Why does the following situation occur and what controls can we design in a new computer system to prevent and detect this situations? Typical financial statement fraud techniques involved the overstatement of revenues and assets. Over half the frauds involved overstating revenues by recording revenues prematurely or fictit
On January 30, Tensing Company purchased supplies of $2,000. The supplies were all consumed in February. Which of the following statements is true regarding the accounting for these supplies. A) The supplies should be recorded as an asset in January and no adjusting entry is needed until the supplies are used in Febr
Can you tell me how the fraud was perpetuated in Adelphia Communications? Through collusion with other stakeholders (public auditor, investment bankers, creditors, etc. Secondly (how did this happen) Insufficient oversight by independent Directors / audit committee and finally how did they deliberately concealment of m
1. The MBI Company does not want to grow. The company's financial management believes it has no positive NPV projects. The company's operating financial characteristics are Profit margin = 10% Assets-sales ratio = 150% Debt-equity ratio = 100% Dividend-payout ratio = 50% Calculate the sustainable growth rate for the MBI
Describes a process in broad terms of dynamically matching capacity to demand. But a viable alternative is a constant production rate to maximize production efficiency. What are the trade-offs between the two approaches?
1. Indicate how each of the following international transactions is entered into the U.S. balance of payments with double-entry bookkeeping: (a) A U.S. resident imports $500 worth of merchandise from a U.K. resident and agrees to pay in three months. (b) After the three months, the U.S. resident pays for his imports by drawi
What is the approximate value of a company that earns $5 this year if you wish to earn a 10% return and the companys earnings are expected to grow at 5%? a. $50 b. $75 c. $100 d. $150 What is the approx value of a company that earns $5.00 this year if you wish to earn a 10% return and the company's earnings are expe
Looking at PepsiC 2006 annual report answer the question using the following initiatives. PepsiCo will position its products as the favorites in the Asian market. To achieve this, the company will: Description of strategic planning initiatives Build 2 production plants in China. Build a network of distribution centers.
I need to compare Pepsi and Coca-Cola's two most recent fiscal years based upon operating profitability, asset utilization and risk management. I have already completed asset utilization and risk management. What I need help with is operating profitability and a brief introduction.
The factoring department of Inter American Bank (IAB) is processing 100,000 invoices per year with an average invoice value of $1,500. IAB buys the account receivables at 3.5 percent off the invoice value. Currently, 2.5 percent of the accounts receivable turns out to be bad debt. The annual operating expense of this departme
1. Romeo & Juliette are competitors in selling college finance textbooks. The separate capital structures of each company are as follows: Romeo Juliette Debt @ 10% (interest) $500,000 Debt @ 10% (interest) $1,000,000 Common Stock 1,000,000 Common Stock 500,000 Total Capital $1,500,000 Total Capital $1,500,000 Shares O
Attached is an income statement and balance sheet results for 2004 (for a company that began operations in 2003) and need help forecasting for the next year as sales are expected to increase by 50% in 2005--and by 80% in 2006. 1. How can i estimate AFN based on percent-of-sales relationships for 2004 2. Estimate AFN for 2005
1. Will you explain to me the relationship between inventory turnover and purchasing needs. 2. How can I elaborate (or explain) this statement "rapid corporate growth in sales and profits can cause financing problems" 3. What are the advantage and disadvantage of level production schedules in firms with cyclical sales? 4. H
Environmental risks analysis associated with Ghana and Thailand.
You take out a 30-year $100,000 mortgage loan with an APR of 6 percent and monthly payments. In 12 years you decide to sell your house and pay off the mortgage. What is the principal balance on the loan?
Delta manufacturing - Balance Sheet Cash & Marketable Securities $225,000 Account Receivables $890,000 Inventories (lower of cost or market $930,000 Prepaid Expenses $10,150 Accumulated Tax Prepayment $12,000 Current Assets $2,067,150 Fixed Assets at cost $2,500,000 Less: Accumulated Depreciati
Prizes are not often not "worth"as much as claimed. Place a value on a prize of $5,000,000 which is to be received in equal payment over 20 years, with the first payment beginning today.Assume an interest rate of 7% over the 20 years.
True or False a. Financing for public corporations must flow through financial markets. b. Financing for private corporations must flow through financial intermediaries. c. The sale of policies is a source of financing for insurance companies. d. Almost all foreign-exchange trading occurs on the floors of the FOREX exchanges
Balance Sheet Assets Liabilities Cash . . . . . . . . . . . . . . $ 1,300 Accounts payable . . . . . . . . $ 100,000 Receivable from sale . . Mortgage payable . . . . . . . 6,000,000 of real estate . . . . . . 5,000,000 Total liabilities . . . . . . . . . . $ 6,100,000 Interest receivable* . . . 180,
Using the following data, compute cash flow from operating activities. Cash Inflow (Outflow) a. Cash received from sale of a building . . . . . . . . . . . . . . . . . . $ 5,600 b. Cash paid for interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (450) c. Cash paid to repay a loan . . . . . . . . . .
Susan Young is an attorney for a small law firm in Arizona. She is also a part-time inventor and an avid golfer. One day Susan's golf foursome included a man named Henry Jones, a manufacturer of Christmas ornaments. Henry explained to Susan that he manufactures an ornament everyone loves, but stores will not carry the ornaments
Computations: The following financial statements apply to the next six problems? Robert Manufacturing Balance Sheet December 31, XXXX Cash $ 200 Receivables 245 Inventory 625 Total Current Assets
How can I determine an appropriate level of working capital for a firm using the hedging principle?
Two companies are rivals in the buggy whip industry. Their manufacturing profiles are as follows: Co. A Co. B Unit Selling Price $ 300.00 $ 300.00 Manufacturing Cost/unit 50.0% 66.7% Staff Salaries & Benefits 150,000 75,000 Advertising 50,000 25,000 De
What would be the impact on a firm's profits by increasing its Operating Leverage if: - the firm was operating to the right of its break-even point? - the firm was operating to the left of its break-even point? What is meant by Operating Leverage? Give a specific example of how a firm could increase its operating le
Please help with the following finance-related problem. Provide step by step calculations. The Ectoplasto Drug Company's common stock is considered highly speculative. Security analysts believe that over the next year four possible outcomes are possible for the company's research program. There is a 60% chance that their new
Fenway Corporation common stock has a beta of 1.5. A security analyst forecasts an expected return of 15% over the next year. The market risk premium is 8% and the risk free rate is 4%. In a CAPM framework, does the analyst believe that Fenway common stock is fairly priced?
Canyon Recreational Products (CRP) has earnings of $1.60 per share and plans to pay a $0.64 dividend. In the past CRP has earned a return of 25% on its investments, and the firm believes this will continue in the future. At what rate do you expect Canyon's earnings to grow?
When big companies fail to introduce innovative products before the same products are introduced in the market by other small more focused players, does this mean it is because of customer demand pulling the investment or is it the other way around? Please comment.
What two articles could I use to discuss the U.S. financial markets, also the role of investment bankers, and the sources of capital available to corporations. How would I describe how a corporation raises short term and long term capital through this financial system.