...CHAPTER 6 Reporting and Analyzing Inventory Study Objectives 1. Describe the steps in determining inventory quantities. 2. Explain the basis of accounting for inventories and apply the inventory cost flow methods under a periodic inventory system. 3. Explain the financial statement and tax effects of each of the inventory cost flow assumptions. 4. Explain the lower of cost or market basis of accounting for inventories. 5. Compute and interpret the inventory turnover ratio. 6. Describe the LIFO reserve and explain its importance for comparing results of different companies. Summary of Questions by Study Objectives and Bloom’s Taxonomy Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT Questions 1. 1 C 6. 2 AP 11. 2 K 16. 4 AP 21. 6 C 2. 1 K 7. 2 C 12. 3 C 17. 4 K 22. 7 C 3. 1 K 8. 2 C 13. 3 C 18. 2 K 23. 7 C 4. 1 C 9. 2 K 14. 3 C 19. 3 C 24. 8 AN 5. 1 C 10. 2 C 15. 4 C 20. 5 AN Brief Exercises 1. 1 C 3. 2 AP 5. 3 AP 7. 5 AP 9. 7 AP 2. 2 AP 4. 3 C 6. 4 AP 8. 6 C 10. 8 AN Exercises 1. 1 AN 4. 2 AN 7. 2, 3 AP 10. 5, 6 AP 13. 8 AN 2. 1 AN 5. 2 AP 8. 5 ...
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...1- How much would $1, growing at 3.5% per year, be worth after 75 years? a. $12.54 b. $13.20 c. $13.86 d. $14.55 e. $15.28 b 4 - The Morrissey Company's bonds mature in 7 years, have a par value of $1,000, and make an annual coupon payment of $70. The market interest rate for the bonds is 8.5%. What is the bond's price? | | | a. | $923.22 | b. | $946.30 | c. | $969.96 | d. | $994.21 | e. | $1,019.06 | A 7 - One problem with ratio analysis is that relationships can be manipulated. For example, if our current ratio is greater than 1.5, then borrowing on a short-term basis and using the funds to build up our cash account would cause the current ratio to increase. | | a. | True | b. | False | B | | 10 - If the discount (or interest) rate is positive, the future value of an expected series of payments will always exceed the present value of the same series. a. True b. False a 13 - Last year Tempe Corporation's sales were $525 million. If sales grow at 7.5% per year, how large (in millions) will they be 8 years later? a. $845.03 b. $889.51 c. $936.33 d. $983.14 e. $1,032.30 7 - Which of the following investments would have the lowest present value? Assume that the effective annual rate for all investments is the same and is greater than zero. a. Investment A pays $250 at the end of every year for the next 10 years (a total of 10 payments). ...
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...DECLARATION ACKNOWLEDGEMENT SLIP Name: DR. DUR-E-SAMEEN Address: Registration No : 1730175879086 Tax Year : 2015 Date : 28-Nov-2015 Period : 01-Jul-2014 - 30-Jun-2015 Medium : Online Due Date : 30-Sep-2015 Description Code Total Income Taxable Income Tax Chargeable Refundable Income Tax Amount 9000 9100 9200 9210 This is not a valid evidence of being a "filer" for the purposes of clauses (23A) and (35C) of sections 2 and 181A. 730,212 730,212 16,511 26,797 114(1) (RETURN OF INCOME FILED VOLUNTARILY FOR COMPLETE YEAR) Name: DR. DUR-E-SAMEEN Registration No : 1730175879086 Tax Year : 2015 Date : 28-Nov-2015 Period : 01-Jul-2014 - 30-Jun-2015 Medium : Online Due Date : 30-Sep-2015 Address: Salary Description Code Income from Salary Pay, Wages or Other Remuneration (including Arrears of Salary) 1000 1009 Amount Exempt from Total Amount Tax / Subject to Fixed / Final Tax 730,212 0 730,212 0 Amount Subject to Normal Tax 730,212 730,212 Adjustable Tax Description Code Adjustable Tax Salary of Provincial Government Employees u/s 149 640000 64020002 Receipts / Value Tax Collected / Deducted 0 43,308 0 43,308 Tax Chargeable 0 0 Computations Description Income from Salary Total Income Taxable Income Tax Chargeable Normal Income Tax Withholding Income Tax Refundable Income Tax Print Date: Sat, 28 Nov 2015 11:03:03 Code 1000 9000 9100 9200 ...
