Financial Planning and Forecasting
|
|
- Caren Dorcas Miles
- 5 years ago
- Views:
Transcription
1 Financial Planning and Forecasting The Judgmental Approach September 2003 Weaknesses of the Percent-of-Sales Approach The percent-of-sales approach has three weaknesses: 1. It is unrealistic to assume that all expenses will remain exactly the same percent of sales from one fiscal year to the next. 2. With the percent-of-sales method, a company is essentially locked into a given profit margin. 3. The percent-of-sales approach assumes that all of the firm s costs are variable. Fixed costs create leverage. 2
2 Example Vectra Manufacturing Actual and Pro Forma Income Statements (POS Approach) 2002 Percent 2003 Percent (Actual) of sales (Pro Forma) of sales Sales 100, ,000 Less: COGS 80,000 80% 112,000 80% Gross Margin 20,000 20% 28,000 20% Less: Operating expenses 10,000 10% 14,000 10% Operating earnings 10,000 14,000 Less: Interest expenses 1,000 1% 1,400 1% Earnings before taxes 9,000 12,600 Less: Taxes (15%) 1,350 1,890 Net income after tax 7, % 10, % Common share dividends 4,000 5,600 Earnings retained 3,650 5,110 3 Example (Continued) Suppose Vectra is not happy with its current profit margin of 7.7%. The average ratios for gross and profit margins are 28% and 12.5%, respectively, in Vectra s industry. Hence Vectra should be able to better control costs and increase margins. 4
3 Example (Continued) Suppose that Vectra has the following figures in mind: COGS: 76% of sales instead of 80%. Operating expenses: 11% of sales instead of 10%. Note that a new, more efficient, machine implies greater amortization expense, which could be the cause of this increase. Interest expenses: Should not be greater than $1,100. Dividends: Will remain constant at $4,000. What s your opinion on this one? 5 Example (Continued) Vectra Manufacturing Actual and Pro Forma Income Statements (Judgmental Approach) 2002 Percent 2003 Percent (Actual) of sales (Pro Forma) of sales Sales 100, ,000 Less: COGS 80,000 80% 106,400 76% Gross Margin 20,000 20% 33,600 24% Less: Operating expenses 10,000 10% 15,400 11% Operating earnings 10,000 18,200 Less: Interest expenses 1,000 1% 1, % Earnings before taxes 9,000 17,100 Less: Taxes (15%) 1,350 2,565 Net income after tax 7, % 14, % Common share dividends 4,000 4,000 Earnings retained 3,650 10,535 6
4 Percent-of-Sales Approach and Fixed Costs The POS approach assumes that the firm has no fixed costs, i.e. all costs increase with sales. A growing firm benefits from having fixed costs since these remain constant as sales increase, thus increasing the profit margin. Rent, amortization, management salaries, property taxes, marketing, and research and development are examples of fixed costs. 7 Variable and Semi-Variable Costs Variable costs, on the other hand, always vary with sales. Examples of these are raw material, labour, factory overhead and sales commissions. Note that there also are semi-variable costs, which vary with sales only once they have reached a certain level. That is, semi-variable costs will not vary for low sales levels. Take equipment maintenance, for example. A minimum amount of maintenance must always be performed regardless of the sales level but more maintenance must be performed as sales increase beyond a certain point. 8
5 Profit Margin and Fixed Costs Let S Sales (in $), v Variable costs per $ sold, F Fixed Costs, t Corporate Tax Rate. EBT = S vs F NIAT = (1 t)((1 v)s F), where NIAT is net income after taxes. 9 Profit Margin and Fixed Costs This gives Profit Margin = NIAT S = (1 t)((1 v)s F) S = (1 t)(1 v) (1 t)f S. 10
6 Profit Margin and Fixed Costs Profit Margin = (1 t)(1 v) (1 t)f S Remarks: In the absence of fixed costs (F = 0), profit margin is constant. In the presence of fixed costs (F > 0), profit margin increases when sales increase. 11 Profit Margin and Fixed Costs In the Vectra example, suppose that, in 2002, fixed costs were $21,000: $12,000 in COGS, $8,000 in operating expenses (OE) and $1,000 in interest expenses. As a fraction of sales, variable costs were then Variable Costs Sales = = = Variable COGS + Variable OE S (80,000 12,000) + (10,000 8,000) 100, , ,000 = 70%. 100,
7 Profit Margin and Fixed Costs If variable costs remain 70% of sales and if fixed costs remain $21,000, net income after taxes (NIAT) in 2003 is expected to be NIAT = (1 t)((1 v)s F) = 0.85 ( ,000 21,000) = 17, 850 and the profit margin is expected to be NIAT S = 17, ,000 = 12.75%. 13 Same thing, but using the income statements. Vectra Manufacturing Actual and Pro Forma Income Statements (Judgmental Approach) 2002 Percent 2003 Percent (Actual) of sales (Pro Forma) of sales Sales 100, ,000 Less: COGS Fixed 12,000 12,000 Variable 68,000 68% 95,200 68% Gross Margin 20,000 32,800 Less: Operating expenses Fixed 8,000 8,000 Variable 2,000 2% 2,800 2% Operating earnings 10,000 22,000 Less: Interest expenses 1,000 1,000 Earnings before taxes 9,000 21,000 Less: Taxes (15%) 1,350 3,150 Net income after tax 7, % 17, % 14
