...Plus. You should understand these keystrokes before you begin work on statistical or TVM functions. Please note that your calculator’s sign convention requires that one of the TVM inputs ([PV], [FV], or [PMT]) be a negative number. Intuitively, this negative value represents the cash outflow that will occur in a TVM problem. 1. To set the number of decimal places that show on your calculator: [2nd]→[FORMAT]→{Desired # of decimal places}→[ENTER]→[CE/C] For the exam, I would make sure that the number of decimal places is set to 5. 2. To set the number of payments per year (P/Y): [2nd]→[P/Y]→{Desired # of payments per year}→[ENTER]→[CE/C] P/Y should be set to 1 for all computations on the Schweser Notes and on the exam. 3. To switch between annuity-due [BGN] and ordinary annuity modes: [2nd]→[BGN]→[2ND]→[SET]→[CE/C] 4. To clear the time value of money memory registers: [2nd]→[CLR TVM] This function clears all entries into the time value of money functions (N, I/Y, PMT, PV, FV). This function is important because each TVM function button represents a 2 HOW TO USE YOUR TI BA II PLUS CALCULATOR memory register. If you do not clear your memory, you many have erroneous data left over when you perform new TVM computations. 5. The reset button [2nd] [RESET]. The reset button serves to reset...
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...been assigned multiple functions. Keys are assigned white, orange and blue color codes. To enable the white coded function, just press the desired key. For the orange coded function, press the key at the bottom of the calculator followed by the desired key. For the blue coded function, press the key at the bottom of the calculator followed by the desired key. In this user guide, all keys are referred to by their white coded function, as they are easier to read and easier to identify. The following is a list of the basic preliminary set up features of your HP 12C. You should understand these keystrokes before you begin work on statistical or Time Value of Money (TVM) functions. Please note that your calculator’s sign convention requires that one of the TVM inputs ([PV], [FV], or [PMT]) be a negative number. Intuitively, this negative value represents the cash outflow that will occur in a TVM problem. 1. To set the number of decimal places that show in your calculator display screen: < f > → {Desired # of decimal places} For the exam, I would make sure that the number of decimal places is set to 5. 2. To switch between annuity-due [BEGIN] and ordinary annuity modes: To switch to the begin mode, enter → [7] (The word BEGIN will be displayed at the bottom of the display screen.) To switch back to the ordinary annuity mode, enter → [8] (The word BEGIN will disappear from the display screen.) 2 HOW TO USE YOUR HP 12 C...
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...DIRECT INVESTMENT IN PAKISTAN: A NEO-CLASSICAL APPROACH1 By ZAHIR SHAH• Abstract This paper analyses the attractiveness of Foreign Direct Investment (FDI) in Pakistan with special emphasis on the cost of capital element in effecting the rate of return and the internal cash flow for investment of the investing firms. Using the Jorgenson’s Neo-classical Investment Model the cost of capital is computed after considering the taxation policy and the treatment of invested capital. The paper elaborated fiscal provisions and their implications on the investment environment specifically available to foreign investors in Pakistan. The computed results show consistent and influencing impact of the cost of capital on FDI inflows. The objective of the study is to explore the a realistic and in depth investigation of the tax concessions and the response of investors. The paper argues that fiscal incentives are more appropriate in attracting FDI as these have no direct drain over public resources and are increase the after tax return by availing the tax holidays and depreciation allowances. 1. Introduction Capital can move inside and outside the boundaries of a country and the worldwide competition for it provides numerous special inducements by the capital importing countries. This movement of capital around the world gets significant attention of the policy makers and researchers in both developing and developed countries. Cross-boarder capital flows are mainly concentrated in Foreign...
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...REPORT ON INVESTMENT DECISION FOR GREINAM INTERNATIONAL Table of Contents Executive Summary 1 1. Introduction 1 2. Basis of Investment Decision 1 3. Figures produced by financial accountants 2 4. Rate of Return on investment 5 5. Net Present Value of the project 6 6. Conclusion and Recommendation 8 References 9 Executive Summary The purpose of this report is to discuss the investment decision regarding the project for the manufacture of new product. I will start by critically analyzing the basis on which current investment decisions are made by the company followed by a review on the figures produced by the financial accountants. I will then present my views on the minimum return that is required on this project and then explain the computation that I have made using the Discounted Cash Flow (DCF) techniques. Finally, I will recommend to you whether to go ahead with the project or not. 1. Introduction Our company, Greinam International is considering investing ₤ 840,000 in new machinery to be used in the manufacturing of one of the company’s products. The information available for this project is not to the satisfaction of our management group and therefore needs a review from the management accountant. The Payback method may not be the correct way of valuing such major investment project and therefore we will use DCF method which is commonly used to appraise investment project. There are a number of elements which have cropped up during my meetings with my colleague...
