Essays on Expense

Amongst the various sources of finance, like sale of financial instruments, or even borrowing loans from banks and other financial institutions, a very popular method is lease or lease financing, that is defined by the Leases Exposure Draft of the International Accounting Standards Board (IASB) & Financial Accounting Standards Board (FASB) as “a contract in which the right to control the use of a specified asset (the underlying asset) is conveyed to a customer, for a period of time (throughout the lease term), in exchange for some consideration (periodic rental payments), if the customer has the ability to direct ...

In order to compare the taxation practices of Egyptian and non-Egyptian firms, we will be analyzing the following list of the companies, all of which are from the telecommunication industry. Below is the list of Egyptian and Non-Egyptian firms, which we analyze for the purpose of comparing their tax reporting practices:

Egyptian Firms:

- Telecom Egypt - Mobinil - Etisalat

Non-Egyptian Firms:

- AT& T - MCI - Sprint

Egyptian Firms

I) Mobinil: Founded in the year, 1988, Mobinil is one of the largest telecom companies in Egypt. As for the tax reporting by the company, during 2012, the company reported current tax expense of + ...

Financial Analysis: Microsoft

Introduction: For the purpose of the project and adhering to the requirements, we have selected Microsoft Corporation as the company to be analyzed. The company is a renowned name in the computer industry around the globe and is listed on NASDAQ under the ticker symbol of ‘MSFT’. Headquartered in Washington, the company is primarily involved in manufacturing and distributing of computer software, consumer electronics and personal computers. Microsoft is the world’s largest software maker in terms of revenue and is also one of the most valuable companies in the world. Below are some of the products of Microsoft ...

Summary

This particular section sheds light on the measures used to assess the quality of financial reporting. The framework looks at a company's risk and success factors. The quality of the analysis depends on the inputs put into it. In addition, the quality of the measures used to assess financial reporting varies between companies, and can also be different for a single company for a period of time. Measures that are based on inventory suit retail businesses, measures that are based on depreciation suit capital intensive companies, and measures that are based on off balance sheet reporting are best suited ...

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No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, website www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030- 5774, (201)748-6011, fax (201)748-6008, website http://www.wiley.com/go/permissions.

Printed in the United States of America.

ISBN 978-0-470-87479-0 Annual Report Project The ...

All rights reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, website www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030- 5774, (201)748-6011, fax (201)748-6008, website http://www.wiley.com/go/permissions.

Printed in the United States of America.

ISBN 978-0-470-87479-0 Annual Report Project The ...

Introduction

Mayo’s Clinic is a health organization that is based in Rochester in Minnesota. It was founded in 1899 and has grown tremendously over the years. Today, it employs approximately four thousand physicians and scientists and 60 thousand allied health staff. Similarly, Erie County Medical Centre is a health organization located in New York City. It has a hospital facility with 550-bed capacity and more than thirty outpatient service centres. This paper seeks to analyse the financial viability of the two entities. In addition, it seeks to analyse the financial viability of merging these two entities. To this end, ...

Eddison electronic company is firm that engages in manufacturing and selling of electronic products. Based on the journal entries posted in 2005 financial year, it is evident that the firm has been in operation in yesteryears. The assertion is confirmed by the postings of raw materials, work in progress and finished goods inventory in the month of January. Like in most companies, Eddisson creates an allowance opportunity for customers to purchase items for cash or credit basis. In particular, the firm’s journal entry indicates that the sales department recorded $29440 and $28460 worth of electronic goods sold on ...

Introduction

Americans through different activities at different times have the obligation to contribute to public spending, which means paying taxes. These are one of the sources of income of the country and are extremely important for the national economy. Individuals can provide services, conduct business, lease property, work for wages, among others. Depending on the activity performed and their average earnings belong to a specific tax regime. The physical development of its actions people need to meet their tax obligations. For that, the federal department announced the applicable tax regimes according to the activities and proceeds, its implications, privileges and ...

I have reviewed your memo regarding our client Howdy Brewster which describes his business activities and the recent events which may impact his 2011 Federal Tax Return. Here is a review of the factual information about Brewster which pertains to the income tax questions. His business is an eight hundred fifty acre farm and dairy operation. About 150 Holstein milk cows are part of the dairy operation. Approximately 150 Black Angus steers are raised to sell. Brewster has one part-time employee. He employs his two teen-age sons for the daily farm work. The land has been in the family ...

