The second component is the cost of sales which includes the costs directly linked to providing the trade. For example this is the cost of buying the products. The formula for cost of sales is opening stock + purchases – closing stock. According to business alpha the cost of sales is 2,647,000. The final component of trading accounts is gross profit; gross profit is the amount of money that is left after the cost of goods sold has been taken away from the stock turnover.
2a. What is the shortest loan (36 months, 48 months, 60 months or 72 months) that has a monthly payment within your $500 budget that will allow you to buy the $30,000 car? Answer: Through Bank of America, I found a rate of 2.99% for the 36, 48 and 60 month loans. We are able to put down 20% and will need to finance $24,000. The shortest loan period for the $30,000 car that would be under our $500 limit is the 60 month loan at a rate of $431.13 per month.
INTERMEDIATE ACCOUNTING II/ Intermediate Accounting, Spiceland/Sepe/Nelson Re: Judgment Case 18-5 Requirement 1. The two alternatives Alcoa has for accounting for the repurchase of it’s shares are: 1) The shares can be formally retired. 2) The shares can be named treasury stock Either way, total shareholders’ equity remains the same. Cash is used to repurchase common stock so the effect is to reduce both cash and shareholders’ equity. This choice does, however, affect how individual shareholders’ accounts are reported in the balance sheet.
Jones should use Johnson's stock to acquire Smithon. This would be a stock for stock transaction. In the context of mergers and acquisitions, the exchange of an acquiring company's stock for the stock of the acquired company at a predetermined rate. Here, in this acquisition Shareholder's of corporation give up their stock solely in exchange for the voting stock acquiring corporation or its parent. The acquiring company's basis in the stock of the acquired company is equal to the basis that the shareholder's had in their stock.
The assets listed on a typical balance sheet show all of a company’s revenue; such as Cash, accounts receivable, supplies, and equipment. Also a balance sheet will contain this information at a period in time (October 31, 2012). The Liabilities that are on the balance sheet would be for the same ending date and include notes payable, accounts payable, interest payable, unearned revenue and salaries payable which is equal to your total liabilities. Your stockholders’ equity, common stock and retained earnings equals your stockholder’s equity. In Sum, total liabilities plus the stockholder’s equity is equal to the total assets.
Income statement, or profit-and-loss statement, measures flows of costs, revenue, and profits over a defined period of time. It allows you to judge whether the company is spending too much on particular expenses, and to see whether they are turning a profit for a specific time of period. To complete the general view of financial state of the company, it is better to accompany the study of income statement with balance sheet. The balance sheet provides a snapshot of business investment and financing at a particular point of time. Both statements combine to provide a rich picture of a business’ financial performance.
Interpretation: The Quick ratio is computed by dividing cash plus accounts receivable by total current liabilities. Current liabilities are all the liabilities that fall due within one year. This ratio reveals the protection afforded short-term creditors in cash near-cash assets. It shows the number of liquid assets available to cover each dollar of current debt. Any time this ratio is as much as 1 to 1 (1.0) the business is said to be in a liquid condition.
Since debt and equity levels are closely related there is an analysis called the “DuPont model” that systematically breaks ROE into components so that each can be evaluated. ROE = NI x EBT x EBIT x Sales x Total assets EBT EBIT Sales Total assets Common equity EBT = earnings before taxes. The first ratio measures the proportion of earnings before tax that is kept by the company. EBIT = earnings before interest and taxes. The second ratio measures the effect of interest; it indicates the proportion of earnings before interest and tax that is retained after paying interest.
In addition, we can estimated that a customer with a $4000 credit balance to have an income in between (41.7665, 46.6130) in $1000 using the 95% CI confidence levels to calculate the income level. At the same time, the average mean income is (41.7665+46.6130)/2= 44.19 or $44,190 rounded up to nearest dollar. We cannot really predict the credit balance of $10,000 as it is out of
The components of the statement of cash flow shows how changes in balance sheet and income accounts affect cash and cash equivalents, and breaks the analysis down into operating, investing, and financing activities. The statement shows the current operating results for a period of time. These details are reflected in the balance sheet. As an analytical tool, the statement of cash flows is useful in determining the short-term viability of a company, particularly its ability to pay bills. o Which financial statement is the most important?