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...APPENDIX Checklists A Checklist A-1 Reviewing a Budget 1. Is this budget static (not adjusted for volume) or flexible (adjusted for volume during the year)? 2. Are the figures designated as fixed or variable? 3. Is the budget for a defined unit of authority? 4. Are the line items within the budget all expenses (and revenues, if applicable) that are controllable by the manager? 5. Is the format of the budget comparable with that of previous periods so that several reports over time can be compared if so desired? 6. Are actual and budget for the same period? 7. Are the figures annualized? 8. Test one line-item calculation. Is the math for the dollar difference computed correctly? Is the percentage properly computed based on a percentage of the budget figure? 333 334 APPENDIX A Checklists Checklist A-2 Building a Budget 1. What is the proposed volume for the new budget period? 2. What is the appropriate inflow (revenues) and outflow (cost of services delivered) relationship? 3. What will the appropriate dollar cost be? (Note: this question requires a series of assumptions about the nature of the operation for the new budget period.) 3a. Forecast service-related workload. 3b. Forecast non–service-related workload. 3c. Forecast special project workload if applicable. 3d. Coordinate assumptions for proportionate share of interdepartmental projects. 4. Will additional resources be available? 5. Will this budget accomplish the appropriate managerial objectives for...
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...Research Based Case Study and Report (ACCG224) Cervantes Corporation Ltd. South Perth, WA Clean Seas Tuna Limited South Australia BY: Jiamei Gu Student ID: 42184169 October 2, 2012 Table of Contents EXECUTIVE SUMMARY 3 INTRODUCTION 4 EVALUATION OF THE DISCLOSURES OF SELECTED COMPANIES 5 Disclosures on Intangible Assets 5 Compliance with AASB 138, Paragraphs 118 to 123 and 126 to 128 6 Differences in Disclosures Between the Two Companies 7 RECOMMENDATIONS 9 LIST OF REFERENCES 10 APPENDICES 11 Appendix A – Cervantes Corporation Ltd. – Consolidated Statement of Financial Position 11 Appendix B – Cervantes Corporation Ltd. – Note 1 (i) 11 Appendix C – Cervantes Corporation Ltd. – Note 13 12 Appendix D – Clean Seas Tuna Limited – Consolidated Statement of Financial Position 12 Appendix E – Clean Seas Tuna Limited – Note 1 (e) 13 Appendix F – Clean Seas Tuna Limited – Note 18, part 1 13 Appendix G – Clean Seas Tuna Limited – Note 18, part 2 14 Appendix H – Clean Seas Tuna Limited – Note 18, part 3 15 Appendix I – Clean Seas Tuna Limited – Note 18, part 4 15 EXECUTIVE SUMMARY This research-based case study and report aims to review the disclosure requirements for intangible assets in an attempt to improve the quality of financial reporting. The study was based on the comparison of the disclosures for the intangible assets of two Australian Securities Exchange listed companies from the same industry, using their latest annual reports. The selected companies...
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...activities. Because of this broad scope, the field has taken a new name, production and operations management or simply operations management. Operations management is the process by which goods and services are created. We find productive process in all kinds of organized activities. Operations management deals with decision making related to production processes to ensure that the resulting goods or services comply with the specifications, in the amounts and by the schedule required, and at the minimum cost PURPOSE OF THIS PAPER The purpose of this paper is to understand the operations management for the company I work for and to ensure that I can apply the tools that I have learned to the real situation. Issues for the further study are identified. I find the following subjects interest me as part of the company’s operations management and I concentrate on these subjects for this paper. * Locational planning * Quality * Forecasting * Investment * 2 THE SCOPE OF OPERATIONS MANAGMETNT Operations management is the process by which goods and services are created. MAJOR DECISION AREA OF OPERATION MANAGEMENT Operations Management is divided into the following five broad sections. * Decision Making Tools and Methods * Demand Forecasting * Planning Systems Capacity Planning...
