BRIEF EXERCISE 4-1 STARR CO. | Income Statement | For the Year 2014 | Revenues | | | Sales revenue | | $540,000 | | | | Expenses | | | Cost of goods sold | $330,000 | | Salaries and wages expense | 120,000 | | Other operating expenses | 10,000 | | Income tax expense | 25,000 | | Total expenses | | 485,000 | | | | Net income | | $ 55,000 | | | | Earnings per share |
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Employees will lost bit in amenities and some restriction on the raise of wage and salaries. JVA corporation will save almost 2% to 3% part of their net income that is spent on perks and other amenities. It may affect to employees as they will suffer from raises and other incentives but they will get benefit too as JVA will not lay out of current workers. The implementation of new strategy can affect JVA corp. due to lack of incentives or raises because it can discourage to employees and their productivity
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Case Report-1: The Fashion Channel 1) What is expected outcome of each of the targeting scenarios? (complete both the Ad Revenue and Financial calculators to fully understand the financial impact of the scenarios) Ad Revenue Calculator | | | | | | | Current | 2007 Base | Scenario 1 | Scenario 2 | Scenario 3 | TV HH | 110.000.000 | 110.000.000 | 110.000.000 | 110.000.000 | 110.000.000 | Average Rating | 1,0% | 1,0% | 1,2% | 0,8% | 1,2% | Average Viewers (Thousand) | 1100
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Report No. PF / HT / 010707 / 238 Sharing “OUR ” Ta Hum-Tum x Sav 1st July’ 07 A fortnightly refresher on Personal Income Tax ing Ti ps with “YOU” Allowances A I. II. III. llowance is a fixed monetary amount paid by the employer to the employee (over and above basic salary) for meeting certain expenses, whether personal or for the performance of his duties. These allowances are generally taxable and are to be included in gross salary unless specific exemption is provided in
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Accenture Reports Second-Quarter Fiscal 2014 Results -- Revenues increase 1% in U.S. dollars and 3% in local currency to $7.13 billion --- EPS are $1.03; operating income is $951 million, with operating margin of 13.3% --- Record new bookings of $10.1 billion include consulting bookings of $4.6 billion and outsourcing bookings of $5.5 billion --- Company declares semi-annual cash dividend of $0.93 per share --- Company updates business outlook for fiscal 2014 -NEW YORK; Mar. 27, 2014 — Accenture
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most concerned with information about profitability and future security prices. In contrast, creditors mainly want to know about short-term liquidity and long-term solvency. 12-6 Yes, to a certain extent. When revenues increase faster than net income, it means that costs are increasing faster than revenues. However, it is important not to jump to conclusions without asking “why?”. There may be a good explanation for the cost increases. So it warrants attention, but one should not automatically
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From: Anton Saadeh Subject: Sensitivity Analysis for the 1st Quarter, 20X1 Scope and objective of the work performed We analyzed the Global Electronic Company’s budget for the first quarter. The analysis is included retained earnings, income statement and balance sheet. From the analysis of the paper, cash flow has changed because of the collections from sales on account during the first quarter. The company collects the cash in three months when the sale is made. The biggest amount was
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Jack in the Box is listing franchise sales as "other revenues", which on paper triples their operation income to $9.1 million. David N. Allen of investment banking firm Caris & Co., questions this practice as the, "Selling of company assets to franchisees is not the same as selling a food product". He goes further saying that the company should separate operating earnings from non-operating income. Reporting gains from asset sales to franchisees is inappropriate. Jack in the Box countered this claim
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accounting estimate is only reflected in the financial statements of the current and future periods, not previous. p.186-7 22. The answer is (d) Income from continuing operations, loss from discontinued operations, extraordinary items, and net income. I did not think that EPS had to be provided for extraordinary income. The book says that when the income statement includes one or more of the separately reported items, EPS is reported for continuing
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Change in taxable income Less: Change in taxes Equals: Project Net Income Add: Change in Depreciation Equals: Differential After Tax Cash Flow For the example problem this is: Year 1 Year 2 Year 3 Change in revenue $1,000 $1,000 $1,000 Plus: Decrease in non-dep oper costs $1,500 $1,500 $1,500 Less: Change in depreciation -$1,250 -$2,210 -$1,170 Equals: Change in Taxable Income $1,250 $290 $1,330 Less: Change in Taxes -$500 -$116 -$532 Equals: Project Net Income $750 $174 $798
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