How can industrial company inflate value of inventory
How can any industrial company inflate the value of its inventory so as to decrease net income and the taxes is has to pay in a year?
Expert
If a company raises the value of its inventory, the cost of the sales increases or/and the same thing occurs to general expenses, that makes the net income go up in place of going down. The valuation of the inventory of an industrial company depends on the value assign to the workforce and on the variety of general expenses.
XYZ Company has debt/assets ratio 50%, that is too high and it must be at 45% to be optimal. This debt reduction must also reduce the bankruptcy costs by $30 million. At present, XYZ has 5 million shares of common stock selling at $50 each. The tax rate of XYZ is 30%.
XY Company has made a portfolio of such three securities: The correlation coeffic
Profitability Ratios: These ratios comprise the Gross profit Margin, Net profit Margin, Operating Margin, Return on Equity (ROE), and Return on Total Assets. Such ratios help the firm to examine its profitability, the trend in profits and aid to take
What is the difference between weighted return and simple return to shareholders?
ABC Inc. is planning to lease a computer for $3000 per annum, payable in advance, for a period of 4 years. The lease will cover maintenance costs. ABC CFO feels that if he buys the same computer he should be able to sell it at 15% of the purchase price after 4 years.
XYZ Company is planning to acquire a machine which will cost $200,000, that will last for 4 years. The company employs straight-line depreciation. The tax rate of XYZ is 35% and the proper discount rate in this situation is 12%. (A
Describe the term Zero Coupon Bonds in Corporate Bonds?
When Markets are expected to be Volatile: For the bear and bull strategy to yield gains, it is essential that the trader takes a view on the direction of the market i.e. either bearish or bullish, and accordingly implement the strategic choice. More o
State the term Convertible Bonds in Corporate Bonds?
Capital formation: It is an increase in the stock of capital in particular period is termed as capital formation.
18,76,764
1957167 Asked
3,689
Active Tutors
1445296
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!