reject irrelevant sources of Potential 15. Start-up budget and working capital requirements 16. Cash flow forecast for year one, including an explanation of inflows and outflows Analysis of start-up sources of finances. Analysis of sales revenue (explain figures- link to calculations, seasonal factors, economic and competitive factors) Analysis of start-up costs (January) – particularly the physical resources required. Explain one-off costs. Analysis of running costs (link to calculations
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the team decides to seek another sponsorship they still need to find another sponsor to help pay for the stadium. Conclusion: The scenario is a liability because it meets all 3 criteria. QUESTION 2 A) COMPLETED-CONTRACT * Recognizes revenues and gross profit at only after the whole contract is completed. * Jupiter Inc. started using this accounting policy since it was established
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are Quaker oatmeal, Rice-a-Roni, and Life cereal among others (PepsiCo, 2007). b. Which company has the dominant position in beverage sales? The Coca-Cola Company shows net revenues of $28,857 (in millions) while PepsiCo shows net revenues of $39,474 (in millions) for all of their divisions. However, of the PepsiCo net revenue only $10,230 (in millions) is from the beverage division, which results in The Coca-Cola Company dominating beverage sales. c. Which company has the greater percentage increase
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as it is used in IAS 37, is most closely related to the term in U.S. GAA as “Contingent liability”, where the outflow of resource is probable.... Under IAS 18, if four out of five conditions for recognized revenue from the sale of g... are met, ... the entity is contain that 75 % revenue will be 100,000 credit... B (P.108 Ch.3 #16) How has the U.S. SEC policy toward IFRS changed? (P.157 Ch.4 #12) How are internally generated intangibles handled under IAS 38? How does this differ from U
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proportion of revenue can be used to cover the firm’s period expenses – very closely watched. Profit margin – how many cents of every sales dollar is profit Return on assets – success in using its assets to earn income, the cents in profits for every dollar of assets. Return on common equity – how much is earned with common shareholder’s investment. (p. 31-33) Gross margin percentage = gross margin = sales – cost of sales , profit margin = gross margin / sales revenue recognition principle
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BBean Coffee Inc BBean Coffee Inc To: BBean’s Management From: Accounting Advisor Re: Accounting Policy Before we can assess and begin treatment of issues, it is essential that we determine a context for the recommendations that will be made. BBean Coffee Inc. is a public company, and on this basis, will have to adhere to financial statements within the constraints of GAAP. BBea Coffee Inc. initially sold larger franchises in urban locations, for which they recognized payment of
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Financial Accounting-Case Study | Answers to 2-1 Question 1 and 2 Working Capital = Total Current Assets – Total Current Liabilities Current Ratio = Current Assets/Current Liabilities For Kellog 2009 Working Capital = 2558 – 2288 = 270 million dollars Current Ratio = 2558/2288 = 1.18 For Kellog 2010 Working Capital = 2915 – 3184 = - (269 million dollars) = Working Capital Deficit Current Ratio = 2915 /3184 = 0.91 Change in Working Capital = 270 – (-269) = 539 million dollars % Change
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and Financial Analysis | | | | | group assignment 2 | Muhammad Farhan | 11340041 | Zahid Mahmood | 11473485 | Table of Contents Executive Summary 3 Accounting Analysis 3 1. Accounting Policies and Standards 3 Revenue Recognition (AASB 118): 3 Property, Plant & Equipment (PPE) (AASB 116): 3 Intangible Assets (AASB 3, AASB 138): 4 Borrowing Costs (AASB 123): 4 2. Flexibility in Selecting the Key Accounting Policies 4 3. Accounting Strategy Employed by Management
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current Tesco executives have been suspended. Their suspension came after an investigation of accounting policies which led the company to overstate earnings by 402 million dollars. Essentially, Tesco was recognizing revenue before it was earned as well as delaying expense recognition. Tesco is currently being investigated by Deloitte. With these three recent suspensions the total amount of Tesco employees that have been suspended is now at 8. With these suspensions and investigations the price per
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HISTORY Domino’s Pizza was founded in 1960 and since then has grown to become the largest pizza delivery company in the United States. It has grown from a mom-and-pop pizza store to a network of company-owned, franchise-owned stores in the United States and across the globe and was recently ranked number 1 in Forbes magazine’s “Top 20 Franchises for the Money” list (David, R 2013, p. 372). Domino’s Pizza was the brain child of the brothers Tom and James Monaghan who grew up in foster care and had
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