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Compute basic EPS, diluted EPS, book value per share

As an analyst you have gathered the following information about a company for the year ended December 31, 2009: ? Net income was $10.5 million. ? Stockholders' equity at December 31, 2009 was $100 million. ? Common stock dividends of $3.5 million were paid. ? 20 million shares of common stock were outstanding on January 1,20

Efficient market, relevance, measurement of accounting information

Analyze each of the following concepts and illustrate how they affect corporate financial reporting. ? Efficient Market Hypothesis ? Economic Consequences of Accounting Standards ? Relevance and Reliability of Accounting Information (SFAC No. 2) ? Recognition and Measurement in Accounting (SFAC No. 5)

Problem 10-13A, Kramer Industries

Problem 10-13A Return on Investment (ROI) and Residual Income; Decentralization (LO1,LO2) Kramer Industries produces tool and die machinery for manufacturers. Several years ago the company acquired Douglas Steel Company, one of its suppliers of alloy steel plates. Kramer Industries decided to maintain Douglas's separate identit

Equity and Bond Markets

In your opinion, is current trend of the US equity markets justified and sustainable? Same question regarding the bond markets in the US.

Research and discuss the value of a CMA vs CPA certification

Access the website of the Institute of Management Accountants, www.imanet.org. Read in the website about the IMA and what management accounting is about (see menu on left at home page). Also read about the process and advantages of the Certified Management Accountant professional designation. Write a summary of this info

Allocating Costs Using Direct and Step-Down Methods

12-59 Allocating Costs Using Direct and Step-Down Methods Goal: Create an Excel spreadsheet to allocate costs using the direct method and the stepdown method. Use the results to answer questions about your findings. Scenario: Antonio Cleaning has asked you to help them determine the best method forallocating costs from th

Purchase of Visa Bonds: Arriving at an Acceptable Price

Suppose Visa is selling a bond that will pay you $1000 in one year from today. Keep in mind that if your company has financial difficulties in one year you might not get your full $1000 back. Given that a dollar one year from now is always worth less than a dollar today, you most certainly would not pay a full $1000 for this bon

Operating leverage and operating income

Please complete the attachment. Exercise 6-8 Per Unit Total Sales 100% $120,000 Variable Costs 70% 84,000 Contribution margin 30% 36,000 Fixed expense 24,000 Net operating income $12,000 This time we are using the contribution margin percentage, rather than per unit. Req. 1--Show you

Assistance with this assignment

Performance Reports: below is a performance report that compares budgeted and actual profit in the sporting goods department of Maxwell's department store for the month of December. Maxwell's department store Sporting Goods Performance Report December 2008 Budget

Compare EVA with EPS

Economic value added is sometimes thought of as a measure of the efficiency with which a company uses its productive resources. Assuming this is true, how can we compare EVA with EPS?

Replacement decision

Which of the following items are relevant to the decision to replace equipment? Explain why each of the following is or is not relevant to the replacement decision. a. Book value of old equipment b. Disposal value of old equipment c. Cost of new equipment

10 multi choice tax: dependents, after-tax economic effect, investigation expenses, entertainment deductions, contributions, general business credit, basis, capital gain, tax credits

Practice problems, see file attached. Question 1: Merle furnishes more than 50% of the support of her son and daughter-in-law, who live with her. If the son and daughter-in-law file a joint return, then Merle might be able to claim them as dependents under certain circumstances. A. True B. False Question 2: Albert is in

Push & Pull Approaches, Spoilage, Cost Allocations & Outsourcing

A. Traditionally, companies in the United States have employed a "push" manufacturing style. Studies in Activity Based Management and Quality Control have indicated that this approach is filled with many non-value-added activities, which increase overall costs and reduce profits. The "push" style is being replaced with a "pull"

