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During a period of rising inventory costs and stable output prices, describe how net income and total assets would differ depending upon whether LIFO or FIFO is applied.
Describe at least two assets not recorded on the balance sheet. Explain how an analyst evaluates unrecorded assets.
Company (A) has 100,000 shares of common stock outstanding its net income is $750,000 and it s P/E is 8. What is the company's stock price?
Compare and contrast the effects of LIFO and FIFO inventory costing methods on earnings in an inflationary period.
Identify the main concerns in analysis of accounts receivable.
An alternative for producing apesticide will have a first cost of $150,000 and annual costs of$75,000. Income is expected to be $90,000 per year. What is the payback period at 8% per year interest?
What is meant by the factoring or securitization of receivables? What does selling receivables with recourse mean? What does it mean to sell them without recourse?
Evaluate the following statement from an analysis viewpoint: "A parent company is not responsible for the liabilities of its subsidiaries nor does it own the assets of its subsidiaries. As such, co
Describe how you determine the valuation of assets acquired in a purchase when:
Describe the accounting treatment for speculative derivatives.
What is the present cost in the following scenario: Initial cost 75,000 Annual revenue 50,000-annual expense 60,000 salvage value in 3 years 15,000 Use interest rate of 8%.
Determine the capitalized cost of an alternative that has a first cost of $55,000 an annual maintenance cost of $12,000 and a salvage value of $8,000 after its 6-year life. Use an interest rate of 8
What is the eigth year depreciation using the MACRS method in the following example. Purchase price $1,250,000 Set up and install $55,000.
If you can receive 85% of $55,000, which increases by a growth rate of 5% each year. What is the present value of the growing annuity if N = 12, and I = 8%?
Describe the computation of free cash flow. What is its relevance to financial analysis?
At an interest rate of .5% per month how many months would need the computer for the purchased system to break even.
Describe the three major activities the statement of cash flows reports. Cite examples of cash flows for each activity.
The fixed cost at a manufacturing company are $1,000,000 annually. They sell a product that sells for $8.90 each and has a $4.50 variable cost each. What is the break even quantity.
Distinguish between net income, comprehensive income, and continuing income. Cite examples of items that create differences between these three income measures.
Compute the price of a $10,000 par value bond with a coupon rate of 8% (semi-annual payments) and 15 years remaining to maturity. Assume that the current yield to maturity on the bond is 8.70%.
Distinguish between operating and nonoperating income. Cite examples of items that are typically included in each category.
If clovis normally carries 45 days of credit sales in accounts receivable, what are its average accounts receivable balances?
What is the rationale for reporting held-to-maturity securities at cost? Does this rationale make economic sense?
In March 2008, when the fair marketvalue of the house was $255,000, he converted the house to rental property. What is Jose's cost recovery for 2008?
Suppose interest rates on Treasury bonds rose from 5 to 9percent as a result of higher interest rates in Europe. What effect would this have on the price of an average company's common stock?