Balance Sheet vertical Analysis: Costco’s long-term debt was 5.1% of their original asset in 2012; it is increased to 14.5% of their total assets in 2015. During the past four years, Costco Wholesale Corporation had a 9% increase in their long-term debt as shown on the vertical analysis of the balance sheet. There are few main causes to this change. Firstly, In December 2012, Costco issued $3,500 million of Senior Notes to fund the business, these notes are payable in 2015 2017, and 2019. Secondly, the Japanese Costco Subsidiary issued approximately $102 million of promissory notes with 1.05% interest that is due in May 2023, then the same subsidiary got an approximately $102 three-year term loan in July of 2013, which bears an interest
The peak came on Dec. 29th, 2000 when share prices hit a high of $55.95. In 2012, share actually dropped below $14 before starting an eventual ascent to $35.10 at the last recorded trading day for Safeway stock, Jan. 29th 2015. After this, AB Acquisition LLC merged with Safeway and Safeway stock was de-listed from the New York Stock exchanges. Did Safeway generate long-term profitable growth for shareholders? That would depend on how you define long term.
5. How would Fuzzy Monkey’s 2011 statement of cash flows be affected by the investment? Date Requirement Descriptions Amount in millions January 1, 2011 1 Investments in bonds (face amount) $80 Discount on bond investment (difference) $14 Cash (price of bond) $66 January 30, 2011 2 Cash (4%×$80 million) $3.20 Discount on bond investment (difference)
Program Bachelor of Arts (Honors) in Accounting and Finance N401 Module Financial Strategy 6AG522 Student Name Khaled Sweelat Student ID 058002581 Ford Motor Company Income Statement For the year ended 31st December 2000 (All values are in Million $) Total revenue 170,064 Less: Cost of revenue (126,120) Gross profit 43,944 Selling, general and administrative expenses 14,855 Other operating expenses 11,371 (26,226) Operating income 17,718 Other income and net expenses 1,418 Earnings before interest and taxes 19,136 Interest expense (10,902) Income before tax 8,234 Income
Federal income tax c. Federal unemployment tax d. State unemployment tax 7. Companies state receivables on the balance sheet at the net amount the company expects to receive in cash which is referred to as a. trade amount b. net realizable value c. actual amount d. percentage of
Memorandum to the File Date: February 1, 2017 From: Mayra Ramirez Caicedo Re: The proper accounting treatment for investments debt and equity securities Facts Orange Corporation, our client, acquired four security investments during the year 2016. First, on January 1, 2016, Orange purchased a 35% interest in Canary, Inc. for $800,000 and it paid Orange a dividend of $60,000. The fair value of the interest was $1,000,000 at the end of the year. Second, on July 1, 2016, Orange acquired 5%, 10 year bonds of ABC, Inc. for $200,000 and received semiannually payments at the end of the year. The fair value of the bonds on December 31 was $204,000.
If ABC would assume unsupportable interest payments, their operating cash flow may prove insufficient to pay the debt. Assume that the company enjoys sales of $1,000,000,000 and has costs of goods sold of $800,000,000 for a gross profit of $200,000,000 and requires $150,000,000 in operating expenses. If the company borrows money at 8% to fund its inventory – which turns over four times a year – for annual interest of $16,000,000 (Cost of Goods Sold × 8% ÷ 4), then ABC’s earnings before tax equals $34,000,000, and $22,100,000 of net income after a 35% corporate tax (see
Does the acquisition make strategic and financial sense? Provide a concise explanation in support of your assessment. (250 words max) Ans 2) Microsoft must have valued LinkedIn over $26 billion. This is more than 8 times the LinkedIn revenue of last 12 months ( $3.2 billion).The ratio is ~5 times Trailing twelve months for public companies on market places shows that price paid/valued by Microsoft is premium. However it is important to note that this is the best time for Microsoft to purchase LinkedIn (as the market cap is 60% of what it was compared to last year and it reached lowest in February 2016).There are half a billion users whose professional data and behavior is up for sale and Microsoft gets it in the right time.
When taking the $40 million debt and $100 million cash buyout of stocks into account, cost of debt is now a factor. Cost of debt was 5.88%, the bond rating of a AAA rated company like we assume Blaine
(Write 1-2 paragraphs IN YOUR OWN WORDS. If you use quotes from the sources, cite them.) 7. After conducting your inquiry, what new questions do you have that will direct your inquiry for next week or final project? Did you run into a dead end?