8 4.3 Preparing the Pro Forma Balance Sheet In what follows, the pro forma balance sheet for Vectra Manufacturing will be prepared using the judgmental approach. Income Statement Sales 100,000 COGS (80,000) Op. expenses (10,000) Interest (1,000) EBT 9,000 Taxes (15%) (1,350) Net income 7,650 Dividends 4,000 Earnings ret. 3,650 Vectra Manufacturing 2002 Financial Statements (Actual) Balance Sheet Cash 6,000 A/P 7,000 M/S 4,000 Taxes payable 300 A/R 13,000 Line of credit 8,300 Inv. 16,000 Other 3,400 C.A. 39,000 C.L. 19,000 LTD 18,000 NFA 51,000 C/S 30,000 R/E 23,000 Total 90,000 Total 90, Preparing the Pro Forma Balance Sheet The pro forma income statement is as below. For all items other than retained earnings, the firm will proceed step by step. Vectra Manufacturing 2003 Financial Statements (Pro Forma) Income Statement Balance Sheet Sales 140,000 COGS (106,400) Op. expenses (15,400) Interest (1,100) EBT 17,100 Taxes (15%) (2,565) Net income 14,535 Dividends 4,000 Earnings ret. 10,535 Cash? A/P? M/S? Taxes payable? A/R? Line of credit? Inv.? Other? C.A.? C.L.? LTD? NFA? C/S? R/E 33,535 Total? Total? 16
9 4.3 Preparing the Pro Forma Balance Sheet Let s first look at assets: Cash: Vectra wants a minimum cash balance of $8,000. Marketable Securities (M/S): These are assumed to remain constant at $4, Preparing the Pro Forma Balance Sheet Accounts Receivable: In 2002, average collection period was 100,000/13,000 = days. This happens to be 10 days higher than the industry average. Vectra wants its average collection period to be 41 days in 2003, which means that accounts receivable at the end of 2003 should be 140,000/A/R = 41 A/R = ,000 = 15,
10 4.3 Preparing the Pro Forma Balance Sheet Inventory: In 2002, average days in inventory was 80,000/16,000 = 73 days. Vectra is happy with this number and wants to have the same in That is, 106, 400/Inv. = 73 Inv. = ,400 = 21, Preparing the Pro Forma Balance Sheet Net Fixed Assets: Vectra plans to acquire a new machine for $35,000 in 2003, from which $7,000 will be amortized in that year (reflected in the increase in operating expenses). Net fixed assets then increase by 35,000 7,000 = $28,000, which means that NFA in 2003 are expected to be 51, ,000 = $79,
11 4.3 Preparing the Pro Forma Balance Sheet Note that we have enough information so far to determine what total assets will be in 2003: Vectra Manufacturing 2003 Financial Statements (Pro Forma) Income Statement Balance Sheet Sales 140,000 COGS (106,400) Op. expenses (15,400) Interest (1,100) EBT 17,100 Taxes (15%) (2,565) Net income 14,535 Dividends 4,000 Earnings ret. 10,535 Cash 8,000 A/P? M/S 4,000 Taxes payable? A/R 15,726 Line of credit? Inv. 21,280 Other? C.A. 49,006 C.L.? LTD? NFA 79,000 C/S? R/E 33,535 Total 128,006 Total? Preparing the Pro Forma Balance Sheet Let s now consider liabilities and equity: Accounts Payable: Purchases are 45% of COGS and Vectra s average payment period in 2002 was ( ,000)/7,000 = 71 days. Suppliers want this average to be reduced to 62 days in 2003, which translates into ( ,400)/A/P = 62 days A/P = ,400 = 8,
12 4.3 Preparing the Pro Forma Balance Sheet Taxes Payable: These are assumed to be 25% of the tax amount that appears on the income statement, which is, for 2003, 25% 2,565 = 641. Other Current Liabilities: Remain unchanged. Line of Credit: Depends on the financing plan. Long-Term Debt: Depends on the financing plan. Common Stock: Depends on the financing plan Preparing the Pro Forma Balance Sheet We thus have, before adjusting the plug variables, Vectra Manufacturing 2003 Financial Statements (Pro Forma) Income Statement Balance Sheet Sales 140,000 COGS (106,400) Op. expenses (15,400) Interest (1,100) EBT 17,100 Taxes (15%) (2,565) Net income 14,535 Dividends 4,000 Earnings ret. 10,535 Cash 8,000 A/P 8,133 M/S 4,000 Taxes payable 641 A/R 15,726 Line of credit 8,300 Inv. 21,280 Other 3,400 C.A. 49,006 C.L. 20,474 LTD 18,000 NFA 79,000 C/S 30,000 R/E 33,535 Total 128,006 Total 102,009 24
13 4.3 Preparing the Pro Forma Balance Sheet From these statements, we can find the total financing required (TFR) TFR = Change in Total Assets = 128,006 90,000 = 38,006. Vectra does not need to raise the whole amount from outside investors since some of this change in assets will be financed internally, i.e. using the increases in accounts payable, taxes payable and retained earnings Preparing the Pro Forma Balance Sheet The funds raised from outside investors, the external financing required, is found as follows: Total financing required 38,006 Less: Internal sources Increase in accounts payable 1,133 Increase in taxes payable 341 Reinvested profits 10,535 Total internal sources 15,009 External financing required 25,997 26
14 4.3 Preparing the Pro Forma Balance Sheet Note that my example differs from the one in the book as I assumed the dividend payment to remain $4,000. Now that you know Vectra s external financing required, what are your suggestions regarding a possible financing plan? 27
Financial Planning and Forecasting
Financial Planning and Forecasting Long-Term Planning September 2003 Coping with Uncertainty The analysis of a case in the presence of uncertainty is usually done as follows: 1 Scenario Analysis This analysis
