Capital required for a business can be classifies under two main categories: Fixed Capital Working Capital Fixed capital It refers to any kind of real or physical capital (fixed asset) that is not used up in the production of a product and is contrasted with circulating capital such as raw materials, operating expenses and the like. Fixed capital is that portion of the total capital that is invested in fixed assets (such as land, buildings, vehicles and equipment) that stay in the business
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000 $316,000 May purchases $160,000 $160,000 $320,000 June purchases $84,000 $84,000 Total disbursements $258,000 $318,000 $244,000 $820,000 2 Cash budget April May June Total Beginning cash balance $74,000 $50,000 $50,000 $74,000 Receipts from customers $436,000 $695,000 $865,000 $1,996,000 Total cash $510,000 $745,000 $915,000 $2,070,000 Cash disbursements: To vendors for purchases $258
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Chapter 16 Accounting for Income Taxes Questions for Review of Key Topics Question 16-1 Income tax expense is comprised of both the current and the deferred tax consequences of events and transactions already recognized. Specifically, it includes (a) the income tax that is payable currently and (b) the change in the deferred tax liability (or asset). Apparently, in the situation described, temporary differences required a $4.4 million increase in the deferred tax liability, a $4.4
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Net income = $315,000. What is the 2008 Taxes reported on the income statement? A. $135,000 B. $450,000 C. $495,000 D. There is not enough information to calculate 2008 Taxes. 7. Balance Sheet You are evaluating the balance sheet for Cypress Corporation. From the balance sheet you find the following balances: Cash and marketable securities = $600,000, Accounts receivable = $800,000, Inventory =
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SOUTHWEST’S PENDING ACQUISITION OF AIRTRAN: ANALYSIS OF THE CASE AND STRATEGIC CONSIDERATION BMA 5013: Corporate Strategy Jacob Dreizin Rudiger Hesse Robert Martinez Lee Vu Hoang Nhat Victor Ka Sing Tsui Executive Summary On September 27th, 2010, Southwest Airlines announced its intention to buy AirTran Airways for $1.4 billion, with the merger being effected within two years. Although by number of planes, AirTran is just slightly more than one-quarter the size of Southwest, the
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Managerial Accounting EXAMINATION NUMBER: 06168500 Complete the following exam by answering the questions and compiling your answers into a word-processing document. When you’re ready to submit your answers, refer to the instructions at the end of your exam booklet. Be certain to indicate the proper question number before each of your answers. Remember to show your work if an answer requires a mathematical solution. Part A: Answer each of the following questions. Each answer is worth
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Answer Key: Case 6 - Sweats Galore Question 1 It's always important to set goals to measure the success of any business. However, the first three goals are more of a mission statement while the fourth is an objective for the company. The problem is there no plan and one objective. What is he going to do if the company doesn't net the $25,000? Or what if it nets the $25,000 but there is not enough cash to sustain the business? There needs to be more objectives to make
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Sarbanes Oxley Companies Abstract Sarbanes oxley act 2002 was passed on July 30, 2002 and only the public companies are now feeling its impact. This act frequently called the “most significant accounting or auditing legislation since the securities exchange Act of 1934”. After the implementation it has established its demands to the companies for proper management and disclosure of risk. Nortel networks is a giant corporate in telecom industry and as it is expected they also have faced the challenges
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year the target cash balance will be 2 % of sales. 11. All sales will be made on credit and A/c receivable will be 10% each year. 12. The company will not have raw material and work in progress inventory. They have finished good inventory. 13. Raw material and WIP is assumed to be zero each year finished good inventory will equal 10% of next year sales unit. The FIFO method will be used for recording and reporting finished goods inventory. 14. The closing balance of A/c payable each
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Study Case: Hampton Machine Tool Background. Hampton Machine Tool Company, a machine tool manufacturer, was founded in 1915. Hampton's customers are military aircraft and automobile manufacturers in the St. Louis area. Machine Tool Company felt the boom in the 1960`s with record setting profits in the mid- to late- 1960`s. The company slowed down in the 1970`s economic recession caused by Vietnam War and the oil embargo. Hampton stabilized by the late 1970`s
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