I am writing a paper on Financial Restructuring. I am required to pick a company that is in [potential] trouble of defaulting/bankruptcy. I have chosen Toys R Us.
I am required to:
1) Analyze the company's (Toys R Us) financial history and current financial situation.
2) Propose a financial restructuring proposal.
It is my understanding that I need to look at all possible financial statements, income statements, cash flows, and use financial tools to "financially restructure" and propose a "fix" to save Toys R Us.
What are the ways in which a company can turn itself around through the use of these financial restructuring methods?
I am not sure what to look into exactly, and how to approach this.
I am struggling with the thought of having to write 3pages on this....
In: Finance
The Dean of ASBE School of Business is concerned that grades in
the MBA program are distributed appropriately. Too many high grades
or too many low grades would pose a problem. We wish to test the
claim that the mean GPA of ASBE students is smaller than 3.6 at the
.01 significance level.
The null and alternative hypothesis would be:
two-tailed
right-tailed
left-tailed
In: Statistics and Probability
The Dean of ASBE School of Business is concerned that grades in
the MBA program are distributed appropriately. Too many high grades
or too many low grades would pose a problem. We wish to test the
claim that the mean GPA of ASBE students is smaller than 3.3 at the
.005 significance level.
The null and alternative hypothesis would be:
The test is:
left-tailed
two-tailed
right-tailed
Based on a sample of 75 student grades, the sample mean GPA was
3.28 with a standard deviation of 0.02
The test statistic is: (Round to 3 decimals)
Based on this we:
A shareholders' group is lodging a protest against your company.
The shareholders group claimed that the mean tenure for a chief
exective office (CEO) was at least 9 years. A survey of 59
companies reported in The Wall Street Journal found a sample mean
tenure of 7.3 years for CEOs with a standard deviation of s=s= 5
years (The Wall Street Journal, January 2, 2007). You don't know
the population standard deviation but can assume it is normally
distributed.
You want to formulate and test a hypothesis that can be used to
challenge the validity of the claim made by the group, at a
significance level of α=0.01α=0.01. Your hypotheses are:
Ho:μ=9Ho:μ=9
Ha:μ<9Ha:μ<9
What is the test statistic for this sample?
test statistic = (Report answer accurate to 3 decimal
places.)
What is the p-value for this sample?
p-value = (Report answer accurate to 4 decimal
places.)
The p-value is...
This test statistic leads to a decision to...
As such, the final conclusion is that...
In: Statistics and Probability
A random sample of 28 students at a particular university had a mean age of 22.4 years. If the standard deviation of ages for all university students is known to be 3.1 years ,Find a 90% confidence interval for the mean of all students at that university.
In: Statistics and Probability
| Amazon Quarterly Revenue (Millions of US $) |
|
|---|---|
| 2020-03-31 | $75,452 |
| 2019-12-31 | $87,437 |
| 2019-09-30 | $69,981 |
| 2019-06-30 | $63,404 |
| 2019-03-31 | $59,700 |
| 2018-12-31 | $72,383 |
| 2018-09-30 | $56,576 |
| 2018-06-30 | $52,886 |
| 2018-03-31 | $51,042 |
| 2017-12-31 | $60,453 |
| 2017-09-30 | $43,744 |
| 2017-06-30 | $37,955 |
| 2017-03-31 | $35,714 |
| 2016-12-31 | $43,741 |
| 2016-09-30 | $32,714 |
| 2016-06-30 | $30,404 |
| 2016-03-31 | $29,128 |
| 2015-12-31 | $35,746 |
| 2015-09-30 | $25,358 |
| 2015-06-30 | $23,185 |
| 2015-03-31 | $22,717 |
Use actual sales (revenue) data from previous 4 years to estimate sales using the linear trend function. Please show work in excel!!
