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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received within 30 days. that there is a 2% discount if payment is received within 10 days. there is a 10% discount if paid immediately and 2% if paid within 30 days. 2 of 25 Family Food Stores purchased canned goods at an invoice price of $3‚000 and terms of 2/10‚ n/30. Half of the goods had been mislabeled and were returned immediately to the supplier. If Family Food pays the remaining amount of the invoice within the discount period‚ the amount paid should be: $1‚440. $1‚470. $2‚940. $3‚000
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Motorcycle: ATLAS HONDA PAKISTAN LIMITED - Analysis of Financial Statements Financial Year 2007 - 1H Financial Year 2011 OVERVIEW (January 05‚ 2011) : Atlas Honda Limited is a joint venture between the Atlas Group and Honda Motor Co‚ Japan. The company was created by the merger of Panjdarya Limited and Atlas Autos Ltd in 1988. Both these motorcycle manufacturing concerns were established by the Atlas Group. In addition‚ a third concern‚ Atlas Epak Ltd was taken over by the Government of Bangladesh
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is stated at historical cost (what was paid to obtain it) but what if when the original cost of the ending inventory is greater than the cost of replacement? Thus the inventory has lost value. If the inventory has decreased in value below historical cost then its carrying value is reduced and reported on the balance sheet. The criterion for reporting this is the current market value. Any loss resulting from the decline in the value of inventory is charged to cost of goods sold (COGS) if non-material
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Section 1: Financial Analysis The financial statement of a business is important as it portraits the company’s overall situation. The financial position of any business is important as information can be derived from these statements the information required to understand the position of the business‚ brand or company. When the situation arises to consider the financial position of a company; financial statements would be required to be analyzed in various detailed reports. In the case of Anthony’s
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b. Calculate what cost of sales would have been for the year if the company had used FIFO to value its inventories c. Calculate inventory turnover for the year using the reported numbers. a. Whole Foods Market values their inventories at the lower of cost or market. They use the last-in‚ first-out (“LIFO”) method to determine the cost. It was used for approximately 93.6% and 94.0% of inventories in fiscal years 2009 and 2008‚ respectively. b. Cost of sales for the year under
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Down Payments Freight Billed Commissions ($2‚400‚000 x 10%) Warranty Returns ($3‚000‚000 x 1%) Revenue for 2012 PICKLE CONSTRUCTION: Percent complete as of 12/31/12 (5/24) 5 months of 24 months complete Total expected revenue ($60‚000‚000-$52‚000‚000) Cost to date Revenue ($8‚000‚000 x 21%) GAAP? Yes Yes Yes No Definition: This is when companies recognize revenue received at the This is when companies recognize revenue when the agrai Revenue is recognized as well as gross profits by a specifie Recognizes
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PV Technologies: Were they asleep at the switch? Submitted by: Group 4 Ankur Meena Yaman Rai Ajinkya Parab Abhinav Sehgal (068) (120) (122) (230) The Problem Solenergy was committed to cut costs PVT’s prices are significantly higher than competitors Solenergy’s evaluation of recent proposal had not been published yet; but if it were true‚ Morgan (chief engineer) would be difficult to convince Reasons for unfavorable evaluation of PV technologies by Greg Morgan Prices offered by
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is significantly higher than 107 days in 2007. The formula used was taken from financial data retrieved from the financial statements and was calculated as: 365/ (Cost of Goods Sold/Average Inventories) The increase in the length of time that inventory is on hand coupled with an increase in the percentage of cost of goods sold (since 2010) could be the result of a weakened economy making it necessary to reduce the price of the product. Despite the reduced pricing‚ inventory still builds up
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profit or as a measure to try to reduce cost for better profitability. It’s also helpful when determining whether you can charge enough for a new item to make it profitable. To find your gross profit margin‚ you first need to calculate your gross profit. Gross profit is the amount you have after you subtract all the costs associated with the sale: Gross profit = sales - cost of goods sold The cost of goods sold‚ or COGS‚ includes only the direct cost incurred to manufacture or sell a product
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