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Budget Assignment Dudley Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Dudley Manufacturing’s operations: Cash $ 4,50
Budget Assignment Dudley Manufacturing is preparing its master budget for the first quarter of the upcoming year.  The following data pertain to Dudley Manufacturing’s operations: Cash                                                                                                                              $ 4,500.00 Accounts receivable, net                                                                                            49,000.00 Inventory                                                                                                                       12,657.50 Property, Plant, and Equipment, net                                                                      122,500.00 Accounts Payable                                                                                                        42,400.00 Capital stock                                                                                                                126,000.00 Retained Earnings                                                                                                         22,920.00   a.       Actual sales in December were $70,000.  Selling price per unit is projected to remain stable at $10 per unit throughout the budget period.  Sales for the first five months of the upcoming year are budgeted to be as follows: January                               $83,000 February                             $92,000 March                                 $94,000 April                                     $97,000 May                                     $89,000 b. &nb
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Mulherin's stock has a beta of 1.23, its required return is 11.75%, and the risk-free rate is 4.30%. What is the required rate of return on the market? (Hint: First find the market risk premium.)
Mulherin's stock has a beta of 1.23, its required return is 11.75%, and the risk-free rate is 4.30%.  What is the required rate of return on the market?  (Hint:  First find the market risk premium.) a.    10.36% b.    10.62% c.    10.88% d.    11.15% e.    11.43%                                        
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e required rate of return on the market? (Hint: Fi...(1495 more words & 0 attachments).
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SECTION: Pg. 41 LENGTH: 471 words The decision by the Bank of England's monetary policy committee (MPC) to take no action on either interest rates or money printing has posed one serious question:
SECTION: Pg. 41 LENGTH: 471 words The decision by the Bank of England's monetary policy committee (MPC) to take no action on either interest rates or money printing has posed one serious question: has the outgoing governor lost the support of his colleagues? Sir Mervyn King voted with two others at the January meeting for more asset purchasing through the quantitative easing programming. He needed the support of two more for a majority in favour. The vote means he got only one at most, an outcome that will be revealed in the next minutes published on 20 March. Previously when King has been outvoted he has achieved a majority at the next meeting. Maybe his voice no longer carries enough clout among the nine members. To give him the benefit of the doubt, they were also probably wary of allowing the pound to slip too low. The MPC has been happy to see the pound fall in order to encourage exports, but this has also been inflationary as dollar-denominated imports in particular - such as oil - rise in price. A growing concern is that virtual abandonment of an inflation target, together with the flexible monetary policy now being encouraged by Chancellor George Osborne, makes it difficult to judge exactly what remit the Bank of England is following. Nish sets the Standard for insurance sector DAvid Nish, chief executive of Standard Life, was in bullish mood yesterday, boasting of a substantial increase in profitability and record assets under administration. As we predicted at the weekend, Nish was also able to announce a special dividend to shareholders who have received GBP2 billion since flotation in 2006. The strength of its balance sheet is prompting talk of at least one more one-off payment. The company is now looking at a generally stronger proposition and the shares have rallied from a period of under-performance. It prepared well in advance for the change to commissions paid to agents which came into effect this year under the retail distribution review and contributed to its profits tally. Pensions auto-enr
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holders or cutting the dividends to the shareholders on the basis of change in market trend with respect to impact on the pound and inflationary moves.Comment : Has Merv lost the support of MPC colleagues? This article is providing information on the overall market structure in U.K. as the Bank of England has not taken any action on the ...(1379 more words & 0 attachments).
