Corporate Annual - Financial Analysis Corporate Annual - Financial Analysis Abbott (ABT) & Boston Scientific (BSX) Finance 324 Financial Analysis for Managers I DJ Nestrick December 20, 2007 Workshop 3 BSX – Boston Scientific Corporation Background The sale of Guidant to Boston Scientific has been touted as “the biggest Merger and Acquisition blunder since AOL/Time Warner
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Check Point Financial Forecasting November 12, 2012 The most comprehensive means of financial forecasting is to develop a series of pro forma, or projected, financial statements. Financial forecast is about the pro-forma income statement, cash budget, and pro-forma balance sheet. The statements are often required by bankers and other lenders as a guide for the future. A brand new company needs to have sales projection plan, production plan, and have a pro forma income statement because
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CHAPTER 12 – Practice Problems CASH FLOW ESTIMATION AND RISK ANALYSIS (12-1) Cash flow estimation F I K Answer: b EASY 1. Although it is extremely difficult to make accurate forecasts of the revenues that a project will generate, projects' initial outlays and subsequent costs can be forecasted with great accuracy. This is especially true for large product development projects. a. True b. False (12-1) Relevant cash flows F I K Answer: b EASY 2. Since the focus of
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| Deloitte & Touche LLC1 | Memo To: | Mary Stanford | From: | Ben Ji | Date: | September 26, 2012 | Re: | Goodwill Impairment Test | | | Galaxy Sports Inc. is a manufacturer of sports equipment. It is a public company with three reporting units: Fitness Equipment, Golf Equipment, and Hockey Equipment. During our audit, certain accounting treatments by Galaxy regarding goodwill impairment were found to possibly contradict with the Accounting Standard Codification. Based on my
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ascertain the propriety and accuracy of taxes and other duties declared and paid by a company. For that reason, financial reports must emphasize precision, objectivity and verifiability and must comply with the generally accepted accounting principles (GAAP), and the International Financial Reporting Standards (IFRS), where external users will have some degree of assurance that reports have been prepared in accordance with a common set of ground rules which enhance comparability, and help reduce
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Accounting for Business Analysis (AF5115) Assignment Cover (1st Semester, 2012/2013) Class | Monday | Name of ALL Students (University No.) | Zhao Changhao 12126229G | | Liang Zuqi 12133937G | | Liu Lihong 12122573G | | Tian Bin 12138351G | Group No. | 7 | Assignment No. | Chapter 9 | Date of submission | 10/12/2012 | Problem 9-3 Preparing Pro Forma Financial Statements a. Use provided ratios to prepare a projected income statement, balance
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plays a vital role in correctly reporting finances. Furthermore, there are principles in accounting for healthcare that help reiterate the reporting practices. Generally acceptable accounting principles or GAAP are certain guidelines that are used to make sure a business’s finances are reported properly. Hospitals may use some or all of them, but it is a guideline, not a requirement. One of the principles is the principle of sincerity. This means that when reporting financial activity, the accountant
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differences in revenue recognition IFRS and GAAP in Canada are both principle-based frameworks with significant conceptual similarities, but where they differ drastically is in the application of those general principles. By looking at the detailed guidance of GAAP vs IFRS for processing various accounting transactions, one can start to embrace the magnitude of the disparity between the two sets of reporting standards. Revenue recognition principle illustrates the IFRS vs GAAP divergence. Under IFRS, the revenue
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Executive Summary INTRODUCTION The number of movie theaters is decreasing as the major chains create multiplexes that pile more people into smaller spaces. This profit strategy has left once popular downtown theaters vacant. Second Run Pizza is a theater/restaurant business that believes there is a significant number of theater-goers that are craving a more satisfying and enjoyable way to catch a movie and a bit to eat. Second Run Pizza is renovating the downtown City plus Theater and creating
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Part B Issues to consider when preparing projected financial statements When dealing with financial statements one issue to consider; fixed costs will always remain the same for a long period of time, whereas, variable cost differ with the level of activity it entails. The Compound Annual Growth Rate (CAGR): Market’s growth rate is calculated and measured by CAGR. Companies use this formula to project financial statements because it has a persisting percentage rate, that allows a market
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