Introduction

Official corruption regularly, exists in every nation with long haul financial stagnation: on the premise of easygoing induction, it is obvious that the degree of authority corruption in an economy is absolutely corresponded with government administrative action, and contrarily connected with the pace of long-run monetary development and advancement. At the same time relationship does not ensure causation: corruption may be a variable adding to a nation's monetary stagnation; then again, in the vicinity of long-run financial decrease the motivator to take part in degenerate exercises may well increment, and in this manner the causation may run from financial ...

VESTAS

Contact data. MHI Vestas Offshore Wind A/S Dusager 4 7200 Aarhus Denmark +45 82 44 88 00

Advantages

Wind vitality is an environmentally friendly power supply source and does not bring about contamination. The capability of wind force is colossal; 20 times more than what the whole human populace needs. Disadvantages The assembling and establishment of wind turbines obliges substantial forthright ventures, both in business and private applications. Wind turbines can be a risk to natural life. Cost or value of the turbines. Taking a gander at Vestas, the organization reported a request admission for turbines with a limit of ...

Executive summary

Special purpose financial statements that are conventionally provided by small businesses usually offer limited information in both quality and quantity. The main reason behind this is the freedom in reporting that small businesses have. Consequently, lenders have to be careful when using these statements in lending decisions. As a small business, Boat Builders Pty Ltd’s financial statements may not be in a good state as provided to be used in a lending decision. A critical evaluation of whether they represent the true status and performance of this business is necessary before a detailed financial analysis is done. A ...

Introduction3

Memorandum one4 Peaceful tax. 4 Facts 4 Issue. .4 Answer. .4 Analysis..4 Memorandum two..5

Facts5

Issue.5 Answer.. ..6

Analysis6

Assignment 3 .7 Publicly traded partnerships.. 7

Benefits of publicly traded partnerships 7

Summary..8

Resources used.8

Memorandum oneTo: From: RE: Peaceful taxFactsPeaceful is an accrual basis taxpayer that provides funeral services and sell related goods to these services. Owing to the rise in goods and services, customers have found it very difficult to pay their goods conveniently, to the extent that some of these clients have opted for cheaper goods and services ( Larson& Sheaffer, 2011).This move has worked to the disadvantage of Peaceful. As a result of this challenge, ...

Ford Motors Co: Financial Analysis

Property, Plant and Equipment The property, plant and equipment valued at $ 24813 which shows an increase of 11 % as compare to 2011. Property, plant and equipment includes land, buildings and manufacturing plants and other machinery and tools and other assets that are used by the company in their routine business operations. Ford Motors Co. records all its assets at cost net of depreciation and other impairments. The company has a policy of capitalizing newly acquired assets when they intend to utilize them for longer periods which is usually more than one accounting year. The cost of maintaining assets and ...

Financial Reporting

Customer Inserts Tutor’s Name (30, 09, 2013) Deferred tax asset is an asset reported on the Statement of Financial Position of a company that will be used in paying taxes for subsequent accounting periods. From financial point of view, deferred tax assets actually reduce the income tax expense for the upcoming periods. On the contrary, the deferred tax liability is an account on the balance sheet which appears because of the temporary differences arises as a result of difference between the profit calculated for accounting purposes and profit computation for the purpose of taxation. In the year end ...

- Is Steve's un-reimbursed commuting expenses an allowable deduction on his personal tax return if he is assigned to be a volunteer usher for the Church's Saturday or Sunday services? If Steve is assigned to be a volunteer in the church on both Saturdays and Sundays, his tax position regarding the un-reimbursed commuter expenses can be explained as follows: According to code 162(a), the un-reimbursed commuter expenses remain unallowable for tax purposes because of the following reasons: Such expenses are not incurred for a profit gain. Steve is not in any profitable business so as to be able to ...

- Compare and contrast fixed-price contracts and cost-reimbursement contracts Fixed price and cost reimbursement is two methodologies for making contracts for administration work. With the fixed price system, the agreement and contracting gathering consent to a fixed cost toward the begin on the project that does not change.

