FIN 571 Final Exam (Newest) – Assignment 1. In a general partnership, the general partners have _____ liability and have _____ control over day-to-day operations. • limited; no • no; total • unlimited; no • limited; total • unlimited; total 2. Which one of these is a correct definition? • Long-term debt is defined as a residual claim on a firm’s assets. • Net working capital equals current assets plus current liabilities. • Current liabilities are debts that must be repaid in 18 months
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• 14. Accounting: Text and Cases 12e – Instructor’s Manual Anthony/Hawkins/Merchant 14 Then the formula for gross income (I) is: I = )XV(P 1 1 1– F1 + j2222 F-Fx)v(pPdt. 1Contrib. Pdt. 2Contrib. Pdt. 1 “Direct”Margin Pdt. 2 “Direct”margin Or, for the illustrative numbers, I = 3x1 + 4x2 – 60,000 (x1,x2 > 0) This makes it clear that instead of a break-even volume, there are virtually infinite x1, x2 combinations (i.e., product mixes) that will make I = 0 (or make I = any amount)
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Farm Financial Statements Ag Decision Maker File C3-56 Statement of Cash Flows—Summarizes all the sources and uses of cash by the business during a period of time. Statement of Owner Equity—Shows how net worth changed from the beginning to the end of the year. Forms for preparing each of these statements are found in this bulletin. Several supplemental schedules also are provided, on which assets and liabilities can be listed and subtotals of their values carried forward to the statements. Most
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analysis is as mentioned below * It helps in evaluating the firm performance * It helps in inter firm comparison * It simplifies financial statement * It helps in determining financial position of the concern * It is helpful in budgeting and forecasting * Operating efficiency of the business * It helps in investment decision making Types of ratio analysis There are various types of ratio analysis which are as mentioned below 1. Profitability ratio 2. Liquidity
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and public relations to insure the project has a positive reception within the media. Finally, the finance and accounting team has responsibility for examining the financial viability of renovating the restaurant and developing a cash flow budget to determine how much cash will be needed open and operate the restaurant. You are part of this last team and are charged with preparing the necessary analyses. In addition to the “go or no-go” decision, RDG management wants to know whether the restaurant
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If LJB decides to go public the first thing the President needs to about new internal control requirements is the Sarbanes-Oxley Act or SOX. The Sarbanes-Oxley Act is a United States federal law which sets new or enhanced standards for all U.S. public companies. The reason that this SOX bill was created was because a a number of major corporate and accounting scandals. When these scandals happened they cost investors billions in losses because the share prices fell it shook public confidence in
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forecast for LL requested by bank (Finance) Our 2011 cash flow forecast assumes that the union will accept LL’s revised offer in June and the strike was only for April, 2010 which will not affect fiscal 2011 since the offer would be retroactive to April 30, 2010. Our forecast also assumes that MRL’s cash flows are excluded. Our calculations are in APPENDIX. It shows that cash flow for 2011 is forecasted to be $8,646,000. Furthermore, cash flow is expected to decrease steadily in 2012 and beyond
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increased since 1998; this indicates that the current cash flows cannot handle the companies short term financial needs. This may improve in two to three years if the sales projections are accurate, however, I believe they are very conservative and are another aea of significant risk if there is no equity injection. In conclusion, the firm is taking on too much debt while making more large capital commitments. This coupled with short term cash flow issues (slow AR) an increasing accounts payable
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Procedure Cash Management Cash Management 1. DEFINITIONS............................................................................................................. 3 1.1. Cash Management ............................................................................................................................... 3 1.2. Cash Flow Analysis .....................................................................................................................
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What are the relevant cash flows that General Foods should use in evaluating the Super Project? In particular, how should management deal with such issues as o Test-market expenses? o Overhead Expenses? o Erosion of Jell-O contribution margin? o Allocation of charges for the use of the excess agglomerator? The relevant cash flows that General Foods should use in evaluating the Super Project are considered Incremental cash flows and are “the changes in the firm’s cash flows that occur as a
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