Retained earnings Essays

  • The Pros And Cons Of Forensic Accounting

    810 Words  | 4 Pages

    Forensic Accounting: Dr. Larry Crumbly (2017) sees forensic accounting as a specialty area of accounting that describes engagements that result from actual or anticipated disputes or litigations. In general terms, it is a practice that invites use of accounting skills to investigate fraud and malpractices in the corporate space and bureaucracies, and analyze information drawn from such investigations for the purposes of use in legal proceedings. According to the Forensic CPA Society, there are numerous

  • Refresco Gerber Case Study

    739 Words  | 3 Pages

    4.1. Refresco Gerber Refresco Gerber is the leading European bottler of soft drinks and fruit juices, serving both retailers and branded customers. Its global sourcing and local innovation capabilities offer a nearly limitless variety of products, manufactured to customer specifications and requirements. It has long-term relationships with leading discounters and full-service retailers across Europe with a wide range of private label offerings. In addition to supplying retailers, Refresco Gerber

  • Spirit Airlines Case Study

    942 Words  | 4 Pages

    Spirit Airlines is an American Ultra-Low-Cost carrier, founded in 1980, operating throughout the United States Latin America, Caribbean, Mexico, and South America. Headquartered in Miramar, Florida, Spirit Airlines allows passengers to decouple elements and perks that are often included in the base fare tickets of other airlines companies. This means you pay for only what you use such as the space, bags, refreshments, insurance, etc. The best description about Spirit Airlines flight booking is, passengers

  • The Accounting Cycle

    1750 Words  | 7 Pages

    Accounting cycle can be defined as a sequence or process that is involved in completing the accounting process. Accounting cycle also refers to traditional procedures that performed by the company in order to record all the business transactions during the accounting periods. There are several sequences includes in the accounting cycle such as identifying, collecting and analyzing documents and business transactions, records the process in journals, posting the journalized amounts to ledger, preparing

  • Trade-Off Theory Vs Trade Off Theory

    799 Words  | 4 Pages

    In general, Trade-Off Theory is another approach on gearing. In addition, this theory recognizes that target debt ratio varies from different organisation (Peake and Neale, 2009). However, the application of the shield tax applies to companies that are safe, with tangible assets, taxable income to shield must to have a peak target ratio. Furthermore, that does not have wealth maximization, and are high in risk resort to equity financing. However when expense are involved there are deferments in

  • Leela Crosby And Alysha Shroff: Case Study

    896 Words  | 4 Pages

    Corporations have three methods available for raising new capital in the free enterprise system. retained earnings- putting money from the company’s profits back into the business after taxes and dividends, if any, have been paid borrowing- taking out loans or issuing bonds which are sold to investors equity financing- issuing new shares of stocks Although

  • Naspers Limited Project Essay

    1010 Words  | 5 Pages

    Naspers Limited Project 1. The three main users of financial statements include: Prospective investors use financial statements to assess whether or not investing in a company. They predict future dividends by looking at disclosed profit in the financial statements and can judge how risky a business is by fluctuating profits. Lenders and Other Creditors (institutions like banks and other lending institutions) use financial statements to decide whether to help the company with working capital or to

  • Logitech Case Study Solution

    705 Words  | 3 Pages

    reach into agreement and contracts that are not shown in the balance sheet. However, it is important from the view of the stakeholders of the company. 6. Explain what has caused the change in the retained earnings account from March 31, 2009 to March 31, 2010. The change in the retained earning account from March 31, 2009 to March 31, 2010 is because Logitech has not compensate dividends to the shareholder of the company during the year. The company kept that part of income to reinvest to the

  • Summary: Short Term Financing

    1201 Words  | 5 Pages

    time of liquidation of the company. Normally the preference shareholders will not have the voting rights. 2. Retained Earnings “The percentage of net earnings not paid out as dividends for shareholders, but retained by the company to be reinvested in its core business activity, or to pay debt. It is recorded under shareholders' equity on the balance sheet”. Berkshire can use the retained earnings to finance in their new hospital and testing clinic. 3. Venture Capital Definition of venture capital is

  • The Pros And Cons Of Corporate Finance

    1685 Words  | 7 Pages

    asset replacement. This surplus cash is called retained earnings in corporate finance. Retained earnings must not be confused with the accounting term ‘retained profit’, which is found in both profit and loss accounts and balance sheets. Retained profit in the profit and loss account may not be cash, and retained profit in the balance sheet does not represent funds that can be invested. Only cash can be invested. A company with substantial retained profits in its balance sheet, no cash in the bank

