A US multinational company is required to report its financial results in US dollars. How does this create currency exchange risk for the company? What is the term which most accurately describes this particular risk? a. Currency risk- if unexpected changes in currency values affect the value of the firm 4.
Liquidity Ratio Calculations: Current Ratio = Current Assets / Current Liabilities $147,800 / $90,283 = $1.637:1 Acid-Test Ratio = (Cash + Short-Term Investments + Net Receivables) / Current Liabilities $89,664 + $0 + $51,869 / $90,283 = $1.567:1 Receivables Turnover = Net Credit Sales / Average Receivables ($1,109,295 - $89,664) / [($51,869 + $81,557) / 2] = 15.283 *Average Collection Period = 365 / 15.283 = 23.883 Days When evaluating Huffman Trucking’s ability to pay off short-term debt and maturing obligations, it’s imperative to analyze the company’s liquidity. Utilizing the current ratio to analyze liquidity, which compares all current assets to current liabilities,
Preliminary Expenses Copy rights Investments Discounts on issue of shares 38 # Which of the following statement is true under the Cost method for recognition of investments in associated companies? Any distribution of profits by the investee company is recorded as an income Any distribution of profits by the investee company is recorded as an expense Any distribution of profits by the investor company is recorded as an income Any distribution of profits by the investor company is recorded as an expense Please get ans http://studentoffortune.com/question/1595686/Fin-370-important-tutorial 39 # Which of the following is true with respect to the disclosure requirement of Investment in Associate? Explanations when investments are less than 20% are accounted for by the equity method or when investments of more than 20% are not accounted for by the equity method. Explanations when investments are less than 10% are accounted for by the equity method or when investments of more than 10% are not accounted for by the equity method. Explanations when investments are less than 10% are accounted for by the equity
Annotated Bibliography Gerald Washington Donna Papania Thomas Guerin ENG/215 4/2/2012 Gayle Thomas Annotated Bibliography Carey, J., Holden, D., & Gershkovich, T. (2008, August 4). THE REAL QUESTION: SHOULD OIL BE CHEAP? (Cover story). Business Week, Retrieved February 17, 2009, from Academic Search Premier database. Holden and Gershkovich make a case for a tax policy that initiates a tax on oil anytime the market price falls below a predetermined threshold.
Carla Blackwell Econ 210- Macroeconomics 4/20/15 Phase 2 IP Alan Witty Part 1 The basic formula for calculating the GDP is: Y = C + I + E + G. In this formula, the letter Y is your GDP. C indicates consumer spending. The letter I would symbolize the investment made by industry. The letter E is the excess of exports over imports, while the letter G indicates government spending. To calculate the GDP of a certain x then one would input numeric values in the place where the letters are in the formula.
Case Study 3-5 Discuss the qualitative concept of comparability. In your opinion, would the financial statements of companies operating in one of the foreign countries listed above be comparable to a U.S. company’s financial statements? Explain. The qualitative concept of comparability from our foreign countries to the United States is not comparable. At this time, our foreign countries cannot be compared to United States because of the size of the marketplace of the country (Schroeder, Clark, & Cathey, 2011).
Known in this case as Johnson Services which has accumulated significant losses. Issues: 1. Outstanding purchase of stock (a) Mr. Jones would like to know if he should purchase the stock of Smithton outright, leaving Smithton intact. He also wants to know if he issues debt in his Johnson Services to pay for the Smith Company would that raise debt to equity issues (b) Mr. Jones also wanted to know should he convert Smithton to an S Corporation and change the fiscal year to a calendar year. (c) Mr. Jones also asked what are the potential tax ramifications that exist for
What would you do and why? What are the advantages and disadvantages of such a strategy? Is this good for long-term growth? MKTG 420 Week 6 DQ 2 Ethical Dilemma 2 Read the Shield Financial: Overheard Trade Secrets on page 276 in the text. Discuss the questions at the end of the case: a) What are the ethical issues involved in this
Financial statements are an important product of the accounting process. Provide an example of an external user. How could he or she be harmed by fraudulent and unethical financial statements? ? Large-scale bankruptcies and corporate frauds resulted in the Sarbanes-Oxley (SOX) Act.
A. employees B. suppliers C. shareholders D. managers 8) Which of the following is NOT a principle of basic financial management? A. Risk/return tradeoff B. Incremental cash flow counts C. Efficient capital markets D. Profit is king 9) Difficulty in finding profitable projects is due to: A. social responsibility. B. competitive markets. C. ethical dilemmas.