... The industry average? Number of theaters by complex size, market leaders, tickets sold and box office gross, average movie ticket price Changes in interest rates and the availability and cost of capital, the effect of the leverage on its financial condition, prices and availability of operating supplies, cost control procedures on operating results. 2. What metrics does your movie exhibitor report on their web site? Are they similar or different from what is reported in the case? Concessions, Advertising, Box-office revenues. Small to mid-size markets, Acquisitions, which is focusing on taking advantage of opportunistic small market acquisitions. Screen advertising, box office admissions, concessions and other revenues. 3. Using your company’s spreadsheets, or the summary spreadsheet, prepare your evaluation of: a. Short-term solvency, or Liquidity – Are they solvent in the short term? Ratios increased from 09 to 12, which means they already meet its shot-term financial obligations. b. Long-term solvency, or financial leverage. Ratios decrease from 09 to 12, not meet the long-term financial obligations. c. Asset utilization, or turnover. Efficiently manage its assets d. Profitability. Have profits e. Summarize your evaluation of the common-size income statement and changes over time. Gross income, operating income are increased every year, f. Summarize your evaluation of the common-size balance sheet and changes...
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...D.R. Horton Inc. (DHI 2/6/2012 Northwood University Company Overview Industry Strategy D.R. Horton, Inc. is one of the largest homebuilding companies in the United States. They construct and sell high quality homes through their operating divisions in 27 states and 75 metropolitan markets of the United States, primarily under the name of D.R. Horton, America’s Builder. It’s among the Fortune 500 Company and its common stock is included in the S&P 500 Index and listed on the New York Stock Exchange. Their size of operations has substantially decreased due to the weakened markets for new homes. Business Strategy The company has maintained significant year-over-year growth and profitability. It achieves this this growth through an operating strategy focused on capturing greater market share, while also maintaining a strong balance sheet. They execute their strategy by investing available capital in their existing homebuilding markets and opportunistically entering new markets. They have been actively been involved in evaluating homebuilding acquisition opportunities as they arose, some of which resulted in acquisitions and contributed to growth in their business. They have enhanced their leverage on general and administrative activities, and this has allowed greater flexibility to compete for greater market share in the markets. ...
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...Accounting is a common thread which unites even the smallest neighborhood business with an organization identified as a Fortune 500 company. Every company, regardless of size or mode of operation, needs to support this function. If accounting is so universal, then, how do companies involved in diverse industries with unique processes prepare their books in the same manner? Well, there exist a common set of standards for entities to follow, but there are also standards specific to organizations in certain industries. One particular sector which has its own considerations encompasses those organizations which operate within the oil and gas industry. With that said, one particular area worth discussing relates to how outlays are accounted for when they are incurred for the purpose of locating sites where oil and gas can be found and then transforming those resources into marketable products. “Companies involved in the exploration and development of crude oil and natural gas have the option of choosing between two accounting approaches: the ‘successful efforts’ (SE) method and the ‘full cost’ (FC) method.” (Investopedia) The main issue which these techniques address is whether or not such outflows can be capitalized or need be treated as expenses on the income statement. As the FASB Accounting Standards Codification only addresses the successful efforts method, it will receive the primary focus in this paper. The name “successful efforts” gives an indication as to how...
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...financial statements. Lastly, we talked about preferred and common stocks are issued, placed as journal entries on financial statements and the paid out in dividends. With these topics we got to see why financial statements are compiled the way they are and it gave us a better understanding of how they work for a company. Each week the understanding is getting greater on financial statements. Financial statements are analyzed by corporations so that they are able to see and identify their strengths and possible weaknesses. Identifying the relationship with the balance sheet and a company’s profit and loss accounting will help in the decision making process on whether to proceed with certain things or to either change or eliminate them all together. External users of a company look at the information on financial statements to decide whether or not they want to invest or issue credit but the company also uses these statements to help make the hard decisions that management needs to build a company with staying power. Through issue of common and preferred stocks we must pace the journal entries on our statements and then we use that information when we are paying out dividends as well. There are multiple ways to analyze financial statements, this week we focused on ratio, vertical and horizontal analysis. In the statement of cash flows net income must be converted from an accrual to a cash basis. This can be done using either the direct or indirect method. According to (Weygandt...