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...INSTITUTE OF BUSINESS MANAGEMENT Course : Financial Management Prog : BBA (H) Faculty : Sanam Taimoor ------------------------------------------------- Group Members : Huda A. S. Qureshi (9930) Javeria Khalid (9937) Saad Anjum (9977) Topic : Assignment 1 Announced Date : Wed, 25-01-2012 Due Date : Wed, 01-02-2012 Ratios to be Calculated * Net Operating Working Capital * Total Working Capital * Net Operating Profit after Taxes * Free Cash Flows * Market Value Added Net Operating Working Capital = Current Assets – Current Liabilities Rupee (000) | 2011 | 2010 | 2009 | Current Assets | 3262718 | 1779477 | 2143328 | Current Liabilities | (3731902) | (2128504) | (2343211) | Net Operating Working Capital | 6994620 | 3907981 | 4486539 | Total Working Capital = Net Operating Working Capital + Operating Long Term Assets | 2011 | 2010 | 2009 | Net Operating Working Capital | 6994620 | 3907981 | 4486539 | Operating Long Term Assets | 7771887 | 8400165 | 7843424 | Total Working Capital | 14766507 | 12308146 | 12329963 | Net Operating Profit after Taxes =EBIT * ( 1 - Tax rate ) | 2011 | 2010 | 2009 | EBIT | 518229 | 609962 | 987894 | (1- Tax rate) | 1-0.35=0.65 | 0.65 | 0.65 | Net Operating Profit after Taxes | 336849 | 396475 | 642131 | Free Cash Flows = NOPAT – Net investments in operating Assets | 2011 | 2010 | 2009 | NOPAT | 336849 | 396475 | 642131 | ...
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...Comparative Summary Gilberto Colon HCS/577 January 26, 2015 Benjamin Ovando Comparative Summary In the United States, health care is delivered by a complex mixture of government, not-for-profit, and for-profit financial structures. These three financial structures coexist and compete with one another. The financial environment of an organization consists of three major components the financial managers, investors and financial markets. Health care services are provided in a regulatory environment that is both different and more comprehensive than that affecting almost any other industry. In order to fully utilize all financial resources it is important that managers understand the organizations financial structure. During this paper we will compare the financial environment of for-profit Hospital name, not-for-profit San Antonio community hospitals and the San Antonio Military Medical Center. We will also compare the financial structure, polices unique to each financial environment and their management practices. Finally we will explain why financial management is more difficult in health care compared to other organizations. Financial Structures The government financial structure makes up almost 25 percent of the health care organizations in the United States. These hospitals are divided into federal and public hospitals. The San Antonio Military Medical Center (SAMMC) is one of the federal hospitals in the United States. The San Antonio Military Medical Center...
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...International Journal of Business and Management Tomorrow Vol. 2 No. 7 Scope and Strategies in Financing of SMEs by Banks Onkar Chand Rana, Asst. Professor, Sri Sai University, Palampur, H.P. Professor K. Ravi Sankar, IGNOU, New Delhi Abstract Scope and Strategies in Financing of Small and Medium Enterprises by Banks- a case study of State Bank of India at Pathankot, was conducted with a view to examine the problems of SMEs of Pathankot area, examine the scope of further financing SMEs by Banks in Pathankot area and devise requisite strategies for financing of SMEs by Banks in Pathankot area and thereby increase their SME loans portfolio which would help the banks and ultimately the country to achieve the projections as per Indian vision 2020- a document by the Planning Commission according to which the Industry share in GDP which is 26% at present is projected at 34% and the service sector share which is at present 46%, is projected at 60% by the year 2020. On the analysis of the secondary data, which was obtained from Banks Performa Reports, Annual Returns and Annual Credit Plans, it was observed that huge scope exists for the banks in Pathankot centre for intensive financing of SMEs which is observed from the data that at present CD Ratio at the centre is 58.71% (below the prescribed national average of minimum 60%) and the share of SMEs to total advances being 31.58%, which need to be increased to at least 50%. The primary study was conducted on the basis of random...
