• What fair values should be recorded for the intangible assets as part of the acquisition…
Marshall is the purchasing agent for the DigitoolArt Corporation. His duties require him to negotiate and execute contracts to purchase office supplies and equipment for the corporation. Assume that Bronson, a computer salesperson, pays Marshall a $20,000 kickback to purchase from him computers needed by the DigitoolArt Corporation. What breach of the duty of loyalty has Marshall committed here? A) competing with the corporation B) making a secret profit C) self-dealing D) usurping a corporate opportunity 4.…
Case Study Three: Arcadia Sports In the case of Jeb and Josh in the formation of Arcadia Sports, there are issues concerning the business entity and liability to Jane, who suffered an accident during an excursion with Arcadia Sports. It is unclear what type of business has been formed between Jeb and Josh and what liability each may have for the accident and what personal assets would be involved considering Jeb’s bankruptcy. Therefore, the main types of business entities, including advantages and disadvantages, will be discussed before providing a recommended business entity for Jeb and Josh. Further, an assessment will be made of the type of business that would result in personal liability for Jeb and Josh for Jane’s accident, and how each…
According to the industry group Airlines for America, 14.2 million people are expected to travel during the 2015 Labor holiday weekend. With that number increasingly on the rise, air travel is booming and has just piqued business titan Warren Buffett’s interests. Warren Buffett’s illustrious Berkshire Hathaway Inc. has recently acquired Precision Castparts in an estimated 32 billion dollar deal that can only be written in the stars. In what is said to be the company’s largest merger, Berkshire Hathaway Inc. paid $235 per share in cash for the company which makes metal equipment for the aerospace industry. The merger is reportedly expected to close in the first quarter of 2016.…
This report analyzes Yellow Leaf Fashion’s financial position in 2014 using liquidity, activity, profitability and coverage ratios. The company used current ratio, current cash debt coverage ratio, inventory turnover, asset turnover, profit margin on sale, return on assets, times interest earned ratio and cash debt coverage ratio. The current ratio is a liquidity ratio that assesses the company’s operating efficiency. The current ratio is computed by dividing the company’s current assets by current liabilities to assess whether it has enough resources to meet its obligations even when faced with unexpected events.…
Assets equal the liabilities plus the owners’ equity in a…
Dividends Paid | | Sales of Common Stock | 13,700 | Purchase of Common Stock | | Cash from long term debt | 18994 | Retirement of long term debt | | Change in current debt (net) | 20341 | | Net change in cash position | 24600 | | Starting cash position | 3,434 |…
Buildings that were acquired under capital leases had a net book value of $920,000 and $971,000 at February 2, 2014 and February 3, 2013, respectively. Depreciation expense was $11.0 million, $9.9 million and $8.2 million in fiscal 2014, 2013, and 2012, respectively. By the end of fiscal year 2015, the Company held less than $10 million of debt – all of which represented capitalized leases. Krispy Kreme’s financing activities, involving the issuance and/or repurchase of the company's own bonds or stock as well as short-term and long-term borrowings and repayments, grew at a substantial rate as well. For 2013, the Company had a strong showing whereas it was able to repurchase $20 million of its shares for an average price of $6.42.…
AB Corporation compare to Lexis resort Lexis resort is using out station recruitment that is same as AB corporation but the procedure might be different and it can be further explored. First of all, Lexis resort uses recruitment planning. It is a draft of what is planning meant to be. For examples, the skills, experience, qualification, pay, position and so on of employees. As this is only the first step of Lexis resort because they do have a high budget and more helping hands, while AB Corporation differentiates the first step into 2 simple steps that are research target area for recruitment and identify vacancy.…
Because EBITA is negative it limits our possibilities to which multiples we can use. We have used price over sales and found a value of $75 million. This amount is calculated from the numbers before the strategic changes and without the synergy effects. If we consider the growth this is supposed to give, then the value will be estimated to over $100 million, and therefore this supports our decision to bid $100 million for Pinkerton. However a price to sales multiple is inconsistent as the numerator and the denominator do not accrue to the same claimants.…
Oct. 1 Pete Hanshew begins business as a real estate agent with a cash investment of $15,000. 2 Hires an administrative assistant. 3 Purchases office furniture for $1,900, on account. 6 Sells a house and lot for B. Kidman; bills B. Kidman $3,200 for realty services provided. 27 Pays $700 on the balance related to the transaction of October 3.…
Isaac Neal Be Our Guest, Inc. Party Rental Equipment Service Marketing Analysis: Be Our Guest, Inc. is a company that rents out party equipment, such as tables, silverware, and chairs, for events around the Boston area. In 1983, Steve Lizio founded the company and it began as a service that provided wait staff to catering companies, but over time, this idea transformed into a rental company. Be Our Guest is an extremely seasonal company and most of their business comes from the last quarter of the year and their lowest in the first quarter. Be Our Guest , Inc. prices are higher than their competitors, but they believe they provide the best quality of customer service and their inventory.…
Answer: Yes, Bo would be entitled to recover his $1,000 payment plus the $150 cost of clearing the land. He has the option to rescind his contract. Also, Sadia had knowledge and consent that Bo was going to had Lot No. 2 cleared of brush. Therefore, he should be able to get the money back for the cost of clearing the land. (g) Assume that on March 1.…
Audit Group Case 4, Billy’s Beats Billy’s Beats Inc. Completing the Audit Due Date: December 10 by 8PM Please read the instructions below carefully. Failure to follow these instructions may adversely affect your grade for this assignment.…
This is obtained from enterprise value of Broadway and Landmark after acquisition. To have this value, we have to find the enterprise value for both companies after acquisition. Because the companies’ growth is projected, we have free cash flows for Broadway and Landmark. Therefore, there only one missing variable is cost of capital. The cost of capital I used is 8.42% which is obtained from the information on industrial performance in exhibit 4.first…