which also makes them most likely to frequent easily accessible, one-stop, grocery stores. 2008 industry ratios indicate that the average earnings per share is $17.45 per year, representing an attractive investment option. Due to the industry’s nature, inventory turnover is low (12.99 days), receivables turnover (57.73 days) is high, and the net profit margin is moderately low (3.84 %). A high interest coverage of 8.33 times implies low industry debt levels, allowing for easier securing of future
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to account for them Understand a special case of intangible – research and development, and how to account for them Understand a special case of intangible – goodwill, and how to account for them 2. 3. 3 A/Professor Indra Abeysekera 1 2/08/2013 Definition of intangible assets ………………………………………. Includes patents, goodwill, mastheads, brand names, copyrights, research and development, and trademarks The lack of physical substance does not preclude an item from being considered to
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with tangible assets such as cash, inventory, investments, receivables, property, plant, and equipment. What go unrecorded are intangible assets such as quality of management, customer loyalty, information infrastructure, trade secrets, patents, goodwill, research, and, considered by some, the ultimate intangible, knowledge—a company’s intellectual capital. FASB chairman Edmund Jenkins attests, “The components of cost in a product today are largely R & D, intellectual assets, and services.” Professor
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FASC Research Project Fall (2014) QUESTIONS (http://aaahq.org/ascLogin.cfm ) In order to complete this assignment you will need to access the FASB Financial Accounting Standards Codification database. The related information for this is posted on Blackboard for this course. The UH copy of the FASB Financial Accounting Standards Codification (“FASC”) can be accessed at: http://aaahq.org/ascLogin.cfm. The FASC is the ONE AND ONLY source of the technical GAAP standards. Other sources are no
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VALUATION OF GOODWILL WHAT IS GOODWILL? The value of a business is not always defined by what assets it owns and what it owes. A successful business will develop customer loyalty and an overall positive reputation in its community, which will cause its market value to be greater than its book value. A company may also generate a higher value if it proves over time that it can generate superior revenues than its competition through managerial expertise, its reputation within its business sector
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chapter 21 Test your understanding 3 Hanford & Stopple Answer 1 (a) Hanford consolidated statement of financial position at 30 September 20X1 Noncurrent assets Property, plant and equipment (W8) Goodwill (W3) $000 $000 109,510 6,850 ––––––– 116,360 Current assets Inventory (7,450 + 4,310) Accounts receivable (12,960 + 4,330 – 820 (W7)) Bank 11,760 16,470 520 ––––––– 28,750 ––––––– 145,110 ––––––– Equity and liabilities Equity attributable to the equity holders of the
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addition to Panera Breads restaurant business, Panera Bread has created community sustained restaurants called Panera Cares, where the customers decide what to pay for their food. Panera Cares is currently operating with positive margins based on this goodwill concept. Research shows that while some people cannot pay much or nothing at all, others that can afford to pay typically pay more (Ron Shaich, 2012). Panera Cares illustrates that business models do not always need to follow conventional management
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03 Chapter - Consolidations--Subsequent to the Date of Acquisition 1 Answers to Discussion Questions How Does a Company Really Decide which Investment Method to Apply? Students can come up with literally dozens of factors that should be considered by Pilgrim in making the decision as to the method of accounting for its subsidiary, Crestwood Corporation. The following is simply a partial list of possible points to consider. Use of the information. If Pilgrim does not monitor its own income levels
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taxable amounts are decreasing every year and in turn increasing the tax benefit. The trademark cannot be considered as taxable income because it is too difficult to determine when the reversal of the liability will take place because of its indefinite nature. And then the prepaid expenses can’t be considered as well because they do not seem to be reversing and it is difficult to set a schedule up of taxable prepaid expenses because of the inability to predict and layout projections of future amounts.
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Questions 1 ?? Question 2 Four different non-management stake holder groups are likely to be taking relation to their interactions with a business: Tax authorities: they want to know that the company is giving taxes regularly or not. Customers: they are interested in wheather a company like nokia will continue to honor product warranties and support its product lines. Creditors: they use accounting information to evaluate the risks of granting credit or lending money. Labor unions : such as
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