Premium Essay

Chapter 9 Prospective Analysis

In:

Submitted By Darthraven11
Words 4066
Pages 17
Chapter 09
Prospective Analysis

Multiple Choice Questions 1. When preparing a projected income statement, which of the following additional information, other then the financial statements would probably not be relevant?
A. The competitive environment
B. New versus old store mix
C. Expected capital expenditure
D. Expected level of macroeconomic activity 2. The reliability of a short-term cash forecast depends most heavily on the quality of:
A. Cost of goods sold forecast
B. Current ratio forecast
C. Sales forecast
D. Shares outstanding forecast 3. What is the correct order of the following steps in preparing a projected income statement (not all steps may be shown)?
I. Project future net sales
II. Project future net income
III. Project future cost of goods sold
IV. Project future interest expense
A. I, II, III, IV
B. II, IV, III, I
C. I, III, II, IV
D. I, III, IV, II

4. What is the correct order of the following steps in preparing a projected balance sheet (not all steps may be shown)?
I. Project future cash
II. Project future accounts receivable
III. Project future accounts payable
IV. Project future property plant and equipment
A. I, II, IV, III
B. II, IV, III, I
C. I, III, II, IV
D. I, III, IV, II The treasurer of Simmons Corporation, a newly formed software company is trying to ascertain Simmons cash flows for the next three months. Expected sales are:

50% of sales are made for cash. Simmons expects to receive 25% in the month following the sale and 20% in the second month following the sale. The remaining 5% are expected to be un-collectible. Gross margin is 20%, and purchases are made one month prior to sale. Purchases are paid one month after received. 5. The cash inflows in March from sales will be:
A. $250
B. $245
C. $220
D. None of the above 6. Cash outflows in March for

Similar Documents

Premium Essay

Advance Financial Accounting

... : Monday 2:30 pm to 6:30 pm Role and Purpose This subject aims to introduce an analytical framework for carrying out business analysis and valuation by using financial statements for valuing different kind of businesses. It contributes to the achievement of the BBA Programme Outcomes by enabling students to identify and resolve ethical issues contained in the financial statements (Outcome 4), apply basic accounting and financial theories to analyze financial reports and to identify potential problems and risks (Outcome 7). By the end of this subject, students will become a professional user of financial statements to advance further into the field of business valuation as investment analysis. It requires students to present and communicate effectively in English for general business communication (Outcome 1). Learning Outcomes Upon completion of the subject, students will be able to: a. Develop the ability to critically assess a firm’s financial condition through analyzing financial statements; b. Apply analytical tools to make forecasts and value firms and projects using different valuation techniques; in certain business context such as credit analysis and equity valuation. c. Evaluate and compare corporate valuation decision in specific contexts such as securities analysis, credit assessment...

Words: 1507 - Pages: 7

Premium Essay

1111

...Business Analysis and Valuation Report Prepared By: Version # Updated on ------------------------------------------------- Acknowledgments ------------------------------------------------- If applicable, include acknowledgement to contributing individuals: ------------------------------------------------- ------------------------------------------------- Analyst’s Name | Number | E-Mail Address | | | | Document Name | | Date Created | | Milestone 1 date submitted | | Milestone 2 date submitted | | Milestone 3 date submitted | | Finalization date | | | | | | | | REPORT VERSION RECORD The Business Analysis and Valuation Report is a managed document with tracking of versions, changes, and release dates for each of the three milestones. Version Name | Version Number | Date | Author(s) Name(s) | Change Description | | | | | Document created | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Milestone versions of the report are issued including the complete document with the sections completed to date to reflect the work to date by the analyst team. The milestone versions of the document are authorized for release only after the analyst’s signature has been obtained. Milestone 1 PREPARED: DATE:___/___/___ (for acceptance) (, signature) POSITION: ___ Milestone 2 PREPARED: DATE:___/___/___ ...

