There are two approaches for presenting the operating activities direst method and indirect method. Direct method reports the components of cash flow from operating activities as gross receipts and gross payments. The indirect method starts with the net income from the income statement and then eliminates noncash items to arrive at net cash inflow and outflow from operating activities. Investing activities include (a) purchasing and disposing of investments and productive long-lived assets using cash, (b) lending money, and collecting the loans. Cash flow from investing activities is cash inflows and outflows related to the purchase and disposal of long-lived productive assets and investments in the securities of other companies.
Once the predicted demand is frozen, L.L. Bean uses its historical demand and forecast data to analyze the forecasting errors. The forecast errors are calculated for each individual item and a frequency distribution of these is made, which is further used as a probability distribution for future errors. Thus, if 50% of the errors were within 0.7 and 1.6, the forecast for this year would be adjusted accordingly. Next, each item commitment quantity was calculated using its contribution margin and its total contribution in dollar to the revenue of the company.
Torie Freeman XACC 280 Randi Watts Ratio, Vertical, and Horizontal Analyses The Financial statement tools used are Horizontal, Vertical, and Ratio analysis. There functions are to evaluate the significance of financial statement data. Horizontal analysis function is to evaluate and compare data that is provided by the financial statement and is mainly used by stockholders and company management. Vertical analysis expresses the amount of the financial statement as a percentage and also makes it so that companies can compare how their doing compared to others. Ratio analysis is used to evaluate the liquidity, profitability, and solvency ratio.
Give three rules/tests for recognising revenue. Item 4. Identify what category each of the following items would most usually fall in by indicating the correct category with an ‘X’: Current asset NonCurrent liability Long-term liability Equity current asset Accrual Asset revaluation reserve Accumulated deprecation Prepaid rent 5. An EU company listed on the London Stock Exchange should recognise its Brand name as intangible assets on its statement of financial position if …………………………….. 6. Set out the following balances in a published balance sheet, including all the titles and headings required.
MULTIPLE CHOICE QUESTIONS 1. The statement of cash flows should help investors and creditors assess each of the following except the a. entity's ability to generate future income. b. entity's ability to pay dividends. c. reasons for the difference between net income and net cash provided by operating activities. d. cash investing and financing transactions during the period.
Using accounting records prepare a balance sheet for a business and determine the balance of the cash and owner’s equity account. 4.29 Dual Effect of Transactions. For six cases, describe transactions that will cause the changes in different elements of the accounting equation. 4.30
List several business situations where evaluation is required Book value 5. Define the concepts of “depreciation” and “book value” 6. Calculate depreciation using the following methods: Straight line Declining balance Units of production 7. List applications of the book value method 8. Explain the impact of inflation on the book value method 9.
AO1 – Explain and interpret features of a business organisations profit and loss statement In this report I will be analysing and writing about Whitbread PLC’s 2001 to 2002 and 2002 to 2003 profit and loss statements. In this report I will also be explaining and analysing the features of a profit and loss statement such as: * Turnover * Expenditures * Cost of sales * Gross profit * Opening and closing stock * Materials * Depreciation * Group operating profit * Net/Profit loss on disposal of fixed assets * Profit and loss before interest * Profit and loss before tax * Profit and loss after tax * Profit and loss for ordinary shareholders * Retained profit What is a profit and loss statement? A profit and loss statement is a financial statement which summarises what comes and goes in and out of the business account over a specific period. Monthly or annually is the most common period of time in which a profit and loss statement can be done. What’s the purpose of a profit and loss statement?
Memorandum TO: ---------------- FROM: Gary Lung DATE: October 31, 2012 SUBJECT: MEMO of TRANSMITTAL As requested, please find the report on trends in the financial planning industry. I compiled this report using information provided by Rocky Law, a primary source, and several secondary sources. UWP 104A Industry Trend Report – Financial Planning By Gary Lung Contents Executive Summary ……………………………………………………………………………………….….…………….. 3 Introduction ……………………………………………….………………….………………………………………………… 4 What is Financial Planning? …………………………………………………………………….………………….. 5-14 1.1 Emergence of financial planners ……..……..……..……..……..……..……..……..……..……………...……..….… 5 1.2 Targets of contemporary financial planning …..……..……..……...…….……..……..……..………..……..… 6-7 1.3 Needs of financial planning at different stages of life ..……..…….. .…………..……..…….…..……....… 8-9 1.4 Financial planning pyramid ……..……..……..……..……..……...……...…….…………….……………....……..….. 10 1.5 Scope of financial planning ……..……..……..……..……..……..……..….…………….…...……..…..….…….. 10-12 1.6 Steps in financial planning ……..……..……..……..……..……..……..……...……..……..….…..…….……….. 12-13 1.7 Income sources of a financial planner ……..……..……..……..……..……..……..……...……………………….. 14 1.8 Affiliation of financial planners with banks and insurance companies ……………………..…………… 14 Current Trends …………………………………………………………………………………………..……………… 15-25 2.1 Current driving factors …………………………………………………………………………………………………… 15-23 2.1.1 Growth of global population with aging ……………………………………………………………..…………… 15-20 2.1.1.1 Rapid growth of global population ……………………………………………………………..……… 15-16 2.1.1.2 Aging population ………………………………………………………………………………………..……… 17-20 2.1.2 Positive wealth effect from Quantitative Easing ………………………………………………...…………… 21-23 2.2 Prevailing observable trends
The cash flow statement summarizes actual inflows and outflows of cash during a given time period. The cash flow statement is a report of your spending patterns and can be used to create budget amounts for various expense categories. (pp. 83-86) Exercise (20 points) Based on the following data, would Ann and Carl Wilton receive a refund or owe additional taxes? Adjusted gross income, $46,186 Itemized deductions, $11,420 Child care tax credit, $80 Federal income tax withheld, $4,784 Amount for personal exemptions, $6,800 Average tax rate on taxable income, 15% Taxable income would be $27,966 ($46,186 - $11,420 - $6,800) times the average tax rate of 15 percent equals $4,195 less a tax credit of $80 gives a tax liability of $4,115.