Accounting requires that all transactions be recorded to ensure accuracy when giving financial details to board members, stock holders, and the IRS for tax purposes The income statement posts revenues and expenses. The income statement
3. RETURN ON CAPITAL EMPLOYED (ROCE) NET PROFIT/CAPITAL EMPLOYED X 100 = % (NB use net profit figure before tax has been taken out) (For capital employed see Financed By total on Balance Sheet) Leave the formula in. Now add in the figures from the Income Statement or Balance sheet and calculate the ratio. Then describe what this ratio shows and explain what it means. LIQUIDITY 4.
Excello Telecommunications (from Ethical Obligations and Decision Making in Accounting: Text and Cases, 2 nd Edition by Steven M. Mintz and Roselyn E. Morris) Excello Telecommunications has been profitable for many years but recently has been faced with increased competition for its products by overseas manufacturers. For the first time in the company’s history, it appears that earnings estimates will not be met. Top management is concerned about the effect on bonuses, stock options, and the share price of Excello stock. That is when Terry Reed, the CFO, learns of a transaction on December 20, 2010, that might solve the problem. On December 20, 2010, Excello sold $1.2 million of equipment to Data Equipment Systems.
Not only are the perks better, the sales are higher, but Sony has also upgraded a substantial amount between the PlayStation 3 and the PlayStation 4. Considering the PlayStation 4 and Xbox One are a like, the PS4 has mildly better perks and specifications. To play online with people around the world, one will need an online membership. PlayStation Plus users receive two free games every month for the PS4, PS3, and the PS vita. Also, the price for PlayStation Plus is $10 cheaper than Xbox Live; $49.99- PlayStation 12 moth membership (Target); $59.99- Xbox Live 12 month membership (Best Buy).
The 33% increase showed the strength of the company, but the huge drop in sales demonstrated how Competition Bikes, Inc. (CB) struggled to attain a surge in its revenue which is the result of the 15% decline in sales caused by economic situations. The rise of cost of goods sold (COGS) by almost 32% contributed to the rise in net sales for Years 6 and 7. During Year 7 and 8, CB had an almost 15% drop in COGS which resulted in a bad year for the company. However, COGS remained less than the company’s net sales which is always a financial plus. Overall, a rise in revenue and reduction in cost adds to CB’s profitability in Years 6 and 7.
Rationale In the United States, the deep-discount warehouse industry has seen 25 years of rapid growth. However, domestic sales growth finally peaked in 2008 and ensued on a downwards trend in 2009, suggesting that perhaps the American market has been exhausted. Domestic market fatigue has been particularly tasking for Costco, resulting in the greatest sales percentage decline among the big 3 warehouse retailers. Costco’s sales plummeted over 1.5% in 2009 from its pinnacle in 2008. If historic trends are any indication of future performance, Costco must react proactively and remedy this matter immediately.
Macs are Better than PCs In the last five years, the company of Apple has grown from 60.5 to 323.3 billion dollars, more than a 430 percent increase. During that same time period, Microsoft’s increase was only nine percent (Gary Ng). Most PC users are only biased, to their opinions against Macs, because they have no knowledge of them. It is important, before taking any side of an argument, to do research on the products being discussed. After research has been performed, it is clear that Macs are the better choice computers to own.
The discount yield uses the terminal price, or the security’s face value, as the base price in calculating an annualized interest rate. The bond equivalent yields are based on the purchase price of a security. Because adjusting for both the base price and days in the year difference, requires converting a discount yield into a bond equivalent yield. 4. What’s is the difference between a single-payment yield and a bond equivalent yield?
As one of the world’s leading retailers in both the food and non-food markets, with group sales of £62.5billion in 2010, it is clear that Tesco PLC has a successful corporate strategy which has managed to withstand the recent global economic crisis. Tesco defines their long term strategy over the last decade to be delivering strong and consistent growth. The group uses a balanced scorecard to monitor their performance against strategic goals. By assessing the Customers, Operations, People, Finance and Community, the strategic planners at Tesco are able to see what needs to be done and in which areas. Tesco’s overall goal could be summarised as a desire to be as successful in the non-food market as they are in the food market, and this is achieved by creating such good value for customers that their repeat business and loyalty is guaranteed.
To make their reports meaningful, a company reports the recorded data in a standardized way according to generally accepted accounting principles (GAAP). The remainder of this paper will illustrate examples of the income statement and balance sheet. In addition, this paper will discuss a few basic accounting principles along with a brief discussion of the difference in how equity is reported for an owner invested firm versus a not-for-profit entity. Construct Brandywine’s 2007 Income Statement In order to construct Brandywine’s 2007 income statement, one must first collect the data required for reporting. The income statement reports the success or profitability of a company’s operations over a specific period of time (The Income Statement, 2011).