combine the individual elements of the parent and subsidiary statements.Two aspects of the consolidation process are of particular interest to us in understanding the equity method. First, in consolidated financial statements, the acquired company's assets are included in the financial statements at
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Current assets and liabilities provide an in-depth look at where they stand financially using balance sheets and income statements. Information on what cash equivalents are will also be included in this examination of Amazon. An explanation of why the information is important to potential creditors, investors, and employees will also be included in this analysis of Amazons financial standings. The assets listed under the Amazon’s current assets are listed in proper order because the assets are listed
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company Name: ID: Submitted to: Balance sheet Assets | Current Assets | | Cash And Cash Equivalents | 10,661,000 | 12,183,000 | 12,741,000 | | Short Term Investments | 990,000 | 1,791,000 | 166,000 | | Net Receivables | 29,789,000 | 28,523,000 | 29,097,000 | | Inventory | 2,450,000 | 2,494,000 | 2,701,000 | | Other Current Assets | 4,226,000 | 3,946,000 | 4,299,000 | | Total Current Assets | 48,116,000 | 48,935,000 | 49,004,000 |
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receivables, GAAP requires % of sales: better matching of exp and rev, any balance in AFDA is ignored % of receivables: not matching, reports estimate of receivables at realizable value; one composite rate, an aging schedule ( most accurate) --asset: future economic benefit inventory: items held for sale in ordinary course of business or goods to e used in the production of goods to be sold --beginning inventory + cost of goods purchased = COGAS(available) = COGS + ending inventory --perpetual:
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This is defined as: Kd Cost of debt before tax 7.5% T Tax rate 42% Wd Weight of debt in the capital structure 84.3% 82.4% Ke Cost of equity 11.34 We Weight of equity in the capital structure 15.7 17.5 Weight of Debt: Information from Assets, Liabilities & Equity Information Wd 2007= Total liability/ Total Equity=$1,130,963/$211,111+$1,130,963= 84.3% Wd 2008=Total liability /Total Equity=$1,109,358/$235,805+$1,109,358= 82.4% Cost of equity: Risk
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Current and Noncurrent Assets Student ACC/440 September 16, 2013 Instructor The accounting department within any organization is a vital component in the maintenance of revenue budgets and calculated gains or losses. Understanding assets and their importance to the accounting process is vital for any organization. Assets are resources owned by a company, which is expected to expand the value of the organization or benefit the operations. Assets can be divided into two categories
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funds for expansion. UHURA COMPANY BALANCE SHEET FOR THE YEAR ENDED 2014 Current assets Cash $232,890 Accounts receivable (net) 342,890 Inventory (lower-of-average-cost-or-market) 403,890 Equity investments (trading)-at cost (fair value $123,660) 143,660 Property, plant, and equipment Buildings (net) 573,660 Equipment (net) 163,660 Land held for future use 178,660 Intangible assets Goodwill 82,890 Cash surrender value of life insurance 92,890 Prepaid
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the financial characteristics of firms in the same industry tend to cluster together. For example, old economy businesses with large amounts of tangible assets may have higher leverage ratios because such assets provide good collateral for lenders. Service or trading firms may have large amounts of intangible assets such as knowledge assets or a large and loyal customer base, and, hence, have low leverage ratios because growth options can devalue quickly. On the other hand, companies in different
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Current assets are assets that the company expects to be able to convert into cash or use up within one year. Items that can be included under the current assets heading would be cash, short-term investments, receivables, inventory, and prepaid expenses. Short-term investments can include U.S. government securities, treasury bills, and Certificate of Deposits. Short-term investments are an alternate to storing excess money in a bank and allow the company to earn more interest on their money then
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What is goodwill? As explained by Investopedia, goodwill is looked at as an ethereal asset on the balance sheet for it is not a physical asset like equipment and buildings. Generally, goodwill represents the value of intangible assets like good customer relations, strong brand name, good employee relations, and any kind of patents or proprietary technology. Goodwill generally arises at the time of one company being purchased by another. Goodwill is, therefore, something which cannot be described
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