What is the difference between company book value and market value? Explain why these two
Book value is the net asset value of a company. Book value is calculated by subtracting
intangible assets (patents, goodwill) and liabilities from to
What is an opportunity cost? Under what circumstances are opportunity costs relevant to a
decision? Construct an example of an opportunity cost. Briefly discuss why you think financial
reports for investors and managerial reports for managers may or may n
Briefly describe the cost-volume-profit analysis model and discuss how it can be used.
The cost-volume profit (CVP) analysis is a tool used to find the breakeven point between
cost and product sold volume by examining the relati
In an effort to improve cash flow, your supervisor suggests paying trade creditors more slowly. Is
such a move advantageous for a company?
Inventories are financed by accounts payable. Accounts payable are often referred to as
Discuss factors that limit the usefulness of financial accounting information for ratio analysis.
Ratio analysis is often used to compare information taken from financial statements in
order to better understand the results, fin
What are some of the benefits that could be received by a preferred stockholder versus a
If a company has structured its business as a C corporation, there are two classes of stock
that a company can offer. T
Discuss what is meant when a company takes a big bath. In addition, provide an example of
big bath behavior and discuss why an analyst or potential investor may be concerned with this
A big bath is an earning man
Should employees be included in the budgeting process? Explain your reasons why or why not.
The term for involving employees in the budget creation process is bottom-up or
participative budgeting. The approach is driven by inclu
Explain the differences between cost-based pricing and target costing.
Cost-based pricing is the use of total costs to determine base level pricing. These costs
include manufacturing and productions costs (Writer, 2011). This mo
How do companies use accounts receivables to shift income? Explain why managers engage in
this sort of activity.
Companies are in business because they usually offer a service for sale or product for use.
Part of the role of sel
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The ZD13flnanlziaI5tatemehts of Leggettg Plattj Inc. lriclude the Following ll'lformatlorl in a footnote What arethe tompany's gross accounts and other receluables at the end of2013?
lin milllons) 2013 2012
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Contingent Liabilities must have the following criteria (salsa all that appi'y):
Seiect one or more:
D A. The obligaiio
is certain to require payment at some point in the luture.
El B The obiigation will
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Wny mighta company repurchase its own stock?
A. itbelieves that die market undewaiues its shares
B. To offset diiutive eecrs or employee stock opuons granted
c. To recognize an economic gain when
querrluw1 Current FDlrllswlDH.DU PFiagnuesrmn
ROE i5 (umputed as
A. Net income attributabie to controlling interest fAverage equity attributableta CDHIFDHing ineerest
B. Net incume attributabie no contraHlng interestf Net saies
C. [RNDA T (FLEV
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which of the following should an a nalyst consider moving out of operating cash flows for analysis purposes?
A. Decreases in accounts payable
' E. Decreases in accounts receivable from securiti
1.- . ._.-. .- _- _. .-_ -.- .-.-.,
Cost of goods sold
Restructuring charges - cost ofgoods sold
Selling general and ad ministrati'u'e expenses
Goodwill and trade name impairment
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Cost Behavior Analysis in a
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Appropriate Transfer Prices: Opportunity Costs
Piains Peanut Butter Company recently acquired a peanut-processing company that has a normai annual capacity of 4.000.000 pounds and that sold 2.800.000 poun
(a: Compute net operating profitartertax (NOPAT) for 2009. Assume that the combined federal and statutory rate is: 37.0%. (Round youranswer to the nearestwnole number.:
2009 NOPAT: 5 494 x
(b) Compute net aperatingassets (NOA: for 2009 and 2009.
cfw_d Prepare a cash budget for each month ofthe second quarter endingjune 30. 2010. Include budgeted borrowings and repayments.
Only use negative signs. if needed. for: excess receipts cwer disbursements. balance before borrowings and cash balances [begi
Points out of 1.00
When management directs attention only to those activities not proceeding according to plan,
they are engaging in
A. activity-based management.
B. Management by exception.
Points out of 1.00
A segment report can be prepared
A. only for reporting units of an organization.
B. only for strategic business segments of an organization.
C. for any part of the business for wh