value to their division and the overall value of Lipton‚ and report required performance metrics to Unilever. Background Unilever’s Evaluation Criteria include the following metrics: * Capital Turnover- Net Sales / Ave Gross Capital Expenditure * Return on Sales- Profit Before Tax / Net Sales * Return on Capital- After Tax Return on Ave Gross Capital Employed Their Financial and Operating Objectives include: * Sales growth by 10.5% per year * After tax profit margin to improve
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years income disparities have been growing larger. 65% of people have actually noticed income disparities grow now. Current income disparities certainly threaten democratic ideals for two important reasons. First I am going to show how much inequality there really is and how its growing. The first reason is that Inequality causes Corruption‚ and Corruption threatens Representation and the second reason is that Inequality dampens political participation‚ which is a cherished ideal. The income gap
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- dividends (eligible) - dividends (ineligible) - other income - SBD income - ABI over $500‚000 - investment income 28% 33% 45% 15% 25% 44 2/3% (38 + 6 2/3) Incorporation of Proprietorship The primary benefit of incorporation is the ability to use the small business deduction on $500‚000 of annual business income. Based on the existing profit the annual tax saving will be: Current taxes: .45 x $120‚000 After incorporation: Corporate income Less salary to Court Corporate tax (15%) Total tax: Corporation
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Permanent Income Hypothesis Introduction The basic idea is that people’s income has a random element to it and also a known element to it and that people try to smooth the random part using saving and borrowing. Hence‚ we need to distinguish between permanent income and transitory income. Example: Suppose that you are working and receive an annual salary of twenty thousand dollar. Suppose that you expect to get that salary every year in the future. Then twenty thousand dollar represents the
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150‚000 b. Terra Cotta Designs Income Statement For the Year Ended December 31‚ 2011 Sales $6‚100‚000 Less cost of goods sold: Beginning finished goods $ 700‚000 Add cost of goods manufactured 4‚150‚000 Cost of goods available for sale 4‚850‚000 Less ending finished goods 350‚000 4‚500‚000 Gross profit 1‚600‚000 Less nonmanufacturing expenses: Selling expenses 400‚000 General & admin. expenses 850‚000 1‚250‚000 Net income $ 350‚000 Case 2-2‚ LO 7‚ 9
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Q 1 Explain the nature of accounting fraud? A1. Background: The origin of WorldCom can be traced to the breakup of AT&T in 1983. The company began as Long Distance Discount Services Inc during 1983. LDD name was changed to WorldCom in 1995. To build the economies of scale that were critical success factor in long distance market it was imperative for WorldCom to grow its available volume off bandwidth as it lowered the per unit costs. Also the Telecommunication act of 1996 permitted long
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allocated equally to each of the four geographical regions. allocated between entry-level cameras and multi-featured cameras according to their respective percentages of total companywide revenues. 3. Assume a company’s Income Statement for a given period has the following entries: Income Statement Data Quarter 1 (in 000s) Sales Revenues $50‚000 Production Costs 26‚500 Delivery Costs 1‚600
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1.Sachin has asked his flat mate Jason for a $500 loan to cover a portion of his rent and utility costs. Sachin proposes repaying the loan with $300 from each of his next two financial aid disbursements‚ the first 4 months from now and the second 12 months from now. Jason’s alternative is to earn 5% annually in his money market account. Assume there is no risk of default‚ and that compounding is monthly. What is the NPV of the loan? (Enter just the number without the $ sign or a comma; round off
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Katie Ebert JET2 Task 2 #000276281 There are a few areas of concern when looking over Competition Bike’s budget for the upcoming year (Year 9). This budget estimates that 3‚510 units will be sold. CB has just experienced a 15 % decline in sales‚ due to the economic situation. In year 8‚ CB sold 3‚400 units. This flexible budget is allowing 110 more units be added into the mix. Although sales trends have remained consistent‚ despite the decline in sales from professional riders‚ it might
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[pic] AMITY SCHOOL OF DISTANCE LEARNING Post Box No. 503‚ Sector-44 Noida – 201303 FINANCIAL MANAGEMENT Assignment A Marks 10 Answer all questions. 1. a. Should the titles of controller and treasurer be adopted under Indian context? Would you like to modify their functions in view of the company practice in India? Justify your opinion? b. A firm purchases a machinery for Rs. 8‚00‚000 by making a down payment of Rs.1‚50‚000 and remainder in equal instalments
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