percentage of total sales. PROCEDURE OF COMMON SIZING In preparing common-size income statement‚ the following procedure is to be followed : • Total sales revenue or total revenue is taken as hundred. • Each item of cost or expenses is represented as a percentage of total revenue. • Profit or loss also shown as a percentage of revenue. Similarly‚ balance sheet is common-sized as follows : • Total of assets side or total of liability side is taken as hundred. • Each item of asset is expressed
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Decomposing Revenue Effects of Tax Evasion and Tax Structure Changes ARINDAM DAS-GUPTA* oldmonk87@yahoo.com Gokhale Institute of Politics and Economics‚ B MCC Road‚ Pune 411004‚ Maharashtra‚ India IRA N. GANG gang@economics.rutgers.edu Department of Economics‚ Rutgers University‚ New Brunswick‚ NJ 08901-1248 USA Abstract This paper proposes a method for evaluating the impact of tax structure changes on tax revenue. The technique consists of decomposing the gap between actual revenue and potential
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differences showing the audited amounts appear to show a vast difference. In addition‚ reveal a two million dollar deficit‚ from the unaudited version. This difference could in time cause the falter of the organization. In addition‚ the statements of revenue and expenses show major differences revealed between the audited and unaudited. These differences
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related to the measurement of financial position? a. Assets‚ liabilities‚ income b. Revenues and expenses c. Assets‚ liabilities‚ equity‚ revenues and expenses d. Assets‚ liabilities and equity 3. Which of the following statements is correct? a. Assets and capital accounts are debited for increases. b. Assets‚ expenses‚ and drawing accounts are debited for increase. c. Revenues and drawing accounts are credited for increases d. The word ‘debit’ means increase and
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up will not load due to a technical problem. The accountant has asked you to collate some figures into a spreadsheet to give an overview of the activity for the last year. Over the past year the monthly results have been as follows: Sales revenue January £42‚980 February £55‚980 March £92‚600 April £118‚206 May £117‚420 June £120‚115 Expenses January £15‚390 February £23‚602 March £28‚750 April £35‚060 May £37‚420 June £38‚790 Cost of sales January
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The optimal order quantities that Michelle Peach should use for Dado and for Wedo are 1‚270 and 730. The gross margins and expected profits would be: The annual net income has considered that all the other costs as constant. The advertising revenues are the same (fixed amount‚ not per unit ad amount). 2. Michelle finds out that Bobby Peru‚ a local recycler‚ is willing to pay a salvage value of €0.05 for each left-over unit of Dado and €0.07 for each left-over unit of Wedo. How would this
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one possible way the organization could have defined the outcome measures for some of its key objectives for the Banyan Tree expansion project: Revenue Growth – Based on the strategy of investing revenues generated by property sales (with a stunning 254% growth - S$50M in 2005 to s$130M in 2006) to fund the expansion project‚ target an estimated revenue growth of 20% in 2007 Market Share – Establish a market share of 1% in their growing Chinese property sector to catch up with market leading firm
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Exercises 1. Synergy Valuation a. Cost and revenue synergies Managers of an acquiring company anticipate cost savings pretax of $50 million in the first year of the deal and $100 million the next and that thereafter the savings would grow @ inflation‚ 2%. Marginal tax rate is 30%. The firm must invest $1 billion to achieve these savings and starting in the third year must spend 5% of the pre-tax savings to sustain the rate of savings. As part of rationalization of operations‚ some assets will be
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seller delivers a product that the customer has not yet agreed to purchase or delivers a product that does not meet the specifications of the customer’s order - Revenue should not be recognized (sale has not occurred) a. Acceptance provisions in arrangements that purport to be for trial or evaluation purposes. In these arrangements‚ revenue should not be recognized until the earlier of when acceptance occurs or the acceptance provisions lapse. b. Acceptance provisions that grant a right of return
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performance—the formal audited financial statements‚ an earnings press release‚ pro forma earnings disclosure‚ and comparative stock charts. Google is a prime example of how good news is in the eye of the beholder! In Q4 2007‚ Google announced continued revenue growth and strong earnings. The press release was upbeat and optimistic. Yet‚ the stock plunged the following day. Evaluating how the business press interprets a firm’s performance can help build students’ confidence in their own ability to evaluate
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