BUSM 255 Forex

This is a required assignment for everyone in the class. Failure to complete it and post it will lower your grade one letter grade.  

It is outlined on the course syllabus which is under Course Information on the left.  

You will be able to complete the first three parts of this assignment after completing chapter 3.  I want this part in draft early in the term. See the syllabus for parts 1-2-3. 

The fourth part is not possible until chapter 18 has been completed. 

You can, however, choose a product now that is available in another country, like a Big Mac or any product that is sold in both the United States and the country you choose!  You will have to find the price of that product in that country, and here as well.  Then, in November depending on when you will turn it in, you will find the nominal exchange rate for the two currencies. I have created a link to aide you under External Links.  You will choose your country and the currency converter will do it for you.  Once you have that conversion, there is a formula in chapter 18 on the presentation option of the power points. This formula is used to calculate the REAL exchange rate.  It is also explained below.   Once you have the price of the product here in the United States and the price of the same product in the country you chose for the required assignment, and the nominal exchange rate for the two currencies using the currency converter under External Links, you will be able to use the formula to find the real exchange rate. 

Once chapter 18 is completed, you can do part 4. 

After completing the calculation to find the real exchange rate using the formula below, you will write an analysis statement defining your results. 

HERE IS THE “analysis statement” YOU MUST use after the calculation to safeguard against misinterpretation of the real exchange rate.  YOU must use the statement BELOW. 

Correct interpretation

 example: 

This example is from chapter 18, slides 25, 26,and 27 of the

 presentation view format. The slides preceding and following

 explain this concept.

 Substitute YOUR country, YOUR product, and YOUR

real exchange rate where it says: Big Mac, Japanese, and .75

 Big Mac’s in Japan in the example.

“To buy a Big Mac in the U.S., a Japanese citizen must give up an

amount that could

 purchase .75 Big Mac’s in Japan. “

This should be the INTERPRETATION OR ANALYSIS statement that follows your calculation!

This is the formula: 

real exchange rate= e x P / P*

 where e is the nominal exchange rate from the Currency Converter under External Links,

where P is the price in the U. S. in dollars,

and P* is the price of the product in the country you chose in that currency.

The x means times or multiply and / means divided by. 

YOU MUST MULTIPLY THE NOMINAL RATE YOU FIND ON THE CURRENCY CONVERTER TIMES THE PRICE IN THE U.S., WHEN YOU HAVE THAT ANSWER, THEN DIVIDE BY THE PRICE IN THAT CURRENCY. 

 

150 words response to two of my classmates discussions today in 1

Post by Tanya YarritoMena

18 hours agoWeek 8

Charles Ives: Psalm 90  was a very beautiful song but while listening to the song and following along with the lyrics I noticed a certain line that tied in with Psalm 90:17 “establish thou the work of our hands”. The line “Let thy work appear unto thy servants, and thy glory unto their children”, the key word that linked them both was the word work. Now when someone is established in something they made a name for themselves they establish a credibility, platform,  or to be widely known for something. Everyone wants to make a mark on earth so generations and generations can remember them. Especially if that mark has a positive impact for generations and generations to come. In both songs they mention work and children so that the work that they use to establish change for children of all generations to learn from and to experience. If we choose to establish an individual work that can help generations and generations live in a better place we would be doing God’s work. If we individually  ask God to help us establish the work of our hands we are asking God for asking for long lasting knowledge so we can prosper in our relationship with God and are community in our churches so the generations after us who want to prosper in a relationship with God can have that blueprint we all helped create. I want to continue prospering in my relationship with God and continue being a participant in my church (community) so that one day when I have children to continue that. When we also establish the work of our hands the goal is for God to help show us our purpose so we can help share the word and help the world be a better place through Christianity. 

