1. What is the appropriate classification in the statement of cash flows in the company’s December 31‚ 2010‚ financial statements for its purchase of 2012 EAs from Clean Air Corp ? According to the FASB codification section 805-50-3-1-2‚ these allowance will be recognized as intangible assets at their cost. When a company buys any assets‚ the cash outflow due to purchase will be classified in the investing section of the statement of cash flows. Standard Accounting Entry for Purchase
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My Little Bit of Country We all have that favorite place from our childhood where many of our happiest memories take place. For someone it is a special spot where something extraordinary happened. Other people might remember something as simple as their own tiny backyard where they used to play soccer in the summer holidays. This place remains important to us for the rest of our lives as we look back and think of it as a part of who we have become and therefore we hope that others will see and
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My Little Bit of Country What would the ideal lifestyle contain? Would it be a busy life‚ surrounded by tall buildings and lots of people or would it be on the country‚ enveloped in the uncontrolled nature and with a small society? Some would argue for the city-life‚ while others would argue for the country-life. It might be impossible to conclude which lifestyle is really the best‚ but there is definitely both cons and pros to each of the two lifestyles. In an article called My Little Bit of
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To: From: Subject: Financial needs Polar For Polar Sports‚ Inc. one potential big change could be the switch from seasonal production to level monthly‚ as is brought up by Mr. Johnson‚ vice president of operations. This will lead to several differences in forecasting compared with when the company still adopts seasonal production. The forecast will through light on the financial needs of the company. First of all‚ production will be distributed evenly throughout the year under level production
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My Little Bit of Country The text is about a woman called Susan Cheever‚ an essay from 2012. Susan was born in 1943‚ and later on‚ she became an American writer. The text is Cheever’s memories from she was about 3 or 4 years old‚ and up to her older years in 2012. In the beginning‚ the telling takes place in New York City‚ until Cheever’s parents decide to move her brother and her to the country. Susan Cheever is a 1st person narrator with access to her very own memories. Her father went home from
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The importance of the concept of cash-flow for the business finance Definition: Cash flow is the movement of money into or out of a business‚ an account or an investment. Normally‚ when the cash inflow is greater than the cash outflow it is a sign of a good financial situation because cash flow is essential for the survival of a business or even to any individual financial condition. If the company can meet its obligations and keep a healthy inflow of cash it has a healthy situation and the
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7 – Discounted Cash Flow Techniques page 247 A brief tutorial on Excel financial functions (problems to follow) You may find the following Excel‚ built-in financial functions helpful when analyzing the problems below. (To access these functions‚ select Insert‚ Functions‚ and choose Financial.) =PV(rate‚ nper‚ pmt‚ fv‚ type) returns the present value of a series of cash flows. =FV(rate‚ nper‚ pmt‚ pv‚ type) returns the future value of a series of cash flows. =PMT(rate
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present value of the asset’s expected future cash flows. SECURITY VALUATION In general‚ the intrinsic value of an asset = the present value of the stream of expected cash flows discounted at an appropriate required rate of return. Can the intrinsic value of an asset differ from its market value? Ct = cash flow to be received at time t. k = the investor’s required rate of return. V = the intrinsic value of the asset. BOND VALUATION Discount the bond’s cash flows at the investor’s required rate of return
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paying cash‚ manufacturing the product‚ selling the product and collecting cash. During the payment‚ the cash need occurs. Cash need should be covered by going into a debt. Cash budget is a primary tool in short-term financial planning. It is prepared after the operating budgets (sales‚ manufacturing expenses or merchandise purchases‚ selling expenses‚ and general and administrative expenses) and the capital expenditures budget are prepared. The cash budget starts with the beginning cash balance
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Chapter 12 Problems 1. Cash flow (LO2) Assume a corporation has earnings before depreciation and taxes of $100‚000‚ depreciation of $50‚000‚ and that it has a 30 percent tax bracket. Compute its cash flow using the format below. Earnings before depreciation and taxes _____ Depreciation _____ Earnings before taxes _____ Taxes @ 30% _____ Earnings after taxes _____ Depreciation _____
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