\Acct310 Week 1 Process of Fundamental Analysis • Understand the business • Analyse the information • Forecasting payoffs • Convert forecasts to valuations • Make an investment decision 6 Step Process Issues: • Careful analysis of qualitative and quantitative info needed. • Accounting policies affect the numbers. STEP 1: Identify the Industry Economic Characteristics • Economic characteristics and competitive dynamics influences the strategies firms will employ. Value chain
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reports a liability of 800,000 at 12/31/12 2. The insurance recovery is a gain contingency that is not recorded until received. The loss should be accrued for 6,000,000. 3. It is a gain contingency. 13-19 a. 1. 318,000/87,000=3.66 2.820,000/200,000 + 170,000/2=4.43 3.1,400,00/95,000=14.74 4.210,000/52,000=4.04 5.210,000/1,400,000=15% 6.210,000/488,000=43% b. 1. No effect 2. Reduce current assets by weakening ratio 3. Improve current ratio by reducing assets and liabilities 4. No
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| Assets = Liabilities + Stockholder’s Equity | |Current Assets |Long-Term Assets |Current Liabilities |Long-Term Liabilities |Owner’s Equity |Revenues |Expenses | |Cash |Intangible Assets |Accounts Payable |Mortgage Payable |Common Stock |Sales Revenue |Purchases |
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n 1 January, 2011 Shadow Stormz Ltd. started their company, depositing $2,10,000 in cash in the name of the company, in exchange for 21,000 shares of $10 per value stock of the corporation. Jan 10: Purchased goods on cash $1,00,000 from ABC. 21: Sold goods on cash $80,000 to Pro Asia. Feb 05: Purchased goods on credit $88,000 from ABC. 16: Sold goods on credit $49,000 to Pro Asia. 25: Paid advertisement bill of $5,000. 28: Sold goods to Sarmon’s Brothers for $1
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Company Name: Pay it forward Book Supplier Executive summery Executive Summary The College Cafe is a student-to-student Internet marketplace providing college students with the opportunity to buy, sell and trade college textbooks, participate in auctions, post classified ads, provide teacher evaluations, and buy products for college. The College Cafe's target market consists of over 15.8 million college students who spend $200 billion annually. The College Cafe was founded in July and is
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Company Name: Pay it forward Book Supplier Executive summery Executive Summary The College Cafe is a student-to-student Internet marketplace providing college students with the opportunity to buy, sell and trade college textbooks, participate in auctions, post classified ads, provide teacher evaluations, and buy products for college. The College Cafe's target market consists of over 15.8 million college students who spend $200 billion annually. The College Cafe was founded in July and is
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deficit increases as the years go by, the reason being short and long-term liabilities. II. METHODOLOGY a) Debt Ratio b) Current Ratio c) Acid Test Ratio d) Net Present Value e) Beta (β) f) Z-Score III. SOLUTION Debt Ratio > Total Debt/Total Assets (1994) = 26,449,071/10,600,209 = 2.50 (1995) = 26,540,410/10,543,410 = 2.52 Current Ratio > Current Assets/Current Liabilities (1994) = 2,696,392/4,477,630 = 0.602
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Business and Economics Journal INTRODUCTION The matching principle of finance is the standard theory used to explain the amount of short-term debt financing and other current liabilities that a firm has on its balance sheet. Briefly, the theory states that firms should finance their short-term assets with short-term liabilities (Guin (2011)). This implies that the amount of short-term debt financing that a firm uses depends on the amount of the firm’s short-term assets and its other sources of short-term
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Thanks for downloading a sample plan from Bplans.com A sample plan is a great way to get started, but you can’t just print this plan out and turn it into the bank. You’re still going to have to put in all your own information and do all of your own financial forecasts. With LivePlan, you can easily use this sample as inspiration and create your own plan, complete with financial tables and graphs. You’ll also be able to: • Save time with linked financial tables (the formulas are built
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Margin * Asset Turnover * Equity Multiplier 15%= 2% * 5 * (Total Assets/ Equity) 15% = 10% * (Total Assets/ Equity) Equity Multiplier = 1.5 3-7. CURRENT AND QUICK RATIOS Current Assets/Current Liabilities = 1.5 $3,000,000,000/ 1.5 = 2,000,000,000 Current Assets- Inventory/ Current Liabilities $3,000,000,000- Inventory/$2,000,000,000 Inventory Level = $1,000,000,000 CHAPTER 4 4-1. FUTURE VALUE OF A SINGLE PAYMENT PV = $10,000 N = 5 I
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