Post by Kayleen Souza
21 hours agoRe: Week 8 | Discussion – Living the StoryGood evening class, 
Wow I forgot week 8 runs earlier and quicker so even though I’m late to the party I’d just like to say I have enjoyed reading all of your post and seeing your thoughts on the assignments. 
This week was an interesting week. I actually enjoyed the music. I find myself listening to a lot of classical and musical pieces while trying to concentrate on my assignments.  This was helpful to reflect upon the verse Psalm 90:17 because it helped make it more clear. Hearing the powerful voices was just amazing. 
For me when it says what does it mean for God to establish the work of our hands, my opinion on that is simply that God has written or path down, now we have to follow his directions and allow our heads, hearts and mouths deliver Gods will. Using the talents we were given to lead our fellow man to the promise land. 
God bless you all and good luck on all your future endeavors. 
170 wordsReply

Payroll accounting 1 page research paper

Write a one page research paper in which you discuss the payroll process for an organization. Choose an existing company or other organization and speculate the payroll process best suited for that organization based on information you can find on using library resources. Databases you might consider searching would be Business Source Complete via EBSCO, Business via ProQuest, or a general education database like Academic Search Complete.

Start your paper with an introduction that includes a very brief description of the organization you chose. Your description should mention the purpose of the organization and the approximate number of employees. Is it a local company, national company, or international company? Your introductions should be approximately three sentences. Your first sentence should be a concise description of the company. The last two sentences should tell the reader what the paper is about. Avoid using “I”, “my”, “the paper”, or “this paper” in your sentences. Every sentence should start with a subject, which is some aspect of the topic of the paper. For example, “The payroll process . . . .” or “The company should . . .”

After you speculate the appropriate payroll system, describe the payroll process the company would use in some detail in the body of the paper. Would the company use a manual system, an automated system, a payroll service, or some combination? What steps does the payroll process include? This is the discussion or body of the paper and should include proper headings. This is a very short paper (1 page), so you will likely have room for only one or two heading at most. Keep the paragraphs short and concise. Note that a paragraph must include at least three sentences at a minimum.

Be sure to include a concluding paragraph. The basic structure of a conclusion is a summary of the main points. Each section of the discussion represents a main point. Write one sentence to concisely summarize the pain point and end the conclusion with a final thought. The concluding paragraph should be at least three sentences.

Keep in mind that this is a research paper; and, as such, should be informed by your research sources. Include a minimum of three references in your paper. Your textbook can count as one of your sources. You will also need to include a reference page with this paper.

Again, your paper should be approximately a page in length, not including the cover page and the references. Be sure to:

  • include an introductory paragraph at the beginning and a concluding paragraph at the end
  • use subject headings to label the body of your paper as appropriate
  • to include APA citations to support your assertions and to inform your paper

Texas Woman’s University BUS4133 Ch 8 Quiz – PROMOTIONAL STRATEGY

 

                                Review Test Submission: Ch. 8 Quiz

 

                                                Course  14FABUS413301 PROMOTION STRAT

 

                                                                                Test Ch. 8 Quiz

 

Question 1                                                                                                                                          0 out of 0.5 points

 

Using an existing brand name on new products is referred to as brand:                                 

 

Question 2                                                                                                                                          0 out of 0.5 points

 

Jello decides to introduce a new flavor of pudding:  mocha. This pudding will be sold alongside its other flavors. This new product is an example of a:                                        

 

Question 3                                                                                                                                          0 out of 0.5 points          

 

The four types of objectives discussed in the chapter are marketing, advertising, creative, and __________:                                    

 

Question 4                                                                                                                          0.5 out of 0.5 points

 

Acme Inc. does a survey and finds out that by and large people don’t like the taste of their candy bars. In which section of the SWOT analysis should this fact go?                                  

 

Question 5                                                                                                                                          0 out of 0.5 points

 

Which type of branding has the goal of enhancing the overall image of the firm?              

 

 

 

 

 

Information Retrieval Techniques Problem Solving Task

Question 1:  (15 marks)

Suppose you have joined a search engine development team to design a search algorithm based on both the Vector model and the Boolean model. You have collected the following documents (unstructured) and plan to apply an index technique to convert them into an inverted index. 

Doc 1:Information retrieval is the activity of obtaining information resources relevant to an information need from a collection of information resources. Searches can be based on full-text or other content-based indexing.

