equity. The pre and post recap balance sheets as of 2004 are shown below. Balance Sheet | Pre-Recap | Post-Recap | | Cash & Short Term Investments | $3,002 | $3,002 | | Current Assets | $4,884 | $4,884 | | PP&E | $2,712 | $2,712 | | Other Assets | $4,300 | $4,300 | | Total Assets | $14,898 | $14,898 | | | | | | | Current Liabilities | $3,776 | $3,776 | | Total Interest Bearing Debt | $3,529 | $7,529 | | | Of Which: Long-Term Debt | $2,559 | $6,559 |
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RSM1320 – Financial Accounting FINANCIAL ANALYSIS TECHNIQUES (RATIO ANALYSIS) KEY POINTS TO KNOW 1) Financial analysis is ultimately contextual and purpose-driven. In other words, there is always a reason why you are performing the analysis. You need to be clear about the objective of the analysis. 2) The tools and techniques that you use will depend on your purpose. As we discussed earlier, analyzing the company as an investment opportunity (which generally focuses on indicators of profitability
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Current and Noncurrent Assets Paper University of Phoenix ACC/400 John Opincar December 09, 2010 Current and Noncurrent Assets Paper The classified balance sheet displays a picture of a corporation’s financial status at any stage. To enhance user’s comprehension of an organization’s financials, the balance sheets are typically position in a specific order whereby, financial statements elements are categorize in subgroups such as current and noncurrent. These groups determine
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Chapter 6 Property and Equipment and Other Assets Overview 6.01 Health care entities use various kinds of property and equipment. Those assets are generally significant to the financial position of institutional health care entities, such as hospitals and nursing homes. Typical accounts used to record property and equipment transactions are land, land improvements, buildings and improvements, leasehold improvements, equipment (fixed and movable), leased property and equipment, accumulated depreciation
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statement. • The firm has a robust and deep pipeline supported by a robust research and development budget. The correlates with the higher percent in Investments and Advances of 3.1 compared to 0.1. • The firm also has a lower percent of Total Assets due to divesting several of its non-pharmaceutical businesses of 32.1 compared to 51.2. • The firm also is the partner of choice for licensing deals with other firms in the industry. This correlates to lower COGS, Inventory and Inventory Turnover
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Fixed asset Property, plant, and equipment typically consist of long-lived tangible assets used to create and distribute an entity's products and services and include: • a. Land and land improvements • b. Buildings • c. Machinery and equipment • d. Furniture and fixtures. Initial measurement Historical Cost Including Interest 30-1 Paragraph 835-20-05-1 states that the historical cost of acquiring an asset includes the costs necessarily incurred to bring it to the condition and
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The Relevance of the Value Relevance Literature For Financial Accounting Standard Setting: Another View Mary E. Barth Graduate School of Business Stanford University William H. Beaver Graduate School of Business Stanford University Wayne R. Landsman Kenan-Flagler Business School University of North Carolina – Chapel Hill January 2001 We thank Dan Collins, Brian Rountree, participants at the 2000 Journal of Accounting & Economics conference, and the editors, S. P. Kothari, Tom Lys,
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liabilities Trade payables Other current liabilities Short-term provisions TOTAL ASSETS Non-current assets Fixed assets Tangible assets Intangible assets Capital work-in-progress Intangible assets under development Non-current investments Long-term loans and advances Other non-current assets Current assets Current investments Inventories Trade receivables Cash and bank balances Short-term loans and advances Other current assets TOTAL Significant accounting policies The accompanying notes form an integral
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position of a company at a certain point in time. It is divided into two columns. The first lists what the company owns (assets) on the left. The second shows what the company owes (liabilities and net worth) on the right. At the bottom of each list is the total of that column. As the name implies, the bottom line of the balance sheet must always Balance. In other words, the total assets are equal to the total liabilities plus the net worth. Marianne M. Huey The purpose of a Balance Sheet is to report
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Operating Assets (RNOA) | NOPAT | ANOA | RNOA | GENERAL MILLS | 1556.154 | 13060.8 | 11.91% | KELLOGG | 1346.4 | 7327.5 | 18.37% | GENERAL MILLS: RNOA=Net operating profit after tax /Average net operating assets Net operating profit after tax=2227.8-(622.2+421.7*0.38) +110.8 Average net operating assets = (19041.6-(12583.5-442-2208.8- 4348.7)+18183.7-(11725.8-1734-1254.4-3217.7))/2 KELLOGG: Net operating profit after tax= 1953-(485+296*0.38) Average net operating assets = (
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