of operations excluding the effect of interest, corporate income taxes, depreciation and amortization of long-term assets. It provides a way to compare operating income among companies. Factoring out interest cost, taxes, depreciation and amortization can make unprofitable companies as WorldCom look like to be profitable. In my view, when using EBITDA as a valuation tool, one should not use it alone. A close look at the historical net income, the information derived from the cash flow statement and
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Coast4Life Cruises Memorandum To: Board of Directors From: Pat Brown, Controller Subject: Options for cost savings and revenue generation Date: November 30, 2012 Introduction Recent events in the cruise industry, specifically a terrorist attach on a cruise ship in the Caribbean, are expected to affect cruise travel negatively over the next year. Based on the effects of past terrorist attacks on the airline industry, overall bookings for cruises worldwide are expected to drop by 50%-55%
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Case 5-5 Krispy Kreme 1. In each round trip transaction, Krispy Kreme recognized additional income in an amount more or less equal to the funds that were paid back from the franchises. As a result, Krispy Kreme filed annual, quarterly, and current reports with the SEC that contained misstated financial results, failed to have books and records that accurately and fairly reflected its transactions and disposition of assets, and failed to set up and maintain internal accounting controls sufficient
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3-1 Vancouver, Washington a) Look at the Statement of revenues, Expenditures, and Changes in Fund Balances for the governmental funds. List the revenue source classes. Do they agree with those sources discussed in this chapter? Are expenditures reported by character? List the functional classifications under the current character classification. Do those classifications agree with those listed in the example shown in this chapter? Are Other Financing Sources and Uses presented separately
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Brain Teaser 4: Cash Basis or Accrual Basis a) Use FARS to identify what standards-setters have said as to the superiority of accrual accounting relative to a cash basis. Do you agree with the justification for accrual accounting? Explain? The FASB has stated that the accrual-basis method is superior to the cash-basis method. For example, the accrual-basis method promotes the caution and equivalent concepts, which are two of the fundamental accounting concepts. Thus, dissimilar to the cash-basis
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Individual demand for Private good……………………………………………………………...4 SECTION 2 Engel Model OLS Estimtion………………………….………………………………………….6 Empirical Results explanation………………....………………………………………………….8 Analysis of Scale Economies across Different Income Groups……..………………………..…10 SECTION 3 Economies of Scale and Poverty Measure……………………………………………………….12 Economies of Scale and Welfare Comparison…………………….…………………………….13 Implication of Economies of Scale to the Government Welfare Policy..………………………
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DBA 8552 - Unit I: Management Accounting and Control Systems Old Turkey Mash Wiskey Case Study Original Income Statement: Base Year Year 1 Year 2 Year 3 Production (distilled gallons) $500,000.00 $600,000.00 $700,000.00 $800,000.00 Aged gallons sold $400,000.00 $400,000.00 $400,000.00 $400,000.00 Warehouse Inventory at the Beginning of Year 4-year-old bbls $10,000.00 $10,000.00 $10,000.00 $10,000.00 3-year-old
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Module 3 – Assignment 5 Practice Case Examination Additional Information (Time Allowed: 4 hours) Notes: i) ii) iii) iv) Candidates must not identify themselves in answering the question. All answers must be written on official answer sheets or in official electronic files. Work done on the question paper or on the Backgrounder will NOT be marked. Included in the examination envelope is a standard supplement consisting of formulae and tables that may be useful for answering the question. Examination
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Education impacts earnings in a drastic measure. The higher your knowledge spans, the more your income is likely to be. There are few cases in which your income surpasses your knowledge or vice versa but, it is possible. The reason why education has such an obvious importance on income and the economy is because education opens doors that would otherwise be closed. It gives you an inner sense of empowerment and it let’s employers know that you are capable of the job conferred to you. Without education
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baseball players the profits of the major league baseball teams Who is right? & Why? Roster depreciation Regarding roster depreciation, I would agree with the PBPA lawyer, Mr. Hanrahan, that depreciation expense should not be included in the income statement of the team since there are no plans on selling the equipment, only plans of sharing profits with the team players. Besides, experience can definitely add value to the team and increase revenue for the team. The better the players become
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