If you are inclined to participate in the loan, identify any issues that will warrant careful continued monitoring. If you are not inclined to participate on the terms as outlined in the case, then prepare a counterproposal to NationsBank indicating terms on which you would be willing to participate. Clarification to students of two minor points: (1) At the moment of closing of the deal, Calaveras will have no receivables as Stout PLC will keep them. This reflected Dr. Lynna Martinez’s dissatisfaction with the former marketing company and her uncertainty about the actual value of those receivables. (2) Case Exhibit 6 presents the historical performance of Calaveras as if it were a “stand-alone” company, and excludes intercompany sales to Stout PLC of wine for
This stage is used to help realise if the current financial position is likely to lead to achieving the goals you set out – this can be done through research of seeking out professional advice. The next stage is Decide – this is where you decide on your action points to achieve your goals. This can be done through deciding to use financial products to achieve your goals, setting budget to decrease expenditures or exploring increasing income or holding back on planned expenditures. Stage 3, Act, is the implementation stage. This is putting your action points from the Decide stage into action to achieve the goals laid out in the assess stage – whether it is shopping around for the best value financial products, or looking for ways to increase your income.
Pat could argue that signing the Notice of Unsatisfactory Performance/Corrective Action Plan as an implied contract protecting his employment with NewCorp. Critical information in this case needs to be further reviewed to assess the risks and rights of both parties in this scenario. For instance, was there any form of documented performance discussion regarding Pat’s performance? If so, was Pat given the opportunity to correct his performance issue? Or, in the initial employment arrangement, was there promise of employment for any period of time?
Pros and cons should be carefully measured to minimize the impact he financial statements by the possibility of losing the lawsuit. References Financial Accounting Standards Board. (2013, April 17). Summary of FASAB Guidance Difference between FASAB Standards and Other Standards. Retrieved from http://www.fasb.org fasb.org.
CanGo is not considering the major benefit of an IPO, which is increased capital that comes from investors. If CanGo does not take this form of increased capital into account it will limit their growth. Recommendation 3 Offer an IPO CanGo should offer an IPO, allowing for increased capital. By offering an IPO CanGo will able to take a big step in the right direction of expanding their new ventures. Investors investing in an IPO are aware that it takes time to see a solid return/profit when a company is expanding into new ventures and that risks are involved.
I understand your concern for the financial statements. Thank you for the questions you asked concerning the effect on your financial statements if you lost the lawsuit. You have various questions regarding the mortgage, Chapter 11, patent impairment, and contingencies in the event Fabrikam lose the lawsuit. Filing Chapter 11 does not forgive debts. Rather, it only reorganizes debts and formats them for you to repay over time.
The final account that is on the balance sheet under the net assets and fund balances of the balance sheet would be the unrestricted net assets account. This account can be a target for the organization for an intentional misstatement because they could show that they have more assets that are unrestricted when realistically they could be restricted. Being able to show the difference would involve a detailed inspection. The auditor should do analytical procedures and substantive tests in order to detect these
Perhaps we will get more information, and then try to analyze Pat’s concerns or issues, if any. After that, we will persuade the counterparty by using our source of power. For the settlement, we consider a package/bundle negotiation for invoice price, credit term and loan on call. In addition, we will try to lower the monthly rental payment by comparing the market price in order to save
Why? I would rather have a savings account that offered compound interest. I would choose compound interest because it speeds up the process of building up interest. Simple interest slowly grows, while compound interest is fast 4. If you were opening a savings account with compound interest, would you prefer an account that offers annual compounding, quarterly compounding, or daily compounding?
In weighing each alternative, it is determined that the appropriate course is to begin implementation of the BSC immediately as the risks of waiting are too detrimental. The analysis recommends an infrastructure around which the BSC could be built and goes on to answer some of the questions posed by employees about the logistics of implementing BSC and how it may affect them individually. The recommendation includes the use of an EVA analysis to build the financial perspective along with targeted benchmarks for the other measurements (wherever possible). This analysis concludes by recommending that Ken not only utilize the input of