1.What is stock flipping? Do investment banks encourage this kind of practice among their clients? Explain. 2.What are American Depositary Receipts (ADR's) and why have they proven so popular with U.S. investors? 3.What is a debenture? Why do you think that this is the most common form of corporate bond in the United States?
Operating a dairy farm, raising cows for the production of raw milk products. Briefly identify the levels of vertical integration that you would anticipate being possible for such an operation (include both backward and forward integration in your response).
See the attachment. 1. A company can be forced to go into bankruptcy if it has a negative working capital and not be able to pay its bills on time. Have you experience such a position or to a lesser extend (short of bankruptcy)? If so what were the remedies taken by your company? 2. Your management approaches you for input
You are Chris and Pat Smith, entrepreneurs with five years of experience investing in small businesses. Eighteen months ago you decided to invest in a catering venture with two chefs, J. P. Martin and L. L. Miller, who have culinary science degrees and five years of work experience, which includes winning a prestigious prize in
What are the four conditions that can create capital lease? And, how is a capital lease different from an operating lease? One citation (APA format)
See attached file for tables. 2-4. Analyzing Financial Performance Using Ratio Analysis - Manufacturers Bank is evaluating Aluminum Industries, Inc., which has requested a $3 million loan, to assess the firm's financial leverage and risk. On the basis of the debt ratios for Aluminum, along with the industry averages and Alumi
To develop what you believe is a terrific idea for a video game, you lease 50,000 square feet in an office building from Commercial Property, LLC, under a written five-year lease. Your goal is to put the game on the market within two years. Several months into the term, a competitor unexpectedly releases a new game title featuri
Ann leases an office in Ted's building for a one-year term. At the end of the period specified in the lease, the lease ends without notice, and possession of the office returns to Ted. If Ann dies during the period of the lease, what happens to the leased property?
Submit your answer to Assignments in a Word file. Begin a new page for each question, and put your name and the question number at the top of the page. Do NOT repeat the question. Clarity and conciseness are valued. Where calculations are required, you MUST show how you got your answer. Your answers should be in your own w
Your firm is considering leasing a new laser light. The lease lasts for 3 years. The lease calls for 4 payments of $10,000 per year with the first payment occurring immediately. The computer would cost $45,000 to buy and would be straight-line depreciated to a zero salvage value over 3 years. The actual salvage value is negligib
See attachment for details. 1. Williams, Inc. currently sells 20,000 units of its product per year for $200 each. Variable costs total $75 per unit. Williams' manager believes that if a new machine is leased for $250,000 per year, modifications can be made to the product that will increase its retail value. These modification
Answer each question with references; references have to be work citied within the paragraphs. 1. Assess the current accounting practices regarding leases and make a recommendation for improvement. 2. Assess the current accounting practices regarding pensions and make a recommendation for improvement. 3. Assess th
1. Discuss the following cost recovery questions: Whether property that is classified as personal is subject to cost recovery. If a taxpayer does not take any cost recovery on an asset during the year, what will be the impact on the basis of the asset? The computation of cost recovery in the year an asset is placed in
A firm has Total Costs (TC) of $12,000 over the next three months (TOTAL for the 3 months - not per month), of which $8,000 are fixed costs (TFC) for rent on its lease that cannot be broken. If it stays in business over those months, then the firm will collect only $6,000 in revenues (TR). So, considering only this information,
Hall, Inc. agrees to lease equipment from White Inc. for 10 years for $50,000 at the end of each year. The equipment has a fair value of $350,000 and an estimated useful life of 10 years. The lease includes a guaranteed residual value of $20,000. In addition to the lease payments, Hall will pay $10,000 per year for a maintenance
See the attached file for the entries. Randall Corporation leases a truck from David's Trucks with a five year non-cancelable lease on January 1, Year 5 with the following terms: ? Five payments of $26,379.74 (a 9% implicit rate) due at the end of each year. ? The fair value of the truck is $100,000 and cost David $80,0
If the Bean Company sells an asset to Corn Company for a profit of $175,000 and immediately leases it back with a capital lease, the gain is recognized by Bean: immediately as an extraordinary gain. immediately as an ordinary gain. over the life of the lease in proportion to the rental payment.
Please see attachment for proper format, and provide examples of solving it. 1. Forecasting an Income Statement Abercrombie & Fitch? reports the following income statements. Income Statement, For Fiscal Years Ended ($ thousands) 2008 2007 Net sales $3,657,847 $3,318,158 Cost of goods sold 1,238,480
Reichenbach Co., organized in 2009, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2009 and 2010. Intangible Assets 7/1/09 8-year franchise; expiration date 6/30/17 $ 48,000 10/1/09 Advance payment on laboratory space (2-yea
On December 31, 2009, Cathy Chen, a self-employed certified public accountant (CPA), completed her first full year in business. During the year, she billed $360,000 for her accounting services. She had two employees: a bookkeeper and a clerical assistant. In addition to her monthly salary of $8,000, Ms. Chen paid annual salaries
1. What is your opinion of the popular wisdom that the market always comes back and buys and hold is still the best strategy? If you decided you could not 'stock pick' or 'time' the market (pick the major bottoms and tops) then what would you suggest an investor do to build a retirement nest egg? 2. How could the concept of
Analyze the financial statements of a publicly traded company. Obtain an annual report from a publicly traded corporation that is interesting to you. Be sure the company has property and equipment, intangible assets, and long-term debt on their balance sheet. Using techniques you have learned, respond to the following questio
See the attached file. Capital Budgeting 1. What is a sale and lease back and why would a corporation do this? 2. Why might a lease be easier to finance (or do) than a straight borrowing for the purchase of an asset? Explain two reasons 3. When should the cancellation provision be negotiated (before or after the le
Provide your manager a comparison of the current reporting for debt, explaining the requirements for each type (bond, mortgage, capital lease, and others).
Why do so many entrepreneurs run into trouble when they buy an existing business? Outline the steps involved in the right way to buy a business.
The Acme Company, whose stock price is now $25, needs to raise $20million in common stock. Underwriters have informed the firm's management that they must price the new issue to the public at $22 per share because of signaling effects. The underwriter's compensation will be 5% of the issue price. So Beranek will net $20.90 per
Hann, Murphy, and Ryan have operated a retail furniture store for the past 30 years. Their business has been unprofitable for several years, since several large discount furniture stores opened in thier sales territory. The partners recognize that they will be unable to compete with the larger chain stores and decide that since
LANDLORD-TENANT DISPUTE The situation is as follows: Fred and Wilma Flintstone rent a one-bedroom apartment in Bedrock from Fred's former boss Mr. Slate while their home is undergoing repairs after a major earthquake. The lease is signed on 10-13-09 and Fred, his wife Wilma, their daughter Pebbles and there pet Dino move i
1. Variable costing versus absorption costing. The Mavis Company uses an absorption- costing system based on standard costs. Total variable manufacturing cost, including direct material cost, is $3 per unit; the standard production rate is 10 units per machine- hour. Total budgeted and actual fixed manufacturing overhead costs
Why do managers put such a great amount of emphasis on controlling fixed costs in their organizations? What is meant by the statement, my company has good operating leverage? How does good operating leverage magnify earnings results with modest revenue increases