Case 9-2
5/16/2014
1. Cumulative Tax savings for Y3 as a result of using LIFO = LIFO Reserve x Tax Rate.
LIFO Reserve = $606; Tax Rate = 35%
Cumulative Tax Savings = $606 x 35% = $212.10
2. Pre-tax earnings if FIFO had been used instead
COGS (FIFO) = COGS
5/27/14
Case 10-2
1/ The underlying rationale for capitalizing interest in construction projects and the like
is that interest is in fact a cost of the asset, along with the assets themselves or the
materials/labor used to construct new assets. Capitalizi
Case 11-1
6/1/14
1/
Since market rate = stated rate, bond issue price is $200M. But, to show the
calculations
PV of $200M @ 7.5% $200M / (1 + 0.075)^100 = $144,606
PV of interest payments: PVF-OA (I = 7.5, N = 100)
PMT = 200M x 0.075 = 15 M ; I = 7.5 ; N
CASE 5-2
1/
Crocs was more profitable in 2006 because their EBI/sales margin was higher (0.161
= 16.1%) than Deckers (0.132 = 13.2%)
2/
this led to an ROA of 30.3% vs 17.5%, respectively. ROA = Profit Margin x
Asset Turnover so both of these ratios played
Case 7-3
5/6/2014
1. Whole Foods has opted to utilize so-called EVA as its performance metric and perhaps
considers it a better assay of company performance for purposes of issuing bonus payouts
to upper management. The alternative would be paying bonuses
Case 12-4
6/6/2014
1/
Debt
10,766
Equity = Assets - Liabilities = 25,142 - 10,766 = 14,376
Debt to Equity Ratio = 10,766/14,376 = 0.748
Return on Assets = Net Income + Interest Exp*(1-Tax Rate)/Average Total assets
(We're only given total assets, so that
CASE 8-1
*unknowns in the original table are in yellow
5/9/2014
2009
#1, 2, 3
A L L O W A N C E FOR DOUBTFUL ACCTS
Dr.
Cr.
1,324 - beg bal
1,349 - new charge
2,673 - new bal
1,371 - write offs
1,302 - end bal
Calculation for write-offs: 2,673-1,302 = 1,37
CASE 6-1
4/28/2014
*Format used for this problem based upon p. 323 of Revsine 5th Ed.
#1 & 2
($ in millions)
Forecast of earnings and equity book value
YEAR 4
BEGINNING BOOK VALUE OF EQUITY
$10,624
NET INCOME EXPECTED (9.5% ROCE)
1,009
DIVIDENDS PAID (25%
For personal use only
JB Hi-Fi Limited Annual Report 2012
jbhi.com.au
ANNUAL REPORT
2012
916CRN0516_JB_HiFi_Annual_Report_2012 - 1 - Cover_v1.indd 2
6/09/2012 8:41:18 AM
CORPORATE INFORMATION
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Financial Summary
COMPANY SECRETARY
FINANCIA