retained earnings (or "Net Worth" or "Unrestricted Fund Balance") drastically decreased from 2008 to 2009 (Apollo Group‚ 2006). The dollar amount decrease is -209‚471‚ this makes a decrease of over 65%. Long-term debt increase to more than 116% from 2008 to 2009 as well (Apollo Group‚ 2006). This is a massively huge increase. Total current liabilities also increase as a whole by 184.09% (Apollo Group‚ 2006). Major differences are also noted on the statement of revenue and expenses
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company’s budgeted income statement for next year follows: Pittman Company Budgeted Income Statement For the Year Ended December 31 Sales | | $16000000 | Manufacturing Costs: | | | Variable | $7200000 | | Fixed Overhead | 2340000 | 9540000 | Gross Margin | | 6460000 | Selling and Administrative Costs: | | | Commissions to agents | 2400000 | | Fixed marketing costs | 120000 | | Fixed administrative costs | 1800000 | 4320000 | Net operating income | | 2140000
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document and clearly handwrite your answers to each of the questions below in the space provided. Show all your work accordingly. A. Calculate LTM (a) Revenue and (b) Net Income for Costco Wholesale (COST) using their latest financial statements as of 3Q2011. 77946+60737-53821=84‚862 MM Revenue 1303+984-871= 1‚416 MM Net-income B. Calculate Costco’s LTM (a) EBIT and (b) EBITDA. 2077+1677-1389=2‚365 MM EBIT (2077+795)+(1677+582)-(1389+549)= 3192 MM EBITDA Name: Student ID: 1. C. Calculate
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D) Return on investment (ROI) is equal to the margin multiplied by (Points : 5) Ans: turnover (b) 2. (TCO D) Given the following data‚ what would ROI be? Ans: 20% (b) 3. (TCO D) Last year‚ the House of Orange had sales of $826‚650‚ net operating income of $81‚000‚ and operating assets of $84‚000 at the beginning of the year and $90‚000 at the end of the year. What was the company’s turnover‚ rounded to the nearest tenth? (Points : 5) Ans: 9.5 (a) Page 2: 1. (TCO D) Data for December
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to the income statement as an adjustment to cost of goods sold. Favorable variances have the effect of increasing net operating income‚ and unfavorable variances have the effect of decreasing net operating income. Lansing had rigged the standards so that there were always large favorable variances. Company policy was a little vague about when these variances have to be reported on the divisional income statements. While the intent was clearly to recognize variances on the income statement in the
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and is not lower than the overall ROI of the company. 5. a. Last year With new product . Operating income (P1‚800‚000 + P960‚000) P1‚800‚000 P2‚760‚000 Less: Minimum income (P6M x 20%) 1‚200‚000 (P10M x 20%) 2‚000‚000 Residual income P 600‚000 P 760‚000 b. Yes; the new product is acceptable because the residual income is increased by P160‚000 that is derived from the operations of the new product. [Problem 2] Values of the unknown
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indicate one letter answer for each question. To ensure full credit‚ please document the reasoning behind your answer. All submissions are to be made via Ctools. Page 2 of 5 1) The income statement represents a snapshot of account balances at one point in time. a. True b. False 2) A balance sheet is a statement of the financial position of the firm on a given date‚ including its asset holdings‚ liabilities‚ and equity. a. True b. False 3) An advantage of balance sheet numbers is that assets reflect
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purchased six Boeing 757s in March 2010 to expand their destinations to cities outside the USA (Wichita-bizjournals.com). The current routes generally include small‚ middle class areas populated by middle-aged people with high levels of disposable income. After analyzing their financial position‚ this report concludes that Allegiant is a satisfying target for investment. Allegiant has three main sources of revenue which include: service trips‚ ancillary revenues and fixed-free contracts called charters
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discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. | 1. No‚ production and sale of the racing bikes should not be discontinued. If the racing bikes were discontinued‚ then the net operating income for the company as a whole would decrease by $11‚000 each quarter: |Lost contribution margin | |$(27‚000) | |Fixed costs that can be avoided:
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1. Arredondo‚ Inc. has current assets of $2‚170‚ net fixed assets of $9300‚ current liabilities of $1350‚ and long-term debt of $3980. Building a balance sheet for this company‚ address the following questions: a. What is the value of the shareholders’ equity account for this firm? b. How much is net working capital? Arredondo‚IncBalance Sheet | Assets Liabilities and Owener`s EquityCurrent assets $2‚170 Current
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