Fin 516 Mini Case Week 2 Essay

* How experiences outside of the school community are integrated into planning for post-secondary outcomes

Case 12-02 To Recognize or Not to Recognize, That Is the Question Shakespeare Inc. (“Shakespeare” or the “Company”) is a privately held book printing and publishing company with a December 31 year-end. The summary balance sheet as of December 31, 2010, included: Current assets Noncurrent assets Total assets Current liabilities Noncurrent liabilities Total liabilities Total shareholder equity $ 6,500,000 28,250,000 $34,750,000 $ 4,500,000 13,750,000 $18,250,000 $16,500,000

n. WACC has market interest rates and market risk aversion, firms debt/equity mix and firm’s business risk which all go to cost of debt and cost of equity which both areas end up at the value.

The following report includes selected financial data analyzing the performance of our company Life Through the Lens for year 12. Included is our strategy for the current year, future initiatives for our four regions, our competitor analysis, and reasons our company has not been improving as well as we had projected. At the moment our company’s current position is not up to par with our previous years regarding where our company is standing among our competitors. Please refer to Table 1.0 above to further understand our company’s performance for the end of year 12.

16. How would you assess the overall risk structure of the company in terms of its operating risks and financial risk (debt to capitalization ratio)?

{. How many consecutives years the company has been profitable, its current ration and its ROE

Greene Sisters has a DSO of 20 days. The company’s average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year.

Keys are not available for four of eight (50%) vacated self-service storage boxes reviewed. FORUM should retain keys for all unused self-service storage boxes. Missing keys could result in boxes being unavailable for member lease. Additionally, contents could be left from previous box owner violating Indiana abandoned property requirements. Lastly, the box could currently be in use resulting in possible legal disputes.

Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration.

First, I would like to thank you for hiring my accounting firm to evaluate LJB’s internal controls system. This report will inform you of any new internal control requirements required for LJB to go public, advise you of what the company is doing right, recommend that LJB purchase an indelible ink machine, and advise you what areas the company can improve.

Suppose you are the network manager for Central University, a medium-size university with 13,000 students. The university has 10 separate colleges (e.g., business, arts, journalism), 3 of which are relatively large (300 faculty and staff members, 2,000 students, and 3 buildings) and 7 of which are relatively small (200 faculty and staff, 1,000 students, and 1 building). In addition, there are another 2,000 staff members who work in various administration departments (e.g., library, maintenance, and finance) spread over another 10 buildings. There are 4 residence halls that house a total of 2,000 students. Suppose the university has the 128.100.xxx.xxx address

This company experienced an all-time high in March of 2011 when its close price hit an astounding 93.01 but then dropped by nearly 20 three months later when it closed at 76.95 and then 55.44 in September of that same year. They currently hold a return on equity of 9.61% and a return on assets of 5.24%. The industry that this company is in, oil and gas industry, has seen enormous advances in technology and this has helped toward assisting companies in producing more oil and gas. These technology advancements have allowed them to more accurately find and produce resources in order to maximize profit for the companies. Although the technology efficiency is on the rise, trying to maintain a fresh and talented workforce within the industry is an area that is struggling. Another factor hurting this industry is the decrease in activity and transactions, which took a huge plummet in 2013 compared to 2012. Despite these setbacks, the oil and gas business still maintains to be dynamic due to how critical the resources are to the daily lives of everyone in the world.

Moreover, return on equity, gross profit margin and fixed asset turnover are also improving over the period demonstrating the overall good health of the business. Finally, percentage of sales growth is improving over the four years period and as Mr. Maris said “the company will continue to grow in the foreseeable future”

Calculate the after tax cost of debt using the following information (hint: see page 285 in text).

1. Harris told Houston that he needed a couple of weeks to think about his proposal. How should Houston handle this?