Ratio-Unaudited 2009 81,782/23,807= 3.44 2008 41,851/8,380= 9.49 I agree with the annual report because both the audited and the unaudited amounts remained the same with no negative amounts. Days Cash on Hand (DCOH)-Audited 2009 148,559/9,198= 16.15/365= 0.04 2008 376,886/4,185= 90.06/365= 0.25 Days Cash on Hand (DCOH)-Unaudited 2009 149,559/9,198= 16.26/365= 0.04 2008 376,886/4,185= 90.06/365= 0.25 I agree with the annual report because both the audited and the unaudited amounts remained the
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checks and completes the monthly bank reconciliation. The accountant also interviews and approves of all the new hires. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash. The accountant has recently started using pre-numbered invoices and wants to buy an indelible ink machine to print their checks. The president is waiting to hear from you if
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Facts However, in 2009 revenues declined to $4.5 million along with net cash flows from all activities declining in 2009 as well. Overall capital expenditures for the company have been continually increasing by 26% each year. Milton had planned on borrowing $20 million in the fourth quarter of 2010 from the credit markets. In 2010, current cash flow is expected to increase due to higher projections of revenue and cash collections from the business—and therefore selling and producing more products
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Case Study 4 Stephanie M. Clark Capella University Aurora Textile Company was established in the early 1900s as a yarn manufacturer. The company focused on four major customer segments, which were hosiery, knitted outerwear, woven and industrial and specialty products. Aurora Textile Company grew to become the leader in the textile-mill industry. In more recent years, changes in the market led to significant declines in financial performance for both Aurora and the U.S. textile industry over
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referral from happy clients Finance • 1987 $4.2 million line of credit to meet seasonal cash needs at 3.75% over prime = 3.75+8=11.75%? i. Covers up to 70% of inventory costs and 80% of current AR • Revenue ranks top 10 worldwide 1984, estimated growth at 10% per year (Accurate to expect same growth? • Predicted revenues 1991 = $26 million • Estimated 1987 international revenues = 30% total sales • Cash balances average = $100,000 • Never paid dividends, do not intend to pay now = good choice
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of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash. The accountant has recently started using pre-numbered invoices and wants to buy an indelible ink machine to print their checks. The President is waiting to hear from you if this
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promising, high risk” firm, only established 15 months prior, it should reach maturity in 2010 as sales, expenses and free cash flows stabilise (Fig.1). RMAG exhibits characteristics of a high growth firm with no dividends, high risk, high CAPEX expenditures and no leverage. Furthermore, it would be inadequate to adopt the forecast horizon dictated by RMAG and Big Sur of 10 years as cash flows only breakeven in Year 8 (Fig.2). Ohlson & Zhang (1999) affirmed that “Casual observation suggests that the horizon
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following analyses: 1. 2. 3. 4. Construct a common-size (percentage) income statement. Construct a common-size (percentage) B/S Using information from 1&2 to find out the operating efficiency Assuming the same operating efficiency in 1990, forecast cash needs for the target growth Case #2: Ocean Carriers Questions Ocean Carriers uses a 9% discount rate. 1. Do you expect daily spot hire rates to increase or decrease next year? 2. What factors drive daily hire rates? 3. How would you characterize
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time. Annuities are primarily used as a means of securing a steady cash flow for an individual during their retirement years. Lump-sum payment- A one-time payment for the total or partial value of an asset. Cash flow- A revenue or expense stream that changes a cash account over a given period Uneven cash flow stream- Any series of cash flows that doesn’t conform to the definition of an annuity is considered to be an uneven cash flow stream. 4-1 problem Solve for FV 10,000 × (1.10)5 power
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seasonal cycle of Toys World's working capital needs and necessitate new bank credit arrangements. It has to be analyzed the company's performance, forecast fund needs and make a recommendation. The case introduces the pattern of current assets and cash flows in aseasonal company and provide and elementary exercise in the construction of the pro forma financial statements and estimation of fund needs. Toy World has been facing two basic issues, as follows: - The first one is if it has to change
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