Retrieved from http://www.frbsf.org /education/publications/doctor-econ/2005/october/debt-equity-market Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2011). Financial accounting: Tools for business decision making (6th ed.). Hoboken, NJ: John Wiley & Sons. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands) | | | | | | | | | | | September 28, 2013 | | | September 29, 2012 |
In which current and noncurrent asset categories are investments reported by Merck? What criteria are used to determine the classifications? The 2008 balance sheet reports the following two current and one noncurrent asset categories ($ in millions): 2009 2008 CURRENT ASSETS: Cash and cash equivalents $ 9,311.4 $ 4,368.3 Short-term investments $293.1 $1,118.1 NONCURRENT ASSETS: Investments $432.3 $6,491.3 In the summary of significant accounting policies (Note 2), Merck describes its policy regarding investments classified as "cash equivalents." It is consistent with the way most companies classify "cash equivalents." CASH AND CASH EQUIVALENTS -- Cash equivalents are comprised of certain highly liquid investments with original maturities of less than three months.
It includes options and warrants as well as debt and stock. "(2) Participation rights – contractual rights of security holders to receive dividends or returns from the security issuer’s profits, cash flows, or returns on investments. " "(3) Preferred Stock – a security that has preferential rights compare to capital stock. " (C) What information about securities must companies disclose? Discuss how Hincapie should report the proposed preferred stock issue.
Common Stockholder's Equity) | | | | 8.46% | 2,430,872 ÷ (29,946,92 + 27,517,328 ÷ 2) 28,732,160 = 0.84604568 or 8.46 | Solvency Ratios A formulation used to measure a company's financial risk by determining how much of the company's assets have been financed by debt. The formula is calculated by adding short-term and long-term debt and
| Liquidity RatioCurrent Ratio | Current assets/ Current liabilites | 203,100,000/37,500,000 | 5.416 | a measurement of CanGo to pay off current liabilities using current assets | Liquidity RatioQuick Ratio | current assets-inventory/current liability | 203,100,000-32,000,000/37,500,000 | 4.5627 | Measures CanGo ability to meet its short term obligation MSOT liquid assets. | Profitability RatioReturn On Equity | | | |
Since debt and equity levels are closely related there is an analysis called the “DuPont model” that systematically breaks ROE into components so that each can be evaluated. ROE = NI x EBT x EBIT x Sales x Total assets EBT EBIT Sales Total assets Common equity EBT = earnings before taxes. The first ratio measures the proportion of earnings before tax that is kept by the company. EBIT = earnings before interest and taxes. The second ratio measures the effect of interest; it indicates the proportion of earnings before interest and tax that is retained after paying interest.
ACCT 304 Week 1 to 7 Quizzes Click Link Below To Buy: http://hwcampus.com/shop/acct-304-week-1-7-quizzes/ Question 1. Question : (TCO 1) Which of the following has the authority to set accounting standards in the United States? FASB IRS SEC AICPA : 1 Question 2. Question : (TCO 2) SFAC No.5 focuses on: objectives of financial reporting. qualitative characteristics of accounting information.
Discuss. BSA 310 Week 2 Individual Assignment BSA 310 Week 2 Supporting Activity BSA 310 Week 3 DQ The text identified three common legal forms of business organizations: sole proprietorships, partnerships, and corporations. IF you were to start or your business (or if you already have started your own business) what type of legal form would you use? Why did you choose this legal form? Or Financial statements (balance sheet, income statement, statement of cash flows, and statement of stockholders’ equity) are the primary means accountants use to communicate financial information to investors, creditors, regulatory agencies, and others.
Running head: FAIR VALUE MEASUREMENTS Customer Inserts His/her Name Customer Inserts Grade Course Customer Inserts Tutor’s Name Date Part 1 a) The three alternative accounting treatments for the classification of financial assets and for the recognition of gains and losses arising from changes in fair value permitted by FAS 115 Under FAS 115, fair value is defines as the price that can be received upon disposal or paid to transfer liability through a transaction between buyer and seller at the measurement date. The three alternative accounting treatments for classification of financial assets and for recognition of gains losses arising from changes in value and permitted FAS 115 are: i) Assets held to maturity All
ACCT 504 Week 4 Midterm Exam Click here to Purchase (TCO A, B, C) Which of the following statements concerning users of accounting information is incorrect? (TCO C) Issuing shares of stock in exchange for cash is an example of a(n) (TCO C) Which activities involve putting the resources of the business into action to generate a profit? (TCO A) The cost of assets consumed or services used is also known as (TCO C) Edwards Company recorded the following cash transactions for the year (TCO A) On a classified balance sheet, prepaid insurance is classified as (TCO A) An intangible asset (TCO A) These are selected account balances on December 31, 2007. -Land (location of the corporation's office building) $200,000 -Land (held for future use) 300,000