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...Comparing Net Present Value and Internal Rate of Return by Harold Bierman, Jr Executive Summary • • • Net present value (NPV) and internal rate of return (IRR) are two very practical discounted cash flow (DCF) calculations used for making capital budgeting decisions. NPV and IRR lead to the same decisions with investments that are independent. With mutually exclusive investments, the NPV method is easier to use and more reliable. Introduction To this point neither of the two discounted cash flow procedures for evaluating an investment is obviously incorrect. In many situations, the internal rate of return (IRR) procedure will lead to the same decision as the net present value (NPV) procedure, but there are also times when the IRR may lead to different decisions from those obtained by using the net present value procedure. When the two methods lead to different decisions, the net present value method tends to give better decisions. It is sometimes possible to use the IRR method in such a way that it gives the same results as the NPV method. For this to occur, it is necessary that the rate of discount at which it is appropriate to discount future cash proceeds be the same for all future years. If the appropriate rate of interest varies from year to year, then the two procedures may not give identical answers. It is easy to use the NPV method correctly. It is much more difficult to use the IRR method correctly. Accept or Reject Decisions Frequently, the investment decision...
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...Copyright 074%5751/92$5.00+.0 0 1992 Pergamon Press Ltd. Case INTRODUCING ACCOUNTING - A COMPREHENSIVE CASE APPROACH SOUTHERN Marvin L. Carbon METHODIST UNIVERSITY 3. Warren Higgins UNIVERSITY OF CONNECTICUT SOUTHERN Virginia L. Lewis METHODIST UNIVERSITY Abstract: The paper presents a 4-part case study designed to be used in introducing the subject matter of financial accounting to undergraduate students, to MBAs, or to executives in a participative and intuitive fashion. Part 1 introduces the theoretical constructs of accounting (e.g., the entity, revenue recognition, valuation) and the fundamen~Is of balance sheet prepamtion, part 2 the topic of income measurement, part 3 the subject of cash flows, and part 4 the recording of tmnsactions in worksheet format. As the setting for the case is a mythical barter economy in the high mountains of ChateIe, the student is forced to put aside preconceptions of accounting as a mere set of procedural rules and to think (and rethink} choices and issues in the manner of an intellectual puzzle. The parts are solved sequentially, with common solutions agreed upon before the undertaking of the next piece. The final section of the paper presents plausible solutions. For years, accounting educators have sought a genuinely new and more effective way of introducing the subject matter of accounting. This was a significant concern of the Study Group on Introductory Accounting (1971) sponsored by the Price...
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...CHAPTER I INTRODUCTION This chapter discussed an overview of the study. It explained the background of A. Briones Trading that included its history, the mission and vision initiated by the founder and its members. It emphasized the role of the system and its design suited for the company. It discussed the general idea of the proposed system on how it aided the company’s problems and switched it to a more productive solution. Employees of the company were listed together with their corresponding duties and responsibilities. It will also showed an illustration of the organizational chart and the map presenting the exact location of the company. 1.1 Introduction and its Background Technology had affected society and its surroundings in a number of ways. It had already offered a great contribution for the betterment of every human and its society. It had made difficult jobs into an easier and much productive one. Nowadays, computerized systems were mostly needed for an establishment to be able to advance its production and developed an agile organization. Rather than manually storing data or files on papers, this was a best way of storing and retrieving important documents. It gave much security and lessened the risk of losing or innocently misplacing files. 1.1.1 Background of the Study A. Briones Trading is a company that buys raw materials like paints, metals, volts, road railings, asphalts, gravel and sand...
