Financial Accounting Exxon Shell Case

5. What was the effect on earnings per share of the change in depreciation method for 'hit" tapes (assume that hit tapes made up 25% of new tape purchases, and that the average hit tape was owned for half the year)?

1. Using the historical data as a guide, construct a pro forma (forecasted) profit and loss statement

3. Compute the unlevered free cash flow and the interest tax shields from 2008 to 2012 based on estimates provided in Exhibit 1 and Exhibit 6. (3 points)

Inventory Method: The inventory amount for the year ended 12/31/2016 is $14,760,000,000 which is an $759,000,000 increase from the previous year. CVS uses the lesser of the weighted average cost or market value when determining the value of inventory. Inventory is verified for accuracy by regularly doing physical counts in all locations. Between physical counts, CVS uses sales results from previous years to accrue the estimated physical loss. These estimates are determined for each individual store and warehouse separately to ensure the most accurate information possible is reported. CVS has decided to use a new method available after annual periods beginning after 12/15/2016 known as the lower of cost and net realizable value to replace using

The pre-tax income increased by 2.63 million as a result of the ratio change in 1984. The ratio of allowance to gross receivables in 1983 was 0.0001. The ratio in 1984 was 0.000067. If the company maintained the ratio at 1983 level, the allowance would have been $8.8 million. The pretax income increased by $2.9 million because of the change in ratio in 1984.

2. What is the effect of the depreciation accounting method change on the reported income in 1984? How will this change affect profits in future years?

1. What are the factors that likely explain the difference between Microsoft’s market value of equity and its reported book value of equity?

When calculating the percentage change in inventories, an issue arises when using either the lower cost of market or the market value. When looking at the calculations for finished goods inventory (insulated wire) and copper rod inventory Laramie has applied the lower cost of market. However, the calculation pertaining to plastics inventory reveals that the market value should be used for classification, but Laramie has used cost. The percentage change of the plastics inventory if the $.12 per pound is used is a 27% decrease. The importance of classifying inventory correctly

1. Please conduct a financial ratio analysis using the data in Exhibit 2. How do the results reflect different strategies pursued by the 4 firms?

FIFO gives us a predominant considered what the finishing's estimation stock is, this collects net remuneration on the grounds that old stock is utilized to figure the expense of things sold,

(b) Calculate by how much the proposed addition will either increase or reduce operating income. Show all work.

In business trade there are many evaluation methods to value the inventory. The last in, first out (LIFO) method is one of the proper methods in inventory valuation method. For some reasons in IAS 2 Inventories it is not able to be used any more, but it is still accepted by the Financial Accounting Standards Board (FASB) in the United States of America. LIFO refers that the last importing item of inventory is sold by the first purchased inventory. To use this method will lead to some potential financial questions, especially in the period of inflation. However, using this method can also avoid some questions in the period of inflation. This essay will analyse the main reasons why the USA will continue to accept this method

This paper focuses on a financial analysis of Chevron from the perspective of a potential creditor. The issue surrounds primarily the creditworthiness of Chevron rather than the type of credit that would be issued. Specifically, the issue is whether "we" would lend Chevron 10% of its net assets. The net assets for Chevron are $209.474 billion, so the amount in question is $20.9 billion in new debt. The report will first analyze the financial statements of Chevron in general terms, focusing on trends and ratios, and drawing conclusions about the overall financial health of the company based on that analysis. The second part of the paper will outline some of the criteria that a lending institution would have for lending to a company, and then that criteria will be applied to Chevron specifically.

In this ratio he explains about the three types of business inventory like raw materials, work in progress and finished goods. Formula to find the inventory turnover ratio and average age of inventory is: - inventory turnover = costs of goods sold/average inventory, Average age of inventory = 360 days/inventory turnover ratio.