...Restructuring Debt Part A: Through reporting all types of long term debt, there are certain requirements that must be made. There are three main categories that long term debt can be divided into, which include bonds, notes payable and capital leases. For all long term notes and bonds, they are “valued at the present value of its expected future interest and principal cash flows. The company amortizes any discount or premium over the life of the note” (Kieso, Weygandt, & Warfield, 2007, p. 685).Provided below is the comparison on what is required through reporting bonds, and other long term loans. One of the main types of long term debt is bonds payable. Bonds are a type of debt that represents a promise to pay back a certain amount of money by a maturity date, along with periodic interest that has accrued from the face value. Through bonds, companies are required to report certain things while attaining bonds. These requirements are to state the interest rate of the bond, if the bond has a discount or premium, the effective yield or market rate, the amortization accrued. If a bond were to have a discount, then this would increase the bond interest expense, whereas a premium would decrease the bond interest expense. For any unamortized bond issue costs, they must be amortized over the life of the debt and treated as a deferred charge. There are many covenants or restrictions for bonds. For long term notes payable, they are similar to the bonds, in that their value...
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...Individual Assignment: Lee Corporation Equity Scenario Review the following information: o Lee Corporation, a U.S. company, began operations on January 1, 2004. o During its first 3 years of operations, Lee reported net income and declared dividends as follows: | Net income | Dividends declared | 2004 | $ 40,000 | $ –0– | 2005 | 125,000 | 50,000 | 2006 | 160,000 | 50,000 | o The following information relates to 2007: Income before income tax: $240,000 Prior period adjustment: understatement of 2005 depreciation expense (before taxes): $ 25,000 Cumulative decrease in income from change in inventory methods (before taxes): $35,000 Dividends declared (of this amount, $25,000 will be paid on January 15, 2008): $100,000 Effective tax rate: 40% Lee Corporation | Retained Earnings Statement | For the Year Ended December 31, 2007 | Balance, January 1, as reported | $225,000* | | Correction for depreciation error (net of $10,000 tax) | (15,000) | | Cumulative decrease in income from change in inventory methods (net of $14,000 tax) | (21,000) | | Balance, January 1, as adjusted | 189,000 | | Add: Net income | 144,000** | | | 333,000 | | Less: Dividends declared | 100,000 | | Balance, December 31 | $233,000 | | *($40,000 + $125,000 + $160,000) – ($50,000 + $50,000) **[$240,000 – (40% X $240,000)] Common stock...
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...BUSINESS 111 FALL 2011 NON-BBA FINAL EXAM REVIEW GUIDE Final Exam Date: FRIDAY, DECEMBER 9TH, 2011 Exam Time for WLU Students: 7:00 p.m. – 9:30 p.m. Exam Time for UW Students: 7:30 p.m. – 10:00 p.m. Writing Locations posted at https://www.wlu.ca/~mibrahim/exams/FALL2011/BUSINESS.html Important Notice: If a student cannot write a business or economics final exam as scheduled, they must submit a "Petition for Exception to Academic Regulations" form to Ms Lee Leeman, Student and Petitions Coordinator, SBE1256. Supporting documentation will be required and verified. This permits equitable treatment for all students taking SBE courses. If appropriate circumstances are presented with appeals, students will be accommodated on either the SBE slip day or the next exam session. Exam Format: 20 Multiple Choice questions = 1 mark each 6 Short Answer questions, 2 to 6 marks each, choice in 1 question = 25 marks 7 Quantitative problems, 3 to 6.5 marks each, choice in 1 question = 35 marks 80 marks total TOPICS TO BE COVERED: (Items listed in red indicate quantitative problems) Economic Factors - four pillars of Canadian financial system – description, roles - Bank of Canada - description, tools for affecting money supply - bonds – characteristics (return, term, priority over stockholders), types, features, factors affecting price, calculating approximate yield to maturity, relationship between prevailing interest rates and bond prices, reading bond...
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...shareholders own the largest group so Company A is the acquirer. b) Two options of accounting for share issue costs are: 1. Offset method. Under this method, share issue costs are treated as a reduction of the amount received from the sale of the related share capital. The rationale to support this method is that these are one-time costs that cannot be reasonably assigned to future periodic revenues and that the net cash received is the actual appropriate measure of capital raised. Therefore, under this method, share issue costs are debited to the share capital account. 2. Retained earnings method. Companies will charge share issue costs directly to retained earnings. Retained earnings are reduced as a result. This reduces common equity, but records the gross proceeds received from the sale of shares to the share capital account. c) The acquisition cost does not include costs such as professional fees or costs of issuing shares. The acquisition cost does not include costs such as fees for consultants, accountants, and lawyers. These costs do not increase the fair value of the acquired company and therefore should not be included in the values assigned to net assets acquired in the business combination. These costs should be...