Benefits and drawbacks of fixed price contracts

With government occupations, organizations are normally needed to submit offers in specific ways, which regularly command an altered cost for the whole project. Organizations giving administrations to private organizations and shoppers would take a gander at the qualities and shortcomings of fixed price contracts in respect to different alternatives. Buyers progressively ...

Analysis of Projects

Some of the main things and aspects from the perspective of an organization are financial competitiveness and financial belongings. As far as increasing the productivity is concerned barely those projects would have been opted which are crucial for a company as organizations constantly try to boost up their productivity (Carl S. Warren, p.14). To analyze the efficiency of two different projects in whole is the main objective of this assignment. Each of the project’s income statement has been assigned and particularly with this investigation and simultaneously the researches of both projects are stated below:

Analysis for Project-1

It is observed from ...

Conise Management

a)Caledonia should focus on cash flows instead of accounting profits while making their capital-budgeting decisions because cash flows represents the actual cash that Caledonia receives from the project and can reinvest it in other viable ventures. The timing of the actual costs and benefits can only be analyzed using the cash flows and not the accounting profits. Accounting profit includes some non-cash expenses such as depreciation which do not represent actual cash outflows at that point in time. In making capital budgeting decisions, it is only the incremental cash flows and not the accounting profit that are of ...

Sources of Financing and Dividend Policy

Although each of the stated proposals has its own benefits and drawbacks, Echo Co should choose one that would be the most beneficial for the Company and its finances. In this paper we perform the analysis of each of the stated proposals and give recommendation on the most appropriate option for Echo Co.

Proposal A

Dividends are defined as a distribution of a part of company’s earnings to its existing shareholders (Brealey, 2009). There are several dividend theories in corporate finance which have different approach to benefits and disadvantages of dividends. According to the studies of Gordon (1963) ...

Executive summary

Royal Dutch Shell PLC commonly known as the shell is second largest energy company in the world whose registered office is in London. It is oil and Gas Company operating in various parts of the world; to stay relevant to climatic and environmental changes it engages in both renewable and non renewable energy. In addition, it is a vertically integrated oil company which engages in all oil activities from exploration to refining and marketing. Apart from its core activities, it has entered into partnership with various international organizations to preserve the environment. The company shares are listed in London ...

Analysis of Financial Statements of Goldman Sachs

Introduction A world renowned company, Goldman Sachs is an American Multinational Corporation that deals with the institutional clients offering investment banking, investment management and other related financial services. The following report will analyze some of the crucial items of the financial statements of Goldman Sachs including Earning per Share, Cash Flow Statement, Tax Deferrals, Share based compensation, Employee Compensation Plans. We are sure that by the end of this report, we will be able to have a comprehensive overview of the company’s financial statements.

Amount Disclosed Footnote Information-Deferred Taxes Note 24 of the Annual Report is related to ...

13th, November, 2013

Analysis of Electronic Arts: Ratio Analyis and Effect of Alternative Accounting Methods on Ratios Profitability Analysis: The ratio analysis reveals that over the years, the profitability of the company is improving. In terms of net profit margins, the company has made an applausable leap from -25.8% to 2.6% over the years.(2009-2013 ) This year the net profit margin of the company has surpassed industry benchmark of 2%. Analyzing the ratios relating to decomposition of profit figures provides us with a better picture relating to working of the company over the years. Both Gross Profit Margins and Operating Margins have ...

- NPV= -C0 + C1/ (1+r) + C2 / (1+r)2 + C3/(1+r)3 + Cn/(1+r)n

-Co refers to the amount which was initially invested C refers to the cash flow r refers to the hurdle rate n stands for the time

Depreciation is an expense that is tax deductible

Years Amount Tax effect After- tax cash flows Depreciation 12% factor Present Tax shield value 0 (2140000) - 2140000 1.0 (2140000) 1 (1050000) (1-0.4) (630000) 14099 0.8929 (549938) 2 10250000 (1-0.4) 6150000 14099 0.7972 5015170 3 10250000 (1-0.4) 6150000 14099 0.7118 4477920 4 11250000 (1-0.4) 6750000 14099 0.6355 4379220 5 11250000 (1-0.4) 6750000 14099 0.5674 ...