Doc 2:Information retrieval is finding material of an unstructured nature that satisfies an information need from within large collections

Doc 3:Information systems is the study of complementary networks of hardware and software that people and organizations use to collect, filter, process, create, and distribute data. In the process of creating the inverted index, please complete the following steps: 

a. Remove all stop words and punctuation, and then apply Porter’s stemming algorithm to the documents. The list of stop words for this task is provided as follows: Is, The, Of, To, An, A, From, Can, Be, On, Or, That, Within, And, Use

b. Create a merged inverted list including the within-document frequencies for each term.

c. Use the index created in part (b) to create a dictionary and the related posting file. 

 d. You may like to test the inverted index by using the following keywords: information, system, index 

 e. Please design three Boolean queries, (for example, web AND search) and list the relevant documents for each query.

 f. Please use the Vector model to query on the inverted index, and compare the result with the Boolean model. (Hint: you can use cosine similarity and set a similarity threshold). Question 2 (IR Evaluation) (15 marks)

Question 2 (IR Evaluation) (15 marks) 

In this question, you are required to evaluate the performance of different search engines. 

 First, please find two search engines you are familiar with, such as Google, Bing, Yahoo!, etc. 

 Second, please choose one target from the following list, and design two queries to search in both search engines. So both query 1 and query 2 have to be tested in both search engines. 

 i. Target 1: obtain the course information for S779. 

 ii. Target 2: obtain the price of the new Samsung Tablet. 

 iii. Target 3: obtain the manual of installing tera term. 

 iv. Target 4: obtain the oracle SQL tutorial. 

 v. Target 5: obtain the price of new Xbox one. 

 Third, select the first 20 results in both search engines, if they return the target, then mark them as relevant documents, otherwise, they are irrelevant. Assume that you have 14 relevant documents in total (retrieved and not-retrieved). 

 The following questions are based on your search results. 

 

a) List your target, results and designed search queries (You can use any keywords you think are related to the target). 

 

Get the precision and recall values for 20 documents for query 1 in search engine 1. Interpolate them to 11 standard recall levels. Then plot them into a chart. 

 

Get the precision and recall values for 20 documents for query 2 in search engine 1. Interpolate them to 11 standard recall levels. Then plot them into the same chart as above. 

Now find the average precision of query 1 and query 2 for search engine 1 and plot it into the same chart.

So you will have total of 3 curves in one single chart. 

 

b) List your target, results and designed search queries 

 Get the precision and recall values for 20 documents for query 1 in search engine 2. Interpolate them to 11 standard recall levels. Then plot them into a chart. 

 Get the precision and recall values for 20 documents for query 2 in search engine 2. Interpolate them to 11 standard recall levels. Then plot them into the same chart as above. 

 

Now find the average precision of query 1 and query 2 for search engine 2 and plot it into the same chart. So, you will have total of 3 curves in one single chart, separate to that of part (a). Plot the averages for Search Engine 1 and Search Engine 2 on a separate chart, and compare the algorithms in terms of precision and recall. Which search engine do you think is superior? Why?

managerial finance 5

 

Cost of Capital

you will explore how companies compute their cost of capital by computing a weighted average of the three major components of capital: debt, preferred stock, and common equity. The firm’s cost of capital is a key element in capital budgeting decisions and must be understood in order to justify capital projects. 

Cost of Capital

For this Discussion, imagine the following scenario:

You are the director of operations for your company, and your vice president wants to expand production by adding new and more expensive fabrication machines. You are directed to build a business case for implementing this program of capacity expansion. Assume the company’s weighted average cost of capital is 13%, the after-tax cost of debt is 7%, preferred stock is 10.5%, and common equity is 15%. As you work with your staff on the first cut of the business case, you surmise that this is a fairly risky project due to a recent slowing in product sales. As a matter of fact, when using the 13% weighted average cost of capital, you discover that the project is estimated to return about 10%, which is quite a bit less than the company’s weighted average cost of capital. An enterprising young analyst in your department, Harriet, suggests that the project is financed from retained earnings (50%) and bonds (50%). She reasons that using retained earnings does not cost the firm anything since it is cash you already have in the bank and the after-tax cost of debt is only 7%. That would lower your weighted average cost of capital to 3.5% and make your 10% projected return look great.