More informationCOST OF GOODS MANUFACTURED & SOLD STATEMENT
COST OF GOODS MANUFACTURED & SOLD STATEMENT In order to understand the financial and cost statement of a concern we should clear about the procedure adopted by trading concern and manufacturing concern
More informationA325 Exam 1 review Spring, 2010
A325 Exam 1 review Spring, 2010 The exam is seven problems (each with subsidiary questions) and you have ONE HOUR AND FIFTEEN minutes (1:15) to complete it. You are permitted to bring one page of notes
More informationLECTURE: PROJECTIONS Case Study: Celerity Technology
LECTURE: PROJECTIONS Case Study: Celerity Technology Building the Base Case The Base Case is the first projected scenario that the analyst sets up before making any of their own customized adjustments.
More informationInnovations in Business Solutions. Diploma in Accounting and Payroll. Accounting and Payroll I Week 1 to 11
Program Course Duration Diploma in Accounting and Payroll 33 weeks Accounting and Payroll I Week 1 to 11 Introduction to Accounting Fundamentals of Accounting Basic concepts of recording journal entry
More informationCOST OF GOODS MANUFACTURES B.COM. PART II
COST OF GOODS MANUFACTURES B.COM. PART II Q#1 Following are the balances appear on the Trial Balance of SAMREEN & Co. for the year ended April 30, 1980. Inventory of Goods in Process April, 01 Rs.109,000
More informationExtreme Networks FQ2 18 Financial Results
Extreme Networks FQ2 18 Financial Results February 6, 2018 Cautionary Statement on Financial Measures Non-GAAP Measures: In preparing the accompanying information, the Company has excluded, where applicable,
More informationAccounting 1 Instructor Notes
Accounting 1 Instructor Notes CHAPTER 6 ACCOUNTING FOR MERCHANDISING BUSINESS Accounting for a merchandising business is much more complex than a service business. This is because a service business sells
More informationTime: 60 Minutes Record : 10 Skill Test : 20 Total Marks : 30 Note: Problems are to be solved by using computers (Excel or any accounting package).
Computer Lab - Practical Question Bank FACULTY OF COMMERCE, OSMANIA UNIVERSITY ----------------------------------------------------------------------------------------------------- B.Com (General) III
More informationExtreme Networks FQ1 19 Financial Results
Extreme Networks FQ1 19 Financial Results November 2, 2018 Cautionary Statement on Financial Measures Non-GAAP Measures: In preparing the accompanying information, the Company has excluded, where applicable,
More informationCESIM SIMFIRM Introduction. Simulation for general business management
CESIM SIMFIRM Introduction Simulation for general business management What is Cesim SimFirm? Cesim SimFirm is an online business simulation game that develops students understanding of the complexity of
More informationUnleash Hidden Profits: Make Your Supply Chain Work for You
Unleash Hidden Profits: Make Your Supply Chain Work for You Objective Learn how you can Reduce Working Capital Improve Cash Flow Increase Profits by improving how you manage your materials and supply chain
More informationForward Guidance. Priceline.com issued the following guidance for the 2nd half of 2004:
Priceline.com Reports 2nd Quarter 2004 Financial Results; Gross Travel Bookings Are $470.4 Million, Up 58% Year Over Year; Airline Ticket Unit Bookings Grow 60% NORWALK, Conn.--(BUSINESS WIRE)--Aug. 2,
More informationFinancial Accounting and Auditing Paper-III Financial Accounting
Revised Syllabus of the Courses of B.Com. Programme at T.Y.B.Com. with Effect from the Academic Year 2015-2016 for IDOL Students Financial Accounting and Auditing Paper-III Financial Accounting SECTION
More informationItem. Item / Warehouse. Item / Warehouse / Location. Item / Warehouse / Location / Lot. Item / Warehouse / Location / Lot / Container
Inventory Transaction Effects Item Inventory Transactions Warehouse Location / Lot Location Updates appropriate levels of Inventory automatically Location / Lot Location / Lot / Container Item Transaction
More informationWAYNESBORO AREA SCHOOL DISTRICT CURRICULUM ACCOUNTING I
COURSE NAME: Accounting I UNIT: Service Business Organized as a Proprietorship NO. OF DAYS: 70 KEY LEARNING(S): Analyzing, journalizing, and posting transactions; preparing financial reports; analyzing
More informationPerkinElmer Announces Financial Results for the First Quarter 2008
PerkinElmer Announces Financial Results for the First Quarter 2008 -- Revenue of $482 million, up 20% over the prior year -- EPS from continuing operations of $0.20; Adjusted EPS of $0.29, up 21% over
More informationBuilding a Better Business Using Financial Statement Analysis
Building a Better Business Using Financial Statement Analysis Jandrea Blumanhourst Senior Manager Controller Services The webinar will begin at 12:30 p.m. CT Administration If you need CPE credit, please
More informationOH WHERE, OH WHERE HAS MY PROFIT GONE? Monte Zwang
OH WHERE, OH WHERE HAS MY PROFIT GONE? Monte Zwang REMEMBER THE BUSINESS PLAN? WHAT WERE YOU EXPECTING? Revenue Growth Profitability What tools were in place to tell you if you were on target or close?