Report

Corporate takeover In a corporate takeover, two methods are commonly used. There is the purchase method and secondly the pooling of interest method. The first is applied where the acquirer can be identified while the latter is used where the acquirer cannot be identified. In a corporate takeover, several aspects of valuation are necessary. They are as follows – share valuation, valuation of business, valuation of fixed assets and shareholder agreement (Solomon, 2011). In the event of a corporate takeover, the financial statements are adjusted so as to remove items which are not reflective of the ongoing business on a ...

Analysis if the financial performance of Sprintex company ltd.

Introduction Sprintex communication limited is an IT firm that has been in the provisions of services in communication industry for he last fifteen years. Over the said period, the company has grown from strength to strength, financialwise, and notably managing to spread out it’s operations beyond the two outlets that were set by the original foundes,John Mark and Wendy In the year 1998. Currently the company is domiciled in London, operating as its headquarters and the focal point of conducting its global strategy. It has roughly two hundred and seventeen branches, most of them in the European ...

PepsiCo Inc. is a publicly traded multinational corporation in the USA with its headquarters in New York, USA. PepsiCo Inc. is the consumer goods industry. PepsiCo manufactures markets and distributes beverages, snack foods and other products. This paper seeks to analyze the long term debt of PepsiCo Inc. This paper also seeks to analyze the debt-to-equity ratio and the times interest earned ratio of PepsiCo Inc. for the last three years, and compare the respective ratios with the most recent industry ratios. Information on the long term debt, debt-to-equity ratio and times earned ratio was obtained from the annual ...

Abstract

This paper is devoted to the Clorox Company financial research. The research includes analysis of financial statements, analysis of financial ratios, bonds and stock valuation methods, calculation of dividends growth rate, description of constant-growth model, calculation of beta coefficient of stock, calculation of standard deviation of stock, calculation of weighted average cost of capital. The computations are based on the data collected from annual reports for the years 2007-2011. Calculations were made using appendices and excel spreadsheets. The arguments are supported by analysis of financial performance of the Company.

Introduction

In accordance with Bloomberg (2012), Clorox Company is a ...

There are several objectives that guide the setting up of these standards. Below is brief discussion on the importance of accounting standards and especially in the New Zealand context. These include: Accounting standards usually set the minimum level of disclosure of financial information. This ensures that all interested parties and stakeholders are adequately informed of the financial happenings in a company. Well prepared financial statements will serve all stakeholders and thus they will be able to make informed choices guided by the financial statements. These standards remove variations that may arise in the treatment of several aspects of accounting. ...

State

Executive summary Royal Dutch Shell PLC commonly known as shell is oil and Gas Company operating in many parts of the world. London it is second largest energy company in the world whose registered office is in London. It engages in both renewable and non renewable energy. It is a vertically integrated oil company which engages in all oil activities from exploration to refining and trade. However, the company has entered into partnership with many international organizations to conserve the environment. The company shares are listed in London stock exchange and its financial statement are presented in accordance to ...

Accounting Cycles

Adjusting Entries: These are entries made at the end of an accounting year usually at the end of year. These are journal entries to ensure incomes and expenses are allocated in the period that they were earned and incurred respectively. The money may not have been received or paid out in the particular period but the expenses and income are accounted for in the particular year they were earned or incurred. This is known as accrual accounting. It is also the principle of matching principle since revenue and associated costs are accounted for in the ...

Times are constantly changing. It is becoming harder and harder to stay up to date with all of the new electronic innovations that appear every year: the new phones, the new computers, the new handheld devices, and the list can go on. New vehicles are being released every year. The economy is changing, world events are shifting faster than is possible to keep up with, and as surroundings speed up personal lives are changing just as rapidly. Just imagine, then, how much the medical profession is changing! New cures for cancer are being researched; new antibiotics and other medications ...

[Writer Nаme] [Supervisor Nаme] [Dаte]

Overview of Sharon construction company The Sharon Construction company was given the contract to construct a stadium with 20,000 seats in it. The construction was supposed to commence on 15th February and was expected to take one year to complete. The contract contained a clause of penalty, which stated that any delay of one week further ahead of 15th February of next year will cause a penalty of US$ 15,000 per week. Jim Brown was the president of the company. He called a meeting to plan the project management ...