Based on the scenario above, post your reactions to the following questions and concerns:

What is your reaction to Harriet’s suggestion of using the cost of debt only? Is it a good idea or a bad idea? Why? Do you think capital projects should have their own unique cost of capital rates for budgeting purposes, as opposed to using the weighted average cost of capital (WACC) or the cost of equity capital as computed by CAPM? What about the relatively high risk inherent in this project? How can you factor into the analysis the notion of risk so that all competing projects that have relatively lower or higher risks can be evaluated on a level playing field?750 words

Elena has sponsored, and participated in a barbeque

Elena has sponsored, and participated in a barbeque team for the last ten years. The team enters several contests a year, but has never come close to turning a profit. Elena has told you she doesn’t really care if the team makes any money, she just enjoys being able to get away from work and unwind at contests. Which of the following is most accurate?

Elena may deduct all of the expenses associated with the team
Elena may only deduct her proportional share of the expenses o the team
Elena may never deduct any of the expenses of the team
This activity is likely a hoppy for Elena, and her deductions may be limited.

A taxpayer in the 25% bracket before considering the sale, sold for a gain of $10,000 a residential building, purchased and put into service March 2010 (The sale of land is not included in this question.) No other residential real property was sold in this tax year. The depreciation taken or allowed is $15,635. What is the amount and nature of the gain or loss?

$10,000 gain taxed at a maximum of 15%
$10,000 gain taxed at a maximum f 25% (or 33% if the gain pushes the taxpayer into a higher tax bracket).
$10,000 gain taxed at a maximum of 25%
$15,635 gained taxed at a maximum of 25%

Which of the following taxpayers would be most likely to benefit from an installment sale?

Business-use land, sold for a gain
A business-use car, sold at a net gain which was less than the amount of depreciation claimed
Rental Property, sold at a gain less than the amount of depreciation allowed
A fishing boat, sold a net loss.

Leon owns a hobby shop specializing in the sale of kites. Which of the following should Not be included in his inventory.

Four crates of kite string for sale to customers
An assembled kite displayed in his ship. The kite is for sale
Seven EX-launch kite catapults Leon is selling on consignment for his friend.
13 Sky Warrior decal kits held for sale to customers

What is the IRS method of allocating expenses between rental use and personal use?

All expenses allocated as a percentage of rental-use days to total days owned
All expenses allocated as a percentage of rental-use days to total days used.
Mortgage interest, mortgage insurance premiums, real estate taxes, and casualty losses allocated as a percentage of rental-use days to total days.
Mortgage interest and real estate taxes allocated as percentage of rental-use days to total days used.

********

 

What is the present value of a 15 year Treasury bond that will pay $10,000 at maturity with an average annual rate of return of 4.25%?
The present value of a 15 year Treasury bond that will pay $10,000 at maturity with an average annual rate of return of 4.25% will be 

 

 

Wk 3 Discussion 1 PROJECT TOPIC: CLINIC RENOVATION 2019

Prior to beginning work on this discussion, please review the Weekly Lecture and assigned page ranges from Chapters 5 and 7 in your textbook to gain an understanding of what goes into planning and executing projects. Then, answer the following questions in your post.

Project managers are given all sorts of projects.

  • How do project managers prepare time and cost estimates for their projects, especially when they are not familiar with the project scope?
  • How would you prepare time and cost estimates for your project?

Understanding the critical path of a project is key.

  • How would you explain the concept of critical path to someone who may not be aware of it?

How will understanding your project’s critical path affect your projects overall timeline?

Required Resources

Text

Schwalbe, K. (2017). An introduction to project management (6th ed.). Retrieved from https://redshelf.com

  • Chapter 5: Planning Projects, Part 2 (Project Time and Cost Management) (read pages 149-154; 172-180)
  • Chapter 7: Executing Projects (read pages 256-288)

Multimedia

Silverman, P. (2013, November 28). Microsoft Project tutorial—Understanding the critical path (Links to an external site.). Retrieved from https://youtu.be/n-Mw3l42sgw 

  • While the video is for Microsoft Project, the functionality and explanation transfers well to ProjectLibre and other project management software programs> This video goes over what the critical path is and how changes to the critical path can help you set up the work breakdown structure (WBS) you are creating. It will assist you in your Time and Cost Estimation Exercise Interactive learning activity this week.
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Multiple Questions Answers

Question 1
Expanded definitions commonly include history, examples, and:


A. etymology.
B. synonyms.
C. stipulations.
D. drawings and illustrations.
 
 
Question 2
A(n) __________ is a mini-dictionary usually located either at the beginning or end of a technical document.