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...Off-balance-sheet activities, earnings persistence and stock prices: Evidence from operating leases* Weili Ge University of Washington Business School University of Washington Mackenzie Hall, Box 353200 Seattle, WA 98195 (206) 221-4835 geweili@u.washington.edu November 22, 2006 Abstract This paper examines the implications of the off-balance-sheet treatment of operating leases for future earnings and stock returns. The property rights granted by an operating lease contract generate both future benefits (off-balance-sheet capital investment) and future obligations (offbalance-sheet financing liabilities) for the lessee. The change in the off-balance-sheet capital investment can be viewed as a form of growth in net operating assets and also a form of offbalance-sheet accruals. By examining the footnote disclosure on operating leases, this paper shows that, after controlling for current earnings, greater off-balance-sheet operating lease activities lead to lower future earnings. This finding is consistent with diminishing marginal returns to investment in operating lease activities. Additional tests show that investors seem to incorrectly estimate the implications of off-balance-sheet lease activities for future earnings. A long-short investment strategy that exploits this misestimation generates significant future abnormal stock returns. These results suggest that the accrual anomaly documented in prior research extends to off-balance-sheet lease accruals. * This paper...
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...Wheelen and Hunger, (2008). Concepts in Strategic Management and Business Policy, 11th Ed., Pearson Education, Inc. Purpose of the strategic audit assignment Your assignment Selecting a company for the strategic audit An effective report Required format for the strategic audit report Required sections of the strategic audit report Executive Summary Current situation Corporate governance External environment: Opportunities and threats Internal environment: Strengths and weaknesses Analysis of strategic factors (SFAS) Strategic alternatives and recommended strategy (TOWS) Implementation of recommended strategy Conclusions Evaluating mission statements Evaluating the Board of Directors Preparing the tables: EFAS, IFAS, SFAS, and TOWS Common-size statements Analyzing financial statements Analyzing financial ratios Writing guidelines Relaxed APA rules Useful resources Purpose of the strategic audit assignment A strategic audit is usually done to help the firm’s management decide how to proceed, or to support a potential investment or loan. The purpose of a strategic audit is essentially to answer the question, “What condition is this firm in?” Because the audit is focused toward answering this question, there must be a conclusion about what the audit shows. Therefore, while this is mostly an objective, informative report, there is a persuasive twist at the end. 1 The point of this assignment is to see how well you can research, interpret, and draw conclusions about the...
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...Term Paper On Beximco Textile Ltd.. Course Name: Submitted to: Mr. Tanvir Hamim Lecturer Department of Banking & Insurance University of Dhaka Submitted by Group 9 Date of submission : 16/06/2015 Prepared by: Group-09 Name | ID | Signature | Aditya Podder | 20-085 | | Afsar Dewan Abid | 20-127 | | Md.Mobinul haque | 20-039 | | Quazi Farhana Mustari | 20-067 | | Md. Belal Hossain | 20-059 | | | | | Letter of Transmittal Date:16th June 2015 Mr. Tanvir Hamim Lecturer Banking and Insurance Department University of Dhaka Subject: Submission of report title for Beximco Textile Ltd. Dear sir, We are assigned to present a report of Beximco Textile Ltd. We have presented its ins and outs with the date of three years. Any query regarding this report is appreciated. Sincerely yours Aditya Podder On behalf of group – 09 Department of Banking and Insurance Acknowledgement First of all, we would like to thanks our almighty 'Allah' who creates as well as maintain each and every thing and then we would like to acknowledge the support of Mr.Tanvir Hamim, lecturer of Banking and Insurance Department, who helped us giving helpful instruction.We are also grateful to A S F Rahman, Director ofBeximco Textile.Ltd for generous interview. They spent their most valuable time helping us to achieve a clear structure, also provide us information about their company. At last the...