In: Finance
Smart Company prepared its annual financial statements dated
December 31, 2020. The company applies the FIFO inventory costing
method; however, the company neglected to apply the LC&NRV
valuation to the ending inventory. The preliminary 2020 statement
of earnings follows:
| Sales revenue | $ | 297,000 | ||||
| Cost of sales | ||||||
| Beginning inventory | $ | 32,700 | ||||
| Purchases | 201,000 | |||||
| Cost of goods available for sale | 233,700 | |||||
| Ending inventory (FIFO cost) | 75,536 | |||||
| Cost of sales | 158,164 | |||||
| Gross profit | 138,836 | |||||
| Operating expenses | 63,700 | |||||
| Pretax earnings | 75,136 | |||||
| Income tax expense (40%) | 30,054 | |||||
| Net earnings | $ | 45,082 | ||||
Assume that you have been asked to restate the 2020 financial
statements to incorporate the LC&NRV inventory valuation rule.
You have developed the following data relating to the ending
inventory at December 31, 2020:
| Acquisition Cost | ||||||||||||
| Item | Quantity | Unit | Total | Net Realizable Value | ||||||||
| A | 3,220 | $ | 4.70 | $ | 15,134 | $ | 5.70 | |||||
| B | 1,670 | 6.70 | 11,189 | 5.20 | ||||||||
| C | 7,270 | 3.20 | 23,264 | 5.20 | ||||||||
| D | 3,370 | 7.70 | 25,949 | 5.70 | ||||||||
| $ | 75,536 | |||||||||||
1. Restate the statement of earnings to reflect the valuation of the ending inventory on December 31, 2020, at the LC&NRV. Apply the LC&NRV rule on an item-by-item basis.(FINISHED BELOW ANSWER QUESTION 2)
|
|||||||||||||||||||||||||||||||||||||||||||||||||
2. Compare and explain the LC&NRV effect on each amount that was changed in part 1. (Negative answers should be indicated by a minus sign.)
In: Accounting
Allied Tech Company, Inc. is a leading manufacturer of robotics,
and the company owns several cutting-edge patents on artificial
intelligence. Mr. Jenkins, the CEO of Allied Tech said he believed
the long-term growth (aka, terminal growth) rate of his company is
28%. The rationale behind his statement is his belief in the
long-term growth prospects for artificial intelligence and
robotics. Is the 28% long-term growth rate reasonable given his
firm’s potential prospects? Why or why not? If you believe there is
not enough information to answer the question, please explain why
you think there is not enough information.
In: Finance
Burnt Company prints textbooks for sale to colleges. Currently, the company is operating at 80 percent of capacity. A large university has offered to buy 1,200 textbooks as long as the cover of the book can be customized with the university’s logo. While the normal selling price is $175 per textbook, the university has offered only $125 per textbook. Burnt Company can accommodate the special order without affecting current sales.
Unit cost information for a textbook is as follows:
Direct Materials $ 9.31
Direct Labor 9.65
Variable Overhead 6.43
Fixed Overhead 47.00
Total Unit Cost $72.39
Fixed overhead is $822,000 per year and will not be affected by the special order. Normally, there is a commission of 3.5 percent of price; this will not be paid on the special order. The special order will require additional fixed costs of $42,550 for the design and setup of the logo on each textbook.
Part A List the alternatives being considered.
Part B Which alternative is more cost effective and by how much?
Part C What if Burnt Company was operating at capacity and accepting the special order would require rejecting an equivalent number of textbooks sold to existing customers? Which alternative would be better? Explain.
In: Accounting
A manufacturer of fabricated metal products has acquired a new plasma table for $37,000. It is projected that the acquisition of this equipment will increase revenue by $10,000 per year. Operating costs for the machine will average $2,600 per year. The machine will be depreciated using the MACRS method, with a recovery period of 7 years. The company uses an after-tax MARR rate of 10% and has an effective tax rate of 30%.
2. Now, suppose that the duration of the project is six years and that an estimate of the value of the equipment cannot be obtained from the marketplace.
2.5. What conclusion can be drawn by comparing the results of the before- and after-tax analyses?
In: Finance
At 31 July 20X6, Helios International had non-current assets which had cost $310,000. At the same date, the accumulated depreciation on the assets was $120,000. The company had not disposed of any non-current assets during the year to 31 July 20X7, but acquired an asset at a cost of $79,200 on 1 January 20X7. Helios International depreciates non-current assets at a rate of 25% per annum. What is the company’s depreciation charge for the year to 31 July 20X7 using:
a. The straight line method
b. The reducing balance method Assume that depreciation is charged from the first year of acquisition.
In: Accounting