Words: 2600 - Pages: 11

Premium Essay

J&J Analysis Report

...com/reports/576422/ Johnson & Johnson Strategic Analysis Profile Description: - The Johnson & Johnson Strategic Analysis Profile is a comprehensive profile of the company including both quantitative and qualitative research. The report examines the Johnson & Johnsons business structure and operations, history and products, and provides an analysis of its key revenue lines. The profile provides strategic insight on the company by examining its strategy, both in terms of its value chain positioning and strategic strengths and weaknesses in form of SWOT analysis. The SWOT section studies the major internal and external factors affecting the company. In addition the profile also includes a revenue analysis section which provides a breakdown of the companys’ revenue by segment and key geographies. Report Coverage - Insightful company information, which addresses business and competitor intelligence needs. - In-depth analysis of the operational aspects of the business including business descriptions, product lines and services revenue splits, and key competitors. - Detailed financial and operational overview including key performance specific ratios. - Strategic analysis of the company using SWOT and Value Chain analysis. - Information on the company’s history, key executives, locations and subsidiaries. Why Buy? - Support business/ sales activities by understanding customers’ businesses better. - Identify prospective partners and suppliers. - Understand competitors’...

Words: 901 - Pages: 4

Premium Essay

Comparison of Recruitment Process from Management Point of View

...Chapter: 01 Introduction In the business world of different sectors (be it government or non-government) recruitment is inevitable as every step in this sphere depends on selection of effective work-force. Employees as well as higher executives need to be selected through tests/interviews to find a right match with the smooth operation and accomplishment of the organizational goals and objectives. Functions relating to administering the business including recruitment and termination of employees cannot be attained without proper management of human resource. 1.1 Origin of the Paper In today’s world, the ability to apply what we learn in a class-room environment to our everyday life is extremely important. “Managing Organization” – course article F-505, is a practical-oriented course. For this I am told by my course instructor to make a Term-Paper on the managing organizations. Therefore I have selected “Comparison between the process of acquiring Human Resource (recruitment) in a Government Organization and in an GO, from a Management perspective” as my subject of the term-paper . I also have selected and visited two organizations and collected some available information. The organizations are: 1. 2. Government Project – Emergency Cyclone Recovery and Restoration Project – ECRRP with Project Coordination and Monitoring Unit – PCMU) funded by the World Bank. Non-government organisation (NGO) – Association for Social Advancement (ASA) – self-financed organization since 2001....

Words: 2208 - Pages: 9

Free Essay

Sepsis Prevalnce in Jimma

...Sepsis is a final pathway of infectious disease in critically ill patients. It is highly fatal condition. Though many researches are undertake in pathophysiology, epidemiology and management of sepsis in developed nation ,very limited information is available in low incomes countries where infections are prevalent. Objective: The objective of the study was to determine the prevalence and outcome of sepsis and its prognostic factors in patients admitted to Jimma University Specialized Hospital. Method: Patients with systemic inflammatory response due to infections were studied using prospective cohort study design for four month period in Jimma University hospital. A structured questioner was used to collect data on socio demographic feature of the patient and clinical feature, outcome and prognostic factors . Data was cleaned, edited and entered to SPSS window for analysis. The survival analysis and determination of prognostic factors was done using Cox regression model. The value of p < 0.05 was considered statistically significant. Result: The prevalence of sepsis, severe sepsis, septic and refractory shock in the study population was 14%.7.8%,2.1% and 1.4% with their associated all cause mortality of at the end of 28 days are 35.8%,44.1%,68.8% and 88.9% respectively. The clinical variables that...