Introduction

Financial performance analysis is crucial for various stakeholders given the varying needs for performance information on various business aspects. In that respect, effective analysis entails evaluating performance over a period or comparing a company’s performance with industry peers. It also entails evaluating various performance areas using varying tools including financial ratios. In that view, the following is a report on Wyndham Worldwide Co. financial performance identifying the performance trend for the period beginning 2012 to 2014 and comparing its 2014 performance with that of the industry peers.

Analysis

Company Overview Organization and history Wyndham Worldwide Co. is a brand ...

I. Statement of the Problem During the passage into law of the Patient Protection and Affordable Care Act (Obamacare) in 2010, many of the Americans even the poorest citizens were given chances to avail of better health care services. As such, there was an uncontrolled budget on the federal health care provisions that has given them a dent in the budget. Although the policy can be credited for its coverage; that of which covering almost 80% of all Americans, the fact that the government is slowly delving into debt cannot be discredited. As such, this paper will examine the ...

Administrative Expenses:

Administrative expenses accounts for one of the maximum share in total expense of the Airport. By the end of 2013, the actual administrative expenses were $73950. The list of expenses that are part of Administrative Expenses are: Referring to Phase I, assuming inflation growth of 1.15 per year, the total administrative expense by the end of Phase I were $549658. Similarly, during Phase II and final Phase, the administrative expenses amounted to $610035 and $677044, respectively. Overall, all the projections were carried out assuming an inflation rate of 1.15%.

Liability Insurance Expenses:

The total liability insurance expense of the company constituted of ...

Budgeting

- The Make Way Foundation

Why the Funding of the Children’s Summer Expense Project was Overlooked

Fund management is critical especially for non-profit or charity organizations with limited resources, and dependent on private or public donations. Competing priorities could lead to misallocation of funds. In the case of Children’s Summer Expense Project, its omission in the Foundation’s list of priorities could be one of the reasons why funding was insufficient. In many cases, programs to be funded are based on how strong their proponents are in advocating for their cause(s). If a program has no assigned proponent to lobby for its full financial support, it will be ...

The Financial Planning Process

The Financial Planning Process The financial plan to improve the financing problem must be made according to the inflows and the outflows of the cash. Financial problems, either commercial or personal, can be managed or resolved by implementing a financial plan correctly. In the given scenario, Jan and Bill Smith are facing financial problems such as mortgage and credit card payments. The financial plan for this family must cover at least five to six months, so that Jane and Bill don’t face tough financial circumstances. ("Manage money by,") The current financial position of Jane and Bill is not ...

Abstract

Excel Academy is an Educational Institute provides K-12 Level Education in Qatar. The Academy found high devoted in enhancing the level of education within the region. The computation of financial and non-financial aspect is showing that the company will be having a tough time in the upcoming section of two to three years in the future; however the company can overcome on all of the problems soon with the help of perfect strategies and recommendations mentioned in the assignment.

Introduction

Budgeting is an important and valuable thing that associated with the core economic and financial position of an organization (Kippenberg, ...

Enter Name

Enter University name Abstract This report covers the product line of Hart Hospital Equipment Inc., how the products are currently performing as well as what opportunities there are in introducing the Pacer product in the near future. To make recommendation to management, the report will study the different effects of the work required for each segment while assessing the sales force. The marketing strategy will be discussed and how re alignment of the company’s different segments will be affected on the roll out of the Pacer. Recommendations will be made taking into account sales history as well as ...

Fraud is an intentional action to do something that is illegal or unethical. It is done to cause damage to the receiving party. Many a times fraud is also done to gain something which could be money or inside information or knowledge. Fraud is a criminal offence. It cannot be justified. Many companies have gone through the fraud and there have been cases where the fraudster has been punished. Revenue fraud is a type of fraud which affects the revenues of a company. It is done to manipulate the accounts and earn profits. Simply overstating or manipulating the revenues ...

Part A: Classification of items as assets or liabilities

Under this section, we will classify each of the given accounting transactions under appropriate category. Below presented is the snapshot of the excel sheet indicating the correct answers followed by the reasons for their classification under the relevant category:

Reasons for classification of each item:

a) An amount of £40K owed in incorporation tax: Since the company owes an amount, it will be classified under the liabilities section. b) Stock worth £15K in the stock room: Stock/ Inventories are the current assets of the company and hence will be classified under current assets only. c) An amount of £20K paid to a supplier for a ...

