in contrast with Absorption Costing where there is a need to compute for the per-unit fixed cost and calculate fixed volume variances. - Variable costing is useful for companies with cash flow problems because the income figure produced in variable costing income statement is usually close to the timing of cash flows. This is because of the treatment of fixed costs which is deducted lump sum in the period incurred. - Management can concentrate on the effects of changes on sales because
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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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1. During the project initiation, a project charter is created. The project charter should include which of the following? • Project managers expenses • Analysis of budget • Selection of the senior project manager • Projects high-level deliverables 2. A project's budget should be based on a company’s • strategy and financial goals • profitability • financial goals and equity • debt load and equity 3. Earned value management is a technique used to integrate projects • resources • scope
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Once finance is secured it’s funding, managers need to make sure it is applied appropriately. All business managers need to be aware of the need to manage cash flow in the business. 2. What is cash flow? The flow of money that comes into a business and that a business spends. 3. What are contingencies? Out of a businesses cash flow some money for contingencies need to be set aside. This is an unanticipated event that leads to financial difficulty. Businesses should have money saved for
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(Capital Budgeting: Analyzing Project Cash Flows) 1- Interest Expense should not be included, because it’s operating cash flow. 2- Initial investment for new line: Cost 8.5 * NWC 0.5= 9 Million year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | Sales | 3.5 | 4.8 | 6.2 | 9.5 | 16.8 | 18 | 15 | 12.5 | 9.6 | 6 | -COGS | 2.1 | 2.9 | 3.7 | 5.7 | 10.1 | 10.8 | 9 | 7.5 | 5.8 | 3.6 | GOI | 1.4 | 1.9 | 2.5 | 3.8 | 6.7 | 7.2 | 6 | 5 | 3.8 | 2.4 | GOI | 1.4 | 1.9 | 2.5 | 3.8
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Assignment 2: Company 2 Analysis Introduction Salesforce.com operates in the application software industry offering cloud computing solutions focusing on customer relationship management. Cloud computing services help firms to store data, to retrieve prospect information, and to track leads and progress. The system also helps firms to forecast sales opportunities available in the market as well as map customer routes to the digital marketing platforms. SAlesforce.com has two lines of business
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University of Nottingham Ningbo China Business School Academic Year 2015/16 Autumn Semester CORPORATE FINANCE Prof. Michele Geraci Analysis of Boeing Investment Plan Yuliana Tan Student ID: 6519982 Word Count: 2,220 (exc. Table of Contents, Tables, Charts & References) Executive Summary This paper discusses whether The Boeing Company should build a plant specializing in producing aircraft 787 in China. Having analyzed the project from a purely financial view, through the calculation of
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Assignment 1 -by guo chen 1. Name the three principal financial statements and describe what they represent. Three principal financial statements are balance sheet, income statement and statement of cash flows. Balance sheet contains Assets, liabilities, and shareholders’ equity. Assets =Liabilities + Shareholders’ Equity Balance sheet views resources from two perspectives: a list of the specific resources the firm holds and a list of the persons or entities
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analysis techniques. The first section of the test addresses discounted cash flow analysis. See how you would do by answering the following questions. a. Draw time lines for (a) a $100 lump sum cash flow at the end of year 2, (b) an ordinary annuity of $100 per year for 3 years, and (c) an uneven cash flow stream of -$50, $100, $75, and $50 at the end of years 0 through 3. Answer: (Begin by discussing basic discounted cash flow concepts, terminology, and solution methods.) A time line is a graphical
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balance sheet, income statement, retained earnings statement, and statement of cash flow (Kimmel, Weygandt, Kieso, 2011). The balance sheet is used to present a picture of what a company owns (Kimmel, Weygandt, Kieso, 2011). The balance sheet reports the amount of assets and claims to assets for a period of time (Kimmel, Weygandt, Kieso, 2011). Assets are items the company owns that could be used if needed to retain cash. The claims to assets are either creditor or owner. The creditor would be the
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