| b. | Commercial paper issued to finance inventory. | c. | Current maturities of long term debt. | d. | Accounts receivable generated by sales on credit. | e. | Inventory purchased with cash.
I. Brief Exercise 10-1 Classification of Long-Term Liabilities Which of the following would be included in the Long-Term Liability category of the balance sheet? Accounts Payable Bonds Payable Accrues Expenses Current Maturities of Long-Term Debt Accrued Income Taxes Answer: Bonds Payable II. Brief Exercise 10-2 Bond Features Define the following terms relates to bonds payable. Debenture bonds Face Value of bond Secured bonds Face rate of Interest Convertible bond Issue price Callable bond 1.
The characteristics of the corporate form of business. 2. About the term "cash dividend". 3. Which accounts have debit or credit balances.
The practice of business valuation The first method of business valuation, discounted cash flow (the "DCF"), is based on the idea that the economic value of the asset is equal to the amount of future cash flow Company updated to reflect its risk. The discount rate used is the weighted average cost of capital. Is calculated as follows: • cash flows discounted at the explicit forecast horizon (visibility of the company); • the terminal value from estimating a growth rate to infinity; • the value of equity is the difference between the asset value and the resulting economic value of the bank debt and net financial and possibly other elements. The second evaluation method, the method of multiple analog approach is compared with other companies in the same sector. In this approach, the economic value of the assets of a company is the result of a multiple of its earnings: operating profit multiple or multiple of EBITDA.
Cash paid to suppliers of goods during the reporting period. Cost of Goods Sold 185 Increase in inventory 13 Cost of Goods Purchased $198 Cost of Goods Purchased 198 Decrease in Accounts Payable 8 Cash paid to suppliers $206 c. Cash paid to employees during the reporting period. Salary Expense 41 Increase in salaries payable 5 Cash paid to employees $36 d. Cash paid for insurance during the reporting period. Insurance Expense 19 Decrease in insurance expense
Inventory $2,573 $3,220 ($ 647) Accounts Payable $1,556 $1,702 $ 146 Accruals $ 268 $ 408 $ 140 $ 798 AXTEL COMPANY Statement of Cash Flows For the period ended 12/31/X1 ($000) OPERATING ACTIVITIES: Net Income $3,116 Depreciation $1,166 Change in WC $ 798 Cash from Operating Activities $5,080 INVESTING ACTIVITIES: Increase in Fixed Assets ($1,882) Cash from Investing Activities ($1,882) FINANCING ACTIVITIES: Decrease in Debt ($1,110) Dividends Paid ($1,727) Stock Retired ($1,000) Cash from Financing Activities ($3,837) NET CASH FLOW ($ 639) Reconciliation Beginning Cash $3,514 Net Cash Flow ($ 639) Ending Cash
a. cash b. cash and money market funds c. cash and cash equivalents d. cash and U.S. treasury bonds ANS: D 3. The statement of cash flows reports a. cash flows from operating activities b. total assets c. total changes in stockholders' equity d. changes in retained earnings ANS: A DIF: Easy 4. On the statement of cash flows, the cash flows from operating activities section would include? a. receipts from the issuance of capital stock b. receipts from the sale of investments c. payments for the acquisition of investments d. cash receipts from sales activities ANS: D DIF: Easy 5. Preferred stock issued in exchange for land would be reported in the statement of cash flows in a. the cash flows from financing activities section b. the cash flows from investing activities section c. a separate schedule d. the cash flows from operating activities section ANS: C DIF: Easy 6.
The dollar amount on an accounts receivable invoice. Quantitative- Has a numeric value that can be counted b. The net profit for a company in 2009. Quantitative Value, profits is a numeric value that can be ordered. c. The stock exchange on which a company’s stock is traded.
Find the real return on the following investments: Stock Nominal Return Inflation A 10% 3% B 15% 8% C -5% 2% ? Find the real return, nominal after-tax return, and real after-tax return on the following: Stock Nominal Return Inflation Tax Rate X 13.5% 5.0% 15% Y 8.7% 4.7% 25% Z 5.2% 2.5% 28% How are industry-operating differences reflected in a firm’s financial statements? week 6 Assignment
Prior period adjustments are added to (or deducted from) the beginning retained earnings balance. Which of the following would be reported as other comprehensive income? An unrealized holding gain on available-for-sale securities is reported as other comprehensive income. The correction of an error is reported, net of tax, as an adjustment to the opening balance of retained earnings. Losses on impairment and gains from sales are reported as part of net income.