1SOL7 - ValenciaCommunityCollege Assignment7.0...

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Valencia Community College Assignment 7.0 Solution – Battiste 1. The reason Ben & Jerry’s net income ratio declined from 1995 to 1996 is because SG&A expenses increased from 23% of revenues to 27% of revenues. That increase caused the company’s net income ratio to decline. The increase in operating expenses was partially offset by a decrease in COGS as a percentage of revenues. Current assets are roughly 50% of total assets. The biggest asset in percentage terms is property and equipment which makes sense for a company that manufactures ice cream. 2. The five divisions of the SEC are: (1) corporate finance; (2) trading and markets; (3) investment management and (4) enforcement. The corporate finance division XXX. The overall mission of the SEC is too protect investors and creditors. 3. Key provision of the Sar-Ox Act are: (1) Established the Public Company Accounting oversight board to review, inspect and discipline auditors. (2) Prohibited auditors from also being consultants to the companies that they audit so that auditors remain independent. (3) Mandated that company executives explicitly take responsibility for financial statements. Previously, company executives could just blame the accountants if something was misreported. (4)
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1SOL7 - ValenciaCommunityCollege Assignment7.0...

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