ou are considering an investment in Fields and Struthers, Inc. and want to evaluate the firm’s free cash flow. From the income statement, you see that Fields and Struthers earned an EBIT of $64 million, had a tax rate of 30 percent, and its depreciation expense was $5 million. Fields and Struthers’ gross fixed assets increased by $30 million from 2017 to 2018. The firm’s current assets increased by $26 million and spontaneous current liabilities increased by $15 million.
Calculate Fields and Struthers’ free cash flow for 2018. what is investment in operating activites?
In: Finance
Simba and Zola are married but file separate returns. Simba received $80,000 of salary and $1,200 of taxable dividends on stock he purchased in his name and paid from the salary that he earned since the marriage. Zola collected $900 in taxable interest on certificate of deposit that she inherited from her aunt.
Compute Zola’s gross income under two assumptions as to the state of residency of the couple.
If an amount is zero, enter "$0".
|
In: Accounting
|
Currency |
Lending Rate |
Borrowing Rate |
|
Dollars |
7. 0% |
7.2% |
|
Singapore dollar |
22.0% |
24.0% |
Diamond Bank considers borrowing 10 million Singapore dollars in the interbank market and investing the funds in U.S. dollars for 60 days. Estimate the profits (or losses) that could be earned from this strategy. Should Diamond Bank pursue this strategy?
In: Finance
A Direct Public Offering (DPO, Direct-Listing) is an alternative to an Initial Public Offering (IPO) in which a company does not work with an investment bank to underwrite the issuing of stock. While forgoing the safety net of an underwriter provides a company with a quicker, less expensive way to raise capital, the opening stock price will be completely subject to market demand and potential market swings.
In a DPO, instead of raising new outside capital like an IPO, a company’s employees and/or investors convert their ownership into stock that is then listed on a stock exchange. Once the stock is listed shares can be purchased by the general public and existing investors can cash out at any time without the ‘lock up’ period of traditional IPOs.
Spotify [Spotify Technology SA (SPOT – US: NYSE), DPO, 04/03/2018] and Slack [Slack Technologies Inc. (WORK – US: NYSE) DPO 05/33/2019] are recent examples of companies that have opted to skip the traditional IPO process and instead list their shares directly on an exchange.
What are the pros and cons of a DPO? What makes a successful DPO? Have there been notable failures? How does a Security Firm deal with its clients that want in on the action?
In: Accounting
In: Finance
In: Accounting
Gene therapy consist of
| A. |
replacing the genomes of an individual with a brand new set of genomes with the goal of treating a genetic defect. |
|
| B. |
replacing a defective gene in an individual with a normal gene with the goal of treating a genetic disorder. |
|
| C. |
transferring a modified gene into an individual with the goal of treating a genetic defect. |
|
| D. |
transferring a normal or a modified gene into an individual with the goal of treating a genetic defect. |
|
| E. |
replacing a defective enzyme in an individual with a normal enzyme with the goal of treating a genetic disorder. |
DNA transcription is
| A. |
The use of a mRNA template to synthesis DNA |
|
| B. |
The use of a DNA template to synthesis mRNA |
|
| C. |
The use of a mRNA template to synthesis Proteins. |
|
| D. |
The use of a tRNA template to synthesis DNA |
|
| E. |
The use of a Protein template to synthesis mRNA |
DNA sequencing is a method
| A. |
of determining the order of fatty acids in a DNA. |
|
| B. |
of determining the order of saccharides in a DNA. |
|
| C. |
of determining the order of amino acids in a DNA. |
|
| D. |
of determining the order of nucleotides in a DNA. |
|
| E. |
of determining the order of triglycerides in a DNA. |
In: Biology
Variable Identification: how do i know if they have 1 or 2 variables?
Individual: a single child
Variable 1:
QN or CL :
Variable 2 :
QN or CL:
Individual: a single shopper
Variable 1:
QN or CL :
Variable 2 :
QN or CL:
Individual: a single movie
Variable 1:
QN or CL :
Variable 2 :
QN or CL:
Individual: a person with pain
Variable 1:
QN or CL :
Variable 2 :
QN or CL:
Individual: a piece of property
Variable 1:
QN or CL :
Variable 2 :
QN or CL:
In: Advanced Math
It’s November 15, and Gary, brand manager for a major consumer products firm, is contemplating his year‐end bonus. It is becoming increasingly obvious that unless he takes action, he will not achieve his brand profitability target for the year. Gary’s eyes fall to the expense estimate for the new coupon “drop” slated for later in the month. His hand trembles slightly as he erases the 4 percent anticipated redemption rate on his estimate sheet and replaces the figure with 2 percent. Gary knows from experience that 2 percent is an unrealistically low figure, but he also knows that neither the firm’s independent nor internal auditors will seriously challenge the estimate. This way, Gary’s product profitability report will reflect the increased revenue associated with the coupon “drop” this year, but the entire redemption cost will not be expressed until next year.
“That should put me over,” he muses. A wry smile crosses his face. “If the auditors question the rate, I’ll give them a story about seasonality and shifting consumer patterns. They won’t know enough about marketing to question my story.” Eventually, of course, the real cost of the coupon drop will have to be expensed, and that will hurt next year’s profit figure. “But, that’s next year,” Gary reasons, “and I can always figure out a way to make it up. Besides, by the end of next quarter, I’ll be handling a bigger brand—if I can show a good profit this year.” A brief description of coupons and proper accounting for coupons might help us to interpret the situation just presented. Coupons are “cents‐off” privileges, such as $0.50 off when you buy a certain brand of yogurt. When a company offers coupons to consumers, it must estimate the redemption rate and record an expense and the corresponding liability. This is similar in concept to warranty expenses
.Required:
a. Discuss whether the situation described can happen to a company with a good control environment.
b. Describe any steps a company could take to prevent such abuse.
c. List those parties who might be harmed by this situation.
d. Do you consider this example to be management fraud or employee fraud? Describe how it fits the definition of your choice.
In: Accounting
Smaller Corporation has been in operation for several
years. Each year, around the holidays, Smaller gives a cash bonus
to each of its employees and records the bonuses as compensation
expense. Smaller has reached the point at which it is now making a
reasonable return on its shareholders' equity. At the end of the
current year, the company president is considering establishing a
compensatory share option plan for Smaller's key executives,
instead of paying cash bonuses to any of its employees. At this
time, the market price and the planned option (exercise) price of
the company's common stock are the same. The plan would allocate a
specified number of options to each executive based on the
executive's level within the company and meeting Smaller's targeted
income goals. The service period would be 3 years and the options
would have to be exercised within 10 years. You are the controller
for Smaller and one of the key executives who would participate in
the plan. You also already own a substantial number of shares of
Smaller common stock. The company president comes to you for advice
about this plan and says, “If Smaller establishes this plan, it
will work out for all of us. It looks like the plan is pretty
valuable, since an option pricing model shows a high fair value for
each option. The corporation will be saving cash because it won't
have to pay bonuses to either the executives or the other
employees. But executives will manage better because their share
options will depend on meeting the company's targeted income.
Because the market price and the option price are the same, there
won't be any compensation cost or expense related to this plan.
Furthermore, since no bonuses would be paid to any employees, the
corporation will decrease its compensation expense. This will
increase its net income and earnings per share compared to last
year, as well as its return on shareholders' equity. So the stock
value will go up. This seems like a win-win situation for everyone.
Am I right on this?” Do you think Smaller should adopt this
compensatory share option plan?
Required: From financial reporting and ethical
perspectives, how would you reply to the president?
Use one academic resource to provide support for your response in APA-style
In: Accounting