Reporting Intercorporate Interests (Equity vs Cost Method) 1. On January 1, 2007, Rotor Corporation acquired 30 percent of Stator Company’s Stock for $150,000. On the acquisition date, Stator reported Net assets of $450,000 valued at historical cost and %500,000 stated at fair Value. The difference was due to the increased value of buildings with a remaining life of 15 years. During 2007 and 2008 Stator reported Net Income of $25,000 and $15,000 and paid dividends $10,000 and $12,000, respectively.
$1,500,000/$12,000,000 = 0.125 or 12.5% Each dollar of revenue produces 12.5% of net income or profit. Cash flow= cash generated during the year The rough estimation of cash flow = net income + non -cash expenses, in this case, $1,500,000 + $1,500,000 = 3,000,000 C. Now, suppose the company changed its depreciation calculation procedures (still within GAAP) such that its depreciation expense doubled. How would this change affect Brandywine’s net income, total profit margin, and cash flow? Brandywine Homecare Income statement with double depreciation expense: Month ending December 31, 2007 Revenue $12,000,000 Total revenue $12,000,000 Expenses: Depreciation $ 1,500,000x2= 3,000,000 Other 12,000,000 x 75/100 = 9,000,000 Total expenses= Depreciation + Other expenses= 1,500,000x2+ 9,000,000= $12,000,000 Total revenue – total expenses = Net income or Profit - 12,000,000- 12,000,000= 0 What
Citigroup was ranked 20th by Fortune 500 ranking of America largest corporations. In 2012 the company has profits of over $11 billion, which was up from $10.6 billion in 2010 (Citigroup, n.d.). The company is traded on the NYSE (New York Stock Exchange) under the symbol C and in 2012 celebrated its 200th anniversary (Citigroup, n.d.). Citigroup is a the world leader when it comes to financial services and has over 260,000 employees, 16,000 offices worldwide and does business in over 140 countries (Citigroup, n.d.). The company is still recovering from the hit it took during the financial
Geographical Expansion 3.3. Strengthening the "global" association Conclusion Appendix A – Discounted Cash Flow Calculations Appendix B – Results of the Survey Bibliography p. 3 p. 4 p. 4 p. 5 p. 5 p. 6 p. 7 p. 7 p. 8 p. 10 p. 11 p. 11 p. 12 p. 12 p. 12 p. 13 p. 14 p. 18 2 Introduction The Financial Times (hereinafter referred to as FT) was established as a company and as a brand in London in 1888. Currently owned by Pearson Plc, the FT Group is one of the world-leading providers of business and financial information across several platforms and channels. With a daily circulation of 362,000 copies (Financial Times, 2011a), the FT print edition is the world second biggest financial newspaper after the Wall Street Journal. The FT is printed in 24 different locations around the world and has a total daily readership of 2.1 million people split between the print and the digital channels.
Coke Zero continued double-digit volume growth in North America for the 20th consecutive quarter. Sprite grew 3%, while Fanta was up 5% this past quarter. Reiterating that using the right strategies and course of actions to sustainably drive long-term growth across our entire North America was in effect and reflective in the portfolio. 3. Discuss the Earnings per Share results for the quarter in comparison to historic results and long-term growth targets.
Iryna Hrynyuk Short Case Fin 165 J. Crew and the Man who Dressed America Mickey Drexler took over as CEO of J. Crew in 2003, and ever since he took that position the company’s revenues have risen 170 percent to $1.9 billion in 2011. Each year around 40 million of the J. Crew catalog are printed and sold.
This leaves $165K available for other promotion. Let's call this "Plan B." Both plans are based on $79.5M in net sales in 2004, yielding a $300K increase in promotional dollars from the year prior. After thorough analysis, I recommend Plan B. The Analysis: Context/Climate – In 2003, total furniture industry sales were $23.9B.
Market size According to the exhibit provided by John Gamble, the sales of the global beverage industry in 2009 were $1,581.7 billion and projected to grow to nearly $1,775.3 billion in 2014. The volume of sales was 458.3 billions of liters in 2009 and projected to 542.5 billion liters in 2014. According to Exhibit 2, 48.2percent of the U.S. beverage industry volume sales by segment went to carbonated drinks, 1.2percent to energy drinks, 4percent to sports drinks and 1.6percent to flavored or enhanced water. The dollar value and volume sales of the global market for alternative beverages between 2005 to 2009 ranged from $27.7billion to $40.2 billion respectively. Likewise the volume of liters ranged from 9.4 billions of liters to 12.7 billions of liters respectively (Gamble, C-76-77).
Moreover, under strong cost control, its full-year 2010 net profit attributable to shareholders increased 24% y-o-y to RMB1.55bn, compared to Li Ning’s RMB1.11bn. Table. Comparison of Anta and Lining RMB in BN | Company | 2010 | 2011 | 2012 | 2013E | 2014E | 2015E | Revenue | Li Ning | 9.48 | 8.93 | 6.74 | 5.44 | 5.85 | 6.75 | | Anta | 7.41 | 8.91 | 7.62 | 6.66 | 7.33 | 8.06 | %Change Y/Y | Li Ning | 13% | (6%) | (25%) | (19%) | 7% | 15% | | Anta | 26% | 20% | (14%) | (13%) | 10% | 10% | Gross Margin | Li Ning | 47.3% | 46.1% | 37.8% | 44.1% | 44.5% | 44.5% | | Anta | 42.8% | 42.3% | 38% | 40.6% | 41.5% | 42% | Operating Margin | Li Ning | 15.3% | 7.1% | (24.6%) | (2.8%) | 3.6% | 10.8% | | Anta | (0.3%) | 22.6% | 20.5% | 22.1% | 22.0% | 22.1% | EPS growth | Li Ning | 16.6% | (65.0%) | (614.1%) | (88.7%) | (114.3%) | 807.5% | | Anta | 23.9% | 11.5% | (21.4%) | (8.5%) | 8.4% | 9.9% | Source: Company data, Bloomberg, J.P. Morgan estimates. According to 1H10 reported data, ANTA had already become No. 1 in terms of sales volume of both footwear (18.0 mn pairs sold) and apparel (32.5 mn pieces sold) among all domestic brands by
Alibaba.com Summary Alibaba.com is recognized as the largest and most successful business-to-business (B2B) web site in the world. On November 6, 2007, Alibaba.com’s stock began trading on the Hong Kong exchange. By the end of the day the company had raised $1.7 billion, resulting in the biggest initial stock offering ever for a Chinese Internet company. Investors sought more than 180 times the number of shares offered. In spite of the economic downturn globally during the fourth quarter of 2008, Alibaba.com announced that total revenue for the company increased 39 percent over 2007, and registered users jumped by 80 percent.