You Are an Entrepreneur

You Are an Entrepreneur The formation of a new business is the easiest task in any business. However, to expand that business and making it profitable is the main concern for the business owners with limited resources. In the current financial circumstances all over the world, it is becoming difficult for the small or medium size business to raise finance via share issue or debt. The main reason behind this difficulty is that the investors are losing the faith in the sustainability and the going concern issues of smaller and new businesses. Therefore, in these circumstances, it is very ...

Introduction

Mongolia is a landlocked nation in east-focal Asia. It is flanked by Russia to the north and China to the west, south, and east. Ulaanbaatar, the capital furthermore the biggest city, is home to around 45% of the populace. Mongolia's political framework is a parliamentary republic. The region of what is currently Mongolia has been administered by different itinerant domains, including the Rouran, the Xiongnu, the Turkic Khaganate, and the Xianbei. In 1206, Genghis Khan established the Mongol Empire, and his grandson Kublai Khan prevailed over China to create the Yuan Dynasty. After the breakdown of the Yuan, the ...

Qn 1

A capital expense item is any item in the company that is useful for a long period without wearing out. For example a computer hardware of software is a capital expense because it stays and does various services in the company. The term capital expense is common in any business environment and it is beneficial for the company to engage in having more capital expenses to increase on the profit of the company. Depreciation applies to the capital expense according to the arrangements made by the company, the depreciation procedure of the assets of the company follow a well ...

Question 1

The factor that would be interesting to an investor is the decline in revenue. The management of the company has reported a decline in revenue from the year 2012, resulting from a contraction in the overall PC market as well as competitive pricing pressures. These causes negatively impacted the performance of the company’s major segments. The factor would be interesting to the investor since the primary objective of investors is to maximise their returns. A decline in revenues indicates that the business is experiencing challenges that if not addressed, may have an adverse effect of the future profitability ...

Advantages and disadvantages of equity financing

Advantages One advantage of equity financing is that AMSC will not be forced to make any regular payments to shareholders. Equity holders in the company benefit through dividends and capital gains that arise from the appreciation of shares of the company. Corporations do not have an obligation to pay dividends to its shareholders. AMSC will only pay dividends to its equity holders if the company makes a profit. The rules for capital maintenance stipulate that companies should pay dividends out of distributable profits (Baker & Martin, 2011). It implies AMSC will not make any distributions to shareholders if it does ...

Introduction

A lease is a lawful document, which outlines the stipulations under which a certain party agrees to rent the property from the other party. Therefore, a lease is a contractual agreement that calls the lessee (the renter) to pay the lessor (the property owner) for the use of an asset. Both the US-GAAP and International Accounting Standards (IAS) affect the regulations for leasing contracts balancing process. IAS 17.3 defines it as an agreement, which expresses the right to use plant, equipment, or property, typically for a specific period, in exchange for the cash payments. The lawful property possessor is ...

Introduction

The main perspective of this assignment is to make a comparison between two different accounting standards which particularly are International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP). It is required to analyze both the accounting framework from four different angles that will be executed after analytical framework.

Analytical Framework

IFRS is the most widely chosen accounting standards that are taken into practice by many of the companies. The term IFRS is generally referred as “International Financial Reporting Standards” that is formulated to bring all business issues based on a platform of global identical language that helps to understand ...

An analysis of tax benefits with different depreciation methods

ABSTRACT An operational asset of the company starts to lose value as soon as it is purchased. This reduction in value can be termed as ‘depreciation’. This decrease in the value of an asset occurs due to usage, passage of time, wear and tear, technological out dating or obsolescence, depletion, inadequacy, decay etc. Different assets are acquired at a certain value and they depreciate over time. The annual loss in the value of any asset on account of its depreciation can be calculated using different methods (discussed in the essay). Every method has a different effect on the tax ...

ACCOUNTING

Memorandum RE: Zavala, Julio and Clara This memo includes a brief summary of the Julio Zavala information pertaining to tax law, a brief discussion of the tax issues that arise and examples of court cases that are likely to have an influence on the tax status of Zavala, his wife and son. Julio Zavala is married (Clara) and they have one adult son (Robin). Due to medical issues Robin lives at home with his parents. Zavala was able to retire from his day job (9am to 5pm) because he has enough money to do so. He has enough in ...