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...ASSIGNMENT BRIEF EDEXCEL BTEC L3 Extended a Diploma in Business Unit 8 ACCOUNTING SYSTEMS (Task A) P1 In this assignment I am going to identify and explain the various documents that a business needs to prepare and used in its day to day activities and transactions. In first place, the price quotation is a document that an organisation submits to one or more potential clients enquiring for the price of a product or service. Typically, the price quotation presents the list of prices customarily used when the requesting organisation's requirements are more complex. Therefore, we identify this document as a formal statement of promise, submitted usually in response to a request for quotation by potential supplier, to supply the goods or services required by a buyer, at specified prices, and within a specified period. A quotation may also contain terms of sale and payment, and warranties. If the case of the requesting organisation does not wish to accept the price quotation of a certain good or service, it may decline it or request a new price quote as the quotation is the formal quote from the seller to the buyer for a quantity of goods, at a specific price, to be delivered at a specific time. The quotation is provided within the context of a validity time frame, and purchase orders placed during the quotations validity are accepted for delivery at the price stated. Therefore, we can define the price quotation as a proposal to the buyer from the seller...
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...Creating a Business Plan Harvard Business Press Boston, Massachusetts ISBN-13: 978-1-4221-6687-1 Creating a Business Plan Pocket Mentor Series The Pocket Mentor Series offers immediate solutions to common challenges managers face on the job every day. Each book in the series is packed with handy tools, self-tests, and real-life examples to help you identify your strengths and weaknesses and hone critical skills. Whether you’re at your desk, in a meeting, or on the road, these portable guides enable you to tackle the daily demands of your work with greater speed, savvy, and effectiveness. Books in the series: Leading Teams Running Meetings Managing Time Managing Projects Coaching People Giving Feedback Leading People Negotiating Outcomes Writing for Business Giving Presentations Understanding Finance Dismissing an Employee Creating a Business Plan Managing Stress Delegating Work Shaping Your Career Persuading People Managing Crises Managing Up Becoming a New Manager Managing Difficult Interactions Hiring an Employee Making Decisions Managing Diversity Executing Innovation Creating a Business Plan Expert Solutions to Everyday Challenges Harvard Business School Publishing Boston, Massachusetts Copyright 2007 Harvard Business School Publishing Corporation All rights reserved No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording...
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...A STUDY ON FINANCIAL ANALYSIS IN RANE ENGINE VALVES PVT LTD AT ALANTHUR A Project Report Submitted by P.KOKILA (30307631027) Under the guidance of Mr.P.Ganesh,M.com,M.B.A,M.phil,(Ph.D) FACULTY OF MANAGEMENT STUDIES In partial fulfillment of the requirements for the award of the degree of MBA IN Department of Management Studies Anand Institute Of higher Technology ANNA UNIVERSITY CHENNAI 600 025 JUNE 2009 I BONAFIDE CERTIFICATE Certified that this project report titled “A Study on Financial Analysis in Rane Engine Valves Pvt Ltd at Alanthur “is the bonafide work of Mr./Ms.KOKILA.P (Registration Number: 30307631027)Who carried out the research under my supervision. Certified further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertion on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate. Internal Guide Head of the Department (P.Ganesh,M.Com., M.B.A.,M.Phil,( Ph.D.) (Dr.M.Kavitha, M.B.A, M.Phil, PhD.) Submitted to Project and Viva Examination held on_____________. Internal Examiner External Examiner II KOKILA.P (Registration Number: 30307631027) II MBA ANAND INSTITUTE OF HIGHER TECHNOLOGY, KAZHIPATTUR - 603103 DECLARATION I hereby declare that the project entitled A Study on Financial Analysis in Rane Engine Valves Pvt Ltd at Alanthur in partial fulfillment of the requirements...
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...FINANCIAL STATEMENTS Questions LG1-LG5 1. Classify each of the following ratios according to a ratio category (liquidity ratio, asset management ratio, debt management ratio, profitability ratio, or market value ratio). a. Current ratio – liquidity ratio b. Inventory turnover ratio – asset management ratio c. Return on assets – profitability ratio d. Accounts payable period – asset management ratio e. Times interest earned – debt management ratio f. Capital intensity ratio – asset management ratio g. Equity multiplier – debt management ratio h. Basic earnings power ratio – profitability ratio LG1 2. For each of the actions listed below, determine what would happen to the current ratio. Assume nothing else on the balance sheet changes and that net working capital is positive. a. Accounts receivable are paid in cash – Current ratio does not change b. Notes payable are paid off with cash – Current ratio increases c. Inventory is sold on account – Current ratio does not change d. Inventory is purchased on account– Current ratio decreases e. Accrued wages and taxes increase – Current ratio decrease f. Long-term debt is paid with cash – Current ratio decreases g. Cash from a short-term bank loan is received – Current ratio decreases LG1-LG5 3. Explain the meaning and significance of the following ratios a. Quick ratio - Inventories are generally the least liquid of a firm’s current assets. Further, inventory is the current asset for which book values...
