Discuss which method (FIFO or LIFO) would be preferred for income tax purposes in periods of: a) Rising prices and I. FIFO gives a better indication of the ending inventory value. II. FIFO increases net income because old inventory (lower price) is used to value the cost of goods sold. This increases company taxes. III. LIFO is not a good indication of the ending inventory value. IV. LIFO results in lower net income because cost of goods sold is higher. This decreases company
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HBS CASE: The Fashion Chanel 1. Insights from the consumer and market data : * Most of current viewers are females 34-53 years old. * The fashion channel should target 18-34 years old female that is highly valued demographic group, to reach premium CPM (cost per impression, advertising pricing unit). * Both competitors Lifetime and CNN channels were achieving notable ratings. * The clusters that most engage in fashion and most likely to have interest in TFC contents is
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SOLUTIONS TO BRIEF EXERCISES Table of Contents Chapter 3 7 BRIEF EXERCISE 3-1 7 BRIEF EXERCISE 3-2 7 BRIEF EXERCISE 3-3 8 BRIEF EXERCISE 3-4 8 BRIEF EXERCISE 3-5 9 BRIEF EXERCISE 3-6 9 BRIEF EXERCISE 3-7 9 BRIEF EXERCISE 3-8 10 BRIEF EXERCISE 3-9 10 BRIEF EXERCISE 3-10 10 BRIEF EXERCISE 3-11 11 BRIEF EXERCISE 3-12 11 BRIEF EXERCISE 3-13 12 Chapter 4 13 BRIEF EXERCISE 4-1 13 BRIEF EXERCISE 4-2 14 BRIEF EXERCISE 4-3 15 BRIEF EXERCISE 4-4 16 BRIEF EXERCISE 4-5 16 BRIEF
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its operating costs through a combination of extensive computerization of operations and improving the terminal facilities. By the late 1980’s, Evans, along with the directors of the firm, realized that the key to continued expansion in revenues and income was a policy of selected acquisitions. Continental Carriers currently has the opportunity to purchase Midland Freight Inc. for a mere $50 million in cash. The decision to move ahead with the purchase has already been unanimously approved by the Board
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Smaller Famillies Having a smaller family is a springboard for giving future generations the chance of greater prosperity. A small family gets the advantages of a quieter home, cleaner home and possibly more money to spend on holidays. It's also not a struggle to bring your family of one or 0two children to the shops or a restaurant or even holidays. However a small family gets the disadvantage of a lonely child. Big families are more fun and usually a bit more daring and adventurous. Children from
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Bubble Soccer Business Plan Aim: To introduce the game of Bubble Soccer to the Miri population. Business Objective: To make a short-term profit. Estimated duration of business: 6 - 8 months Targeted start date: 28th February (Saturday) Game description: Players will match each other in a 5 v 5 game of soccer for a set duration of either 15mins, 30mins or 60mins. Players are encased in an inflatable "bubble" ball which makes the game fun and entertaining. Target market:
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suggests the existence of guidance that sponsors the idea that certain earnings may be accounted for on an accrual basis while the related income taxes are accounted for on a cash basis. For example, rental income received in advance may be accounted for under cash basis for tax purposes while the related income is accounted for under accrual basis for accounting income purposes. Question 6) Most not-for-profit organizations changed from a cash or “modified cash” basis to accrual accounting occurred
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$50 million. The capitalization mix alternatives have been narrowed to two: (1) $10 million in debt and $40 million in equity and (2) $30 million in debt and $20 million in equity. Income before interest and taxes will be $8 million. The interest rate on debt is 8% and the income tax rate is 40%. Calculate the net income and return on shareholders’ equity for both alternatives. Explain how this will ratios as well with the idea that the company is seeking to be bought our by a larger corporation.
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recreation. A GC member was assigned to monitor, supervise and advise on one functional department, but generally left the routine day-to-day matters to the salaried staff. (Please refer to Appendix D Organisation Chart for deatails.) Income The club’s main source of income was from member
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operating income | $ | 300,000 | $ | 500,000 | | | | | | Average invested assets | $ | 1,200,000 | $ | 1,800,000 | | The company’s hurdle rate is 6 percent. | | Required: | 1. | Calculate return on investment (ROI) and residual income for each division for last year. (Do not round your intermediate calculations. Round "ROI" answers to 1 decimal place.) | River Division | Stream Division | ROI | +/-1%25.0 | % | +/-1%27.8 | % | Residual Income | $228
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