More informationFORTUNE BRANDS HOME & SECURITY, INC. ADJUSTED PRO FORMA INFORMATION (In millions, except per share amounts) (Unaudited)
ADJUSTED PRO FORMA INFORMATION (In millions, except per share amounts) Three Months Ended December 31, Year Ended December 31, 2011 2010 % Change 2011 2010 % Change Net Sales (GAAP) Kitchen & Bath Cabinetry
More informationUNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC FORM 8-K/A MICROCHIP TECHNOLOGY INCORPORATED
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K/A CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 June 8, 2016 (April 4, 2016) Date
More informationIndex. Accounts payable (AP), 234, 294 Accounts receivable (AR), , 233, 294 Anchoring trap, 221
Index A Accounts payable (AP), 234, 294 Accounts receivable (AR), 102 104, 233, 294 Anchoring trap, 221 B Break-even analysis, 216 Business thinking COSM model CRM, 127 definition, 127 market assessment,
More informationManagement s Accountability to Stakeholders Stakeholders Provide Management is accountable for: Owners Operating activities Government Creditors
Chapter 15 Distinguish management accounting from financial accounting Management Management s Accountability to Stakeholders Stakeholders Owners Government Provide Management is accountable for: Operating
More informationBusiness Plan Development Topics
Business Plan Development Topics Situation Analysis SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) Know your market Focus on segments Market analysis checklist Competitive analysis Keys
More informationS&W Seed Company Unaudited Pro Forma Combined Financial Statements
Exhibit 99.2 S&W Seed Company Unaudited Combined Financial Statements On April 1, 2013, S&W Seed Company ( the Company or S&W ), together with its wholly owned subsidiary, S&W Seed Australia Pty Ltd, an
More informationVariable Costing: A Tool for Management. M. En C. Eduardo Bustos Farías
Variable Costing: A Tool for Management M. En C. Eduardo Bustos Farías 1 Absorption Costing A system of accounting for costs in which both fixed and variable production costs are considered product costs.
More informationWork4Me Managerial Accounting Simulations. Problem Fifteen
Work4Me Managerial Accounting Simulations 1 st Web-Based Edition Problem Fifteen Balance Sheet Analysis Jacob Hardware, Incorporated Page 1 INTRODUCTION Jacob Hardware, Incorporated is a wholesaler of
More informationFinancial Concepts for Successful HR Professionals
Financial Concepts for Successful HR Professionals Patty Lawrence, CMA Partner & Consulting CFO 1 Outline The Business Life Cycle Accounting Basics Understanding Financial Statements Assessing Financial
More informationQuestion Paper Accounting For Decision Making - II (MB2D2): January 2009
Question Paper Accounting For Decision Making - II (MB2D2): January 2009 1. Prime cost plus variable overheads is Answer all 70 questions. Marks are indicated against each question. Total Marks : 100 Total
More informationWorking Capital Management of M/s Larsen & Toubro Ltd - An extensive study.
International Journal of Management, IT & Engineering Vol. 8 Issue 2, February 2018, ISSN: 2249-0558 Impact Factor: 7.119 Journal Homepage: Double-Blind Peer Reviewed Refereed Open Access International
More informationNet income of $7.2 million, or $0.04 per share, compared to net loss of $43.2 million, or
NEWS RELEASE Trading Symbol: TSX: SVM NYSE: SVM SILVERCORP FISCAL 2015 Q2 RESULTS: SILVER PRODUCTION UP 32%, NET INCOME OF $7.2 MILLION ($0.04 PER SHARE), CASH FLOW FROM OPERATIONS OF $20.1 MILLION ($0.12
More informationTHIRD QUARTER SECURITIES AND EXCHANGE COMMISSION. Washington, DC FORM 10-Q
THIRD ----- QUARTER ------- 2001 ---- SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For quarter ended
More informationWINDSTREAM CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts)
(A) (B) (C) (D) WINDSTREAM CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) THREE MONTHS ENDED SIX MONTHS ENDED Increase Increase June 30, June 30, (Decrease)
More informationFinancial Accounting. John J. Wild. Sixth Edition. Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Financial Accounting John J. Wild Sixth Edition McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 04 Reporting and Analyzing Merchandising Operations Conceptual
More informationUnderstanding Cash Management and Profit Improvement. Washington Small Business Fair September 29, 2018
Understanding Cash Management and Profit Improvement Washington Small Business Fair September 29, 2018 Beth Damis, MBA Director of Finance & Human Resources Penny Arcade, Inc https://www.linkedin.com/in/bethdamis/
More informationBusiness Plan Outline
I. COVER SHEET: (title page) Business Plan Outline a. Name, address, and phone number of the company b. Name, title, address and phone number of owners/corporate officers c. Month and year your plan was
More informationChapter 4. Cash Flow and Financial Planning. Copyright 2012 Pearson Prentice Hall. All rights reserved.