  • Vertical Analysis Of Costco

    1703 Words  | 7 Pages

    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

  • Massachusetts Stove Company Case Study

    1064 Words  | 5 Pages

    equity ratio has fluctuated from 224% in year 3 all the way 32.6% in year 7. This change occurred because of the companies change in capital structure leverage. The reduction in the company's long-term debt and reduction in their deficit of retained earnings reduced their capital leverage, but this does not mean they are less profitable. Massachusetts Stove Company maintained a stable profit margin for ROCE from year 3 to year 7 and still saw increases in their net income. Over the past five years

  • Under Armour P-E Ratios

    1538 Words  | 7 Pages

    17) and dividing them by the diluted earnings per share (UAA = $0.45, UA = $0.71), the price-earnings ratios could be calculated. UAA has a price-earnings ratio of 64.55 and UA has a price-earnings ratio of 35.45. In terms of the P-E ratio, the lower the number, the better. UA has a slightly negative P-E ratio and UAA has a very negative ratio. " A low P-E might indicate a number of negative factors, including, but not limited to projected lower earnings. However, it is important to note that

  • Harry Davis Case Study

    846 Words  | 4 Pages

    equity: A company can raise common equity in following two ways: i. By retaining earnings and ii. By issuing new common stock. d. (2) Cost associated with reinvested earnings or not: The companies may either pay out the earnings in the form of dividends or else retain earnings for reinvestment in business. If part of the earnings is retained, opportunity cost is incurred, stockholders may had received those earnings as dividends and then invested that money in stocks, bonds, real estate and others

  • Eli Lilly: Company Analysis

    904 Words  | 4 Pages

    CITIGROUP Citigroup is American multinational investment banking and financial services corporation whose headquarter is in Manhattan, New York City. It was formed in October 1998 by merging one of the largest mergers in history by combining the financial conglomerate Travelers group and banking giant Citicorp. Citigroup had the world's largest network of financial services , extended across 140 countries with approximately 16,000 offices worldwide. It holds customer accounts of over 200 millions

  • How Did Nike's Board Declare An Increase In Fiscal 2008?

    836 Words  | 4 Pages

    = 7.68% 5. Return on stockholders’ equity = Net income / Average stockholders’ equity Net income for 2009 = $272 million Average stockholders’ equity for 2009 = $1,732 million Return on stockholders’ equity for 2009 = $272 / $1,732 = 15.70% 6. Earnings per share = Net income / Number of equity shares for 2009 Outstanding shares during the year = 86.816 million shares Net income for 2009 = $272 million EPS = $272 / 86.816 = 3.13 per common

  • Financial Case Study: Delta Signal Company

    682 Words  | 3 Pages

    have been accomplished. This process measures the result of the overall financial health of the company over a period. The most efficient and effective metrics we choose were the improving operating income and return on equity and increasing sales, earning per share. Firstly, our sales have gradually increased in every single period, despite the minor changes in initiatives. Every single period, we removed initiatives that were not aligned with our goals and objectives, and replaced them with initiatives

  • Nero Case Study

    2272 Words  | 10 Pages

    Question 1 Several factors have been proposed as providing a rationale for mergers. Among the more prominent ones are (I) tax considerations, (2) diversification, (3) control, (4) purchase of assets below replacement cost, and (5) synergy. From the standpoint of society, which of these reasons are justifiable? Which are not? Why is such a question relevant to a company like ICI, which is considering a specific acquisition? Explain your answers. Answer: From the stand point of society, synergy is

  • How Successful Was Franklin. D. Roosevelt's New Deal?

    940 Words  | 4 Pages

    How Successful was Franklin.D Roosevelt’s New Deal? What is known to us all is that the Great Depression of 1929 was one of the worst time periods in American history. Although the laissez-faire capitalism brought the economic prosperity, earnings for farmers and industrial workers fell. While this represented lower production costs for companies, it also precluded growth in consumer demand. Thus, by the mid 1920s the ability of most Americans to purchase new automobiles, new house and other durable

  • Penn Central Vs New York City Summary

    968 Words  | 4 Pages

    decision is one in which the total earning capacity of the economy is maximized even when that earning capacity is mainly held by a single individual. Posner would have strongly argued against the ruling, claiming that an increase in overall profits due to the proposed structural changes of Penn Station would provide a longer-term and greater total benefit to the economy (Leiter 1). Expanding on the benefit of the economy, he suggests that the increase in total earning capacity of the individual owner