Over View of the Case Study: M/s. Ocean carriers, a premium corporate shipping company with offices in New York and Hongkong with long term relationships with reputable charters, owned and operated capsize dry bulk carriers that mainly carried iron ore worldwide. During Jan 2001, Mary Linn, the Vice President of Finance, was given the responsibility to decide on the proposal of Lease arrangement with a client (referred as ‘Charterer’ hereafter) for three year period, beginning in early 2003. Since, No ship in M/s. Ocean Carrier’s current fleet met the requirements of the Charterer, Mary Linn, the Vice President of Finance, had to decide whether to commission a new capsize carrier to meet the requirements of the Charterer, and whether this will be profitable in the upcoming years.
Ralph has admitted to receiving $3,081,671 of Navy funded checks from Spencer. On top of that, he also received bi-weekly checks of $3,500 for almost seven years. In this specific case, Mariano didn’t work alone. He needed people to approve contracts, willing parties to cooperate and individuals who were willing to do anything that Ralph Mariano asked. Department of Defense Entities Involved Naval Sea Systems Command or NAVSEA is the largest department of the Navy’s five system command and accounts for nearly one quarter of the Navy’s budget.
Inventory turnover 56,534,254 / 8,517,203 = 6.6 * Profitability ratios 5. Asset turnover $56,534,254 / 34,825,498 = 1.6 times 6. Profit margin $2,430,872 / 56,534,254 = 4.3 7. Return on assets $2,430,872 / 34,825,498 = 6.9 8. Return on common stockholders’ equity $29,946,992 - (2430872-15801332) / 200,000 = 82.9% * Solvency ratios 9.
• Net Carrying value of nonrecourse debt is $4.0 million. • $0.1 million of net working capital (carried at fair value) directly attributed to the cruise ship. • Discount rate According to Smooth Sailing is 7%. How should Smooth Sailings’ management perform the recoverability test for the cruise ship as of December 31, 2010? Before we can define the asset group for the purpose of the recoverability test we need to recognize and measure the impairment of our long-lived asset and to do so there is some guidance according to FASB.
What is the indifference point? Ans: 333 units (Q* = (FCMake ( FCBuy) / (VCBuy ( VCMake) = ($2000 - $1000)/($5 - $2) = 333) Section: SCM Across The Organization Level: moderate 4. In the affiliate revenue model, companies receive a referral fee for: a) providing advertising space on their web site b) selling customer information to others c) executing a transaction d) directing business to an “affiliate” e) monthly subscription charges Ans: d Section: Major Issues Affecting Supply Chain Management Level: moderate 5. According to the textbook, the larger cargo ships created the negative result of? a) increased per pound shipping charges b) increased CO2 emissions c) decreased operating costs d) longer port times e) increased in transition times Ans: d Section: Major Issues Affecting Supply Chain Management Level: moderate 6.
The world’s fortune 500 companies controlled an astounding 70% of the trade market, and 80% of foreign investment, and 30% of the (GDP), gross domestic product. 3,400 billion of the world assets controlled by the largest 100 companies with 40% owned in other major countries. In the past it was statistically known that 70% of the trade market with 80% investments, and 40% in off shore accounts was controlled by these multinational corporations, drawing an excessive rates from the U.S. and the majority of wealth in other non U.S. regions. Local cultures of third world countries are stratified into various areas. These countries are open to new ways of proficiencies (e.g.)
Which financial statement reports the amounts of cash that the firm generated and distributed during a particular time period? statement of retained earnings Income statement Statement of cash flows Balance sheet We commonly measure the risk-return relationship using which of the following? Expected returns Coefficient of variation Correlation coefficient Standard deviation What's the current yield of a 6 percent coupon corporate bond quoted at a price of 101.70? 6.1 percent 10.2 percent 6.0 percent 5.9 percent Which financial statement reports a firm's assets, liabilities, and equity at a particular point in time? Statement of cash flows Balance sheet Statement of retained earnings Income statement As new capital budgeting projects arise, we must estimate__________.
The mandated tax adds uncertainty to profit projections for the base metals product division of the company. Economic Factors • BHP Billiton is susceptible to the economic factors of inflation in energy costs, exploration expenses, labour costs, operations costs, materials costs. These increases could adversely impact the company expansion plans, development projects and company profitability. Any major weakness in global economies could cause a fall off in commodities demand resulting in increased supply and reduced prices which could impact company profitability.BHP Billiton is heavily dependent on the China economy for 16.8% of company revenue ($6.6b). China global demand for commodities accounts for 41% of seaborne iron ore, 22% of copper, 22% of aluminum and 16% of nickel demand.
Net initial investment outlay is $302,040. (Cost of new system + Installation) + (Proceeds from old equipment + Tax on proceeds + Removal cost) = Total cost + NCF (old) = 303,000 +-960 2. Tax depreciation savings = (36% tax rate) x (depreciation of each year) Depreciation for each year based on MACRS 5-year (Wikipedia) 3. Incremental cash flows = (Deprn. Tax savings + A.T. cost savings) each year [pic]2.
. How does the concept of product life cycle apply lo Regal Marine products? Company has estimated that a life cycle of their products is 3 years. Their product line consisting of 22 models so they need new products as a steady stream. To maintain this stream of innovation and with so many boats at varying stages of their life cycles, Regal constantly seeks design input from customers, dealers, and consultants.