CHAPTER 2 ASSET AND LIABILITY VALUATION AND INCOME MEASUREMENT
Solutions to Questions, Exercises, and Problems, and Teaching Notes to Cases 2.4 Measurement of Acquisition Cost. Acquisition cost is $24
CHAPTER 3 INCOME FLOWS VERSUS CASH FLOWS: UNDERSTANDING THE STATEMENT OF CASH FLOWS
Solutions to Questions, Exercises, and Problems, and Teaching Notes to Cases 3.7 Computing Cash Collections from Cus
CHAPTER 11
RISK-ADJUSTED EXPECTED RATES OF RETURN AND THE DIVIDENDS VALUATION APPROACH Solutions to Questions, Exercises, and Problems, and Teaching Notes to Cases 11.12 Calculation of Dividends-Based
In-class Part (50 points, 75 minutes)
Multiple-Choice Questions (25 questions 1 point = 25 points):
Cover the book text (Refer the learning objectives of each chapter).
Short Answer (5 questions 5 poi
In-class Part (50 points, 75 minutes)
Multiple-Choice Questions (25 questions 1 point = 25 points):
Short Answer (5 questions 5 point = 25 points):
1. Assume that you are currently negotiating a lease
Equity Financing
Book value of Equity is used to analyze profitability and risk (Chapter 4 &5).
This chapter is also used in residual income-based equity valuation (Chapter 13 &14).
Three events chang
Overview
The operating activities are reported:
Operating section in the income statement (Accrual basis)
Operating cash flow in the statement of cash flow (Cash basis)
CH7: the liabilities generated
Overview
Investing activities create assets, and thus, the accounting for investments directly affects the ROA and
forecasted future financial statements.
Two broad categories:
1. Long-lived operating
Chapter 10
Forecasting
Financial
Statements
Forecasting Financial Statements
Forecasting
Necessary step in process of valuation.
Process builds pro forma financial statements
Chapter: 10
Six-step Fram
CHAPTER 5 RISK ANALYSIS
Solutions to Questions, Exercises, and Problems, and Teaching Notes to Cases 5.5. Effect of Transactions on Debt Ratios. a. The effect of the four transactions on each debt rat
CHAPTER 8 OPERATING ACTIVITIES
Solutions to Questions, Exercises, and Problems, and Teaching Notes to Cases 8.15. Income Recognition for Various Types of Businesses. a. Banks recognize interest revenu
Danielle Machado
Professor S. Han
ACT 454: Financial Statement Analysis
March 7, 2017
HW 4.24
4.24: Calculating & Interpreting Profitability Ratios
a) Calculation of profitability ratios
Profit Margin
1.
Managerial accounting information is generally prepared for
a.
b.
c.
d.
stockholders.
creditors.
managers.
regulatory agencies.
Ans: c, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA
Advanced Managerial Accounting-Week3-HM-Solutions
1.
Sales mix is
a.
b.
c.
d.
the relative percentage in which a company sells its multiple products.
the trend of sales over recent periods.
the mix of
1. Disclosures Regarding Risk and Risk Management
The SEC requires firms to identify risks they face prominently as Item 1A. Risk factors on Form 10-K.
Non-U.S. companies that list securities in the U
Return on Assets (ROA)
ROA = [Net Income + (1 Tax Rate) Interest Expense + Noncontrolling Interest in Earnings]/Average
Total Assets.
Because ROA is the return to the total assets, the capital structu
Overview of Financial Reporting, Financial Statement Analysis, and Valuation
Book Structure:
Chapter 1-5: The principal financial statements and tools for analyzing profitability and risk. How you
can