Chapter 4 Cash Flow and Financial Planning Copyright 2012 Pearson Prentice Hall. All rights reserved. Analyzing the Firm s Cash Flow Cash flow (as opposed to accounting profits ) is the primary ingredient
More informationComplete List of QuickBooks 2009 for Mac Reports
Complete List of Reports Take better control of the money coming in and going out of your business. QuickBooks 2009 for Mac has the robust, easy-to-use financial management tools, reports, and business
More informationCOST. Labour. Direct
COMMERCIAL STUDIES STD: X Chapter 10. Fundamental Concepts of Cost Concept of Cost The term cost generally means the amount of expenditure (actual or notional) incurred on, or attributable to, a given
More informationPresented by Marius Miškinis
Presented by Marius Miškinis Today s agenda Motivation Financial Statements Planning Investor Point of View Tips & Tricks Why should you care about FS? Basic overview, how to read FS? Key value drivers,
More informationTHERMO FISHER SCIENTIFIC
THERMO FISHER SCIENTIFIC February 8, 2007 Reconciliation of Financial Information Q4-2006 1. GAAP P&L (as reported): 2002 to 2006 2. Reconciliation of GAAP to Adjusted P&L: 2002 to 2006 3. Business Segment
More informationWeek 5. ACT102 Introduction to Accounting. Objectives 21/02/2018. What are retailing operations?
ACT102 Introduction to Accounting Week 5 Objectives Describe retailing operations, perpetual and periodic inventory systems and understand how to account for GST Account for the purchase of inventory using
More informationSILVERCORP NET INCOME $43.7 MILLION, $0.26 PER SHARE, FOR FISCAL 2017
NEWS RELEASE Trading Symbol: TSX: SVM NYSE MKT: SVM SILVERCORP NET INCOME $43.7 MILLION, $0.26 PER SHARE, FOR FISCAL 2017 VANCOUVER, British Columbia May 25, 2017 Silvercorp Metals Inc. ( Silvercorp or
More informationEDUCATION TRAINING CORPORATE FUNDAMENTALS OF FINANCIAL MODELING & FORECASTING
EDUCATION TRAINING CORPORATE FUNDAMENTALS OF FINANCIAL MODELING & FORECASTING www.thealphareview.com Our trainings have included individuals and teams from leading reputable firms The Alpha Review course
More informationSummary. H.J. Leavitt model of organization. Model of organization: organizational structure. Model of organization: people
H.J. Leavitt model of organization Summary Mission goals and objectives Goals hierarchy Tasks Goals, objectives & Tasks People Individual values, beliefs, attitudes, motives, competencies Group behaviour
More informationFedEx Corp. Reports First Quarter Earnings FedEx Express Announces 2010 Rate Increase
1 FOR IMMEDIATE RELEASE FedEx Corp. Reports First Quarter Earnings FedEx Express Announces 2010 Rate Increase MEMPHIS, Tenn., September 17, 2009... FedEx Corp. (NYSE: FDX) today reported earnings of $0.58
More informationAccounting for Merchandising Businesses
CHAPTER 3 Accounting for Merchandising Businesses LEARNING OBJECTIVES After you have mastered the material in this chapter, you will be able to: 1 Identify and explain the primary features of the perpetual
More informationCOST CONCEPTS Introduction: Cost: Types of cost: Direct cost or explicit cost:
COST CONCEPTS Introduction: A firm carries out business to earn maximum profits. Profits are the revenues collected by a business firm after production and sale of their goods and services. But to gain
More informationLearning is experience, everything else is just information.
S t u d e n t M a n u a l Learning is experience, everything else is just information. Albert Einstein Sometimes textbooks Inside the Student Manual are not enough Introduction 1 This simulation is designed
More informationAC 3379-ab M. Phil. (Com.) Examination April / May 2003 Accountancy : Paper III (New & Old Course)
AC 3379-ab M. Phil. (Com.) Examination April / May 2003 Accountancy : Paper III (New & Old Course) Seat No. Time : 3 Hours] [Total Marks : 100 Instruction : Attempt Q. No. 1 and any other two questions.