A. sidebar
B. glossary
C. appendix
D. online help link
 
 
Question 3
When documents are lengthy and audience’s backgrounds are widely varied, __________ can be created and placed at the end of the document to provide operational and expanded definitions of critical concepts; they can be used by those who need additional information and ignored by readers who do not need the explanations.


A. appendices
B. sidebars
C. footnotes
D. information notes
 
 
Question 4
Which of the following statements is NOT true about technical descriptions?

 


A. Technical descriptions provide accurate information about physical features, but they rarely have any further impact.
B. Sometimes technical descriptions constitute an entire document.
C. Most of the time, technical descriptions are limited to a single segment of a longer document or presentation.
D. Technical descriptions provide verifiable information that corresponds to assumed questions, such as What is it? What does it look like?

Corporate Finance (Berk/DeMarzo)- Chapter 2 – Introduction to Financial Statement Analysis

 

Corporate Finance (Berk/DeMarzo)- Chapter 2 Introduction to Financial Statement Analysis

 

 

2.1 The Disclosure of Financial Information

1)


U.S. public companies are required to file their annual financial statements with the U.S. Securities and Exchange Commission on which form?


A)


10A


B)


10K


C)


10Q


D)


10SEC


 


 


2)


Which of the following is not a financial statement that every public company is required to produce?


A)


Income Statement


B)


Statement of Sources and Uses of Cash


C)


Balance Sheet


D)


Statement of Stockholders’ Equity


 


 


3)


The third party who checks  annual financial statements to ensure that they are prepared according to GAAP and verifies that the information reported is reliable is the


A)


NYSE Enforcement Board.


B)


Accounting Standards Board.


C)


Securities and Exchange Commission (SEC).


D)


auditor.


 

 


 

2.2 The Balance Sheet


1)


Which of the following balance sheet equations is incorrect?


A)


Assets Liabilities = Shareholders’  Equity


B)


Assets = Liabilities + Shareholders’ Equity


C)


Assets Current Liabilities = Long Term Liabilities


D)


Assets Current Liabilities = Long Term Liabilities + Shareholders’ Equity


 


3)


Accounts payable is a


A)


Longterm liability.


B)


Current Asset.


C)


Longterm asset.


D)


Current Liability.


 


4)


A 30 year mortgage loan is a


A)


Longterm liability.


B)


Current Liability.


C)


Current Asset.


D)


Longterm asset.


 


 


5)


Which of the following statements regarding the balance sheet is incorrect?


A)


The balance sheet provides a snapshots of the firm’s financial position at a given point in time.


B)


The balance sheet lists the firm’s assets and liabilities.


C)


The balance sheet reports stockholders’ equity on the right hand side.


D)


The balance sheet reports liabilities on the left hand side.


 


 


Use the table for the question(s) below.

 

Consider the following balance sheet:

 

Luther Corporation

Consolidated Balance Sheet

December 31, 2006 and 2005 (in $ millions)

 

Assets

2006

2005

 

Liabilities and Stockholders’ Equity

2006

2005

Current Assets

 

 

 

Current Liabilities

 

 

Cash

63.6

58.5

 

Accounts payable

87.6

73.5

Accounts receivable

55.5

39.6

 

Notes payable /

shortterm debt

10.5

9.6

Inventories

45.9

42.9

 

Current maturities of longterm debt

39.9

36.9

Other current assets

6.0

3.0

 

Other current liabilities

6.0

12.0

     Total current assets

171.0

144.0

 

     Total current liabilities

144.0

132.0

 

 

 

 

 

 

 

LongTerm Assets

 

 

 

LongTerm Liabilities

 

 

  Land

66.6

62.1

 

  Longterm debt

239.7

168.9

  Buildings

109.5

91.5

 

  Capital lease obligationss

  Equipment

119.1

99.6

 

Total Debt

239.7

168.9

  Less accumulated

  depreciation

(56.1)

(52.5)

 

Deferred taxes

22.8

22.2

Net property, plant, and equipment

239.1

200.7

 

Other longterm liabilities

Goodwill

60.0

 

Total longterm liabilities

262.5

191.1

Other longterm assets

63.0

42.0

 

Total liabilities

406.5

323.1

     Total longterm assets

362.1

242.7

 

Stockholders’ Equity

126.6

63.6

 

 

 

 

 

 

 

Total Assets

533.1

386.7

 

Total liabilities and Stockholders’ Equity

533.1

386.7

 


6)


What is Luther’s net working capital in 2005?


