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    Finman

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    Finman

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    19 views37 pages

    FINMAN Chapter 1112

    Uploaded by

    angelo vasquez
    Finman

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 37
    rent dsl? Or imagine yi Sees and communicate an is foowsed perspective will enhance Tobe able to analyze a company fone mist understand. the arcomplised through the financial mpany's. performance and managements privileged information Finca semen sere the ages secuning infomation system inves produce financial statements hat the company under analysis Accounting information should be information i created, All companies withou Fiance those atvites, invest in those ative Actives. Business firms conduct all thes foes including market constants and co i the were of fan eters 1 gehete ‘erty oF thei Pring nfrmaon About Farce Pm etd ty the econo Te ai poton of my eepie # a0! 1 ‘ues och contd by the ese enuresis {medi 1 i tes rete cash and eee and is car “ Tic racing th airy ofthe enrris f Sah egies inthe iu. 1. inricn st ana sce stl necting te Fortean nsf end how fate pos ad cash lows will be rier among toe with meresin He eters Information is stl in retin how sucessful the enterprise is Fly he ining fice finaee 4. formation aout gui ed solvency i sf in predicting the shily ofthe enterprise to meet the facil commitments as fll he Lg clr tothe vssiliy of ash in tbe ner Fate after taking socoun of Fea commitments and serene relers tothe avaabiliy of cash over the longer term to. mect financial ommient ate al de econ makes and ahr Sholay, fas 26 postive etn Sane tnd Ys The boa clases of we the following: ‘ut cena 1. Managers and Employees for thi ovn wl socio dw fiat ad pope financial "eta BE . opportunites: Nangeme fhe company ont di tr exetve ean a nest dai eqn ey ae re soapy oe . joa ioanelxcoring icra 1 ely ier es el tl dr oe a . os “psablish credit terms and, Sepitereir ! Seeman rere See gammnmt es Soy aac 5, Reply ont Tx is The SEC, BIR BSP and cher ‘Teaming formation 1 oe ioe, for poli pron, rie sie ea insttios demand fancial fe bsness Fes’ compliance wih nd fr setting tx and other elope 6 Cotomers and Pci Sree Partvers casiones txt curr nd pret, nxt accounting information to ree alae company’s bly provide prucs and services 8 @ foe fe comps relbliy and sig pow. Poe) press would wish io extimate Fis profitability towsess es fens 6 musa varsctons and sate alianes. tou Inthe Seourting formation a ‘These Ve Soeioden notes and the bes 2. Tie undied a oth ea A che registered compotion ‘nally ude Fanci sttne the SEC BENEFITS OF DISCLOSURE The advantages of seo cepa, boy, np a oe Fes tn fa ere company’s ropes RE tiger so pee rennet elon a bor mat sapere supplier ustone aos The company’ abit fo disse its products, processes and compte in capital, bo, nt infomation, To. provide see eon, of clad ie Genny often be noessanyt0 report before as Ss ote event re Koos, thus impair rade nti all aspects are KOON, flit as to users who have ieving a balance bereen the everidingconsertion is how Best 10 deine making neds of set. ee ef sod i pevsive constant ther “The beefs derived fom information ding it.The evaluation of benefits and ies avis Suter: the Stemet of Fi tome, Staten of Figure 11-1 shows how Satement of Financial P point in time, The ‘Stockholders’ Equity and the ‘over aporiod of time, The the statements in the position rom the beginning tot nln fo 4.58 Ota an ine ie foths meal fection demonstrates silion the beginning oft Org 3496 mi of eunprcensive income are cad ve othe Reed ring une! ch peri sel al f the hae zea ce ec ato oe ne ied ering ecociaton for 2014. = ‘There san onder to financial stem suns Ss. i te te mi vai eamings acount, Second “pessinaiin) splat reaned cana Financial postion esouns fom of stockholders equ information from the eashaoeo a + sans tn any ‘etka sips 20 ‘pois mtn repute ‘Onn: cmon jy canton fea a Ce coma sty be cone natn Pc We digs Sealant et See an a eS 2018 statement of malas. May investment pe Bo igh compaies Ssh lnc fen Wy ih? He she otto Fak ratio ayo eas? Son of rem and loge sets rel ies models. Why this the case? Why is Acs on sees, ffeil positon for Same ide) sil? By what dep can a cmpin afl devi rm inst 078? gals in fang 2 company by owner vests ing Wf nono facing i es cot, why dont we enily with rowed