lower cost of market inventory on valuation, Capitalizing interest on building construction, Recording gain or loss on asset disposal, and Adjusting goodwill for impairment. Inventory Valuation Methods are First-in-Last-out (FIFO), Last-in-First out (LIFO) and Average Cost Method. These method are designed to calculate the cost of goods sold and cost of ending inventory. An explanation of the inventories valuation method are as follow: FIFO is assumed that items from the inventory are sold in the order
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1. Exercise 1-14 Homework- exercise 1-14 | Opportunity cost - Parrish Plumbing | Incremental revenue (52 x $2,500) | | $ 130,000 | Less Incremental costs per year | | | labor | | | | $ 36,400 | | parts | | | | $ 26,000 | | transportation | | | | $ 5,200 | | office stuff | | | | $ 10,400 | | | | | | | $ 78,000 | Incremental profit/ opportunity cost | | | | | $ 52
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included in their assets list and Kellog’s don’t do that. It is occurred because of the net loss carry over from the previous year. Kellog’s have Account receivable as the largest asset in 2010 i.e. 1190 million dollars while GMI in the same year has Inventories as its largest asset as 1344 million dollars. ------------------------------------------------------------------------------------------------------------------------------------------ Question 4 For Kellogg: The Company has 2915 million USD
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LECTURE 3: PREPARATION OF FINANCIAL STATEMENTS 1. (a) MMM Ltd Income Statement for the Year Ended 30 September 2013 £ £ Sales revenue 330,000 Less: Cost of sales Opening inventories 50,000 Purchases 200,000 Closing inventories (80,000) (170,000) Gross profit 160,000 Add: Other income Gain on disposal of equipment 1,000 Less: Operating expenses Sales commission 3
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staff ($223,000) iv. Sales staff time in securing the contract ($40,000) v. Cost saving due to new line ($0.019 per unit plus $138,000 per year) vi. Operating margin of 15%. vii. Working Capital: Reduction in average inventory age (by two days) Hint: Find out the current working capital needs in terms of sales days. What will be the net working capital each year? viii. Cost of Capital: Beta = 0.85; the spread of 2%; difference in market return
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a. 1) Stanley is focusing on maximizing profit, as shown by the increase in net profits over the period 1997 to 2003. His dilemma about adding the software designer, which would depress earnings for the near term, also demonstrates his emphasis on this goal.Maximizing wealth should be the correct goal for a financial manager. Wealthmaximization takes a long-term perspective and also considers risk and cash flows. Profits maximization does not integrate these three factors (cash flow, timing, risk)
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[pic] Table of Contents 1.0 Executive Summary 2.0 Company Summary 1. 2.1 Start-up Summary a. Table: Start-up 3.0 Services 4.0 Market Analysis Summary a. Table: Market Analysis 5.0 Strategy and Implementation Summary 1. 5.1 Sales Forecast a. Table: Sales Forecast 2. 5.2 Milestones a. Table: Milestones 6.0 Management Summary 7.0 Financial Plan 1. 7.1 Start-up Funding a. Table: Start-up Funding 2. 7.2
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| Worldwide accounting diversity | | | ACIB 872 | Assignment 2 | | Submitted By: Samer Alroujayee | | | Worldwide accounting diversity Assignment 2 Q1) CALLAWAY GOLF SUDZUCKER AG CEMEX S.A.B SOL MELIA SA THAI AIRWAYS B) It is not valid to calculate the profit margin for all the companies above due to the differences in financial reporting systems. The format, level of detail and terminology used in the financial statements are different from one company to
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European Distribution Strategy Name: Shijing Zhao Date: February 23, 2013 Introduction and Problem Definition To best support its growth, Amazon Europe was considering building a European distribution network (EDN) where the location of inventory would be strategically determined. Among all issues to be considered, the most important one was to evaluate the three alternatives to design the EDN and choose one of them. External Analysis (See Appendix 1 for full listing) For opportunities
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Time | | Introduction: What are inventory systems and why area they used? THE BUSINESSES OF YOUR CHOICE: Describe the businesses that your team chose to investigate: (i) What kind of inventory systems do they use? (ii) what are the advantages of each inventory system? (iii) what are the challenges? (iv) are the businesses happy with the current inventory system? (v) are the businesses attempting to change the current inventory system? If yes, what do they see as alternative
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