A)


$12 million


B)


$27 million


C)


$39 million


D)


$63.6 million


 


7)


If in 2006 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then Luther’s Markettobook ratio would be closest to:


A)


0.39


B)


0.76


C)


1.29


D)


2.57


 


 


8)


When using the book value of equity, the debt to equity ratio for Luther in 2006 is closest to:


A)


2.21


B)


2.29


C)


2.98


D)


3.03


 


 


9)


If in 2006 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then using the market value of equity, the debt to equity ratio for Luther in 2006 is closest to:


A)


1.71


B)


1.78


C)


2.31


D)


2.35


10)


If in 2006 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then what is Luther’s Enterprise Value?


A)


$63.3 million


B)


$353.1 million


C)


$389.7 million


D)


$516.9 million


 


 


11)


Luther’s current ratio for 2006 is closest to:


A)


0.84


B)


0.87


C)


1.15


D)


1.19


 


 


 


15)


If on December 31, 2005  Luther has 8 million shares outstanding trading at $15 per share., then what is Luther’s enterprise value?


 

2.3 The Income Statement


1)


Which of the following statements regarding the income statement is incorrect?


A)


The income statement shows the earnings and expenses at a given point in time.


B)


The income statement shows the flow of earnings and expenses generated by the firm between two dates.


C)


The last or “bottom” line of the income statement shows the firm’s net income.


D)


The first line of an income statement lists the revenues from the sales of products or services.


 


2)


Gross profit is calculated as


A)


Total sales cost of sales selling, general and administrative expenses depreciation and amortization


B)


Total sales cost of sales selling, general and administrative expenses


C)


Total sales cost of sales


D)


None of the above


 


3)


Which of the following is not an operating expense?


A)


Interest expense


B)


Depreciation and amortization


C)


Selling, general and administrative expenses


D)


Research and development


 


 


Use the table for the question(s) below.

 

Consider the following income statement and other information:

 

Luther Corporation

Consolidated Income Statement

Year ended December 31 (in $ millions)

 

2006

2005

Total sales

610.1

578.3

Cost of sales

(500.2)

(481.9)

Gross profit

109.9

96.4

Selling, general, and

administrative expenses

(40.5)

(39.0)

Research and development

(24.6)

(22.8)

Depreciation and amortization

(3.6)

(3.3)

Operating income

41.2

31.3

Other income

Earnings before interest and taxes (EBIT)

41.2

31.3

Interest income (expense)

(25.1)

(15.8)

Pretax income

16.1

15.5

Taxes

(5.5)

(5.3)

Net income

10.6

10.2

 

 

 

Price per share

$16

$15

Shares outstanding (millions)

10.2

8.0

Stock options outstanding (millions)

0.3

0.2

 

 

 

Stockholders’ Equity

126.6

63.6

Total Liabilities and Stockholders’ Equity

533.1

386.7

 


4)


For the year ending December 31, 2006 Luther’s earnings per share are closest to:


A)


$1.01


B)


$1.04


C)


$1.58


D)


$4.04  


 


 


6)


Luther’s Operating Margin for the year ending December 31, 2005 is closest to:


A)


1.8%


B)


2.7%


C)


5.4%


D)


16.7%


 


7)


Luther’s Net Profit Margin for the year ending December 31, 2005 is closest to:


A)


1.8%


B)


2.7%


C)


5.4%


D)


16.7%


 


8)


Luther’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year ending December 31, 2006 is closest to:


A)


19.7 million


B)


37.6 million


C)


41.2 million


D)


44.8 million


 


 


9)


Luther’s return on equity (ROE) for the year ending December 31, 2006 is closest to:


A)


2.0%


B)


6.5%


C)


8.4%


D)


12.7%


 


 


10)


Luther’s return on assets (ROA) for the year ending December 31, 2006 is closest to:


A)


2.0%


B)


6.5%


C)


8.4%


D)


12.7%


11)


Luther’s price earnings ration (P/E) for the year ending December 31, 2006 is closest to:


A)


7.9


B)


10.1


C)


15.4


D)


16.0


 


 


2.4 The Statement of Cash Flows


1)


Which of the following is not a section on the cash flow statement?