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...Auditing Chapter 19 Discussion Question (last one) Chapter 19 discusses many issues surrounding ethics in general and in auditing. Describe a time when you have faced an ethical dilemma in your professional life. Then explain the course of action you decided to take in this situation and why. Lastly, in your own words explain why it is so crucial for an auditor to remain ethical given the nature of their work. Provide 1-2 paragraphs. You will be graded out of 10 points based on content and writing quality, so be sure you think critically, answer all questions I pose, express yourself clearly and thoroughly, and proofread for grammatical accuracy. ALSO, comment on this student: “Jose Escobar Professional Conduct, Independence, and Quality Control As a seasonal tax preparer, I have faced ethical dilemmas during every tax season in the 10 years I have been doing taxes. Every year, there is at least one customer that wants to be extremely creative when preparing his or her tax return. I have been asked directly to play with the numbers and enter different scenarios in the system to see which option would result in the highest refund. My answer is always the same, the customer has to provide the correct information and that is the only way I will agree to complete the tax return; even if a couple of times the customer has walked away because I did not accept to enter information that I knew was fabricated. It is critical for an auditor to conduct all audit engagements...
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...The biggest problem faced by any SAARC country is poverty. Poverty has a wide spectrum of causes which vary from country to country. Issues like Naxalism in India, Civil wars in Sri Lanka, Terrorism in Pakistan have a direct link to poverty. Illiteracy and ignorance have resulted in an unbridled rise in population in many under developed nations. This is one of the alarming problems faced by the world considering its impact on global food and commodity market. The impact is so severe that, India which once was an exporter of food grains became an importer. The literacy rate of a country is dependent on socio-economic status of the people. This problem can be viewed from the other side in a different way. Though the land under cultivation in India is more than that of China, Indian agriculture can't feed its own people, while the Chinese could feed themselves. 60% people in India rely on agriculture directly, but its contribution towards GDP is just around 20% to 30% .Lack of implementation of modern technology in the field of agriculture, fragmented land holdings, low irrigation potential, unviable returns etc can be shown as the causes here. Considering the GDP as the bench mark for development of a country, India registered a growth rate around 9% only after globalization in 1991. This clearly indicates that market based economy with minimum regulations encourage entrepreneurship. Survival of small scale and micro level industries is one of the key aspects in the success...
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...SES’s- GOI- FACULTY OF MANAGEMENT Course: MMS, Semester (II) Examination: Final Examination- 2013 Subject: Management Information System Date: 22/04/2013 Time: 2 hrs Maximum Marks: 30 Instructions: 1. Before starting to write the examination, make sure that it is complete and that there are no printing defects. This examination paper consists of 6 pages. There are 5 questions each of 6 marks, for a total of30 marks. 2. Read the questions carefully and answer what is asked, clearly and to the point only. 3. To assist you in answering the examination questions, the following glossary of terms is included. 4. All questions are compulsory and carry 10 marks each. Glossary Compare Examine qualities or characteristics that resemble each other. Emphasize similarities, although differences may be mentioned. Contrast Compare by observing differences. Stress the dissimilarities of qualities or characteristics. (Also Distinguish between) Criticize Express your own judgment concerning the topic or viewpoint in question. Discuss both pros and cons. Define Clearly state the meaning of the word or term. Relate the meaning specifically to the way it is used in the subject area under discussion. Perhaps also show how the item defined differs from items in other classes with an example. Describe Tell the whole story in narrative form. Diagram Give a drawing, chart, plan or graphic answer. Usually you should label a...
