Memorandum To: CEO of Company G From: Mila Meyer Date: 8/2/2014 Re: Company G Ratio & Trend Analysis I’ve completed a horizontal analysis Income Statement for Company G utilizing financial data from income statements in 2011 and 2012. I’ve included my analysis of each ratio and trend below. 1. I utilized a “Current Ratio” which measures the ability to pay current liabilities with current assets. In 2011 the current ratio was 1.86.
__________ d. What is the amount of gross profit recognized in 2012? __________ e. As a result of this project, what is reported on the December 31, 2010, balance sheet? 9 6. (10 points) Assume Z-Mart appropriately uses the installment sales method of accounting for its installment sales. During 2011, Z-Mart made installments sales of $300,000 and received payments of $135,000 on those sales.
How does Net Sales change during these three years? What could be the reason for the change in Net Sales in 2011? According to the Risk factors mentioned in the Financial Statements, factors such as current economic conditions, timing of new merchandise releases and promotional events, changes in merchandise mix, success of marketing programs, and weather conditions are the main factors that affect sales in a company such as The Gap Inc. 4. What was the change of Retained Earnings from the year 2010 to 2011? Retained earnings increase by $597.00 they raised from $11,767.00 to $12,364.00, an increase approximately of 5.07% And what was the Net Income for the year 2011?
ACCOUNTING CASES, RESEARCH, AND ANALYSIS GROUP ASSIGNEMNT #1 MEMORANDUM TO: Professor Siyi Li FROM: Group 5 DATE: October 3, 2013 SUBJECT: Performance Based Stock Compensation This memo is an analysis of the case in which the Company Sooner or Later Inc granted “at the money” performance based stock options and the fair value is not easily determinable. The grant-date fair value of each award is $9. With the revenue target factored into the fair value assessment the grant-date fair value is $6. Management believes it is probable the company will achieve cumulative revenue in excess of $10 million. General Priciple – Performance are only recorded when the target is proable to be acheived Sooner and Later Inc On January 1, 2006, Sooner or Later Inc. granted 1,000 “at-the-money” employee stock options (i.e., the exercise price was equal to the stock price on the grant date).
Depreciation affects cash flow by reducing the amount of cash a business must pay in income taxes. 3. Calculate the current and quick ratios based on the projected balance sheet and income statement data. What can you say about the company’s liquidity position in 2013? AS the current and quick ratios both went down over the past year, I am concerned that the company liabilities may be rising faster than assets and we may not be able to liquidate assets quickly enough to cover debt, if necessary.
* Question 1 Your answer is correct. The following defined pension data of Rydell Corp. apply to the year 2012. Projected benefit obligation, 1/1/12 (before amendment) $566,400 Plan assets, 1/1/12 545,900 Pension liability 20,500 On January 1, 2012, Rydell Corp., through plan amendment, grants prior service benefits having a present value of 121,900 Settlement rate 9 % Service cost 58,500 Contributions (funding) 66,900 Actual (expected) return on plan assets 60,300 Benefits paid to retirees 40,200 Prior service cost amortization for 2012 20,800 For 2012, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts.
Revenue recognition 2. In its initial S-1 filed on June 2, 2011, Groupon prepared its financial statements recognizing revenue from coupon sales using the “gross method” (Exhibit 3). However, Groupon subsequently restated to the “net method,” which showed only Groupon’s share of coupon sales revenue. Exhibit 6 reconciles the gross method as originally reported with the net method as restated in the third amendment to the S-1 dated September 23, 2011. a. Estimate the relative percentage of total revenue in 2010 that Groupon and merchants each earn from online coupon sales.
Dividends, Financial Reporting and Auditors - Rules about payment of Dividends, financial reporting obligations of Companies, Duties of Auditors to the Company and Third Parties. 10. External Administration - The process of external administration via receivers, voluntary administrators, liquidations and voluntary winding up. 11. Revision Class Program Week/Session Dates Description 1 30 Jul Seminar Topic Company Law in Context Prescribed Reading Lipton & Herzberg Ch 1, pages 1-23; Ch 21, pages 735-745 Recommended Reading Harris, Hargovan and Adams 3rd Edn.
The legislation establishing the payroll tax reduction also provided for transfers of revenues from the general fund to the trust funds in order to "replicate to the extent possible" payments that would have occurred if the payroll tax reduction had not been enacted. Those general fund reimbursements comprise about 15 percent of the program's non-interest income in 2011 and 2012. Under current projections, the annual cost of Social Security benefits expressed as a share of workers’ taxable earnings will grow rapidly from 11.3 percent in 2007, the last pre-recession year, to roughly 17.4 percent in 2035, and will then decline slightly before slowly increasing after 2050. Costs display a slightly different pattern when expressed as a share of GDP. Program costs equaled 4.2 percent of GDP in 2007, and the Trustees project these costs will increase gradually to 6.4 percent of GDP in 2035 before declining to about 6.1 percent of GDP by 2050 and then remaining at about that
| 12 | Law of supply | When price of a commodity increases, oits supply also increases, and vice versa. | 13 | Market equilibrium/ demand and supply together | A situation when the quantity demanded and supplied become equal. | 14 | Equilibrium price | Price at equilibrium point. | 15 | Equilibrium quantity | Quantity demanded and supplied at equilibrium point. | 16 | Inferior goods | Goods whose demand decreases with the increase in incomes of people and vice versa.