More informationMERCHANDISING TRANSACTIONS: INTRODUCTION TO INVENTORIES AND CLASSIFIED INCOME STATEMENT
Learning Objectives CHAPTER 6 MERCHANDISING TRANSACTIONS: INTRODUCTION TO INVENTORIES AND CLASSIFIED INCOME STATEMENT 1. Record journal entries for sales transactions involving merchandise. 2. Describe
More informationSteelcase Inc. Reports Third Quarter Fiscal 2002 Results; Declares Quarterly Dividend of Six Cents Per Share
Steelcase Inc. Reports Third Quarter Fiscal 2002 Results; Declares Quarterly Dividend of Six Cents Per Share GRAND RAPIDS, Mich.--(BUSINESS WIRE)--Dec. 19, 2001--Steelcase Inc. (NYSE:SCS) today reported
More informationSales salaries. Factory repairs. Advertising Office supplies used $ $
E19-4, Determine the total amount of various types of costs. Drew Company reports the following costs and expenses in May. Factory utilities $11.500 $69.100 Depreciation on factory equipment Depreciation
More informationChapter 2. Job Order Costing and Analysis QUESTIONS
Chapter 2 Job Order Costing and Analysis QUESTIONS 1. Factory overhead is not identified with specific units (jobs) or batches (job lots). Therefore, to assign costs, estimates of the relation between
More informationIAS - 02 INVENTORIES
IAS - 02 INVENTORIES Objective To prescribe the accounting treatment for inventories. Scope All inventories except: (a) (b) Financial instruments (see IAS 32 Financial Instruments: Presentation and IFRS
More informationAGENDA: JOB-ORDER COSTING
TM 3-1 AGENDA: JOB-ORDER COSTING A. The documents in a job-order costing system. 1. Materials requisition form. 2. Direct labor time ticket. 3. Job cost sheet. B. Applying overhead using a predetermined
More informationChapter 2--Cost Terminology and Cost Behaviors
Chapter 2--Cost Terminology and Cost Behaviors TRUE/FALSE 1. A cost object is anything for which management wants to collect or accumulate costs. ANS: T PTS: 1 DIF: Easy OBJ: 2-1 2. A production plant
More informationPart 3 : 11/11/10 07:42:55. MultiFrame Company has the following revenue and cost budgets for the two products it sells.
Question 1 - CMA 1290 4-4 - Decision Making MultiFrame Company has the following revenue and cost budgets for the two products it sells. Plastic Frames Glass Frames Budgeted unit sales 100,000 300,000
More informationProblem Exercise 3-12
Exercise 3-12 1. The overhead applied to Ms. Miyami s account would be computed as follows: 2002 2001 Estimated overhead cost (a)... $144,000 $144,000 Estimated professional staff hours (b)... 2,250 2,400
More informationFull file at QUESTIONS
Chapter 2 Job Order Costing and Analysis QUESTIONS 1. Factory overhead is not identified with specific units (jobs) or batches (job lots). Therefore, to assign costs, estimates of the relation between
More informationIntroduction. Review of Performance
Introduction This report is published in terms of section 6.05.06 (I) of the Malta Stock Exchange Bye-Laws. Figures in the report have been prepared in accordance with the requirements of International
More informationCHAPTER 8: INVENTORY
CHAPTER 8: INVENTORY Inventory Categories Merchandise inventory - ready for sale units that are unsold at the end of the fiscal period raw materials inventory - costs assigned to goods and materials on
More informationCan Lean and ROI Co-Exist?
Can Lean and ROI Co-Exist? Lean Accounting Summit August 15,2016 Orest (Orry) Fiume Retired VP-Finance, The Wiremold Company All Rights Reserved 2016, Orest J Fiume The Wiremold Company West Hartford,
More informationTrend Ratios Liquidity and Profitability
Ratio Value Better Ratio Value Ratio Value Trend Charts Liquidity and Profits Hello Telephone Company 2.2 2.7 1.4 1.1 0.8 15% -22% - 30% Quick Ratio Gross Margin 1.9 3.5 45% 2.1 5 Performance to Goal:
More informationBusiness Turnarounds - an Interim Assignment
Blueprint Business Solutions.COM.AU www.blueprintbusinesssolutions.com.au Business Turnarounds - an Interim Assignment 1 AUG 2017 AIEA - Business Turnarounds - Blueprint Business Solutions - Keith Bailey
More informationSAGE MAS INTELLIGENCE 90 AND 200 REPORT DESIGNER EXERCISES
SAGE MAS INTELLIGENCE 90 AND 200 REPORT DESIGNER EXERCISES MAS Report Designer Exercises... 3 Exercise 1... 3 Solution 1... 3 Exercise 2... 8 Solution 2... 8 Exercise 3... 13 Solution 3... 13 Exercise
More informationWelcome to: FNSACC507A Provide Management Accounting Information
Welcome to: FNSACC507A Provide Management Accounting Information Week 1 Chapter 1 COST CONCEPTS FNSACC507A Provide Management Accounting Information By the end of this lesson, you will be able to 1. Explain
More informationCHAPTER 4 ACCOUNTING FOR MERCHANDISING OPERATIONS
CHAPTER 4 ACCOUNTING FOR MERCHANDISING OPERATIONS Key Terms and Concepts to Know Income Statements: Single-step income statement Multiple-step income statement Gross Margin = Gross Profit = Net Sales Cost
More informationYOUR BUSINESS QUARTERLY PULSE CHECK
YOUR BUSINESS QUARTERLY PULSE CHECK Let the Fisher Team Guide Your Business! Your Business. OurFocus. Securing Success Sound planning is one of the most critical factors to the success of your business.
