347,360 $1,410,000 $1,470,115.20 11.73% Gross Margin (Gross Profit) $877,200 $898,240 $940,000 $980,076.80 11.73% SG&A $307,020 $494,032 $470,000 $465,536.48 51.63% Depreciation expenses $28,000 $24,000 $15,000 $10,000 -64.29% Operating Profit $542,180 $380,208 $455,000 $504,540.32 -6.94% Interest expense $55,500 $65,500 $45,500 $78,500 41.44% Taxes $189,763 $133,072.80 $159,250 $176,589.11 -6.94% Net Income $296,917 $181,635.20 $250,250 $249,451.21
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Use IS for income statement, SCE for statement of changes in equity, and SFP for statement of financial position. a. Buildings | SFP | g. Service Revenue | IS | b. Interest Expense | IS | h. Interest Payable | SFP | c. Dividends | SCE | i. Accounts Receivable | SFP | d. Office Supplies | SFP | j. Salaries Expense | IS | e. Rental Revenue | IS | k. Equipment | SFP | f. Insurance
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average relationship between the COGS and Revenue for the previous years to project the increase and decrease in revenue. Selling expenses area variable and based of sales, we can deduct if following the logical connection to “sales” and visual connection through the Common Size Income Statement. To calculate it I used the average relationship between the Selling expenses and Revenues. General and Administrative are fixed, and even though in real world environment the company that loses money would
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MacCloud Winery Case Study Due 11/17/13 1. Should the leased building be accounted for as an asset? No, the lease should be considered an operating lease. The building is the asset. The expense should be accrued on the building. The length of the lease should be less than 75% of the life of the asset leased. The lease is a ten year lease and the building has a 30-year economic life. Therefore this is an operating lease. The rental payments should be expensed as they are paid and offset
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This Analysis provides a discussion of the factors underpinning the credit rating/s and should be read in conjunction with our Credit Opinion. The most recent ratings, opinion, and other research specific to this issuer are provided on Moodys.com. Click here to link. Analysis SOUTH AFRICA Europe/M.East/Africa January 2006 Contact Limassol Phone 357.25.586.586 Mardig Haladjian George Chrysaphynis Capitec Bank Limited Strategy and Competitive Position A YOUNG AND SMALL INSTITUTION
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how different accounting techniques can come to different results. In this case I believe the owners of the team were not being completely honest in the way they were allocating expenses and therefore indicating losses instead of profits. There are three areas that the players association did not agree with the expenses allocated by the owners of the team. These areas are the Roster depreciation, the player’s compensation and related-party operations (specially the stadium costs). In the case
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G&A for this case) and do not include interest. Therefore, there is no interest expense of $50,000 under the operating lease however, that is offset by an increase in S,G&A expense ($85,870). Secondly, the lessee, Dragon Soup, does not have to expense depreciation which saves them an additional $50,000. This reduction is made to Cost of Goods Sold because under GAAP, manufacturing firms are to apply direct PPE expenses to inventory when it is sold. The result of this decision is a $14,130 higher EBT
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outlined the following Process and Procedure for reimbursement. First, staff should understand it is the policy of the company to reimburse staff and guests for reasonable and necessary expenses incurred in connection with approved travel. Prepayment of reimbursement is allowed only when payment for the expenses has not been and will not be received from another source. The company has significant airline, vehicle rental, and charter bus discounts that can be obtained when booking travel through
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Reports. There are two main financial statements: The profit and loss account: The profit and loss account is also known as a statement of profit and loss, an income statement or an income and expense statement. The profit and loss summarises on how much the business revenues are, their costs and expenses that has been sustained during a specific period of time which could usually be a quarter of year or a year. These summaries show how capable a business is to generate profits and handle costs.
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extensive research, it has prepared the following incremental free cash flow projections (in millions of dollars): | Year 0 | Years 1-9 | Year 10 | Revenues | | 100.0 | 100.0 | -Manufacturing expenses(other than depreciation) | | -35.0 | -35.0 | -Marketing expenses | | -10.0 | -10.0 | -Depreciation | | -15.0 | -15.0 | =EBIT | | 40.0 | 40.0 | -Taxes (35%) | | -14.0 | -14.0 | =Unlevered net income | | 26.0 | 26.0 | +Depreciation | | +15.0 | +15.0 | -Increases
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