Case 11-7: Food for Thought The Audit Committee of the Board of Directors of Allfoods Corporation: Allfoods Corp. acquired 80% of the outstanding common stock of Baked Beans Corp in a business combination on February 1, 2009. Allfoods paid $40 million in cash and issued two million shares of Allfoods common stock to the selling shareholders of Baked Beans. Allfoods stock options will replace all outstanding stock options granted to Baked Beans employees as required by the merger agreement
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CO. LTD Prepared By :- Varun Gupta Student id :- 4449770 CONTENTS 1) INTRODUCTION COMPANY OVERVIEW BUSINESS STRATEGY 2) FINANCIAL STATEMENTS FOR YEAR 2009-2012 (end Mar31) INCOME STATEMENT BALANCE SHEET 3) RATIO ANALYSIS CONCLUSIONS 4) OPERATING LEVERAGE AND DEGREE OF FINANCIAL LEVERAGE (DOFL) CONCLUSIONS 5) PRO FORMA INCOME STATEMENT CONCLUSIONS 6) EXTERNAL FUND REQUIREMENT FOR YEAR 2013 7) ADVICE FOR SHARE
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LECTURER: MR. MICHAEL TINGGI DUE DATE: 9TH MARCH 2013 Done by: Satnam Singh 13030035 CASE 1 1.0 An accountant prepared a balance sheet for a business. In the balance sheet, the equity of the owner was shown next to the liabilities. This confused the owner, who argued: My equity is my major asset and so should be shown as an asset on the balance sheet. How would you explain this misunderstanding to the owner? As an accountant, we must first establish what the definition of asset
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which is selling car tyres to both, retail customers (car owners) and wholesale customers (garage and similar). You were able to secure the exclusive distribution rights for 2 major brands. First step is, to found the company and provide the initial balance sheet. Please see information below: ▪ The share capital is set at KCHF 900 ▪ 20% remains open for payment (called-up share capital unpaid) ▪ The office building belongs to one of the shareholders, its value is set at KCHF 300, this
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Financial Statements Review Ashley Dunn HCS/405 November 14, 2013 Robert McDaniel Financial Statements Review The Patton-Fuller Community Hospital is a full-service, for-profit hospital with 600-beds. Since 1975, the hospital has made every effort to provide advanced patient care for both inpatient and outpatient treatment in Northwest valley. The Patton-Fuller Community Hospital is owned by a 14 person board, in which 12 are active physicians. Collectively, the board works
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At the end of the lease period, the lessee returns the property to the lessor. Since the lessee does not assume the risk of ownership, the lease expense is treated as an operating expense in the income statement and the lease does not affect the balance sheet. In an operating lease, a company pays a periodic fee for the use of some benefit. The benefit can be tangible, such as office space, or intangible, such as a patent. The company acquiring the lease takes no ownership over this benefit, only
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section of the balance sheet as a deduction of common stock and should include the class, number of shares, and the basis of valuation. Buildings and land should not be together and the reserve for depreciation, which should be “accumulated depreciation”, should be a subtraction of only buildings. Cash surrender value of life insurance should be listed under investments and not under other assets. Reserve for income taxes should be called “tax payable”. Customer’s accounts with credit balances should not
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“external” oriented Financial Accounting and Reporting Generally Accepted Accounting Principles (GAAP), International Accounting Standards (IAS), International Financial Reporting Standards (IFRS) Financial Statement / Annual Report Balance Sheet / Statement of Financial Position Income Statement / Statement of Comprehensive Income Statement of Cash Flows Statement of Changes in Equity Notes Statement of financial position: contents and structure STATEMENT OF FINANCIAL
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2012 Technical Summary IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors as issued at 1 January 2012. Includes IFRSs with an effective date after 1 January 2012 but not the IFRSs they will replace. This extract has been prepared by IFRS Foundation staff and has not been approved by the IASB. For the requirements reference must be made to International Financial Reporting Standards. The objective of this Standard is to prescribe the criteria for selecting and changing
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Annual Report Analysis By: Wykithia Scott For: Christine Errico Accounting 100 June 2, 2013 Lowe’s Corporation Fiscal Year 2012 Lowe’s has been helping our customers improve the places they call home for more than 60 years. Founded in 1946, Lowe’s has grown from a small hardware store to the second-largest home improvement retailer worldwide. Sales grew over time and Lowe’s expanded all across the country and now operates stores not only in the United States, but also in Canada and Mexico
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