Write down why do you think there is a problem in CA(current asset) management
Q: Who should authorize disposal of fixed assets?
A: Disposal of Fixed Asset: Disposal of fixed asset is a process of selling off the asset whose…
Q: How to compare different assets in investment selection process? What are the quantitative…
A: One of the important decisions that financial managers are supposed to take is that they have to…
Q: practice, would you expect the depreciation expense for a non-current asset to be overestimated or…
A: Depreciation is charged for non current asset being tangible asset, because of its wearing and tear…
Q: Discuss the key aspects of the 'cost model' and 'revaluation model' for non-current assets, and…
A: solution cost model The model where the non current assets are reported on the…
Q: calculate asset turnover
A: since the numeric data is not provided I am explaining just a concept of Asset turnover ratio.
Q: How can we determine the Acquisition of Fixed Assets?
A: Fixed Assets- Fixed Assets are those assets which are acquired for the purpose of: production or…
Q: ite one example of the “pros-cons” on the use of Asset-Based Valuation and briefly explain
A: Asset-based valuation seems to be a type of business valuation primarily emphasizes on the worth of…
Q: definition of alternative current assets investigation policies
A: Alternative Current Assets Investigation Policies This approach which was used in the current assets…
Q: k that could happen during the fixed asset acquisition process and how such risks could impact the…
A: Designated members of management should be assigned responsibility for authorizing the purchase of…
Q: What is advantages and disadvantages of centralization and decentralization? -Explain Effects of…
A:
Q: What if noncurrent asset is not a subtitle I can chose from? Is there another heading I can use or…
A: The non-current assets means those assets which are not current assets, i.e. they would benefit the…
Q: Which one of the following is not one of the factors in computing depreciation? Cost price…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: Depreciation techniques applicable to the most prevalent categories of depreciable assets might be…
A: This question explains about the most prevalent categories of depreciable assets might be…
Q: what are some pros and cons of holding high level of current assets in relation to sale?
A:
Q: Discuss and explain the tension between “Asset Transformation” and “Asset Conversion”
A: There exists a subtle yet systematic tension between asset transformation and asset conversion. Both…
Q: Please I want answer for this according to your understanding and experience. Thanks
A: Current asset: These are short-period assets claimed and owned by an organization for 12 months…
Q: Should the engineers be able to assess the reality of depreciating fixed assets?
A: A company should assess the position of its fixed asset and check for its impairment if condition…
Q: Why FASB treat the spending on the search and development as expense why it can’t be treated as long…
A: Accounting Principles: Accounting principles are the regulations and criteria that businesses must…
Q: Discuss the risks associated with short selling an asset. Use examples and empirical evidence in…
A: A short-selling of an asset or stock means that the investor sells the borrowed securities…
Q: Same data in I1, but assuming the use of asset revaluation method, how much is the total asset…
A: Revaluation of assets is done to find out their current or present value on the basis of the net…
Q: What is the DuPont method of analysis and how does it break down return on assets
A: Given : This question tells about the DuPont method of analysis and how does it break down return on…
Q: What is the correct total asset turnover ratio
A: Introduction:- Ratio analysis is used to identify financial performance of the company. Financial…
Q: How do you identify an asset with reference to AASB?
A: Balance sheet: A balance sheet is a statement of assets, liability, and equity. It is prepared after…
Q: determining the value of the assets?
A: Criteria could be considered:- 1.Which information asset would be the most expensive to project?…
Q: What is more important for asset valuation? Cash flow or accounting profit? Please fully explain the…
A: Introduction:- Any resource that a business or economic organisation owns or controls is referred to…
Q: What is the role of financial intermediaries in asset transformation? Briefly explain along with the…
A: Financial intermediaries are the entities involved in mobilizing the funds between two parties, one…
Q: Why might disinflation prove favorable to financial assets?
A: Disinflation is the reduction or lowering of the pace of inflation. In other words in situation of…
Q: hat situational circumstances can the Asset-based valuation be
A: Valuation is the process of determining the fair market value of a company's assets or operations.…
Q: Explain about the existence of an active market in relation to the intangible assets and the…
A: Here discuss about the details of intangible assets and its valuation and accounting treatment which…
Q: Describe the method of the asset's depreciation?
A: Methods of Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset…
Q: Discuss the overarching idea of Asset Liability Management and its key objectives. How does the…
A: Asset and liability management practices were first introduced by financial institutions during the…
Q: What negative consequences result when fixed asset records include assets that the firm no longer…
A: Assets that were purchased for long-term use in the organization is called fixed assets, they also…
Q: Which of the following are criteria for determining whether to record an asset as a fixed asset?…
A: Fixed asset is defined as anything which is utilized for more than single accounting period and…
Q: Explain how to calculate asset turnover ratio.
A: Asset turnover ratio refers to how much sales is generated by every dollar invested in assets by the…
Q: What is the purpose of amortisation? To allocate the cost of an intangible non-current asset…
A: Amortization and Depreciation are both terminology used in finance
Q: Explain how the DuPont system of analysis breaks down return on assets?
A: As per DU point analysis, ROA(retrun on asets)=(Net Income/Sales)*(Sales/Average Assets)
Q: What serious consequences occur in an inaccurate estimate of asset needs?