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Licenced to lull LENGTH: 898 words The Reserve Bank of India has released its final guidelines for new banking licences. These are different and, in many ways, tougher than the draft guidelines i
Licenced to lull LENGTH: 898 words The Reserve Bank of India  has released its final guidelines for new banking licences. These are different and, in many ways, tougher than the draft guidelines issued earlier. The final guidelines are most negative for standalone non-banking finance companies (NBFCs) or NBFCs belonging to a pure financial group that are not part of a corporate group, such as IDFC, Shriram or LIC Housing. Earlier, these were perceived to be the most eligible candidates for new banking licences. RBI has clarified that only widely held non-financial services companies/entities can sponsor an NOFHC (non-operative financial holding company), which, in turn, will float a bank. The above NBFCs do not have any widely held non-financial company in the group that can float an NOFHC. The new guidelines are also negative for NBFCs belonging to business groups (MMFS-M&M Financial Services). RBI has made it clear that the financial entities under the NOFHC cannot undertake the business that RBI has permitted banks to do. This means that M&M Finance and others will all have to convert/transfer their businesses to the new bank, should their promoters decide to opt for a banking licence. The structure that these NBFCs were anticipating is that the NBFCs and the new bank would co-exist in the group, which can no longer happen. According to the current guidelines, L&T Finance, Bajaj Finance and Aditya Birla Nuvo (ABNL) are the most eligible candidates for new licences. RBI has clarified that licences will be given on a very selective basis. We do not expect the RBI to issue more than five licences. We believe the probability of a public sector entity obtaining a banking licence is low. New guidelines NOFHC will float a bank: Promoters interested in banking licences have to float an NOFHC. This NOFHC will have to be registered with RBI as an NBFC. The registered NOFHC can apply for a banking licence. It will house the bank and all other financial businesses/subsidiaries of the group Newly defined capital structure comes as a surprise: The RBI has come up with a detailed capital structure for NOFHC, which was not mentioned in earlier drafts. There are two important elements of the capital structure
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of R 5 billion and has to list its shares in the stock exchange within three of commencement of business. Also, the capital adequacy ratio for the new bank will be increased to 13% as compared to 12%. The foreign share holding has capped at 49% and entities interested in new banking license have successful business record of 10 years. This article i...(1376 more words & 0 attachments).
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P3: Projected Growth 1) Determine sales growth for next five years based on historical data (Calculate from data). 2) Determine sales growth for next five years based on industry projections (inter
P3:  Projected Growth           1) Determine sales growth for next five years based on historical data (Calculate from data). 2) Determine sales growth for next five years based on industry projections (internet- Yahoo Finance). 3) Determine sales growth for next five years based on analyst projections (Internet-Yahoo Finance). 4)  Determine sales growth for the next five years for your analysis.  You can use one of the criteria above/combination of above/other criteria.  Fill in chart similar to below. Method Y1 Y2 Y3 Y4 Y5 Historical           Industry      

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Comment on the usual influence from a switch to lifo from fifo on the following variables during an inflationary period: a. revenue b. gross profit c. cost of goods sold d. profit e. income taxes f.
Comment on the usual influence from a switch to lifo from fifo on the following variables during an inflationary period:   a. revenue b. gross profit c. cost of goods sold d. profit e. income taxes f. cash flow
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ofit e. income taxes f. cash flowComment ...(1587 more words & 0 attachments).
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How will switching from fifo to lifo for inventory valuation affect financial analysis of liquidity and profitability? Cite two ratios that will be affected and indicate how they will change. (Assume
How will switching from fifo to lifo for inventory valuation affect financial analysis of liquidity and profitability? Cite two ratios that will be affected and indicate how they will change. (Assume an inflationary condition.)
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ysis of liquidity and profitability? Cite two...(1354 more words & 0 attachments).
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a. Listed below are three groupings of financial ratios. Liquidity Long-term borrowing ability Profitability Required: Briefly describe what each one measures. b. Listed below are three groups o
a.    Listed below are three groupings of financial ratios.     Liquidity     Long-term borrowing ability     Profitability Required: Briefly describe what each one measures. b.    Listed below are three groups of users of financial statements. Suppliers of raw materials Potential stockholders Bondholders Required: For each group, select the type of ratios from part (a) that each group might be most interested in. Briefly explain your choice.                                         
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below are three groupings of financial ratios. Liquidity Long-term borrowing ability ...(4073 more words & 0 attachments).
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CanTco Inc. owns 70% of Supersonics and consolidates this subsidiary. In 2010, Supersonics earned $100,000 after tax and Canco earned $1,000,000. Without consideration of minority interests, the stoc
CanTco Inc. owns 70% of Supersonics and consolidates this subsidiary. In 2010, Supersonics earned $100,000 after tax and Canco earned $1,000,000. Without consideration of minority interests, the stockholders' equity of Supersonics at the end of 2010 was $1,200,000. Required: a.    Determine the minority share of earnings in 2010. b.    Determine the consolidated net income. c.    Determine the minority interest at the end of 2010 on the balance sheet. d.    How should minority interest be classified on the balance sheet for analysis?                                         
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n the balance sheet. d. How should minority interest be classified on the balance sheet for analysis?CanT...(2287 more words & 0 attachments).