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...Compare and contrast the forms of business structure. Explain the methodology used to determine deferred taxes. Materials SUPPLEMENT: Week One Content Outline SUPPLEMENT: Week One Mind Map SUPPLEMENT: Week One Student Road Map SUPPLEMENT: Sample Final Exam EBOOK COLLECTION: Auditing and Assurance Services, Ch. 1 EBOOK COLLECTION: Intermediate Accounting, Ch. 19 EBOOK COLLECTION: Intermediate Accounting, Ch. 22 EBOOK COLLECTION: Advanced Accounting, Ch. 7 EBOOK COLLECTION: Financial Accounting Theory and Analysis, Ch. 17 Assessment Individual Assignment: CPA Report As the CPA for a large organization, your manager has asked you to provide information to outside CPAs who are examining a subsidiary that has been set up as a corporation. As part of their review, the CPAs have asked you to provide them with the following explanations: The methodology used to determine deferred taxes The...
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...ARB Corporation Limited is an Australian public company which designs, manufactures and distributes automotive accessories. ARB's leading products include the ARB Air Locker differentials, ARB Bullbars, and the Old Man Emu shocks and suspension products. ARB is listed on the Australian Securities Exchange under the code ARP. The company employs approximately 860 people, and is headquartered in Kilsyth, Victoria. Major Customers & Competitors ARP has steadily built on its traditional 4WD-enthusiast customer base. ARP also supplies products to original equipment manufacturers in Australia, including Nissan and Toyota. Other important customer segments are mining companies, government departments, commercial fleet owners, 4WD tour operators and the Australian defence forces. ARP's competitors include other 4WD accessory manufacturers. Industry analysis The profits in an industry are a function of the maximum price that customers are willing to pay for the industry’s product or service. The average profitability of an industry is influenced by the ‘five forces’. (Palepu, Healy & Bernard et al, 2008) ARB Corporation limited is segmented into Motor Vehicle Accessories industry which is advancing rapidly on a worldwide basis. The growth of motor vehicle industry is directly related to the growth of vehicle accessories industry and automotive parts industry. It has shown that in the recent past, the growth rate of automobile accessories industry has been four times higher...
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...Sara Lee Equity Analysis and Valuation Valued at 1 April 1, 2007 Analysts: Todd L. Ehlers: todd.ehlers@ttu.edu Michael D. Estes: mikestes@sbcglobal.net Daniel W. Taylor: dtaylor1184@yahoo.com Joseph R. Torres: rhyno1112@sbcglobal.net Table of Contents Page Number Executive Summary……………………………………………………………………………………………… 2 Analysis Snapshot............................................................................................ 2 Company and Industry Overview…………………………………………………………………… 3 Accounting Analysis………………………………………………………………………………………. 3 Financial Ratio Analysis…………………………………………………………………………………. 4 Analysts Evaluations……………………………………………………………………………………… 4 Overview of Firm and Industry............................................................................... 5 Industry Overview and Analysis………………………………………………………………………….. 8 Rivalry Among Existing Firms………………………………………………………………………….8 Threat of New Entrants…………………………………………………………………………………. 15 Threat of Substitute Products………………………………………………………………………… 17 Bargaining Power of Buyers…………………………………………………………………………… 18 Bargaining Power of Suppliers……………………………………………………………………….. 20 Characterization of Industry……………………………………………………………………………20 Value Chain Analysis: Key Success Factors…………………………………………………………. 21 Competitive Advantage Analysis…………………………………………………………………………. 23 Cost Leadership……………………………………………………………………………………………. 24 Differentiation……………………………………………………………………………………………….27 Accounting Analysis………………………………………………………………………………………………...