Words: 10476 - Pages: 42

Free Essay

Case Summary

...ACCTG 351B: Business Law (San Francisco, Fall 2013) INSTRUCTOR: KRISTIN L. ROSI Work: (415) 538-4387 FAX: (415) 904-5854 E-mail: krosi@ggu.edu In addition to working as an Adjunct Professor at Golden Gate University, I am employed as an Administrative Law Judge with the California Department of Insurance and as a Pro Tem Judge with the Alameda County Superior Court. Prior to becoming an ALJ, I was the Senior Regional Attorney at the California Public Employment Relations Board, where I authored a treatise on public sector employment. I was awarded an A.B. in Psychology and Women’s Studies by Smith College in 1992; a J.D. (Public Interest Scholar) by University of California, Hastings College of the Law, 1995; and am currently working on my PhD in Judicial Studies from the National Judicial College at the University of Nevada, Reno. OFFICE HOURS: My office is located 1.5 blocks from 536 Mission St., so I can meet there by appointment. Please telephone or email me as early as possible for an appointment. COURSE DESCRIPTION: Focuses on the legal, regulatory and ethical context of professional accounting practice. This course will consider the law and the legal environment within which certified public accountants practice and the most important areas of the law affecting clients. Topics covered in this course are the law of administrative agencies; the regulation of professions generally and of accounting specifically; ethics and professional responsibility, the AICPA's...

Words: 1642 - Pages: 7

Premium Essay

Healthcare Reimbursement

...Principles of Healthcare Reimbursement Anne B. Casto, RHIA, CCS Elizabeth Layman, PhD, RHIA, CCS, FAHIMA Copyright ©2006 by the American Health Information Management Association. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, photocopying, recording, or otherwise, without the prior written permission of the publisher. ISBN 1-58426-070-X AHIMA Product No. AB202006 Ken Zielske, Director of Publications Susan Hull, MPH, RHIA, CCS, CCS-P, Technical Reviewer Marcia Loellbach, MS, Project Editor Elizabeth Lund, Assistant Editor Melissa Ulbricht, Editorial/Production Coordinator All information contained within this book, including Web sites and regulatory information, was current and valid as of the date of publication. However, Web page addresses and the information on them may change or disappear at any time and for any number of reasons. The user is encouraged to perform his or her own general Web searches to locate any site addresses listed here that are no longer valid. AHIMA strives to recognize the value of people from every racial and ethnic background as well as all genders, age groups, and sexual orientations by building its membership and leadership resources to reflect the rich diversity of the American population. AHIMA encourages the celebration and promotion of human diversity through education, mentoring, recognition, leadership, and other programs. American...

Words: 9820 - Pages: 40

Premium Essay

Finance

...Chapter-9 1. Budget: A budget is a detailed quantitative plan for acquiring and using financial and other resources over a specified forthcoming time period. Budget is a plan of action for achieving quantified objectives, standard for measuring performance and device for coping with foreseeable adverse situations. 2. Budgeting: The act of preparing a budget is called budgeting. Budgeting is the process of creating plan to spend money. It is simply balancing expenses with income. 3. Zero Budget: A method of budgeting in which all expenses must be justified for each new period. It requires managers to justify all budgeted expenditures, not just changes in the budget from the prior year. 4. Muster Budget: A set of interconnected budgets of sales, production costs, purchases, incomes etc. is called Master Budget. It also includes pro-forma financial statements. It serves as a planning and control tool of the organization. 5. Cash Budget: Estimation of cash inflows and out flows for a business or individual for a specific period of time is called Cash Budget. 6. Advantage of sell impose Budget: i. Individuals at all levels of the organization are viewed as members of the team whose judgments are valued by top management. ii. Budget estimates prepared by front-line managers are often more accurate than estimates prepared by top managers. iii. Motivation is generally higher when individuals participate in setting their own goals than when...

Words: 869 - Pages: 4

Premium Essay

The Effect of Extracurricular Activities on Employment After the Graduation of Ise Students.