A: Estimates of assets: It is approximate value of assets of original value of assets which is used…
Q: What are the advantages of using the Dupont System to analyze the Return on Assets
A: Dupont analysis is one that helps the firm to analyze the fundamental performance of the firm. It is…
Q: Why is the fixed asset riskier than current asset?
A: In financial accounting, the company's financial statements assets are classified into two…
Q: Discuss and evaluate the impacts of an asset revaluation on future financial statement? Use and…
A: Impacts of an asset revaluation on the future financial statement: Revaluation of assets leads to…
Q: Explore the implications of short-selling and the inclusion of a risk-free asse
A: Short selling may be a trading or investment strategy that bets on the worth of a stock or other…
Write down why do you think there is a problem in CA(current asset) management
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- Use the below information to answer the following questions: 20202021Sales$11,573$12,936Depreciation 1661 1736Cost of goods sold 3979 4707Other Expenses 846 924Interest Expense 776 926Cash 6067 6466Accounts Receivables 8034 9427Short-term Notes Payable 1171 1147Long-term debt 20,320 24,696Net fixed assets 50,888 54,273Accounts Payable 4384 4644Tax rate 26% 34%Inventory 14,283 15,288Payout ratio 33% 30% A. Create the Balance Sheets for 2020 & 2021.Use the below information to answer the following questions: 20202021Sales$11,573$12,936Depreciation 1661 1736Cost of goods sold 3979 4707Other Expenses 846 924Interest Expense 776 926Cash 6067 6466Accounts Receivables 8034 9427Short-term Notes Payable 1171 1147Long-term debt 20,320 24,696Net fixed assets 50,888 54,273Accounts Payable 4384 4644Tax rate 26% 34%Inventory 14,283 15,288Payout ratio 33% 30% A. Create the Income Statements for 2020 and 2021 (including dividends paid and retained earnings).Deuk Seon have the following investment centers. Several items are missing from the following table of rate of return on investment and residual income. Determine the missing items, identifying each item by the appropriate letter. Department Invested Assets Income from Operations Rate of Return on Investment Min. Rate of Return Min. Amt. of Income from Operations Residual Income Taek (a) (b) (c) 16% P128,000 P10,000 Jung Hwan P850,000 P153,000 (d) 12% (e) (f) Sun woo P825,000 (g) 20% (h) (i) P24,000 Dong Ryong (j) P129,000 24% (k) P60,000 (l) (a) Determine the missing items, identifying each by number. (b) Which division is most profitable in terms of income from operations? (c) Which division is most profitable in terms of rate of return on investment?
- Use the information from this table to find the standard deviation for each asset. State of Economy Probability of State Return on Asset J Return on Asset K Boom 30% 5% 24% Growth 40% 5% 12% Stagnant 20% 5% 4% Recession 10% 5% -10%Use the information from this table to find the covariance for each asset. State of Economy Probability of State Return on Asset J Return on Asset K Boom 30% 5% 24% Growth 40% 5% 12% Stagnant 20% 5% 4% Recession 10% 5% -10%Use the information from this table to calculate the correlation coefficient for the assets. State of Economy Probability of State Return on Asset J Return on Asset K Boom 30% 5% 24% Growth 40% 5% 12% Stagnant 20% 5% 4% Recession 10% 5% -10%
- QB: .Determine the covariance between assets R and S with the following data: State Prob Return J Return S Boom 0.1 16 22 Recession 0.2 -7 -4 Normal 0.4 12 11 Recovery 0.1 11 16 Slow Growth 0.2 14 20 Is it advisable to diversify?5. Using regression analysis to forecast assets The AFN equation and the financial statement–forecasting approach both assume that assets grow at relatively the same rate as sales. However, the relationship between assets and sales is often a little more difficult than that. In particular, some firms use regression analysis to predict the required assets needed to support a given level of sales. General Services Corp. has used its historical sales and asset data to estimate the following regression equations: Accounts Receivable = –$99,220 + 0.225(Sales) Inventories = $9,110 + 0.180(Sales) General Services Corp. currently has sales of $900,000, but it expects sales to grow by 30% over the next year. Use the regression models to calculate General Services Corp.’s forecasted values for accounts receivable and inventories needed to support next year’s sales. Forecasted Values for Next Year Accounts receivable Inventories Based on the…LiabilitiesOMRAssetsOMRShare capital400,000Land and building280,000Net profit60,000Plant and machinery700,000General reserve80,000Stock400,000Debentures840,000Debtors200,000Creditors200,000Bills receivables20,000Bills payable100,000Cash80,000Total1,680,000Total1,680,000 1>calculate total current liabilites 2>calculate total Current assets
- Determining missing items in return on investment computation One item is omitted from each of the following computations of the return on investment: Return on Investment = Profit Margin x Investment Turnover 24 % = 10 % x (a) (b) = 24 % x 0.75 12 % = (c) x 1.5 16 % = 20 % x (d) (e) = 15 % x 2.227. the best technique to use in valuing a tangible loss is:A) A replacement costB) Market Values C) present values of future revenues D) direct labor dollar valuesDetermining Missing Items in Return Computation One item is omitted from each of the following computations of the return on investment: Rate of Return on Investment = Profit Margin x Investment Turnover 19 % = 10 % x (a) (b) = 28 % x 0.75 15 % = (c) x 1.5 16 % = 20 % x (d) (e) = 15 % x 1.8 Determine the missing items identified by the letters as shown above. If required, round your answers to two decimal places. (a) (b) % (c) % (d) (e) %