Exam 2.5 hours Number of Exam Pages (including this cover sheet) 25 Exam Type Special Materials Additional Materials Allowed Cordless calculators
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Solutions – Chapter 5 Chapter 5 Financial Analysis Question 1. Which of the following types of firms do you expect to have particularly high or low asset turnover? Explain why. Supermarket—High asset turnover. Supermarkets tend to be high volume businesses. Many of the food products in supermarkets are perishable‚ and freshness is often used to differentiate products‚ forcing a certain amount of inventories turnover. The typical consumer buys groceries on a regular basis‚ guaranteeing grocery
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Solutions to the Homework Assignment Problems P1.31 Key Financial Statement Relations: Balance Sheet‚ Income Statement‚ and Statement of Cash Flow. Missing Values 2007 2008 Balance sheet: Cash 15‚000 Property‚ plant and equipment 162‚000 Intangible assets 10‚000 Accounts payable 21‚000 Interest payable 8‚000 Long-term debt 52‚000 Treasury stock (10‚000) Income statement
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Explain how the global factors in operations and inventory management can help a business sustain its competitive advantage In order for a business to sustain its competitive advantage‚ it must take into account the global factors influencing operations in association with its inventory management processes. A competitive advantage is defined as a condition or circumstance that puts a company in a favourable or superior business position. Both Crumpler and Coca-Cola have monitored these aspects of
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asset D. inclusion of an owner’s equity statement The primary difference in handling inventory‚ accounts payable and accounts receivable. In a merchandising company you will probably have inventory that needs to be valued. This can be done FIFO or LIFO (first in first out‚ or last in first out) basis. The asset that your inventory represents can be offset by your accounts payable if you purchased inventory on account. At the end of the year for tax purposes you have to account for the change
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can include: E A. Invoice price minus any discount. B. Transportation-in. C. Storage. D. Insurance. E. All of the above. 3. The inventory valuation method that tends to smooth out erratic changes in costs is: B A. FIFO. B. Weighted average. C. LIFO. D. Specific identification. E. WIFO 4. Generally accepted accounting principles require that the inventory of a company be reported at: C A. Market value. B. Historical cost. C. Lower of cost or market. D. Replacement
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(1) Consolidated Statement of Income Operating Revenues Revenue from services Sales revenue Less: Credit Card Discount Less: Sales Discount Less: Sales Returns & Allowances Total revenues Operating Expenses Cost of goods sold Salaries expense Rent expense Advertising expense General and administrative expenses Depreciation expense Other operating expenses Total expenses Operating Income Other Items Investment income Interest expense Loss on PPE sold Income before Income Taxes
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Craig Stroderd 9/27/11 Acct-461V GAAP vs. IFRS Over a decade ago‚ it was believed that the whole world would likely adopt the Generally Accepted Accounting Principles (GAAP). At the point in time‚ the International Financial reporting Standards (IFRS) was only about ten years old. In the last decade‚ the IFRS has been adopted in many growing countries. Currently‚ it is anticipated that the U.S. will converge its GAAP with the international IFRS‚ leaving behind only a modified IFRS. This
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Tax planning for corporate liquidation The Tax reform act of 1986(TRA) made significant changes to tax provisions which had influence on corporations. One of the most important changes was the deletion of the General Utilities doctrine; under a plan of complete liquidation it had given a tax relief for appreciated assets distribution. This essay illustrates tax law changes about corporate liquidations and suggests some tax planning strategies to mitigate the influence of TRA. Sec. 336 changes
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References: American InterContinental University. 2015. Financial Statements: Inventory Method: LIFO; Weighted Average; FIFO [Intellipath] Anthem.com. Ethics and Compliance. Retrieved from http://mydigimag.rrd.com/allarticle/22931/110348/110348/allarticle.html. Barbera Chiappetta‚ John Wild & Kermit Larson. 2002. Fundamental Accounting Principles 16th Edition
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