Capital asset

Intangible assets; assets that is not physical in nature. Corporate intellectual property including items such as patents, trademarks, copy rights and business methodologies. In Lufthansa account are shown at cost while internal lead to intangible assets from which the group expects to obtain future benefit and which can be measured reliably are capitalised at cost of production and…

Coverage ratios include debt service coverage ratio, Cash Debt Coverage Ratio, and the asset coverage ratio. • Asset Coverage Ratio This ratio looks to the balance sheet assets in comparison to debt. The ratio is a company's total assets minus short-term liabilities divided by its total debt, a ratio of two or above means that the company has sufficient assets to manage its debt. • Asset Coverage Ratio = (Total assets - short term liabilities) AVON= .5 ULTA= 2.01 REVLON= .63 • Debt-Service…

1-3 Concept of Working capital management Working capital management according to Smith (1987) is significant and affects mutually liquidity and profitability of the business. It includes forecasting and monitoring current assets and current liabilities in a way that reduces the risk of lack of ability to meet due short term debts on the one hand and prevent extreme investment in these assets on the other hand (Eljelly, 2004). Lamberson (1995) said that working capital management has become one…

The quick ratio as quick assets/ current liabilities this ratio is more conservative than the current and it shows that Amazon will be able to cover each $1 have by $ 0.82. This percentage consider not the favor of the company as it supposes to be at least each $1 in the company…

1. Working capital of the company was increasing in 2011-12.It increased from 2010-11 to 2011-12. In the current financial year 2013-14 net working capital is 63,227.00. It shows good liquidity position. 2. Positive working capital indicates that company has the ability of payments of short terms liabilities. 3. Working capital increased because of increment in the current assets. Company’s current assets were always more than requirement which affected the profitability of the company. 4. In…

cash in the long run. 3) As Mr. Cartwright’s financial advisors, we would recommend against obtaining a loan to expand his business. We calculated some financial ratios to reach this conclusion and found poor management of trade credit and AR. The asset ratio demonstrated that over the three years Mr. Cartwright went from an average of 37 days to collect AR to 43 in 2003 based on projections this will continue to rise to 46 days in 2004. Additionally, the current ratio and the quick ratio has…

WACC gives the cost of this capital raised by putting appropriate weights on the cost of equity and the cost of debt R_E=R_f+〖(R〗_m-R_f)*β_M R_f=risk free rate (govt. security bonds) R_m-R_f=risk premium β_M=systematic risk (regression of stock returns of company on market return) The cost of equity is calculated via capital asset pricing model. Cost of debt is calculated by taking the interest rate for the year 2013 as Interest/EBIT…

Adley- Week2 DQ2 Initial Reply Capital expenditures (CAPEX) are actual expenses incurred to purchase or maintain property assets. These cash outflows are capitalized on the balance sheet, shown as depreciable expenses on the income statement, and deducted over an IRS-specified term of 3-7 years. Explicitly regarding pro forma analysis, CAPEX are projected costs to maintain the asset in good repair, and a line-item section under improvements of the depreciation schedule, along with tenant…

From the above findings, it is concluded that the value of comparative study on financial performance of Ambo and Robi-berga farmers’ cooperatives unions,:  Liquidity ratios: like current ratio, quick ratio, absolute liquid ratio and networking capital ratio of Ambo farmers’ cooperative union was good liquidity position during the study periods. So, the ratios of Ambo cooperative union were above the standards, hence the Ambo union was paid short-term obligations. However, Robi-berga farmers’…

Lee’s Model vs. Lawson’s Model There are some basic differences in the Lee and Lawson proposal for formulation of Cash Flow Model. Firstly, Lee conceived the structure of cash flow accounting as an inter-locking series of statements for a variety of users. Lawson, on the other hand, is mainly concerned with the provision of cash flow data to improve the information base of investors and financial managers. Secondly, Lee’s system is enterprise oriented, intended for a variety of user group, and…