D’ Leon Inc.‚ Case part I Jayline Benitez Alexander J. Uribe MGM 6620 Managerial Finances Juan M. Ramirez Polytechnic University of Puerto Rico Abstract – Donna Jamison‚ a 1995 graduate of the University of Florida with four years of banking experience‚ was recently brought in as an assistance to the Chairman of the board of D’Leon Inc.‚ a small food producer that operates in north Florida and whose specialty high-quality pecan and other nut product sold in the snack-food market. D’Leon’s
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Financial Accounting Summary Financial Accounting – Summary Notes Financial Accounting – Summary Notes 1 Financial Statement Basics 3 Understanding of the 3 financial statements – (balance sheet‚ income statement and statement of cash flows). What does each financial statement represent? 3 What is the structure of each statement? 3 What is the link between the three statements? 4 Understanding of the basic mechanics of financial accounting – (debits‚ credits‚ transaction journal entries‚ adjusting
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------------------------------------------------- Depreciation Depreciation is the way in which items lose their value as time progresses. For example‚ a van bought by a business for $10‚000 might only be worth $5‚000 in 2 years time and therefore it has depreciated in value. There are several methods of working out depreciation‚ the fixed percentage method whereby a certain % is taken from the value each year. This is a relatively accurate estimate of depreciation. The most commonly used method (the straight
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investments can be written often in the same period in which the expenses occur. Question 3: 2D1-AT05 Which one of the following is most relevant to a manufacturing equipment replacement decision? disposal price of the old equipment. original cost less depreciation of the old equipment. a lump-sum write-off amount from the disposal of the old equipment. gain or loss on the disposal of the old equipment. Relevant costs and revenues include cash flows caused by the decision. The disposal price of the old
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Accrual vs. Cash Basis Accounting Alicia Wiley Grantham University Abstract In this paper I have defined accrual and cash basis accounting. Also‚ I have answered the following questions: Explain the difference between the accrual basis of accounting and the cash basis of accounting. What are the major reasons for using accrual accounting? What are the purpose of a journal and a ledger? Give an example of a contra-asset‚ and explain how it is recorded on the ledger as a transaction. Explain
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History of Fourth Directive Company law directives are published under the authority of the Treaty of Rome (Article 54(3) (g)). The council and the commission want to co-ordinate safeguard to protect the interest of member state and others‚ in such a way that these safeguard are become similar across the EU. The objective of EU is to convey a common market that allows freedom of capital‚ goods‚ persons and services between member countries. EU adopted so many directives which are dealing with accounting
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Principles of Quantitative Methods 2011 Table of Contents Question 1 – Difference between Simple Interest and Compound Interest 3 1.0 Simple Interest 3 1.1Compound Interest 4 Question 2 – Difference between Depreciation by Straight Line Method and Depreciation by Reducing Balance Method 6 2.0 The Difference 6 Question 3 - Standard Deviation and Quartile Deviation 7 Standard Deviation 7 Quartile Deviation 8 3.0 Purpose of Calculating Standard Deviation and Quartile Deviation 8 3
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Question 6B 19 Reference List 24 INDEX OF TABLES AND FIGURES Table 1 Recording of Transaction 4 Table 2 Depreciation Straight Line Method - Summary 5 Table 3 Depreciation Straight Line Method 5 Figure 1 Depreciation Straight Line Method 5 Table 4 Depreciation Reducing Balance Method (3 Year) 6 Table 5 Depreciation Reducing Balance Method (7 Year) 6 Figure 2 Depreciation Reducing Balance Method (7 Year) 7 Table 6 Reducing Balance Method 18.376673% 7 Figure 3 Reducing Balance Method
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straight-line over 5 years and is sold after 15 years at an after-tax salvage value of $3‚250‚000. In this case‚ the NPV is calculated at -$3‚912‚677.91. The next scenario assumes Ocean Carriers is not required to pay any taxes. Using the same depreciation method as in the first scenario and a net salvage value of $5‚000‚000‚ NPV is -$1‚252‚915.52. The difference between the first and second scenarios NPV is completely due to the increased net income that the Japanese firm experiences as a result
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Operating activities - decrease in accounts receivable $76‚000 g) Financing activities - paid dividend (97‚000) Note: this cash outflow may also be classified in operating activtiies if the company wishes. h) Operating activities - add back depreciation 67‚000 i) Operating activities - deduct gain on sale (3‚000) Investing activities - sold capital asset 13‚000 Requirement 3 a) Investing activities - cash paid for capital asset (no change from above) (18‚000) b) Financing activities
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