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...managers including organizing work , selecting, processes arranging layout locating making the decision on where the next location for facilties may be and arrange how the department and service station will be set up at. tacilling designing jobs. Measuring performance controlling quality is most concened with checking and reviewing work that has already been done, scheduling work managing inventory making sure that products and goods are correct because this can ceffet the profit and the loss so its important on how well its mangend and plannning.Planning is one of the most important duties that operation manager have to do Operation managers deal with people technology and deadlines. There are four majors functional areas of marketing , fianance operations and human resources. Operations managers also provide services for customers. operation management started long time ago arouound 1700 the industrial revolution changed production by using machine instead or hands on. In the 1900 focuses on how to make the workplace more enjoyable to work .in the mid og the 1900 they started to focus on solving operations problems designing high volume production .. the last 1990 early twenty first century they start focus on the cost of the system. In1990 the supply chain management reduce cost and managed the products to the customer. Now in the early twenty century the internet for conducting business active ityx50 -1960. Many events help influence the development of operation management...
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...Case No.2 Arch Communications Group Inc. 1. To me it seams that Arch is showing good performance and risky and agresive growth in bad industry. The paging industry is growing on average of 27% a year and it is experiacing a market shift from bussines clients to consumer clients, but there are signs that show that this industry is not favorable and has 3 big problems that make the industry fragile and vulnerable. • There is fierce competition in the industry that has turned into a price war. This reduces the margins and drives out profitability. Curently the industry is consolidating (mergers and aqusitions), but it does not relieve the presure and the competition with lower price goes on. • The industry is dependant on 2 large supplyers. Most probably they are avere of this situation and use it but grabing the bigger share of profits generated by pagers, by seting prices for the devices higher than they could with more competitors around. The cost of paging devices tied up cash in paging service companies, causing them to look for means of financing for that and that results in large interest expense and depreciation. • The case describes the cellular phone service industry as harmless, but as a much younger industry it is already almoust the size of paging industry (34milj. Pagers, 32milj. Mobile phones). The pager is a complement product for cell phone, althought they both use similar technology. In case cellulars develop mesaging service the...
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...The Human Stops Technology has always been part of human lives. The renaissance was the first time society began to praise knowledge, which led technology on an advancing path. Today our view of the world evolves as technology does and allows us to interact with each other like never before. As with advances, society has begun to take notice of how close technology is to them. In 1928 E.M. Forster describes a dystopian society controlled by technology. Although this new world is free from evil, their technology known as “the machine” also rids humans of will because everything is done for them. Many aspects of the story are a reality or have begun to surface which brings concern to society. Machines affect the world’s economy, population, and even human behavior. As we point out the imperfections of mankind we give more power to the machines but how far are are humans willing to go? Albert Einstein once said ,“I fear the day when the technology overlaps with our humanity.” (Calaprice) If he were still alive he might see that day has long passed. According to Forster, the relationship between technology and mankind is becoming closer and closer. Hence, this imaginary world might possibly be a reflection of our current society. In Forster's story, people lived under the surface of the earth in isolation rendering face to face communication a distant memory. Reasoning that all necessities were provided for them, they felt no need to disconnect from this dependence...
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...Guillermo’s Furniture Store Scenario University of Phoenix Team C FIN/571 July 25, 2012 Dr. Guillermo’s Furniture Store Introduction Sonora Mexico is known to many people as a beautiful vacationing area in the heart of Mexico. Home to the largest furniture manufacturing companies, Sonora is also home to Guillermo Navallez, and has been for many years. Guillermo Navallez and his furniture company, produces a variety of tables and chairs, he even has a patented solution for his furniture. In addition, Guillermo handcrafts products are priced at a premium rate, which separates him from his competitors. Guillermo’s competition is increasing due to the inexpensive labor cost and location. After researching his competition, Guillermo has to determine the alternatives; he has available for his company. Based on the scenario, choices will include the high tech approach, or broker distributor. Team C chose the best approach to fit his need, and to represent what he has delivered for many years. Guillermo’s goal is to retire one day, and his best route to a safe, and fulfilling retirement is the hi-tech approach. High-tech Approach Guillermo’s largest competition has sparked uproar, in the communities of Sonora. Along with large retailer’s influence expanding, affordable housing, new establishments, and rock bottom pricing, he has to consider taking a different approach to stay aligned with his competition. Since the 90’s, two...
