Chapter 6, Problem 23PC

Please answer with only  simple explanation thank you!   1.) A gain or loss from one of the following transactions should not be  included in determining income:   receipt of interest from bank deposits   sale of treasury shares   sale of plant and equipment   sale of product   2.) Corporation’s retirement of its treasury shares resulted in the par value exceeding the cost. The difference should be:   debited to APIC to the extent of the credit when the stock was issued   debited to retained earnings   credited to APIC from previous treasury stock transactions   credited to APIC relating to the same issue   3.) Which of the following should be reported for capital stock?   the shares authorized   the shares issued   the shares outstanding   all of these   4.) Which of the following would be classified in a different major section of a balance sheet from the others?   capital stock…

Suppose you are conducting an analysis of the financial performance of Blue Hamster Manufacturing Inc. over the past three years. The company did not issue new shares during these three years and has faced some operational difficulties. The company has thus pilot tested some new forecasting strategies for better operations management. You have collected the company’s relevant financial data, made reasonable assumptions based on the information available, and calculated the following ratios.   Ratios Calculated   Year 1 Year 2 Year 3 Price-to-cash-flow 6.40 8.32 9.32 Inventory turnover 12.80 15.36 17.20 Debt-to-equity 0.20 0.21 0.25   Based on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis report? Check all that apply.   A. The company’s creditworthiness has improved over these three years as evidenced by the increase in its debt-to-equity ratio over time.   B. Blue…

If a company uses a non-GAAP fi nancial measure in an SEC fi ling, then the companymust:A . give more prominence to the non-GAAP measure if it is used in earnings releases.B . provide a reconciliation of the non-GAAP measure and equivalent GAAP measure.C . exclude charges requiring cash settlement from any non-GAAP liquidity measures.

The following ratios were extracted from the books of Cartel limited.   Liquidity ratios (Current and Quick ratios)   Liquidity ratios 2002 2003 2004 Industry Average   Current Ratio 2.33 1.46 2.58 2.70   Quick Ratio 0.85 0.50 0.93 1.00   i)                   What can you say about the company's liquidity position in 2002, 2003, and as projected for 2004?                                                                                                             ii)                 How are these liquidity ratios useful to the managers of the company?                    b)      Asset management ratios (Inventory turnover, days sales outstanding , fixed assets turnover, operating capital requirement, and total assets turnover)                             Asset Management ratios 2002 2003 2004 Industry Average   Inventory Turnover 4.80 4.53 4.10 6.10   Days Sales Outstanding 37.4 39.5…

Conduct a horizontal and vertical analysis of the company’s financial statements to identify trends and patterns over the past two years. Provide an analysis of the company’s financial performance, for shareholders and potential investors, using the trends identified in (a) above and in the context of market and other trends and expectations mentioned in the MDA section of the Annual Report.  Briefly explain how the analysis at (b) would be modified if it was prepared for stakeholders other than shareholders and investors. Do not use cash on hand and net income after taxation

Omantel company showed an increase in earnings per Share (EPS) from OMR. 0.350 to OMR. 0.650 in 2019. However, the company forgot to disclose this information in its annual report.   Which kind of qualitative characteristics of useful financial information in this  case?

Omantel company showed an increase in earnings per Share (EPS) from OMR. 0.350 to OMR. 0.650 in 2019. However, the company forgot to disclose this information in its annual report. - identify and explain  qualitative characteristics of useful financial information in this case?

Companies often are under pressure to meet or beat Wall Street earnings projections in order to increase stock prices and also to increase the value of stock options. Such pressure may cause some managers to alter their estimates for depreciation to artificially create desired results.Required: 1. Understand the reporting effect: Do estimates by management affect the amount of depreciation in its company’s financial statements? 2. Specify the options: To increase earnings in the initial years following the purchase of a depreciable asset, would management (a) choose straight-line or double-declining balance, (b) estimate a longer or shorter service life, and (c) estimate a higher or lower residual value? 3. Identify the impact: Are decisions of investors and creditors affected by accounting estimates? 4. Make a decision: Should a company alter depreciation estimates for the sole purpose of meeting expectations of Wall Street analysts?

4. Assume that a manufacturing company’s annual income statement included a large gain from the sale ofinvestment securities. What factors would you consider in determining whether or not this gain should beincluded in an assessment of the company’s permanent earnings?