Mid Sem Paper

Directions: Use your graded tests and Unit 4 & 5 notes to answer the following questions. You can find the answers for #’s 1 – 62 on Exam 1 (3rd Nine Weeks Exam) and #’s 63 – 100 on your unit notes. Write your answers in the space provided, below each question.

- Complete all of the details required on the front page of the examination booklet. - Make sure that you note the SIX(6) questions attempted on the front of your examination booklet - If Seven questions are attempted, the first SIX(6) will be marked. - You may use a non-programmable calculator - Graph paper will be provided. - Answers are to be written in ink. Pencils are permitted for graphing purposes. - The

Your written answers to the questions below are to be available to be sighted by your lecturer (not submitted to the School Office) at the start of the tutorial session. To be recorded as attending the tutorial requires that the lecturer deems that the worksheet has been satisfactorily attempted.

Guidelines: You may use all of the resources (e.g., textbook, other books, websites) available to you, EXCEPT FOR OTHER PEOPLE. Your work must be done individually. Any exams that appear similar in format and/or answers will be considered to have been done in a group setting. All such exams will receive a score of 0. Late exams will not be accepted for any reason. Any late exams will receive a score of 0. These policies will be strictly enforced.

DQ 1:   What are the differences between the direct and indirect presentation of cash flows?  What are the advantages and disadvantages of the direct and indirect methods and which does the Financial Accounting Standards Board (FASB) favor and why?

Review the sample syllabus and sample rubric under the questions below. Then, provide answers underneath the following questions:

and types of questions) will be presented at the start of the class prior to the exam. The

Ratio analysis is a very useful tool when it comes to understanding the performance of the company. It highlights the strengths and the weaknesses of the company and pinpoints to the mangers and their subordinates as to which area of the company requires their attention be it prompt or gradual. The return on shareholder’s fund gives an estimate of the amount of profit available to be shared amongst the ordinary shareholders; where as the return on capital employed measures an organization 's profitability and the productivity with which its capital is utilized. Return on total assets is a profitability ratio that measures the net income created by total assets amid a period.

Each question will be worth 25 marks and be divided into two parts; part (a) and part (b). Part (a) asks you to demonstrate descriptive skills and is worth 10 marks, whilst part (b) asks you to display evaluative skills

Return on net assets = Net Income in Statement of Operations / Net Assets in the Balance Sheet

Ratio analysis: Perform trend and ratio analysis on current and fixed assets, current and long term liabilities, owner’s equity, sales revenues, EBIT, net income, and earnings per share. Project these trends

This assignment has a maximum total of 100 marks and is worth 10% of your total grade for this course. You should complete it after completing your course work for Units 1 through 5. Answer each question clearly and concisely.

First of all, we could use the Return On Sales (ROS), which measures the portion of EBIT (computed before considering fees and interests) coming from sales. Another ratio able to correctly measure performance is the Capital Turnover (CT), calculated by sales over operating assets.

Students are expected to research the topic, access other references, especially academic journals and online databases. Readings listed under each topic are indicative only. Topics will be allocated in tutorial class time during weeks 2 and the example to be researched must be confirmed as suitable by the tutor. Although much information is available on the World Wide Web, some caution should be exercised about the quality of this and students will be expected to properly assess this information through critical review in their assignment. Reports or essays should be prepared in the appropriate format (refer to the Q manual for details) and should be maximum 2000 words.

Here is a brief explanation of each ratio and what each calculation presented. As previously stated to obtain the gross profit the cost of goods or services is subtracted from the revenue. Since there are no clear goods or services on the balance sheet, the total operating costs were taken in to use for this equation. The number comes out to a cash equivalent and that profit number must be divided by the total revenue. This calculation gives a decimal number to be converted to a percentage. For 2011 the gross profit percentage was 9% and for 2012 it was 8.68%. To obtain the current ratio the total assets are divided by the total assets/total liabilities. For 2011 and 2012 the current ratio would be 1.64 even though the total assets and liabilities are different. Finally, to obtain the asset ratio the revenue is divided by the total assets. In 2011 the asset ratio was 4.15 and 2012 the asset ratio was 4.36. With the asset ratio the higher the number the more efficient the company is. The higher number for 2012 indicates that Huffman Trucking is projected to use their assets more efficiently.