Question 1
A) Form the Statement of Cash Flow Statement both of the company such as FN& Company and Hup Seng Industries Company use the same method it is direct method. Indirect method is easier to understand.
Different between the direct method and indirect method is the calculation at Operating activity. Direct methods is calculate the items cash from the customer. A cash outflows such as rent paid and also the cash inflows. As an example, shares form the customers.
Indirect method is difficulty to understand. It present a reconciliation of accrual accounting net income to cash from operating activities and it also record revenues and expenses when it changes to cash. In others word, Converts accrual basis net income figure on the income
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The Hup Seng Industries Berhad account receivables turnover is 7.34 times per year. That means that the higher that account receivables turnover the faster that company that can get their money back to cover their debts.
The Hup Seng Industries Berhad asset turnover is 1.21. For every dollar that Hup Seng Industries Berhad generates 1.21 cents.
For every 1 dollar liabilities the F&N Company can pay RM2.49 in year 2014 for every 1 dollar liabilities the Company can pay RM 2.16 for the year 2014
Hup Seng Industries Berhad have 0.31 debt. The ratio above 1:0 indicate that the Company have more debt than asset. The 0.45 or 0.45:1 means that the creditors of the Company provides 45cnts of the asset for each of $1 of asset.
The Hup Seng Industries Berhad can pay RM0.36 for each dollar of Company revenue is available to cover their other expenses. The Hup Seng Industries Berhad net profit is 14% means that every $1 sale that the company contributes that 14% towards the net profits of the business.
The Hup Seng Industries Berhad only provide the 22.74% on the return on asset. It means that Hup Seng Industres Berhad earn 22.74% for their overall
These balances, as well as income tax expense, are determined through management's estimations, interpretation of tax law for multiple jurisdictions and tax planning. If the Company's actual results differ from estimated results due to changes in tax laws, changes in store locations, settlements of tax audits or tax planning, the Company's effective tax rate and tax balances could be affected. As such, these estimates may require adjustment in the future as additional facts become known or as circumstances change. Changes in the Company's assumptions and judgments can materially affect amounts recognized in the consolidated balance sheets and statements of income
The total value of the firm has been calculated with the help of PV of cash flows and the continuing value and it shows an amount of
Wilkerson is currently using the traditional costing system. “Companies that use the traditional costing method assume that the volume metric is the underlying driver of manufacturing overhead cost.” Traditional product costing was established when direct material costs and direct labor costs accounted for the bulk of product costs incurred inside a firm. In the Wilkerson company, materials and labor costs are centered around the prices of materials and labor rates.
In return for lending the money, the firm need to pay the principal plus interest payment at some agreed time in the future. The most common debt
The eighth step involves recording closing entries. Closing entries purpose is to end the accounting period to data in the temporary accounts to the ever-lasting income statement accounts and balance sheet. Transferring the balances of the nominal or temporary accounts to owner equity or retained earnings accounts is used because this account only affect one accounting time frame (edunote (2016). The ninth step is “Preparing a close trial balance “.
Gemini Electronics has become a successful electronics company that looks to be growing on an upward slope. We can see where Gemini is booming, as well as where they are lacking, by analyzing their Ratios and Statement of Cash Flow. Liquidity measures a firm’s ability to meet its cash obligations; shown by calculating the Current Ratio and the Quick Ratio. Gemini’s liquidity has slightly increased from 2008 to 2009, but remains below the industry average. An acceptable Current Ratio should be around 2:1, which Gemini has exceeded in 2008 (2.52:1) and 2009 (2.56:1).
Their current ratio is 1.4% (total current assets/total current liabilities). According to the Risk Management Association of Financial Ratio Benchmarks, the current average ratio is 1.5%. In 2014, the current ratio for the firm was 1.46% while the average ratio in the industry (NAICS 311330) was 1.6%. The company’s net property and equipment in 2015 is worth 2.6 million dollars, a slight increase from 2014, which was 2.3 million. The company is considering taking on some debt to increase their production capabilities.
1. Define acronyms CRP, EDI, OSB, ECR and explain. CRP stands for "continuous replenishment program". CRP was a process that P&G created in order to increase logistic efficiency. The process consisted of using electronic data interchange (EDI), which is an electronic system that transmits data instantaneously from one business to another.
Also, various methods of controlling costs such as standard costing system and flexible budgets have close relation with the variable costing system, in turn making it easy to use those methods. 3. Companies using variable costing system are able to prepare income statement in contribution margin format that provides necessary information for cost volume profit (CVP) analysis. On the flip side, this data cannot be directly obtained from a traditional income statement prepared under absorption costing
Now, Cost of equity (Re) = 8.95% + 1.21×7.43% = 17.94% While determining the cost of debt we again used 8.95%,30 year U.S. Government Interest Rate given in Table B as the risk free rate plus 1.10% debt rate premium above Government rate, which is given in Table A. Cost of debt (Rd) = 8.95% + 1.10% =
EXECUTIVE SUMMARY Black and Decker is a manufacturing company which produces power tools and accessories, household products, security hardware and outdoor products. B&D has a good ranking both in Europe and US, which is 19 and 7 respectively. The company has a really strong market position with their products in the “consumer” and “industrial” segment, contrarily to their inefficiency in the fastest growing segment, “tradesmen”, which their rivals are really strong at. Accordingly, company wants to increase their market share on this segment and establish recognition of their brand on the tradesmen segment.
Motilal oswal securities Ltd The Motilal oswal ltd company was the parent company of the Motilal oswal securities ltd, it was the subsidiary company. Motilal Oswal Company was established by Motilal oswal and Raamdeo agarwal in 1987 and gets the membership from the BSE. It got it final certificate of registration approval in the year 2010 from the securities and exchange board of India regarding the setup and expansion of the business of mutual funds in the country. Motilal oswal securities ltd was incorporated in the year 1994 and its main business is stock broking and wealth management. Motilal Oswal Company has 99.95 % holdings previously which became 100 % holdings In Motilal securities ltd .It was one of the subsidiary company of the
The Honda Motor Company, Ltd. was formerly established in the great country of Japan in 1949 by Soichiro Honda and Takeo Fujisawa. The first product that was introduced to the world was called the “Dream” D-type motorcycle. The main focus that founder Soichiro Honda built the company around was to create new values and not to imitate other companies who produced similar products. In 1959, Honda Motor Company, Ltd. entered into the Unite States as the American Honda Motor Company. They settled in Los Angeles, California and was known as the first international subsidiary of Honda Motor Company,
In addition, the net profit margin of the Ajinomoto Berhad is increasing. I recommend that the investor can invest in the Ajinomoto Berhad as the profit can be made through the investment in the Ajinomoto
The current ratio is a liquidity and efficiency ratio that measures a firm's ability to pay off its short-term liabilities with its current assets. In the year 2012, KHB had a current ratio of 1.688 but it comes to decrease in 2013 to a 1.642. The ratio in the year 2014 was 1.670 indicating a slight increase. The competitor of KHB, the PMMB had a current ratio of 4.785, 4.012 and 3.622 from the year 2012 to 2014 respectively. A current ratio should be more than 2.0 as a higher current ratio indicates a more promising current debt payments.