Houston Insurance Holdings is a leading specialty insurer based in Texas, USA. However, its scope of operation extends beyond the United States of America and has offices in the United Kingdom, Spain and Ireland. The insurance company underwrites 100 classes of specialty insurance products in 180 countries around the world. The company has five underwriting segments namely: Professional liability, U.S Property Casualty, Accident and Health and U.S Surety and Credit International. The firm engages in the diverse business portfolio in order to ensure consistent underwriting results irrespective of the market cycles. This has contributed to an impressive performance of ...

Introduction

Morrison supermarket is the among the largest food retailers in UK. The company success in the market over years has been attributed to establishing its own manufacturing facilities which allows it to control quality of its food. The company keeps its accounting records under the guidance of generally accepted accounting principles (GAAPS). In addition, its financial statements are prepared and presented in accordance with IFRS. The company financial records are audited by independent external auditors. This implies that the financial reports relied in calculating financial ratios are reliable. The ratio analysis of the company shows that the company profitability, ...

RE: Mr. and Mrs. Julio Zavala I have reviewed the memo regarding the requests of Julio and Clara Zavala regarding their taxes. The couple is married. He has enough money at his disposal that he was able to quit his 9 to 5 job and travel extensively. Here is a summary of the four main tax issues according to the information you provided. The first issue to consider is whether or not Julio Zavala’s expenditures can be considered as tax deductions. These trips were combination of work objectives and leisure activities to entertain his potential clients who are ...

The operations of Kudler Fine Foods have been improving over years since 2003. The financial ratios for the business provide a clear picture whether the management has been working around the clock to ensure prosperity of the company. In addition, the horizontal analysis which compares the company 2009 performance and 2003 performance is used to show how the operations of the business have improved overtime

Liquidity ratios

Current ratio= current assetscurrent liabilities = 1971,000116,920 = 16.94. This ratio is used as an indicator to suppliers whether the company will be able to pay its current liabilities especially credit purchases. The ratio ...

Answer ot question #1: Not provided as we agreed to check it by yourself.

Answer to question #2: B Explanation: Expected return and mean return are completely two different concepts. Expected return is the weighted average of the possible returns, where the weights correspond to probabilities. In contrast, mean return is the average of all of the historical returns over a particular time period. So the statement B is not correct.

Answer to question #3: A

Answer to question #4: B Explanation: Dividend yield is the return on investment in the form of dividend. It measures the dividend income earned for each dollar invested. Here General Electric Company stock was purchased at the price of S14.64 on December ...

Accrual and cash basis differs in regard to recognition of revenue as well as expenses of a business. Cash basis recognizes income when cash is received. For example, when goods are sold at a profit the profit will be recognized when the buyer pays for the goods. Therefore, if a company uses cash basis of recording trasactions, when credit sales are made it is impossible to recognize any profit to be obtained from such sales till the time customer pays. In addition, cash basis requires expenses to be first paid then recorded. This means that any expense incurred ...

Wage expenses and miscellaneous expenditure: The wage expense for the year X0 is arrived at by deducting the depreciation and miscellaneous expenses from the total operating expenditure. The Wage expenses for the 5 years, X1 through X5 are calculated by adding up a certain assumed percentage to the wage expense of the year X0. Similarly, the miscellaneous expenditures for the 5 years, X1 through X5 are calculated by adding up a certain assumed percentage to the wage expense of the year X0. This assumed percentage remains constant throughout 5 years. The percentage assumed to calculate the wage expenses and ...

Introduction

The International House of Pancakes is a large company in the hospitality sector where its major operations are carried out through franchises. It is owned by the Dine Equity company which also owns other subsidiaries in the hospitality sector. Financial ratios are used by internal and external users to judge the financial health of the company.

Liquidity Ratios

Current Ratio (2010) = Current Assets = 325,720 = 1.68 Current Liabilities 193,353 (2009) = Current Assets = 337, 144 = 1.3

Current Liabilities 257, 967

Acid Test Ratio (2010)= (Current Assets- Inventory) = 325,720- 11,977 = 1.623 Current Liabilities 193,353 (2009) = (Current Assets- Inventory) = 337,144- 12,236 = 1.259

Current Liabilities

...