...universities, colleges in the country without job, or or insufficient capacity to satisfy the skills needed by employers. Most students are very passive, vague understanding about soft skills, role of soft skills for the job. Communication skills, problem solving, questioning skills, teamwork, communication in English ... is still student’s weaknesses. KeyWords Extracurricular activities Soft Skill Employment Contents Abstract 1 Contents 3 Chapter I. Introduction 5 Chapter II. Literature Review 6 1. What are extracurricular ? 6 2. Why are extracurricular importace ? 7 Chapter III. Proposed methodology 8 3.1. Research Design 8 3.2. Unit of Analysis 9 3.3. Methods of data collection 9 3.4. Sampling 9 3.5. Methods of data analysis 10 3.5.1. Quantitative data analysis 10 3.5.2. Questionnaire design method 10 3.5.3 Qualitative data analysis Chaper IV. Prospective contribution of the research to literature 11 Chapter V. Prospective limitations of the research 11 Chapter VI. Findings 11 6.1.Analysis of...

Words: 3169 - Pages: 13

Free Essay

Acct 221 - Sec 10-K Analysis

...Current Knowledge Management Event Knowledge Management and Competitive Advantage Research Paper Current Event | | Date | July 13, 2012 | Part I | Target organization, product or service, location, section, and position | Correlations toAssignment | | Relevance | | Content Analysis – Breaking it down The Sum of the Parts I have chosen to review the Knowledge Management data collected about the Dow Chemical Company from the prospective of a Knowledge Worker. Since I am becoming more familiar with the term of what is meant by being a Knowledge Worker I feel like I am able to draw from my own experiences to assess the information gathered. About Dow Chemical Company | What the facts mean to me as a Knowledge Worker | Products & Services provided… | “Dow Chemical Company isa leading science and technology businessthat provides innovative chemical, plastic, andagricultural products and services to customersin more than 160 countries.” (Obtained from Transforming Information Management. Dow Chemical Company makes critical knowledge secure and easier to access and share.) | Location & Organization of the company… | “The company whose annual sales are over $57 billion andhave approximately 46,000 employees, they are a Midland,Michigan-based business.” (Obtained from Transforming Information Management. Dow Chemical Company makes critical knowledge secure and easier to access and share.) | Name of the division, is there any significance behind the...

Words: 489 - Pages: 2

Premium Essay

Adnvacne

...Lecture Handouts for Chapter 5 Chapter 5 is covered in lectures 31 and 32. Risk and Return The return from an investment is the change in market price, plus any cash payments received due to ownership, divided by the beginning price. The risk of a security can be viewed as the variability of returns from those that are expected. Measurement of Risk The expected return is simply a weighted average of the possible returns, with the weights being the probabilities of occurrence. The conventional measure of dispersion, or variability, around an expected value is the standard deviation σ. The square of the standard deviation σ2 is known as the variance (σ2). The standard deviation can sometimes be misleading in comparing the risk, or uncertainty, surrounding alternative investments if they differ in size. To adjust for the size, or scale, problem, the standard deviation can be divided by the expected return to compute the coefficient of variation (CV) – a measure of “risk per unit of expected return.” Investor’s Attitude towards Risk Investors have different attitudes while deciding between the risk and return in an investment. Investors are, by and large, risk averse. This implies that they demand a higher expected return, the higher the risk. The expected return from a portfolio The expected return from a portfolio (or group) of investments is simply a weighted average of the expected returns of the securities comprising that portfolio. The weights are equal to the proportion...