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1. Book value per share may not approximate market value per share because: (Points : 2) the book value is after tax book values are based on replacement costs rather than market values book v
1. Book value per share may not approximate market value per share because: (Points : 2)   the book value is after tax  book values are based on replacement costs rather than market values  book value is related to book figures and market value is related to the future potential as seen by investors  investors do not understand book value  book value is not related to dividends     2. Which of the following ratios represents dividends per common share in relation to market price per common share? (Points : 2)  dividend payout  dividend yield  price/earnings  book value per share  percentage of earnings retained     3. Amortization of patents can be added to income in the operations section of the statement of cash flows because: (Points : 2)  it is not a tax deductible expense  it results in a cash inflow  it does not require the outlay of cash  patent amortization is not an expense  it represents an inflow of cash     4. Insurance companies tend to have a stock market price at a discount to the average market price (price/earnings ratio). Which of the following is not a likely reason for this relatively low market value? (Points : 2)  Insurance is a highly regulated industry.  The insurance industry has substantial competition.  The accounting environment likely contributes to the relatively low market price for insurance company stocks.  The nature of the industry leads to standards that provide for much judgment and possible manipulation of reported profit.  Insurance companies typically have a high return on common equity.     5. Which of the following statements is not correct? (Points : 2)  A ratio that indicates a firm's long-term, debt-paying ability from the income statement view is the times interest earned.  Some of the items on the income statement that are excluded in order to compute times interest earned are interest expense, income taxes, and unusual or infrequent items.  Capitalized interest should be included with interest expense when computing times interest earned.  Usually, the highest times interest coverage in the most recent five-year period is used as the primary indication of the interest coverage.  In the short run, a firm can often meet its interest obligations, even when the times interest earned is less than 1.00.     6. The following data were gathered from the annual report of Desk Products. Market price per share    $30.00 Number of common shares    10,000 Preferred stock, 5%    $100 par    $10,000 Common equity    $140,000 The book value per share is: (Points : 2)  $30.00  $15.00  $14.00  $13.75  none of the answers are correct     7. Which of the following would not be a reasonable suggestion for reviewing the Statement of Financial Condition? (Points : 2)  Determine unrealized increases in net worth.  Determine the personal net worth amount.  Determine the amounts of the assets that are very liquid.  Determine the due period of liabilities.  Compare specific assets and specific liabilities, indicating net investment in assets.     8. In the formula for return on investment, interest expense is multiplied by (1 - tax rate). Why is this adjustment made? (Points : 2)  Interest is not tax deductible.  Debt is excluded from the denominator.  Net income in the formula is after tax.  Dividends are not deductible for tax purposes.  None of the answers are correct.     9. Using financial leverage is a good financial strategy from the viewpoint of stockholders of companies having: (Points : 2)  a high debt ratio  cyclical highs and lows  steady or rising profits  a steadily declining current ratio  none of the answers are correct     10. All cash receipts and disbursements, of governmental agencies, not required to be accounted for in another fund are accounted for in which of the following funds? (Points : 2)  fiduciary fund  proprietary fund  general fund  debt service fund  special assessment fund     11. A summarized income statement for Leveraged Inc. is presented below. Sales    $1,000,000 Cost of Sales    600,000 Gross Profit    $ 400,000 Operating Expenses    250,000 Operating Income    $ 150,000 Interest Expense    30,000 Earnings Before Tax    $ 120,000 Income Tax    40,000 Net Income    $ 80,000 The degree of financial leverage is: (Points : 2)  $150,000/$30,000  $150,000/$120,000  $1,000,000/$400,000  $150,000/$80,000  $400,000/$120,000     12. Which of the following is not an example of a nonprofit institution? (Points : 2)  university   hospital     state government  church  none of the answers are correct     13. There are many definitions or descriptions given to financial failure. Which of the following does not appear to be a reasonable definition or