money? iene the src dieton of a company? sini sae retin? reported on te seen of faci ‘alle hisorical cow. Would reporting informative? What probles revenues ~ 7236.9). £26.26 milion. Net ing evens Expenses ‘etTrcome on) tes comprehensive income Toal sel pode! customer who promises “Should the sll recognize the sale when itis made or etd? og tr ase sch a builing, ts cost ‘official poston 2 an ast. Should @ th cos ofthat bung san expese when itis company report the cos of ta asset over ses report the cost of a product as an | How night ne measure the ls By ama Neicoe (os) Dividends. ne Ober Denes 31,2014 arom dct) ete tent of cash os? Do the statement one statement provide sulicien cash flow sent “Whi the staement of rani ee tars naps offen’ nani positon ara Mietone semen reprtson operons over period of arsed om fil repring standards nd ae Minn Do inves eel wary about the validity of on why inflation may rest he wefilbess ofthe Satement of Ipston as nomallypresened. 4 the statement of cash flows provides useful information that eee omen eteal soles nn the tre primary sections ofthe satement of cash Mos? tn the payment ofa cash cvidend be sown? hy isinpoan legal bout? 0 cos the firm substan ess than the cast 100 percent ofthe outlay? Netcom Sebati expenses eas Aad pees cain Pts spent ss Open ess Nein coon pa f hens Problem 2 (Statement of Str rae pnb ete F780 milion. Require: alldividends declared were ac Problem 3 (Book Value Jeaifr’s Apparel has to and long-term lah utsanding. Tiny tho 5 esi tuys tok s 2015 on wich he fet and pcp ee Dal OF ee Hey 0 perce. Depeiation exten pia 015 Vey nner wth an noe fabs ‘of 700,000 in 2015 and cost of goods sold Ting ad adie expenses were 12 EPID ad ines expense or th sneer slat She sng tht meen 4 pen ses, se ef wil al rece cost of geal in pies 28 fon expense wil remain & Asses Caren ass ros ‘Accounts receivable Inventory Prepaid expenses ‘Toul Carer asses Fixed assets 7 lant and equipment (goss) ess: Accumulate depreciation Net plant and equipment Tova assets ot bilities ‘nner’ equity Prefered soc, #100 par Common stock, Pl par vale Ciptalpid in excess pat Retained earnings Taal owners’ equity Tot iabilties and owners fb 2014206215 faa fcr sk 28 tims se eats Romerotievewest we) 1 Sitement of isa Position) and veri st of tate of anal postion te fr vin eee 30,215 ss. Feces 20 Gales # 38870 2300 nation ye. 205 © S300 Cah i670 2365 Livestock 120780 36650 Fam Machinery 42970 95 Red Eanes ‘Wages Paytbleo 00 De aed oor trae (tan S91 te Pte neg you sem ; ee eg ton September 30, nme afer ths statement of nani ‘pepaed, 4 phoen completely desteyed one ofthe bam. Aug 3 1b Prepacea statement of ‘Stn or Apt esha of pes app hone Say ine va ‘wee eases gong cat of Busines, -irpchased wre norms card and paid in cash, pense mp0 wer ncred pa 8 of finial poston a Sepeber 30,2015. (You wll he msn gue fer Notes Payal.) th csh Bom terest forthe pesod October 1-6, ton, real fhe pushae of soples andthe as operating activities. ate des coe dc for sever years, 5 The Fst poston on Setenber 30 or on October 8? alee : may weaken iin the 1 ie blr OR tha ime ME at compas bus seis compry? I it omg and mate, ein se Ft rome te 9 Bc sae rs? pts Wit pot st 3 ois pts es veh Tn bee pons ne sites! How cpa aH ‘eqns? owe ist rb in anil conn? Do abut pcan owe? Cate sles cate as : . arises? Are here may spy sources? Does the dean ev spss with ei fo ih sk ik. bjt unde investigation | ‘Areitsauitos vile? We mst es eb veal wd ere a sich rele hanes fetta ed canon thro nentadng ef BASICS OF PROFTU ‘The primary gol of financial However, accounting data ya company prong the The previous setion enining nino ec si 1. Infstion dered by the aa ort cereal ake caret aston, iy wef to the ls should fol te coparaliy of fone ert kok band as. These linktons ae mot abot messes of ede oft ares of bts pein. They ere iy itor feos of rfl and anal seth ofthe tim. 2 Liman ibe ine cong dt te arast works with These ee bought abut by among ethers) asian a lick of cosiseney inthe pplication of zosing pips, policies and procedures, (b) eoidesed prserton of a, and (fale © reet change in casing power. Limitons fe perfomance measures or ol and techniques us the ata: Quine meme are a absolute mesures bt he ied rave othe ti oe sins ann he hgh pas cen and ae opens Ting of rarsacions ee at safe erent n pling the ecg analysis, a financed sean nage at its operating ince Steck Profitability. These ratios coz dling en ee ‘gon cee ser 6c) stock oat Anereseretstot Inmate here, testo aby test denands tom curere a= Insts ete ligula aets ded dation of resources riot Messe cnc of te company mestng cepa eases te ing ot tine equred io coet fae Foshes gots bento rece nd ther bac c eases raat of ‘aso meet average tay cash requrement. ces of operating as fw oer bask reeds. Pears bit ofthe fits Sls —_ vay st oie tm Fre sea an wil be ge atthe ity, (2) avy silty pene e's by met th es a fk 8 28 NE te uit of peste sets od meade, inventory ond Leverage Be renters e's tems pit saya isi omer eno Fixed charges siking id py. ht mez the vel psformance of he ies and eis: 2a ies 275times etd ances om elt te oe ing retemen hin Mi cold inte a ee ot of fg ot slept omen as. An ering a as eck pie of ven oF iB a at Te crea el i ei, he aa mut Took closely a FF atesinoe ses from enumerator Deca represent future yearend 2014 erent assets covered 13. Is significance could be pettors or the ‘penerally fel that to be pa Fp BC's quick ratio 2013. An aralyst tronds revealed in same industy. 5.09 nes 250tines va iah tamoer is profeed bene it sa sign of efficent Let pot ft fm, Buta high tumover could Meneses iy invert and fos orders, 0 decrease in veil or oes than panned. reltivey fmean ti he companys arying 0 ch Jowemeing a infror inventory sock varies, fom industry to industry. Flowers and inventory turnover because ‘The fired ansey have lower fectiveness in particularly for a deny of mamgenentto rete Fra When the ane ayo Be fs histor nat 0 ea or tion fr he Taw wana an extensive pnt fgcarend which wl usimproed primarily beans of at en ne a som ee eke Financing amd Covers 50.1% st fal ts ht ae Feed ir th proporin of deb, the reste he ete ere on ine eve of ssoeted with Finacial overage ‘The debe equity sa compan measre ofthe ability of gon Foie ered. Thy ie we una MS. OPTS fem, Fle the fr’ invests ‘ ps wo of dl in 2014, the company pot Fos operating os, Profit + Lease payents : __Speting Fret se ES probably ds up inventory Treva Expense Lease payments gis +659 = 206m mst 505 + 3585, 2imes as 3s rex erage ess ffs covet capil me ace pment ao ened payment ssc nat he met emul Ths ri sparc 2013: dt pe eves wih essing arangemen, i rapa eas, ; Thea ee ie cea ee tin 214 but was sil able 1o improve is fixed charge com v3 ‘cho fom pain tivities a SSR = 18H ona vain fe air impos measure o© perspective on ce Thismessures he abiity ofthe frm to translate tases, pay inidends or invest n new in 204 as higher tan the operating marin. generation fash, The performance in improvement over 2013 when the operations and hada negative cash low ‘overall eifiiency 201 indeats 2 succesful use of vrs, Th fim has generated uncover he iseres payments on ‘uh eeeraton, Genie natal ota come atta a investor would capital appreciation than for of store expansion, The tracesble to improved boon slstantial sales ro of prtclrspifieance to trade an oe pats concemed with the ability of & “The gross profit margin ere openings featuring firm also managed ti dereased indicating a deterioration of shor Aue to the firms ability low liquidity ratio improved in 2014 afer _ sth mol tat hon that th rat ofr Oly ay te et = To geole ea! soul ess Average stockholders at Fast ee ] aad 10 how i fmm captal set). Opera Turnover | Leverage Ebner Tey pitts = ; oduct cos nd anges do not appre he i peiton. : rin toes th go Pro (SS es Cot aan ei ain ss rte = sof rcs a ir ener, ages Fo ig seni need pee ene yong roa es ll oon tia eecinn and ai (cede dirt rhe mn ea gl ea. inane Pe sand benefis, research and development, marketing, legal errs the volume of sales resuling from invest in dee In rductvy observe, managers have two nes yolune fom te existing asset Base and a the vestments witout reducing sles volume, of Pure Busines Sense, In ard as aquied the following noe ote Pre Business Sense, products in finished an ‘pwineses and resell tntensive distribution lnvestent. The busines incl the folowing obser + Industry + Bargsining pome of buyer Business Sense, ne sles ‘avin power ht sharaterzed by high aw ‘on a Bargaining power of niin in al ake forest inrease ite ———— einer te pectin = sian lowing ih nisin period have mame a? oo be eee tial 5? us 8 DSO oF 49s and is anal sles are hale? Assur tha ses 8365-8 1 fo has 9 fico miion, di is P6000, ROA iy nafcring trie 35 Problem 8 Ratio sue he lowing . Rum on as (ROA) 3.0 oly Crp. poi mega

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