More informationFourt r h t Q u Q art ar er Fiscal scal Y ear ear 2011 Fin i ancial ci al Result l s
Fourth Quarter Fiscal Year 2011 Financial Results June 9, 2011 1 Forward Looking Statements Certain statements included in this management presentation constitute forward-looking statements, including
More informationFY18 FY17 change (1.4) (240.2)
1 2 3 4 FY18 FY17 % $m $m change Total Revenue 357.3 320.3 11.5% Share of Profits (Loss) (1.4) (1.2) (15.5%) Expenses (240.2) (216.2) (11.1%) Operating EBITDA 115.7 102.9 12.5% EBIT 89.5 86.1 3.9% Net
More informationTRUSCO Nakayama (9830)
URL: www.walden.co.jp Written by Yoshiyuki Muroya E-mail: yoshiyuki_muroya@walden.co.jp Phone:+81 3 3553 3769 TRUSCO Nakayama (9830) Parent Fiscal Year Sales OP RP NP EPS DPS BPS (Million Yen) (Yen) (Yen)
More informationCopyright CEMEX Holdings Philippines, Inc. and its subsidiaries
This presentation contains forward-looking statements. In some cases, these statements can be identified by the use of forward-looking words such as may, should, could, anticipate, estimate, expect, plan,
More informationTypes of Ownership. Creating a Pro Forma. Sole Proprietorship (or Partnership) Corporation. Limited Liability Corporation (LLC)
Regional Micro- Enterprise Credential Key Financial Concepts Student Handout (Updated: June 12, 2017) Types of Ownership Sole Proprietorship (or Partnership) An individual (or group of individuals) owns
More informationDEEPAK GUPTA CLASSES
COST SHEET Q1. A Ltd. has a capacity to produce 100,000 units of the product every month. Its work costs at varying levels of production is as under: LEVEL WORK COST (Rs.per unit) 10% 400 20% 390 30% 380
More information1. What lists can be imported from Excel spreadsheets, when setting up a QuickBooks Online company?
QuickBooks Online Practice Test (with answers) 1. What lists can be imported from Excel spreadsheets, when setting up a QuickBooks Online company? A) Locations, Classes, Products and Services, and Vendors
More informationCost-volume-profit (CVP) Analysis. Dr. Joyce L. Wang School of Accountancy The Chinese University of Hong Kong
Cost-volume-profit (CVP) Analysis Dr. Joyce L. Wang School of Accountancy The Chinese University of Hong Kong Basic Formula 2018/7/27 2 Basic Formula Derivation The Basic Formula may be further rearranged
More informationSILVERCORP REPORTS Q3 RESULTS: NET INCOME OF $12.7 MILLION, $0.08 PER SHARE AND PROVIDES FISCAL 2019 PRODUCTION AND CASH COSTS GUIDANCE
NEWS RELEASE Trading Symbol: TSX: SVM NYSE AMERICAN: SVM SILVERCORP REPORTS Q3 RESULTS: NET INCOME OF $12.7 MILLION, $0.08 PER SHARE AND PROVIDES FISCAL 2019 PRODUCTION AND CASH COSTS GUIDANCE VANCOUVER,
More informationResults for Q3 FY14 Ended December 31, 2014 (Financial version)
Results for FY14 Ended December 31, 2014 (Financial version) Net One Systems Co., Ltd. TSE : 7518 Contents 1 Q1-3 FY14 (Apr-Dec 9months) P. 1-7 2 FY14 (Oct-Dec 3months) P. 8-11 3 Outlook of Consolidated
More informationSLO to PLO Alignment Report
SLO to PLO Alignment Report CAN Program - Accounting & Business PLO #1: Design and manage business documents using current technology to engage in creative problem solving. Financials: Create financial
More informationCE ENGINEERING ECONOMICS AND COST ANALYSIS UNIT 1 PART - A
CE 2451 - ENGINEERING ECONOMICS AND COST ANALYSIS UNIT 1 PART - A 1 Define economics. 2 Define managerial economics. 3 Define wealth. 4 Define utility 5 Define value 6 Explain any two natures of economics.
More informationNEWS RELEASE TSX: SVM SILVERCORP (TSX: HIGHLIGHTS. Gross margin. the prior year; and $46.07 in. for reconciliation
NEWS RELEASE Trading Symbol: TSX: SVM NYSE AMERICAN: SVM SILVERCORP REPORTS NET INCOME OF $47.0 MILLION, $0.28 PER SHARE, FOR FISCAL 2018 VANCOUVER, British Columbia May 24, 2018 Silvercorp Metals Inc.