description. (Points : 2)  refinancing of bonds payable  liquidation  deferment of payments to short-term creditors  deferment of payments of interest on bonds  deferment of payments of principal on bonds     14. Return on investment measures: (Points : 2)  return to all suppliers of funds  return to all long-term creditors  return to all long-term suppliers of funds  return to stockholders  return to all short-term suppliers of funds     15. Dawn Alive reported the following for 2010. Ending market price    $40.75 Earnings per share:    Basic     2.50 Diluted    2.08 Dividends per share    1.10 The price/earnings ratio and dividend payout were: (Points : 2)  19.59 and 52.88%  16.30 and 52.88%  16.30 and 44.00%  19.59 and 44.00%  37.04 and 52.88%     16. Which of these items represents a definite commitment to pay out funds in the future? (Points : 2)  bonds payable  reserves for rebuilding furnaces  deferred taxes  noncontrolling interests  redeemable preferred stock     17. Joseph and John, Inc. had the following balance sheet results for 2010:     (in millions) Current liabilities    $12.6 Bonds payable    18.6 Lease obligations    2.7 Minority interest    1.4 Common stock    8.6 Retained earnings    22.9     $66.8 Compute the debt-equity ratio. (Points : 2)  112.1%  87.6%  67.6%  46.7%  none of the answers are correct     18. The retirement of debt by the issuance of common stock should be presented in a statement of cash flows in which of the following sections? (Points : 2)  supplemental schedule of noncash investing and financing activities  cash flows from operating activ
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ethod 33. The following financial statement data are taken from Xeron Company's 2010 annual report: (in millions) Current assets $12.6 Investments 9.4 Intangibles 6.8 Tangible assets (net) 58.1 Current liabilities 6.4 Long-term debt 39.7 Stockholders' equity 40.8 Compute the debt ratio. (Points : 2) 196.9% 113.0% 53.0% 45.7% none of the answers are correct 34. Which of the following variables indicates a measure of cumulative profitability over time? (Points : 2) retained earnings (balance sheet)/total assets earnings before interest and taxes/total assets working capital/total assets market value of equity/book value of total debt sales/total assets 35. On the balance sheet of a bank, what is the best description of the nature of checking accounts of customers ? (Points : 2) short-term asset long-term asset short-term liability long-term liability owners' equity 36. Which of the following accounts is not part of working capital? (Points : 2) cash accounts receivable inventory accounts payable investments 37. Working capital is defined as: (Points : 2) total assets less intangible assets current assets divided by current liabilities current assets less current liabilities total assets less current assets current assets less liabilities 38. Which of the following would not be a source of information for personal financial statements? (Points : 2) broker's statements income tax returns safe deposit box checkbook all of the answers would be a source of information 39. Ingram Dog Kennels had the following financial statistics for 2010: Long-term debt $400,000 (average rate of interest is 8%) Interest expense 35,000 Net income 48,000 Income tax 46,000 Operating income 107,000 What is the times interest earned for 2010? (Points : 2) 11.4 times 3.3 times 3.1 times 3.7 times none of the answers are correct 40. A fixed charge coverage: (Points : 2) is a balance sheet indication of debt carrying ability is an income statement indication of debt carrying ability is a liquidity ratio frequently includes research and development computation is standard from firm to firm 41. The first balance sheet asset for a regulated utility is: (Points : 2) cash receivables inventory plant investments 42. A reason that equity earnings create a problem in analyzing profitability is that equity earnings are: (Points : 2) usually greater than the related cash flow less than dividends declared more than dividends declared extraordinary nonrecurring 43. Under the full-cost approach to oil and gas accounting: (Points : 2) costs related to successful efforts are expensed and others capitalized cost related to successful efforts are capitalized and others expensed all costs are expensed as incurred all costs are capitalized as incurred only the cost of buildings and equipment are capitalized 44. Noncontrolling interest share of earnings is: (Points : 2) the total earnings of unconsolidated subsidiaries earnings based on the percent of holdings by parent company of unconsolidated subsidiaries the total earnings of consolidated subsidiaries earnings based on the percent of holdings by outside owners of consolidated subsidiaries none of the answers are correct 45. The follow...(18199 more words & 1 attachments).
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