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...CASE STUDY: ECONOMY SHIPPING COMPANY (ABRIDGED) Submitted to: Prof. Roy C. Ybanez MSFIN 222 Submitted by: BASCON, Roland Billy CAJEGAS, Lester ORTIZ, Karmi Ann SALVADORA, Jerick Cezar 02 October 2014 Problem Statement Steamboats are essential parts of Economy Shipping Company (ESC)’s business for it is the main mode of transporting coals from nearby mines to various delivery points. And with the ageing group of steamboats that the company owns, the company is concerned about the status of one of its steamboat – Conway, which is 23 years old and requiring immediate rehabilitation or replacement. Analysis of Alternatives ESC is in consideration of two alternatives as follows: Alternative 1: Replace Conway with a new diesel-powered boat today; sell the Conway and its parts; overhaul the diesel engines in year 10; sell the diesel engine and its parts inventory in year 20 Alternative 2: Rehabilitate the Conway today; operate the Conway for another 30 years; scrap the Conway at the end of year 20. Presented below are the relevant cash flows associated with both alternatives. Since ESC was considering other projects with the rate of 10%, each of the above-mentioned options was considered using the same rate of return. (See attached annex for detailed computation) Alternative 1 Year | Specific Item | After-Tax Cash Flows (48%) | Present Value (10%) | 0 | Selling price of Conway (net of tax) | 31,960 | 31,960 | 0 | Selling price of Conway’s...
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...20 Accounting for Pensions and Postretirement Benefits ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. Questions Brief Exercises Exercises 16 Problems Concepts for Analysis 1, 2, 3, 4, 5, 7 1, 2, 7, 8, 9 1, 2, 3, 4, 5, 6, 9 4, 5 Basic definitions and 1, 2, 3, 4, 5, concepts related to pension 6, 7, 8, 9, 13, plans. 14, 24 Worksheet preparation. Income statement recognition, computation of pension expense. Balance sheet recognition, computation of pension expense. Minimum liability computation. Corridor calculation. Reconciliation schedule. Prior service cost. 10, 11, 12, 14, 17, 18 3 1, 4 2. 3. 3, 4, 7, 10, 15 1, 2, 3, 6, 12, 13, 14, 15, 16, 17, 20, 21 4. 16, 20, 21, 22, 23 20, 22 2 3, 9, 11, 13, 1, 2, 3, 4, 5, 2, 5, 7 14, 15, 17, 6, 7, 8, 9 18, 19 11, 12, 13, 14, 16, 17, 18, 19 8, 14, 20, 21 3, 4, 5, 6, 7, 8 2, 3, 5, 6, 7, 8, 9 2, 4, 5 5. 8, 9, 10 6. 7. 8. 19 25 13, 14, 21, 23 7 6 5, 8, 9, 10 3, 4, 5, 6 3, 9, 10, 14, 1, 2, 3, 15, 19 6, 8, 9 1, 2, 3, 5, 9, 11, 12, 13, 14, 15, 18, 19, 21 1, 2, 3, 4, 5, 6, 7, 8, 9 1, 4 9. 10. Unrecognized net gain or loss. Disclosure issues. 15 25 26 27, 28, 29, 30 7 8, 9, 14, 15, 1, 2, 3, 5, 19, 20, 21 6, 7, 8, 9 9, 12, 13 4, 5, 6 3, 4 *11. Special Issues. *12. Postretirement benefits. 11, 12 22, 23, 24, 25 10 *This material is dealt with in an Appendix to the chapter. 20-1 ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE) Learning Objectives 1. Distinguish...
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...July 2007 2 ROC, ROIC and ROE: Measurement and Implications If there has been a shift in corporate finance and valuation in recent years, it has been towards giving “excess returns” a more central role in determining the value of a business. While early valuation models emphasized the relationship between growth and value – higher growth firms were assigned higher values – more recent iterations of these models have noted that growth unaccompanied by excess returns creates no value. With this shift towards excess returns has come an increased focus on measuring and forecasting returns earned by businesses on both investments made in the past and expected future investments. In this paper, we examine accounting and cash flow measures of these returns and how best to forecast these numbers for any given business for the future. 3 The notion that the value of a business is a function of its expected cash flows is deeply engrained in finance. To generate these cashflows, though, firms have to raise and invest capital in assets and this capital is not costless. In fact, it is only to the extent that the cash flows exceed the costs of raising capital from both debt and equity that they create value for a business. In effect, the value of a business can be simply stated as a function of the “excess returns” that it generates from both existing and new investments. While this principle is intuitive and easily proved, measuring excess returns has proved to be...