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...Section 7: Conclusion Section China and the World: Scenarios to 2025 7 Conclusion Given the importance of China today, there can Wild cards are low probability events which be no doubt that the determination of Chinese would have a significant impact if they were to leadership to maintain the course of reform will occur. In the case of China they could include : be a decisive factor in the global future. It is • A possible Taiwan conflict : equally true that the support of other global How would China react if Taiwan were to players and their preparedness to welcome declare independence ? For many years China in its gradual rise in greatness will have a independence was not an issue as the direct impact on how China emerges. Given the Kuomintang rulers of Taiwan claimed they close connection between China and global were the real government of China and welfare, these scenarios indicate that outsiders had no interest in relinquishing their claim must appreciate the scale of the challenges on sovereignty. But independence has faced by the government in Beijing, and that become an issue with the rise of generations those in China need to comprehend the born and raised on the island. They have sensitivities of outsiders to its rise. successfully established democratic rule and some do not want to be subject to rule Raising awareness of differing sensitivities is an important role that scenarios can play. from a distant capital. The implications of...
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...1. Introduction “The only constant is change”, as Heraclitus points out (Brainyquote.com). There is no doubt that the world has changed over time physically, economically, and culturally. As the world has evolved, so has business, and as business has evolved so has auditing. The concept of auditing is as old as civilization. The need for a knowledgeable, external, third person to verify transactions or accounts and detect fraud has been present since the advent of trade and accounting. Thus the goal of auditing, in this sense, has not changed since. Teck-Heang Lee observed that “auditing serves as a mechanism to monitor conduct and performance, and to secure and enforce accountability (Lee 2008). All in all, an audit function plays a crucial role in maintain welfare and stability in society.” However, what has changed is how the roles and responsibilities of auditors have changed to reflect the needs of the business environment of the time. As such, auditors and the auditing profession have always played a very important role in business and, more recently, in society in general. As business in today’s world becomes more dynamic, accounting (and therefore by extension auditing) must also evolve to become more dynamic. The evolution of auditing is a complicated history that has always been changing through historical events. This can be seen in the shift in the role of external auditors from a cyclical audit approach to now more of a top-down risk-based continuous audit. The...
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...Project Report ON Samsung Submitted To: - Submitted By: - Central Uniersity of Jharkhand Samsung History Samsung's history dates to 1938 when "Samsung General Stores" opened in North Kyung-sang Province, Korea. The company conducted its trade business until the 1950s when it became a producer of basic commodities such as sugar and wool. In 1958, Samsung be-came involved in the insurance industry by incorporating a local fire & marine insurance company. During the 1960s, Samsung became one of the first Korean companies to actively expand its overseas trade. The group consolidated its manufacturing base by adding paper and fertilizer businesses. Samsung continued with expansion into the life insurance business, strengthened its retail operations and then moved into the communications sector, successfully establishing a newspaper and a broadcasting company. The 1970s were a crucial period in shaping present-day Samsung. Its strengths in the semiconductor, information and telecommunications industries grew from the significant investments made during this period. Samsung also took a meaningful step toward heavy industries by venturing into aircraft manufacturing, shipbuilding and construction, as well as chemical industries. In the 1980s, Samsung expanded its efforts into exploring the larger markets overseas...
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...Committee during World War I. A member of the committee, Edward L. Bernays, later considered by many to be the father of public relations, was part of a massive verbal and written communications effort to gain support of the war. According to Bernays, “this was the first time in our history that information was used as a weapon of war.” There were other key people and events, which were very influential in promoting the growth of the public relations industry such as: * “Public be informed era”, Ivy Lee – “father of PR” * WWII – the Office of War Information * “Counseling era” – Edward Bernays taught the first PR course at NYU in 1923 * Bernays wife, Doris Fleischman, was influential in paving the way for women in the industry. Together, they created Edward L. Bernays, Counsel on Public Relations, which became a top agency. Some of the top PR practitioners in the 20th Century, according to PRWeek, are Harold Burson, Edward Bernays, Arthur Page, Larry Foster and Ivy Lee. Major Practices of Public Relations One...
