C H A P T E R 8 VALUATION OF I NVE NTOR I E S : A COST-BASIS APPROAC H LEARNING OBJECTIVES After studying this chapter, you should be able to: •1 •2 •3 •4 •5 •6 •7 •8 •9 •10 Identify major classifications of inventory. Distinguish between perpetual and periodic inventory systems. Identify the effects of inventory errors on the financial statements. Understand the items to include as inventory cost. Describe and compare the cost flow assumptions used to account for inventories. Explain
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statement of cash flows, or statement of retained earnings) would you find the following items? a. earnings before taxes - income statement b. net plant and equipment - balance sheet c. increase in fixed assets - statement of cash flows d. gross profits - income statement e. balance of retained earnings, December 31, 20xx - statement of retained earnings f. common stock and paid-in surplus - balance sheet g. net cash flow from investing activities - statement of cash flows h. accrued wages
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statement of cash flows, or statement of retained earnings) would you find the following items? a. earnings before taxes - income statement b. net plant and equipment - balance sheet c. increase in fixed assets - statement of cash flows d. gross profits - income statement e. balance of retained earnings, December 31, 20xx - statement of retained earnings f. common stock and paid-in surplus - balance sheet g. net cash flow from investing activities - statement of cash flows h. accrued wages
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of the company. More precisely we can identify the objective of this report as follows: * To provide the overall industry performance within our selected industry * To acquire experience of a real organization to supplement theoretical knowledge. * To know about how the academic issues taught in our educational institutions come to practical ground in an organization. * To get familiar with the organizational structure and financial aspect of our selected company 1.3
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the Yen? (He describes a chain of events (7 steps)). General Motors (GM) is worried about the underlying yen fluctuations from a number of different perspectives. A) Investment exposure – GM has a number of equity stakes in several Japanese companies as shown in the table below. As such, these represent net yen exposures. Any depreciation in the yen represents a positive movement (as of the reported figures) for GM as the yen-dominated liabilities currently exceed the yen-dominated assets
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the extraordinary company that has revolutionized the world of coupon marketing. In November 2008, at the age of 27, Andrew Mason, a music major from Northwestern University, launched Groupon – a name that is a blend of “group” and “coupon”. Gross billings increased from $30 million in 2009 to $713 million in 2010 (Pepitone 2011). In 2010, Forbes declared Groupon as the “fastest growing company ever (Steiner 2010). By 2011, the company had a subscriber base of over 150 million, gross billings of $1
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------------------------------------------------- P5 - Interpret the contents of trading, profit and loss account and balance sheet for a selected company. In this assignment I will be interpreting the contents of the trading and profit loss account of Marks and Spencer’s and their balance sheet. I will then give my opinion on how well the might look to shareholders in the business. Scenario Marks and Spencer’s Finance Manager is attending the AGM set for the shareholders and other stakeholders next
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primarily due to the increase of shipments and revenue per barrel. Moreover, the gross margin for the company’s core products was 52.3% in 2015, as compared to 51.5% in 2014; the increase in gross profit per barrel of $4.74 is primarily due to an increase in net revenue per barrel, partially offset by an increase in cost of goods sold per barrel. Based on SAM’s business model, changes in Sales, Cost of Goods Sold and SG&A would have significant influences on outputs: Net Income, Earning per Share
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known amounts of cash. Cash planning systems- methods and procedures that a company uses to ensure that it has adequate cash available to meet maturing obligations. Cash control systems- methods a company uses to safeguard its funds. Cash budget- a plan of cash activity that forecasts cash receipts and payments, and identifies when the company might have too much or too little cash. Internal control- the process a company uses so that its financial reports are reliable, its operations are effective/efficient
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decide the borrower will be able to pay back as promised? As a manager of a corporation how do you know when existing capacity will be exceeded and enlarged capacity will be needed? As an investor, how do you predict how well the securities of one company will perform relative to that of another? How can you tell whether one security is riskier than another? We can address all of these questions through financial analysis. Financial analysis is the selection, evaluation, and interpretation of
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