Control flow

Question 1: A. In evaluating a company should an investor rely more on accounting profits or cash flow An investor should give his or her decisions basing on a statement of cash flows because: The greatest difference between profits and cash flows is that profits data use accrual accounting, while cash flows base on real figures. Precisely, profit data will be recorded in the current period regardless of a company received money or not. Meanwhile, the other expenses such as wages, interest and…

2.2. Concept of Madhab’s Hat curve of Reliability By using the above data, Mean Time Between Failures and the Reliability for each year has been calculated as shown in the Table 2. As explained earlier the reliability has been calculated by using failure data method. Like Bath Tub curve we can put the data of Reliability for all the years in MINITAB software and after putting the data we got a curve which is shown in the figure - 3. If we observe closely we can mark the curve looks lika a Hat.…

after the patent has been issued. By filing a patent with the government, the inventor or the company that filed the patent has the exclusive right of producing that technology or product. Without competition in the market, the patent holder can control the supply in the market which…

Chris Bergeron Mark Marra B.F. Goodrich-Rabobank Case 1.In order to make this an attractive deal for Rabobank, they would need to receive more money than they pay out. We know that they have a fixed receipt each year from Morgan bank of $ 5.5 million for 8 years. Ignore the time value of money on this, it means that Rabobank would then need to pay out less than (5.5/2 = 2.75) $2.75 million semiannually. We know the equation for the amount Rabobank…

2016 to 2017. Therefore, despite of small increase, it is good indicator that return is increasing. Operating Profit %: There is decline in operating profit which indicates that operating expense has increased from year 2016 to 2017 which require control. Gross Profit %: Gross profit is also decreasing from 30% to 36%. This fall is indicator of increasing cost of sales. Fixed Asset Turnover: This ratio is satisfying as sales are generating from fixed asset efficiently. Current Asset Turnover:…

employ a software developer also reflects this financial goal. Wealth maximization requires a long-term prospective, along with consideration of risk and cash flows while profits maximization does not integrate these factors in the management decision process. Therefore, Stanley is using the correct financial…

purchase new equipment to increase the company’s printing capabilities. Additionally, capital budgeting occurs in three steps, finding the required rate of return via the weighted average cost of capital (WACC), calculating relevant cash flows, and analyzing the cash flows through capital budgeting tools such as the net present value (NPV) and internal rate of return (IRR) (Colorado State University-Global Campus, 2017). Once these steps are completed, the potential financial…

First Year Financial Statement The Perkins Family Medicine Clinic’s first year financial statement will be broken down into start-up expenses to fund and start-up assets to fund; start-up expenses to fund will cost $22,732 and start-up assets to fund will be $195,000 for a total of $217,732. The start-up expenses will be used to purchase office equipment, medical supplies, medical furniture, insurance and utilities. This start-up capital will come from the Bexar County Medical Expansion…

Canadian Tire hosted a million dollar giveaway, where it is visibly guaranteed that a lucky shopper will win a prize of one million dollars. When the underlined “will” is seen, it suggests that the winner of the giveaway is certainly receiving the listed prize money. An asterisk is placed beside the word “win”, meaning there is further information regarding the winning factor of the prize. The money piles are all in Canadian dollars which lead to the assumption that the prize will be in Canadian…

In evaluating capital expenditures, it is necessary to analyze net present value and internal rate of return to gauge return on investment. DT LLC has decided to use three depreciation methods – including straight-line, sum-of-the-year’s digits, and MACRS depreciation – to determine the profitability of XYZ’s investment. DT LLC’s accounting department believes analyzing the computer system investment through three separate depreciation methods would give a comprehensive overview of the return on…