A)


Income generating activities


B)


Investing activities


C)


Operating activities


D)


Financing activities


3)


Which of the following is not a reason why cash flow may not equal net income?


A)


Amortization is added in when calculating net income.


B)


Changes in inventory will change cash flows but not income.


C)


Capital expenditures are not recorded on the income statement.


D)


Depreciation is deducted when calculating net income.  


 


 


 


 

Use the tables for the question(s) below.

 

Consider the following financial information:

 

Luther Corporation

Consolidated Balance Sheet

December 31, 2006 and 2005 (in $ millions)

Assets

2006

2005

 

Liabilities and Stockholders’ Equity

2006

2005

Current Assets

 

 

 

Current Liabilities

 

 

Cash

63.6

58.5

 

Accounts payable

87.6

73.5

Accounts receivable

55.5

39.6

 

Notes payable /

shortterm debt

10.5

9.6

Inventories

45.9

42.9

 

Current maturities of longterm debt

39.9

36.9

Other current assets

6.0

3.0

 

Other current liabilities

6.0

12.0

     Total current assets

171.0

144.0

 

     Total current liabilities

144.0

132.0

 

 

 

 

 

 

 

LongTerm Assets

 

 

 

LongTerm Liabilities

 

 

  Land

66.6

62.1

 

  Longterm debt

239.7

168.9

  Buildings

109.5

91.5

 

  Capital lease obligationss

  Equipment

119.1

99.6

 

Total Debt

239.7

168.9

  Less accumulated

  depreciation

(56.1)

(52.5)

 

Deferred taxes

22.8

22.2

Net property, plant, and equipment

239.1

200.7

 

Other longterm liabilities

Goodwill

60.0

 

Total longterm liabilities

262.5

 

Other longterm assets

63.0

42.0

 

Total liabilities

406.5

323.1

     Total longterm assets

362.1

242.7

 

Stockholders’ Equity

126.6

63.6

 

 

 

 

 

 

 

Total Assets

533.1

386.7

 

Total liabilities and Stockholders’ Equity

533.1

386.7

 


 

Luther Corporation

Consolidated Income Statement

Year ended December 31 (in $ millions)

 

2006

2005

Total sales

610.1

578.3

Cost of sales

(500.2)

(481.9)

Gross profit

109.9

96.4

Selling, general, and

administrative expenses

(40.5)

(39.0)

Research and development

(24.6)

(22.8)

Depreciation and amortization

(3.6)

(3.3)

Operating income

41.2

31.3

Other income

Earnings before interest and taxes (EBIT)

41.2

31.3

Interest income (expense)

(25.1)

(15.8)

Pretax income

16.1

15.5

Taxes

(5.5)

(5.3)

Net income

10.6

10.2

Dividends Paid

                 5.1

5.0

Price per Share

$16

$15

Shares outstanding (millions)

10.2

8.0

Stock options outstanding (millions)

0.3

0.2

 

 

 

Stockholders’ Equity

126.6

63.6

Total Liabilities and Stockholders’ Equity

533.1

386.7

 


6)


For the year ending December 31, 2006 Luther’s cash flow from operating activities is ? 


 

2.6 Accounting Manipulation


1)


In response to corporate scandals such as Enron and WorldCom, in 2002 congress passed a law that requires, among other things, that CEOs and CFOs certify the accuracy and appropriateness of their firm’s financial statements and increases he penalties against them if the financial statements later prove to be fraudulent.  The name of this act is?


A)


The GlassSteagall Act


B)


The SarbanesOxley Act


C)


The Accuracy in Accounting Act


D)


The McCainFeingold Act