More informationJOINT UNIVERSITIES PRELIMINARY EXAMINATIONS BOARD 2015 EXAMINATIONS BUSSINESS STUDIES - MSS J132 MULTIPLE CHOICE QUESTIONS
JOINT UNIVERSITIES PRELIMINARY EXAMINATIONS BOARD 2015 EXAMINATIONS BUSSINESS STUDIES - MSS J132 MULTIPLE CHOICE QUESTIONS 1. What do the letters EOQ stand for? A. Estimated Order Quantity B. Economic
More informationChapter 3: Cost Control
Chapter 3: Cost Control Copyright 2011 by the National Restaurant Association Educational Foundation (NRAEF) and published by Pearson Education, Inc. All rights reserved. Cost control is a business s efforts
More informationOAO Raspadskaya Pro Forma Consolidated Financial Information. Years ended December 31, 2005 and 2004 with Independent Accountants Examination Report
Pro Forma Consolidated Financial Information Years ended December 31, 2005 and 2004 with Independent Accountants Examination Report Pro Forma Consolidated Financial Information Years ended December 31,
More informationQUESTIONS. Scenario: FINANCIAL STATEMENT ANALYSIS ASSIGNMENT HELP. Phase 2 Task 1: Ratio Anlaysis Key Financial Data for Abel Athletics
FINANCIAL STATEMENT ANALYSIS ASSIGNMENT HELP QUESTIONS Scenario: You are the manager of the high school athletic team division of Abel Athletics, a manufacturer of athletic equipment and apparel, which
More informationPROCEDURES AND PAPERFLOW
PROCEDURES AND PAPERFLOW I. Purchasing A. Purchase Orders 3 1. Special Orders 3 2. Stock Order 3 3. Printing 3 4. Monitoring 4 5. Acknowledging 4 II. Inventory Movement 5 A. Inventory Receiving Worksheet
More informationFresenius Investor News
health care worldwide October 31, 2006 Contact: Birgit Grund Fresenius AG Investor Relations Tel. ++49-6172 - 608 2485 Fax ++49-6172 - 608 2488 e-mail: ir-fre@fresenius.de Internet: www.fresenius-ag.com
More informationMeasuring and Assigning Costs for Income Statements
117 Chapter 15 Measuring and Assigning Costs for Income Statements LEARNING OBJECTIVES Chapter 15 addresses the following objectives: LO1 Prepare absorption and variable costing income statements and reconcile
More informationUnderstanding Cash Management and Profit Improvement Washington Small Business Fair September 30, 2017
Understanding Cash Management and Profit Improvement Washington Small Business Fair September 30, 2017 Introduction A common scenario: - Insufficient cash reserves Cannot pay due bills Business fails No
More informationUnderstanding Cash Management and Profit Improvement
Understanding Cash Management and Profit Improvement Washington Small Business Fair September 30, 2017 Introduction A common scenario: - Insufficient cash reserves Cannot pay due bills Business fails No
More information5. PRODUCTION VALUE CHAIN, TYPES OF PRODUCTION, HUMAN RESOURCES, CORPORATE FINANCE
5. PRODUCTION VALUE CHAIN, TYPES OF PRODUCTION, HUMAN RESOURCES, CORPORATE FINANCE Value Chain A set of activities that a firm operating in a specific industry performs in order to deliver a valuable product
More informationAccounting 101 Class Notes Chapter 4 Accounting for Merchandising Operations
I. WHAT IS A MERCHANDISER? Merchandiser vs. Service Business Wholesaler vs. retailer This chapter changes the focus from a service-oriented business to a merchandising form of business. Merchandisers buy
More informationMunksjö historical. Ahlstrom- Munksjö Net sales Other operating income Total income
1 APPENDIX: UNAUDITED PRO FORMA FINANCIAL INFORMATION The following unaudited pro forma consolidated financial information (the Pro forma financial information ) is presented for illustrative purposes
More informationSECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended
More information1. F; I 2. V ; D 3. V ; D 4. F; I 5. F; I 6. F; I 7. V ; D 8. F; I 9. F; I 10. V ; D 11. F; I 12. F; I 13. F; I 14. F; I
SOLUTIONS TO EERCISES EERCISE 2-1 (15 minutes) 1. F; I 2. V ; D 3. V ; D 4. F; I 5. F; I 6. F; I 7. V ; D 8. F; I 9. F; I 10. V ; D 11. F; I 12. F; I 13. F; I 14. F; I EERCISE 2-2 (15 minutes) 1. Product
More informationEMEA MARKET MARKETING HEIDI ARKINSTALL CMO. RENE OEHLERKING Jaybird. UJESH DESAI GM, Gaming
EMEA MARKET MARKETING HEIDI ARKINSTALL CMO RENE OEHLERKING Jaybird UJESH DESAI GM, Gaming FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements within the meaning of the U.S.
More informationQUALIFICATION SPECIFICATION
IAB LEVEL 4 DIPLOMA IN ACCOUNTING TO INTERNATIONAL STANDARDS (Qualification Accreditation Number 500/3370/0 accreditation review date 31 st December 2017) QUALIFICATION SPECIFICATION CONTENTS No Section
More informationThis course supports the assessment for Financial Management. The course covers 7 competencies and represents 3 competency units.
This course supports the assessment for Financial Management. The course covers 7 competencies and represents 3 competency units. Introduction Overview The Financial Management course covers practical
More informationAccounting for Merchandising Operations
5-1 Chapter 5 Accounting for Merchandising Operations Learning Objectives After studying this chapter, you should be able to: 1. Identify the differences between service and merchandising companies. 2.
More information