On January 4‚ 2010‚ Harley‚ Inc. acquired 40% of the outstanding common stock of Bike Co. for $2‚400‚000. This investment gave Harley the ability to exercise significant influence over Bike. Bike’s assets on that date were recorded at $10‚500‚000 with liabilities of $4‚500‚000. There were no other differences between book and fair values. During 2010‚ Bike reported net income of $500‚000. For 2011‚ Bike reported net income of $800‚000. Dividends of $300‚000 were paid in each of these two years.
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17 RATIO ANALYSIS FEATURING THE DUPONT METHOD: AN OVERLOOKED TOPIC IN THE FINANCE MODULE OF SMALL BUSINESS MANAGEMENT AND ENTREPRENEURSHIP COURSES Submitted by Thomas J. Liesz University of Idaho (208) 885-5447 (office) tliesz@uidaho.edu Steven J. Maranville University of Houston-Downtown One Main Street Houston‚ TX 77002-1001 (713) 221-8524 maranvilles@uhd.edu Submitted to Small Business Institute Journal The authors wish to acknowledge the valuable comments of two SBIJ reviewers
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wealth 3. High Country Seasonings is both an investment opportunity and a financing opportunity. Should Pacific acquire High Country Seasonings? Suggested approach – investment opportunity: (a) Forecast High Country’s Income Statement and Balance Sheet for 2012-2015. (b) Determine High Country’s free cash flow to investors. (c) Is High Country’s valuation greater than what Pacific must pay to acquire the firm? (d) From an investment standpoint‚ should Pacific acquire High
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operating section. True False 4. When the net cash flows from operating‚ investing‚ and financing activities are combined to arrive at the overall net change in cash‚ a net decrease in cash is subtracted from the beginning cash balance to calculate the ending cash balance. True False 5. Major investing and financing activities that do not involve cash do not have to be reported as part of the statement of cash flows. True False 6. In general‚ the cash flow from operating activities
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Team C Discussion Questions Week 1 Rodney Brooks‚ Sekou Clements Jamie Deering‚ Jeffrey Harold‚ Eric Hughes‚ Kyle Leibe FIN 370 August 12‚ 2012 Prof. Thomas Prince Team C Discussion Questions What is the capital market? How is the primary market different from the secondary market? In you opinion‚ are these markets efficient? Why? The capital market is the part of the financial system concerned with raising capital by dealing in stocks‚ bonds‚ and other long term investments. A primary
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Course Home Use the financial statements from the most recent year to fill in the table below. You may find some formulae calling for an average‚ e.g.‚ average inventory‚ average receivables. Because we only have the Balance sheet for one year‚ you can only use the one year number not an average. Assume interest expense is $0.00 Be sure to cite your references Green boxes to be filled in by instructor Ratio Formula (express the ratio in words)
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Khalid Al Mulla ------------------------------------------------- 213102097 ------------------------------------------------- Assignment 1 BE1-1 Presented below is the basic accounting equation (in thousands). Determine the missing amounts. Assets = Liabilities + Equity 90‚000 = 50‚000 + 40‚000 110‚000 = 40‚000 + 70‚000 ------------------------------------------------- 94‚000 = 41‚000 + 53‚000 BE1-5 Indicate whether each of the following items
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owned or controlled to produce value and that is held to have positive economic value is considered an asset. Simply stated‚ assets represent value of ownership that can be converted into cash (although cash itself is also considered an asset).The balance sheet of a firm records the monetary value of the assets owned by the firm. It is money and other valuables belonging to an individual or business. Two major asset classes are tangible assets and intangible assets. Tangible assets contain various subclasses
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Journal Entries Example Company A was incorporated on January 1‚ 2010 with an initial capital of 5‚000 shares of common stock having $20 par value. During the first month of its operations‚ the company engaged in following transactions: Date Transaction Jan 2 An amount of $36‚000 was paid as advance rent for three months. Jan 3 Paid $60‚000 cash on the purchase of equipment costing $80‚000. The remaining amount was recognized as a one year note payable with interest rate of 9%. Jan 4 Purchased office
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Viewing:805 Business Combinations25-5) In this case‚ the contingent consideration is classified as equity since it settled in shares. (ASC 815-40-25-4) The contingient consideration goes into additional paid in capital account (APIC) on the Allfoods’ balance sheet. (4) Exchange of share options in conjunction with a business combination is modification of share-based payment awards. The portion attributable to precombination service is part of the consideration transferred. (ASC 805-30-30) The underlying
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