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...Solutions to Problems and Exercises Table of Contents Chapter 1 5 CA 1-4 5 CA 1-6 5 CA 1-8 6 CA 1-10 7 CA 1-12 8 CA 1-17 9 Chapter 2 10 CE2-2 10 CE2-3 10 EXERCISE 2-2 11 EXERCISE 2-3 12 EXERCISE 2-4 13 CA 2-4 13 Chapter 3 15 EXERCISE 3-6 15 EXERCISE 3-10 16 EXERCISE 3-13 19 EXERCISE 3-15 19 EXERCISE 3-20 20 Chapter 4 22 PROBLEM 4-1 22 PROBLEM 4-3 25 PROBLEM 4-5 27 PROBLEM 4-7 29 Chapter 5 31 PROBLEM 5-2 31 PROBLEM 5-4 34 Chapter 6 37 EXERCISE 6-3 37 EXERCISE 6-6 38 Chapter 7 39 PROBLEM 7-2 39 PROBLEM 7-4 41 PROBLEM 7-9 43 PROBLEM 7-11 46 EXERCISE 7-25 48 EXERCISE 7-26 50 Chapter 8 52 EXERCISE 8-23 52 EXERCISE 8-25 53 PROBLEM 8-5 55 PROBLEM 8-11 59 Chapter 9 62 PROBLEM 9-1 62 EXERCISE 9-7 64 EXERCISE 9-9 66 PROBLEM 9-4 67 PROBLEM 9-6 68 Chapter 17 70 EXERCISE 17-6 70 Chapter 18 71 PROBLEM 18-1 71 PROBLEM 18-4 74 PROBLEM 18-6 76 PROBLEM 18-7 79 PROBLEM 18-8 81 EXERCISE 18-20 82 EXERCISE 18-21 82 Chapter 22 84 EXERCISE 22-2 84 EXERCISE 22-8 84 EXERCISE 22-11 84 Chapter 23 86 EXERCISE 23-11 86 EXERCISE 23-13 88 EXERCISE 23-15 90 Chapter 1 CA 1-4 It is not appropriate to abandon mandatory accounting rules and allow each company to voluntarily disclose the type of information it considered important. Without a coherent body of accounting theory and standards, each accountant or enterprise would have to develop its own theory structure and set of practices, and readers of financial...
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...Solutions to Problems and Exercises Table of Contents Chapter 1 5 CA 1-4 5 CA 1-6 5 CA 1-8 6 CA 1-10 7 CA 1-12 8 CA 1-17 9 Chapter 2 10 CE2-2 10 CE2-3 10 EXERCISE 2-2 11 EXERCISE 2-3 12 EXERCISE 2-4 13 CA 2-4 13 Chapter 3 15 EXERCISE 3-6 15 EXERCISE 3-10 16 EXERCISE 3-13 19 EXERCISE 3-15 19 EXERCISE 3-20 20 Chapter 4 22 PROBLEM 4-1 22 PROBLEM 4-3 25 PROBLEM 4-5 27 PROBLEM 4-7 29 Chapter 5 31 PROBLEM 5-2 31 PROBLEM 5-4 34 Chapter 6 37 EXERCISE 6-3 37 EXERCISE 6-6 38 Chapter 7 39 PROBLEM 7-2 39 PROBLEM 7-4 41 PROBLEM 7-9 43 PROBLEM 7-11 46 EXERCISE 7-25 48 EXERCISE 7-26 50 Chapter 8 52 EXERCISE 8-23 52 EXERCISE 8-25 53 PROBLEM 8-5 55 PROBLEM 8-11 59 Chapter 9 62 PROBLEM 9-1 62 EXERCISE 9-7 64 EXERCISE 9-9 66 PROBLEM 9-4 67 PROBLEM 9-6 68 Chapter 17 70 EXERCISE 17-6 70 Chapter 18 71 PROBLEM 18-1 71 PROBLEM 18-4 74 PROBLEM 18-6 76 PROBLEM 18-7 79 PROBLEM 18-8 81 EXERCISE 18-20 82 EXERCISE 18-21 82 Chapter 22 84 EXERCISE 22-2 84 EXERCISE 22-8 84 EXERCISE 22-11 84 Chapter 23 86 EXERCISE 23-11 86 EXERCISE 23-13 88 EXERCISE 23-15 90 Chapter 1 CA 1-4 It is not appropriate to abandon mandatory accounting rules and allow each company to voluntarily disclose the type of information it considered important. Without a coherent body of accounting theory and standards, each accountant or enterprise would have to develop its own theory structure and set of practices, and readers of financial...
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