Managerial Accounting

Please help with the attached assignment. Thank you. Parrish Plumbing provides plumbing services to residential customers from Monday through Friday. Ken Parrish, the owner, believes that it is important for his employees to have Saturday and Sunday off to spend with their families. However, he also recognizes that thi

Taxable rate to provide higher after-tax yield on the taxable security

Jacqui Velasquez, a treasury assistant, is considering the purchase of municipal notes but needs to compare their tax-advantaged yield with the yield on taxable securities. The company's marginal federal tax rate is 34%. a. What advice would you give Jacqui about comparing these securities? b. If she is considering a muni that


Give an example from your own work experience where there was a problem with monitoring employee performance. What incentives did employees and their managers have to perform their jobs correctly? Why are managers' motives sometimes in conflict with those of the organization as a whole? What role does technology perform no

Linear Programming - Graphical Maximization

I am studying for a test and I had this homework problem that is confusing me. Can you show the feasible region and corner points, evaluate the objective function at each corner point. determine the values of x, y, and Z at the optimal solution Max Z = 3x + 4y S. T. x + 3y <24 3x +y>15 3x-2y<0 x,y>0

Direct or an Indirect Basis

Do the financial statements include a statement of cash flows for proprietary funds? In how many categories are the cash flows presented? Is the statement on a direct or an indirect basis? The State of Washington. Web site is below. http://www.ofm.wa.gov/cafr/2008/default.asp

Security Guard for ABC Inc.: Torts and Liability Among Companies

Walter, a security guard for ABC inc, learns that Steve, a new employee of ABC, really works for a competitor of ABC. Walter takes Steve to a small soundproof room where he keeps him for six hours. During this time, Walter continues to ask Steve what he is doing at ABC and what information he has given the competitor. Walter tel

Earnings Before Interest and Taxes-Earnings Per Share

What is Earnings Before Interest and Taxes-Earnings Per Share (EBIT-EPS) analysis? What is the indifference curve? How is risk factored into the EBIT-EPS analysis? What are basic shortcomings of EBIT's analyses? 300 words

Determining Value and P/E for Account

Suppose you own a savings account that earned $10 over the past year. Your only transaction in the account has been to withdraw $3 on the last day of this 12-month period. The account bears an interest rate of 4 percent per year. a) what is the value of the account after the $3 withdrawal? b) what is the trailing P/E and fo

Growth in Residual Earnings

A share traded at $26 at the end of 2009 with a price-to-book ratio of 2.0. Analysts are forecasting earnings per share of $2.60 for 2010. The required equity return is 10 percent. What is the growth in residual earnings that the market expects beyond 2010?

Enterprise value

At the end of 2009, you forecast that a firm's free cash flow for 2010 will be $430 million. If you forecast that free cash flow will grow at 5% per year thereafter, what is the enterprise value? Use a required return of 10%.

The Implications of a Trade Embargo-Country Effects

Why would a country impose a trade embargo on another country? What are a trade embargo's typical effects? Discuss an actual instance of a trade embargo on a country. Name an industry that experiences economies of scale in production and explain why the industry exhibits this characteristic. What actions can a country's gov

Accounts Receivable for after write-off entries

During the year,johns company made an entry to write off a $4000 uncollectible account. before this entry was made, the balance in accounts receivable was $50,000 and the balance in the allowance account was $4,500. the net realizable value of accounts receivable after the write-off entry was? A) $50,000 B) $49,500 C) $41,500

Multiple choice accounting questions

1. The ACE Company has five plants nationwide that cost $100 million. The current market value of the plants is $500 million. The plants will be recorded and reported as assets at a. $100 million. b. $600 million. c. $400 million. d. $500 million. _____ 2. A basic assumption of accounting that requires acti

Managerial Accounting Practices

You have been studying 'fixed' costs. You learned that a number of 'fixed' costs are actually mixed costs (variable and fixed). Write a two paragraph memo to your manager explaining some of the cost estimation techniques that can help determine the fixed and variable portion of each mixed cost (such as utility costs and maintena