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...Asian Academy of Management Journal, Vol. 12, No. 1, 23–34, January 2007 CORPORATE GOVERNANCE IN MALAYSIA: THE EFFECT OF CORPORATE REFORMS AND STATE BUSINESS RELATION IN MALAYSIA Nor Azizah Zainal Abidin 1 and Halimah @ Nasibah Ahmad2 1 Faculty of Public Management and Law, 2 Faculty of Accountancy Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia ABSTRACT The Asian Financial Crisis in 1997 not only introduced the term of corporate governance but also drew attention of the public about the weaknesses of Malaysian corporate governance practice. After 1998, Malaysian government decided to adopt corporate reform that could enhance the quality of good corporate management practice. This reform is clearly stated in the code and rules of corporate governance. The purpose of this research is to study the significance of implementing the code and rules of corporate governance since the public already realize the close relationship between business and politics. Three companies were chosen as indicators for this study. As a result, it was found that companies which are involved in corporate malpractice but have good relationship with states will always be excluded from the legal corporate action. Keywords: corporate governance, corporate reforms, political economy, state business relation INTRODUCTION Asian Financial Crisis in 1997 not only introduced the term of corporate governance but also drew attention of the public about the weaknesses of Malaysian corporate...
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...the positive uptrend in the last couple of years to various initiatives taken by the brand team to recoup some of the lost ground. Despite his pre-occupation with the "100 shining years" celebrations going on for this life-touching brand that had for long added an early morning glimmer to shoes, he was keenly working towards finalising the strategic shifts in the marketing strategy of the brand to take it to the next orbit. The journey of Cherry Blossom (Cherry) as a brand had begun a hundred years ago and had seen many ups and downs. For a long time till mid 1990's, it was the dominant category leader, with virtually no competition, and a market share of about 75%*. Market environment changed when Kiwi emerged actively as one of Sara Lee India's core brand. The changing shoe care habits of consumers and growing popularity of new shoe types further changed the market environment for Cherry. By the end of 1990's, Cherry was losing its shine. The brand had lost its market share steeply from 1999 onwards, and by 2002 it fell to a low of 61% - a drop of 12% in market share. A series of measures helped Cherry to fight this serious erosion to its leadership position, and the slide was arrested in 2003. From there onwards, many active efforts helped the company regain some of the lost ground, and gradually, Cherry’s market share inched up to above 65% in 2005. The brand team’s endeavor now was not just to redefine the brand but also re-evaluate all the elements of its marketing strategy...
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...University of Zimbabwe Faculty of Commerce Department of Accountancy and Business Studies MACC502 INTERNATIONAL MANAGEMENT ACCOUNTING AND CONTROL Name Gweme .J. Netsayi SECTION A Manufacturing Industry With reference to the manufacturing industry critically review the academic literature and identify conflicting perspectives on the following costs and cost behaviours, select an appropriate ;;approach and justify your choice. a) The definition of fixed overhead and relevant range and the short-run and long-run behaviour of fixed overhead. Fixed overhead is the cost of manufacturing that does not change with volume but changes with passage of time or much higher quantity .it is fixed for a certain defined relevant range I n the short run but will change in long run. De Costa (1996) describes fixed costs as those costs which volume can be spread and identifies equipment and plant as limiting factors of production. When volume increase fixed costs remain unchanged up to a certain point that is the level accommodated by the available plant and equipment .Edwards J. D (1965)on the other hand gives two perspectives on fixed costs where direct costing treats fixed costs as period costs and are excluded from product costs. He goes on to note that depreciation is assumed fixed by direct costing but in the long run it is variable. The other perspectives noted by accounts who just measure and match revenue and expenses hence the...
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...Growing Pains by Robert D. Nicoson “I’m challenged and motivated where I am, and I like the company. You know that. But I’ve got to say I’m interested in the opportunity you’re describing because of the money and the equity position. For those reasons alone, it’s tough to pass by. Let me think about it some more and call you in the morning. Thanks, Les.” That was the extent of the conversation Cyrus Maher, CEO of Waterway Industries, overheard when he came around the corner just outside of Lee Carter’s office. She must have been talking with Les Finch, Maher thought. Here’s trouble. Of course, it didn’t necessarily mean any- thing, Maher told himself as he passed the of- fice, waving to Carter. Finch, a well-connected marketing consultant, had been the match- maker between Carter and Waterway Indus- tries to begin with. With the company in the fourth quarter of its best year ever, he certainly wouldn’t be encouraging her to leave. Would he? Maher got a cup of coffee in the company’s first floor kitchenette and deliberately took the long way back to his office, through the design room. As always, the atmosphere was upbeat, but these days he also thought he could detect a sense of purpose that had never before been a part of Waterway’s organization. Founded in 1963 in Lake Placid, New York, Waterway had started out as a small, high- quality canoe maker. Over the years, it had built a good reputation all through the North- east and had acquired a base of customers in the...
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