Finance, Investments, Financial institutions, International Finance. Agency problem- inherent conflicts of interest Formals Assets=Liabilities + Shareholders’ Equity, Income =Revenues – Expenses, Current Ratio=Current Assets/Current Liabilities, Quick ratio or acid-test ratio= (Current Assets – Inventory)/ Current Liabilities Cash Ratio= Cash/ Current Liabilities Total debt= (Total Assets- Total Equity)/ Total Assets, Debt/equity ratio= Total Debt/ Total Equity, Equity Multiplier= EBIT/Interest
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Tootsie Roll Industries The Hershey Company Interpretation and comparison between the two companies' ratios Ratios (pg 735) Ratio Receivable Turnover Ratio (Net Sales/(Average Accounts Receivable) $497,717/ (($32,371+$35,075)/ 2) = 14.76 $4,946,716/(($487,285+$522,673)/ 2) = 9.80 This ratio compares net sales divided by the average accounts reciavable. Tootsie Roll has far less sales but has to extend less credit on average to collect the full amount owed. By placing
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Short-term Assets .......................................................... 1-3 Long-term Assets............................................................ 1-3 Liabilities (Debt) and Equity ......................................................1-4 Debt vs. Equity ................................................................ 1-4 Liability / Equity Accounts
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INTRODUCTION TO ACCOUNTING SEMINAR (1) TRUE/FALSE (NOTE: Show any required calculations in your answers) 1. A corporation is a business that is legally separate and distinct from its owners. 2. Primary users of accounting information are accountants. 3. Accounting is thought to be the "language of business" because business information is communicated to users. 4. The role of accounting is to provide many different users with financial information to make economic decisions.
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fixed assets. Currently, the company’s total liabilities exceed the total assets. Long-term debt consists of “probable future sacrifices of economic benefits arising from present obligations that are not payable within a year or the operating cycle of the company, whichever is longer” (Kieso, Weygandt, & Warfield, 2007). The company’s long-term liabilities consist of capital lease obligation, note outstanding, mortgage outstanding and other liabilities; the largest of which is the notes payable. The
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Study Case: Hampton Machine Tool Background. Hampton Machine Tool Company, a machine tool manufacturer, was founded in 1915. Hampton's customers are military aircraft and automobile manufacturers in the St. Louis area. Machine Tool Company felt the boom in the 1960`s with record setting profits in the mid- to late- 1960`s. The company slowed down in the 1970`s economic recession caused by Vietnam War and the oil embargo. Hampton stabilized by the late 1970`s
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A recent commercial for a major computer company’s e-business consulting practice showed a CEO, in a state of high excitement, expostulating about a thick book he held in his hands. “Here it is,” he exclaimed, “it cost $2 million. The best strategy ever! Now the question is, ‘is it implementable?’” We then watch his face fall as, one by one, his executives consider the question and reply “No.” Numerous studies have noted the very weak relationship of strategy formulation to strategy execution. Fortune
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MJ Metal Works (logo here) Jamie Wilson 119 CR 106 Leesville, TX 78122 jwilson@mjmetalworks.com 830-491-8618 Executive Summary MJ Metal Works is a manufacturer of custom BBQ pits, metal art, and welding facility. We build one-of-a-kind custom BBQ pits of different shapes, sizes, and needs. We also make metal art such as crosses, custom gates, candle holders, and metal cutouts. We are a family owned business that sells to families and businesses. By provide custom made products at competitive
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Total sales/revenue 7,760 8,615 10,225 12,317 12,323 Total assets 3,382 4,637 7,205 8,741 12,356 Total asset turnover 2.29 1.86 1.42 1.41 1.00 2.Debt to equity ratio Year 2006 2007 2008 2009 2010 Total liabilities 30,233 40,099 52,543 64,212 69,146 Shareholders equity 5,741 6,765 9,726 11,927 13,583 Debt equity ratio 5.27 5.93 5.40 5.38 5.09 3.Debt to asset ratio Year 2006 2007 2008 2009 2010 Total liablities
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000 37,000 (e) Debtors 40,000 32,100 (f) Bank 0 4,000 (g) Cash 250 300 Total Assets 265250 255400 Liabilities (a) Paid Up Share Capital 100,000 125,000 (b) General Reserves 25,000 30,000 (c) Profit and Loss Account 15,250 15,300 (d) Bank Loan (Long Term) 35,000 67,600 (e) Creditors 75,000 0 (f) Provision for Taxation 15,000 17,500 Total Liabilities 265250 255400 Additional Information i During the year a dividend of Rs. 11,500 was paid. ii Depreciation
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