Southport Minerals

3. Using the cash flow indicator and investment valuation ratios, discuss which company is more likely to have satisfied stockholders.

A balance sheet gives an overall picture of a company's financial situation by showing the total assets of a business, including liabilities plus equity. Current assets can include cash, accounts receivable, inventory and prepayments for insurance. The balance sheet is used by investors to get an idea of what the shareholders have invested, including

Learning Objective: 04-03 Present an income statement with earnings per share, statement of stockholders equity, balance sheet, and statement of cash flows.

Complete an income statement, balance sheet and statement of cash flows for 2011. Please provide information on any assumptions you make not already stated in the case.

South Carolina’s commercial gold mining began in 1829, two years after the first discovery of gold in the area [1]. Mining continued with variations in productivity until World War II, when all gold mining was abandoned until renewed interest during the 1980s [1]. Figure 1., seen above, shows the amount of gold produced per year in troy ounces per year and the percentage of total US gold production [2]. Overall, gold production increases with time as newer mining techniques increase efficiency. In 1836, South Carolina produced above 11% of total gold for the United States.

2. Should Gabriela and Rob be concerned about the fair value estimate Morris Mining has computed? Why? What incentive does the company likely have in terms of valuing the patent (over or understatement)? Explain your answer.

Note: To make the balance sheet balance, define cash as equal to (Current liabilities + Net worth) – (Accounts receivable + Inventory + Other current assets + Net fixed assets).

1. Evaluate the terms of the proposed $900 million financing from the perspective of both parties. How would you calculate the return to investors in this transaction? If you need more information, what information do you need?

3. What are the primary advantages and disadvantages of the prior approaches, DCF and Black-Scholes, that you took in valuing the rights? Please be specific about their assumptions. What further assistance or data would you require to refine your estimate of the right’s value?

5. A complete analysis of the company’s financial statements for a minimum of the most recent three years of available data including a comparison of the company's ratios to most recent year’s peer company average ratios. Complete the ratio calculations yourself. Do not copy them from another source.

1. Analyze the economic rationale of the Carborundum acquisition. Under what conditions an acquisition would be expected to add to shareholder value in general? Do any of these reasons apply to Carborundum acquisition?

which are added to pro forma total current assets which yield pro forma total assets. The next section deals with liability. It begins with pro forma accounts payable which is determined by figuring out how much a company will spend on bills and previous purchased supplies. Next is the pro forma accrued payroll, which is easy to determine after establishing salaries. The pro forma notes payable is notes payable within one year. Pro forma total current liabilities are calculated by adding pro forma accounts payable, accrued payroll, and notes payable. Proceeding this, pro forma long term liabilities are calculated which may include things such as pro forma mortgage note payable. Combining pro forma long term liabilities and pro forma current liabilities will provide pro forma total liabilities. The last section of the pro forma balance sheet is pro forma owner’s equity, which includes pro forma common stock and pro forma retained earnings.

This paper will seek to analyze the financial statements of the O.M Scott & Sons Company during the years 1957-1961, in order to provide readers with a thorough understanding of the various factors that may influence the future success of this business. Additionally, recommendations based on an analysis of their financial

This report had been prepared requested by the Board. The content of this report concentrated on evaluating the performance of Iron Ore Mining and providing a recommendation of any potential financial justified growth strategies for the next strategic planning horizon (3 years).

The last one is the Balance Sheet which tells a person the lists of assets he has, the list of