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...2010 3Financial Statement Analysis: A Tool for Performance Evaluation ABSTRACT Financial statements are prepared to meet external reporting obligations and also for decision making purposes. They play a dominant role in setting the framework of managerial decisions. But the information provided in the financial statements is not an end in itself as no meaningful conclusions can be drawn from these statements alone. However, the information provided in the financial statements is of immense use in making decisions through analysis and interpretation of financial statements. There are various methods or techniques that are used in analyzing financial statements, such as comparative statements, schedule of changes in working capital, common size percentages, trend analysis and ratios analysis. This study intends to analyze financial statement of Oceanic bank in Nigeria in order to come up with an in-depth fact finding on its performance and to see if there is any connection between the recent global economic crisis and its overall performance. 4Financial Statement Analysis: A Tool for Performance Evaluation INTRODUCTION 1.1 Background Financial statement represents crucial information to various users who have interest in a diverse field. All financial statements are essentially historically historical documents. They tell what has happened during a particular period of time. However most users of financial statements are concerned about what will happen in the future....
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...Page 75 UNDERSTANDING THE LIMITATIONS OF FINANCIAL RATIOS Joseph Faello, Mississippi State University ABSTRACT The purpose of this paper is to provide financial statement users and accounting academics with some useful insights when working with financial ratios. Initially, the uses and benefits of financial ratios and the limitations of using financial ratios are discussed from the financial statement users’ and accounting academics’ perspectives. Then, practical advice is provided to both financial statement users and accounting academics alike to mitigate the limitations of using financial ratios. Financial statement users and accounting academics will find the issues discussed in this paper useful in their work with financial ratios. Keywords: Financial ratios, Comparability, Homoscedasticity, Outliers INTRODUCTION Financial ratios play an important role in the analysis of financial statements and accounting research. However, the use of financial ratios comes with its hazards. Both accounting academics and financial statements’ users need to understand the problems and limitations in working with financial ratios. The purpose of this paper is to address these issues and to provide guidance on how to mitigate the problems surrounding financial ratios. Both accounting academics and financial statement users will find this study useful in their dealings with financial ratios. The study is organized as follows: 1. 2. 3. 4. Uses and benefits of financial...
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...| | | | | | | | | | | | | | | Milestone versions of the report are issued including the complete document with the sections completed to date to reflect the work to date by the analyst team. The milestone versions of the document are authorized for release only after the analyst’s signature has been obtained. Milestone 1 PREPARED: DATE:___/___/___ (for acceptance) (, signature) POSITION: ___ Milestone 2 PREPARED: DATE:___/___/___ (for acceptance) (, signature) POSITION: ___ Milestone 1 PREPARED: DATE:___/___/___ (for acceptance) (, signature) POSITION: ___ TABLE OF CONTENTS 1 Executive Summary 7 2 strategy analysis 7 2.1 Industry Analysis 7 2.2 Competitive Strategy Analysis 7 2.3 Corporate Strategy Analysis 7 3 accounting analysis 7 3.1 Overview of...
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...creditors (debt financing) or owners (equity financing). Financing activities would include, for example, acquiring debt, capital leases, issuing bonds, or issuing preferred or common stock. Financing activities would also include payments to retire debt, reacquiring stock (treasury stock), and the payment of dividends. 17-2. When auditing the investing and financing cycles auditors typically address the following issues: • What assets are necessary to support the operations of the entity, and what are management’s long-range plans for growing the entity’s asset base? Answering this question assists the auditor in developing expectations of long-term assets needed to support operations. • What assets were acquired, or disposed of, during the period? Answering this question confirms the auditor’s expectations regarding assets needed to operate effectively. It also assists the auditor in developing expectations of regarding financing activities. • How were newly acquired assets financed? Answering this question completes the audit of the investing and financing cycles. These cycles are often audited together due to the strong connection between asset acquisition and the financing of those assets. 17-3. Investing activities are critical to a company in the hotel industry as facilities are the primary productive asset. The location and quality of hotel...
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