Words: 4121 - Pages: 17

Free Essay

Mkt 315 Wk 6 Quiz 4 Chapters 8 & 9

...MKT 315 WK 6 QUIZ 4 CHAPTERS 8 & 9 To purchase this visit here: http://www.activitymode.com/product/mkt-315-wk-6-quiz-4-chapters-8-9/ Contact us at: SUPPORT@ACTIVITYMODE.COM MKT 315 WK 6 QUIZ 4 CHAPTERS 8 & 9 MKT 315 WK 6 Quiz 4 Chapters 8,9 MULTIPLE CHOICE 1. Why does it make sense to sell high-priced and exclusive merchandise such as diamonds, rare Cognac, or Waterford Crystal, through warehouse club channels? a. The warehouse clubs attract thousands of customers each year. b. Companies can sell last year’s style/model easily at the warehouse club. c. Two-thirds of the shoppers at a warehouse club are business owners, many of whom are successful and affluent. d. These types of manufacturers are changing their distribution channels to include mass merchandisers, discount stores, and warehouse clubs in order to reach more potential buyers. e. It makes no sense for these manufacturers to sell products at a warehouse club and diminish the image of their brand or product name. 2. The emphasis on channel design strategy is to help the firm gain ___________. a. lower variable costs b. a more efficient operation c. strong channel members that will help the firm gain sales d. a recognizable name and image among buyers e. a competitive sustainable advantage 3. The market constructs used in the text to analyze markets in relation to channel design strategy consists of all of the following dimensions except: a. Market density. b. Market behavior. c. Market...

Words: 1266 - Pages: 6

Premium Essay

Synthesis of Feasibility Study

...A SYNTHESIS OF A FEASIBILITY STUDY Format/ sequence of content presentation in the book bound copy 1. Title Page 2. Approval Sheet 3. Acknowledgement 4. Table of Contents 5. List of Figures 6. List of Tables 7. List of Appendices 8. Project Summary 9. Chapter of the study in order of: Chapter I- Introduction & Background of the study Chapter II- Market Study Chapter III- Technical Study Chapter IV- Management Study Chapter V- Financial Study Chapter VI- Socio- economic Study Chapter VII- Conclusion & Recommendation 10. Bibliography 11. Appendices Content of the Project Summary 1. Summary of the study 1.1 Name of the Firm 1.2 Location of the Firm, Head Office & plat site 1.3 Brief Description of the Project 1.3.1 History & Background of the Business 1.3.2 Nature & Kind of Industry 1.3.3 Type of Business Organization 1.4 Summary of finding & conclusion of the ff: 1.4.1 Market Study 1.4.1.1 Market site, location , segments , characteristics & growth 1.4.1.2 Assessment of supply & demand 1.4.1.3 Conclusion on whether or not there exists substantial demand; demand that can be created or demand is fully met by supply 1.4.1.4 Market Program * production quality & packaging * selling price * channel of distribution * promotion * sales projections & market share * evaluation of marketing practices within the industry &...

Words: 2572 - Pages: 11

Premium Essay

Investment Banking

...Acquisitions JOSHUA ROSENBAUM JOSHUA PEARL FOREWORD BY JOSEPH R. PERELLA Investment Banking Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America, Europe, Australia, and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers’ professional and personal knowledge and understanding. The Wiley Finance series contains books written specifically for finance and investment professionals as well as sophisticated individual investors and their financial advisors. Book topics range from portfolio management to e-commerce, risk management, financial engineering, valuation, and financial instrument analysis, as well as much more. For a list of available titles, please visit our Web site at www.WileyFinance.com. Investment Banking Valuation, Leveraged Buyouts, and Mergers & Acquisitions JOSHUA ROSENBAUM JOSHUA PEARL John Wiley & Sons, Inc. Copyright C 2009 by Joshua Rosenbaum and Joshua Pearl. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission...

Words: 138300 - Pages: 554

Premium Essay

Senior

...want to go and how we might get there. operate, their future direction, and the means to For a firm, the goal is not much differ- obtain support for new initiatives.2 ent. Any company that wants to succeed (which Because these elements—internal activ- means any firm whatsoever) needs to plan for ities, external environments, goals, and forms a variety of contingencies, and marketing repre- of support—differ for every firm, the marketing sents one of the most significant. A marketing plan is different for each firm as well. However, plan—which we defined in Chapter 2 as a written several guidelines apply to marketing plans in document composed of an analysis of the current general; this Appendix summarizes those points marketing situation, opportunities and threats and offers an annotated example. 63 gre28833_c2a_062_081.indd 63 9/23/10 10:27 AM 64 Section One Assessing the Marketplace MARKETING PLAN VERSUS BUSINESS PLAN Of course, firms consider more...

Words: 7293 - Pages: 30