Statement of Facts Occupy Mall Street (OMS) is a real estate management firm that manages shopping malls. In 2009 they went public and experienced an increasing stock price through 2011. Because of their success, OMS decided to begin granting annual stock option awards to the executives at the beginning of each year. On January 1, 2012, OMS granted 1,000 employee share options that cliff-vest after 4 years. The share options have a $30 exercise price and a $15 grant-date-fair-value.
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.
Over the past year the company sold 40,000 skateboards, with the following operating results: Management is anxious to maintain and perhaps even improve its present level of income from the skateboards. Required: * 1. Compute (a) the CM ratio and the break-even point in skateboards, and (b) the degree of operating leverage at last year's level of sales. * 2. Due to an increase in labor rates, the company estimates that variable costs will increase by $3 per skateboard next year.
Case 12 REQUIRED 1. Given the unit sales information in Exhibit 1, develop an annual revenue forecast for 2004 through 2009. Forecast sales first assuming that the revised Bernoulli will be introduced one year from today, and then create a forecast which is based on sales of the current model, assuming that Working declines to invest more capital in Bernoulli. 2. Use the cost information Jennifer has assembled to construct a forecast of cost of goods sold and operating expenses for 2004 through 2009.
Eric Bank, Demand Media). IFRS Order of liquidity IFRS does not require a specific order of classification on the Statement of financial position. IFRS provides the same set of objectives for business and non-business entities. The separation of assets and liabilities is required, and deferred taxes are shown on a separate line item on the balance sheet. Minority interests are included in
Prepare a production schedule, schedule of raw material use, and a schedule of raw materials purchases for January, February and March. The Production schedule is shown in Exhibit 1. It shows that number of units produced depends on the expected sales and demand for the product. The company has a policy of keeping a closing inventory of 50% of the next month sales. This means that the production for January would be the difference in the current month expected sales and the closing inventory from December.
Explain Problem 2: Sale-Leaseback Sangamon signs a sale-leaseback with a buyer, Bismark. Under the terms of the contract, Bismark will pay $146,874 in cash to Sangamon for equipment and then immediately lease it back to Sangamon. The equipment originally cost $100,000 and had a carrying value of $80,000 on Sangamon’s books immediately prior to the transaction. In 5 years, the residual value of the leased equipment is estimated to be $20,000 when the lease terminates. The lease contract obligates Sangamon to make five equal annual payments of $30,000 to Bismark that begin immediately after the sale.
Yes, Georgia Lazenby is current. A current liability can be paid from existing current assets or the creation of other current liabilities and have to be within one year or the operating cycle. 7. (a) What are long-term liabilities? Give two examples.
FIN515 Week 4 Homework 9-1 Future Value of a Company Assume Evco, Inc., has a current price of $50 and will pay a $2 dividend in one year, and its equity cost of capital is 15%. What price must you expect it to sell for right after paying the dividend in one year in order to justify its current price? Answer: Find price of stock in 1 year. Current Price = $50, Dividend = $2, Cost of Equity Capital = 15% X = Price the stock will sell right after paying the dividend: 50 = (2+ X) /(1+0.15) X = 55.50 Therefore, price the stock will sell right after paying the one year dividend is $55.5 9-4 Dividend Yield and Cost of Equity Capital Krell Industries has a share price of $22 today. If Krell is expected to pay a dividend of $0.88 this year, and its stock price is expected to grow to $23.54 at the end of the year, what is Krell’s dividend yield and equity cost of capital?
If no year is shown, the contributions are for the current year. A—Uncollected social security or RRTA tax on tips. Include this tax on Form 1040. See “Other Taxes” in the Form 1040 instructions. B—Uncollected Medicare tax on tips.