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...Finance Theories Taxonomy 1 Finance Theories Taxonomy 2 Finance Theories Taxonomy This document presents a taxonomy of selected finance theories developed in past 5 decades by academics, practitioners and scholars in the United States, Europe, Asia and Latin America. A total of 14 theories and models are synthesized in this work, organized in five tables with the same structure: Theories of capital structure; capital budgeting and cost of equity; asset valuation, financial behavior and international finances. Each table contains theories organized alphabetically with an indication of its germinal or current character. The description of the theory is accompanied by current examples of empirical research that updates or contradicts the theory and additional information about limitations, scope and opportunities of research. Finance Theories Taxonomy 3 Table 1 Finance Theories Taxonomy: Theories of capital structure Theory General description Current examples of the theory Other attributes Modigliani and Miller Germinal theory of corporate finance A review of the theory by Criticism against flaws of M& M theory Theory of investment proposed by Miller and Modigliani Miller himself, offers a new (Ball, 2001) (1958) argues that “the value of a firm view about the so called ‘junk 1. Market perfection. M&M assumed is independent of its capital structure” bonds’ which were considered information was...
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...Хөрөнгө Оруулагчийн Санхүүгийн Хэрэгцээ, Чадамж, Хувийн Зан Төлөвт Нийцсэн Оновчтой Багц Бүрдүүлэх “MB 1.0” Программ Удирдагч: Ц.Батсүх СЭЗДС-ийн ЭЭТ-ийн эрхлэгч, док.проф (Ph.D) Боловсруулсан: Гочоо Мөнх-Эрдэнэ, Гранд Лайн брокер, дилерийн компанийн дилер, шинжээч mgh824@yahoo.com;98906335 Батболд Батжаргал, ШУТИС-ХоМТС-ийн Мэдээллийн Технологийн Тэнхимийн багш batjаa_10@yahoo.com; 99613870 2012 оны 4 дүгээр сар Энэхүү судалгааны ажлаас гарсан үнэлэлт, дүгнэлт нь тус судалгааг хийж гүйцэтгэсэн судлаачдын байр суурийг илэрхийлнэ. Тус судалгаатай холбоотой аливаа санал, зөвлөмж, шүүмжийг хүлээн авахдаа бид таатай байх болно. Хураангуй Энэхүү судалгааны ажлаар хөрөнгө оруулагчийн санхүүгийн хэрэгцээ, чадамж, хувь хүний зан төлвийн онцлогт нийцсэн оновчтой хувьцааны багц бүрдүүлдэг программ бүтээхийг зорилоо. Багц сонголтын онол болон Зан төлвийн санхүүгийн ухагдахуунууд үндэслэж оновчтой багц бүрдүүэх программыг зохиосон болно. Тус программ нь нийт 7 алхамтыг гүйцэтгэсний эцэст оновчтой багц бүрүүлэх ба ижил өгөөжийн түвшинд эрсдлийг дунджаар 50%-иар бууруулж байхад ижил эрсдлийн түвшинд өгөөжийг 50%-иар өсгөж байна. Энэхүү программыг Монголын брокер, дилерийн компаниуд хөрөнгө оруулагчдадаа санал болгосноор хөрөнгө оруулагчдын эрсдэл буурах, өгөөж нэмэгдэх, хөрөнгө оруулагчдын сэтгэл зүй тогтвортой байх, ханшийн хэт хэлбэлзэл буурах, цаашлаад хөрөнгийн зах зээлд хөрөнгө оруулагчид нэмэгдэх улмаар хөрвөх чадвар сайжирч, зах зээл идэвхжих чухал ач холбогдолтой. Түлхүүр үгс:...
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