Based on the analysis in question 1, I estimate the cost of equity as following: 9.81% =5.74% + 0.69 * (5.9%) Question 3: How, if at all, would you change Cohen’s debt cost of capital calculation? Why? Cohen used the company’s average debt balance of 2000 and 2001 in estimating the cost of debt. However, as historical data, debt balances may not reflect the current or future cost of debt of Nike appropriately. Apparently, her calculation is wrong.
Inversely, when a share repurchase is seen as treasury stock, the cost of the treasury stock is naturally disclosed as a decrease in total shareholders’ equity. Alcoa would report the purchase of the treasury stock by debiting treasury stock and crediting cash for the charge of the purchase. The treasury stock ought to be disclosed independently in the shareholders' equity area of Alcoa’s balance sheet as an unallocated cut of shareholders' equity. These shares are treated as issued although not part of common stock outstanding. If subsequently resold for a sum larger than the cost, Alcoa should report for the sale of the treasury stock by debiting cash for the sale cost, crediting treasury stock for cost, and crediting additional paid-in capital from repurchased stock for the excess of the selling price over the cost.
Pro forma Cash Receipt You are to prepare pro forma cash receipt for use in the company’s shops. Pick a sample transaction and show the VAT element separately. Placebo LtdFountain HouseLondonN1 | Cash Receipt #: 123456790 | Date: / / . | Cash received from ______________________________________________________Of £ ______________________________________________________________________For _______________________________________________________________________ | Payment Received in: Cash | | Cheque | | Other | | | | Net | VAT | Total | Amount Due | ........ | | | Amount Received | | | | Balance Paid | | | | _______________________Signed By | Image Source: (Free Receipt Template , 2013) What is a Cash Receipt? A pro forma cash receipt is a document narrating incoming payments from debtors or receivables and is issued by the business or creditor (Cash Receipts Function, 2011).
D) accounts denominated in foreign currency in foreign banks owned by domestic depositors. 5. Which of the following is not considered to be a factor of production? A) labor B) capital C) natural resources D) government Page 1 6. The focus of the Ricardian model is on: A) how countries' resource bases explain international trade.
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.
6. In addition to the three basic financial statements, which of the following is also a required financial statement? a. the "Cash Budget" b. the Statement of Cash Flows c. the Statement of Cash Inflows and Outflows d. the "Cash Reconciliation" 7. The statement of cash flows will not report the
Installment loan. Feedback That’s incorrect. A manufacturer with seasonal sales would be most likely to obtain an unsecured short-term term loan from a commercial bank to finance the need for a fixed amount of additional capital during the busy season. Question 3 of 100 (2A2-CQ09) Maydale Inc.’s financial statements show the following information. Flag for Review http://imalc.mycrowdwisdom.com/diweb/?wicket:bookmarkablePage=:com.digitalignite.mo... 4/9/2013 Digital Ignite :: Test Engine Page 2 of 54 Maydale’s accounts receivable turnover ratio is
* Question 1 0 out of 10 points | | | What are three categories of prioritization that help us to manage our time? | | | | | Selected Answer: | Urgent, Important, Essential | Correct Answer: | Immediate, Essential, Optional | | | | | * Question 2 0 out of 10 points | | | Which of the following is not an important question to ask before applying for a credit card? | | | | | Selected Answer: | What is my credit limit? | Correct Answer: | How fast can I get a credit limit increase? | | | | | * Question 3 10 out of 10 points | | | The following are potential consequences if you default on your loan: | | | | | Selected Answer: | All of the above | Correct Answer: | All of the above | | | | | * Question 4 10 out of 10 points | | | When planning your week, the first thing to consider about each activity that you're scheduling is its ?priority?
In my opinion, I would focus on the current assets section of the statement of financial position since it provides the fundamentals of the company’s need for the loan. The need for cash or working capital has to come from the company’s current position. Has the inventory or receivables reached a point where they are not turning fast enough to support the cash outlay. In other words, determine whether the relationship between receivables, inventory and cash are out of sync. Is it the case with Dawson Stores Inc.?
("The Principles of Commercial Accounting and Fund Accounting", 2011). Accrual vs. Cash Basis Accounting According to the readings, accrual base accounting is defined as in which businesses record, in the periods in which the actions occur, transactions that alter a company's financial statements, even if cash was not traded. In other words, it means that recorded or un-recorded, all dealings are taken and estimated into the overall balance. Cash Basis Accounting, in which an establishment accounts revenue only when it collects cash and an expense only when it pays out cash. This method means that accountants, only takes accountability of the physical cash that is exchanged.