Recent Question

Explain how you could estimate the net present value of the project One of the best methods of learning broad concepts in this text is to put yourself in the place of an MNC manager or board member, and apply the concepts to make financial decisions. Board members do not normally make the decisions that are discussed here, but must have the conceptual skills to monitor the policies that are implemented by the MNC’s managers. Thus, ...

Other / Other 22 Apr 2016

Does the forward rate reflect a forecast of appreciation One of the best methods of learning broad concepts in this text is to put yourself in the place of an MNC manager or board member, and apply the concepts to make financial decisions. Board members do not normally make the decisions that are discussed here, but must have the conceptual skills to monitor the policies that are implemented by the MNC’s managers. Thus, they must ...

Other / Other 22 Apr 2016

Ratios by themselves tell little about the financial well-being 1. The two major forms of common-size analysis are horizontal analysis and vertical analysis. What type of information or insights can be obtained by using these two techniques of financial statement analysis? Explain how the output of horizontal analysis and vertical analysis can be compared to industry averages and/or competitive companies. 2. Ratios by themselves tell lit ...

Other / Other 22 Apr 2016

Explain how your business is subject to translation exposure One of the best methods of learning broad concepts in this text is to put yourself in the place of an MNC manager or board member, and apply the concepts to make financial decisions. Board members do not normally make the decisions that are discussed here, but must have the conceptual skills to monitor the policies that are implemented by the MNC’s managers. Thus, they m ...

Other / Other 22 Apr 2016

Identify a ratio and explain how one or more of the limiting factors can affect the usefulness 1. Carter Company has a return on total assets of 12% and a return on common stockholders' equity of 15%. What causes the difference in the two returns? 2. The use of estimates, cost, alternative accounting methods, the presence of atypical data, and diversification of firms are all factors that may limit the usefulness of financial statement ...

Other / Other 22 Apr 2016

Which profitability ratio requires the use of earnings per share 1. Bogart Company has 40,000 shares of common stock outstanding. The book value per share of this stock was $60 and the market value per share was $75 at the end of the year. Net income for the year was $400,000. Interest on long-term debt was $40,000. Dividends paid to common stockholders were $3 per share. The tax rate was 30%. The company's price-earnings ratio at the e ...

Other / Other 22 Apr 2016

The income statement for Ray Company for the year ended 1. Smith Inc. is a wholesaler of snow skiing gear. During 2014, Smith expanded its retail business by adding over 50 shops. The following information is obtained from the comparative financial statements included in the company's 2014 annual report. Dec. 31, 2014 Dec. 31, 2013 Total liabilities $26,000,000 $18,000,000 Total stockholders' equity 34,000,000 38,000,000 F ...

Other / Other 22 Apr 2016

The inventory turnover ratio for the year was 1. The following information pertains to Barkley Company.: Merchandise purchased $1,800,000 Cost of goods sold $2,000,000 Inventory at the end of the year $ 400,000 The inventory turnover ratio for the year was a. 10. b. 5. c. 4. d. 3.6. 2. A liquidity ratio measures the a. income or operating success of an enterprise over a period of time. b. ability of the enterpri ...

Other / Other 22 Apr 2016

Comment briefly on the liquidity of each of these two companies 1. Presented below are selected data from the financial statements of eMonstore.com for 2014, 2013, and 2012. 2014 2013 2012 Total assets $650,000 $821,000 $800,000 Net credit sales $800,000 $650,000 $720,000 Accounts receivable $85,000 $79,000 $74,000 A. Calculate eMonstore.com's accounts receivable turnover ratio for 2014 and 2013. B. Calculate the number of day ...

Other / Other 22 Apr 2016

Calculate the return on common stockholders' equity ratio 1. The following information is available from the balance sheets at the end of 2014 and 2013 for Shelley Company: 2014 2013 Accounts payable $ 80,000 $ 40,000 Accrued liabilities 65,000 25,000 Taxes payable 10,000 20,000 Short-term notes payable -0- 60,000 Bonds payable due within next year 200,000 200,000 Total current liabilities $ 355,000 $ ...

Other / Other 22 Apr 2016