Significant influence over Lennon was achieved by this acquisition. Lennon distributed a dividend of $2.50 per share during 2008 and reported net income of $670,000. What was the balance in the Investment in Lennon Co. account found in the financial records of Pacer as of December 31, 2008? A. $2,040,500 B.
1. Question: (TCO4) In a merchandising business, gross profit is equal to sales revenue minus: Your Answer: Instructor Explanation: Merchandising companies are those that buy products and resell them to the end consumer, so the cost of the product sold is usually their largest cost. Their income statement should start with revenues minus cost of goods sold equals gross profit. Points Received: 5 of 5 Comments: 2. Question: (TCO4) BMX Co. sells item XJ15 for $1,000 per unit, and has a cost of goods sold percentage of 80%.
This study is based on how the portfolio turnover ratio affects the returns of the mutual funds. Portfolio turnover is a valuable tool to analyze the investment strategies of a Fund Manager, fund cost structure and tax exposure. It helps in measuring how actively the Fund manager manages the portfolio investment. The rate of trading activity in a fund’s portfolio is the lesser of purchases or sales of the portfolio securities for a financial year divided by the average value of portfolio securities during the year. If a fund has 100 percent turnover rate that means the fund manager, in theory has sold every single stock position once.
Data Item 2012 value Earnings per share $6.25 Price per share of common stock $40 Book value of common stock equity $60,000,000 Total common shares outstanding 2,500,000 Common stock dividend per share $4 A) Based on the table above, the Firm’s current book value per share is sixty million (60,000,000) and the total common Shares outstanding is 2.5 million. So when you divide sixty million (60,000,000) by
This report focused on valuation and analysis of Baker Hughes Inc. (BHI) Valuation method is the traditional Discounted Cash Flow method. Based on the results of estimation, value of the firm is 27,386 million, and value of equity is 25,725 million. The intrinsic stock price is $59.55 per share which is very close to the market price of $57.17. For value investors, recommendation is to hold and see at this point. II.
The third section will provide an in depth analysis of Caterpillars publicised strategies from 2001-2010. As evidence to the success or failure of these strategies, this analysis will include financial information and reports as an indicator of the influence that they have had on the Caterpillars bottom line over the last decade. Finally, the conclusion will aim to summarise the report and to give an opinion on both the successfulness and the extent of the influence of strategy on performance and profitability in an increasingly globalised world. Strong links to business strategy theory will be present throughout the report, and comparisons to competition (Komatsu)
In total, Overstock.com earned $1.05 billion in revenue for FY 2010 which was an increase of 23.4% from the previous year. In terms of liquidity, the company has $12.66 million in operating cash flow. The composition of net sales is approximately 18.4% for the Direct Segment and 80.8% of net sales for Fulfillment Partner Business. The direct segment refers to sales directly to individual consumers from certain offline channels and Overstock.com’s leased warehouses, where purchased surplus inventory is stored and re-sold at a premium on the website. The Fulfillment Partner Business segment refers a 3rd party liaison between customers in search of low prices and retailers & manufacturers that are looking to liquidate.
What’s the purpose of a profit and loss statement? A profit and loss statement serves as an essential document in financial reporting. The profit and loss statement allows an investor or a manager of the business to evaluate and analyse thing such as their profit margin, gross income, costs of goods, number of sales etc… Interpretation of Whitbread’s profit and loss statement data Turnover Turnover is the amount of money which is taken in by a business over a particular period of time. As shown on Whitbread’s profit and loss statement from 2001/2002 they had a turnover of £2014.3 million but from 2002/2003 they only had a turnover of £1794.1 million this is a decrease of £202.2 million in one year and this is a serious reduction in sales. The decrease in turnover could be due to the year just being quiet or it could be due to the other new businesses under the umbrella
Kwik Lube Case Study Compute the loss for Kwik Lube stations during the last two years using trend analysis. How accurate can results claim to be? With a -.01 bias and a negligible tracking symbol, the forecast analysis substantiates Dick Johnson’s assertion that the presence of competition cut directly into Kwik Lube’s profit. A trend analysis was conducted and projects sales in the amount of $1,419,445 and $1,530,445 for 2006 and 2007, respectively. Comparing the gross sales forecast to actual sales, this results in a loss of $309,445 in 2006 and $420,445 in 2007.
C. accounting profits produced. D. increase in total sales produced. 3. Assume your firm has an unused machine that originally cost $75,000, has a book value of $20,000, and is currently worth $25,000. Ignoring taxes, the correct opportunity cost for this machine in capital budgeting decisions is: A.