Chapter 13 Current Liabilities and Contingencies Part A: Current Liabilities * Liabilities and owners’ equity on the right-hand side of the equation represent the two basic sources of the assets on the left-hand side. * Characteristics of Liabilities 1. Are probable‚ future sacrifices of economic benefits. 2. Arise from present obligation (to transfer goods or provide services) to other entities. 3. Result from past transactions or events. * Current Liability * Obligations
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capital injection has already been secured by the initial owners‚ Obewon Kinobi and Alex Skywalker‚ in the amounts of USD24‚360 and USD15‚385 respectively. Jedi Café will be incorporated as a limited liability company. The two initial owners will be the shareholders and their personal liabilities will be subject to a ceiling at the amount of their respective investments. The finance acquired through this business proposal will allow Jedi Café to successfully open and operate as a cyber café. A
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the same rate as projected sales. At the end of 2012‚ current liabilities were $1.4 million‚ consisting of $450‚000 of accounts payable‚ $500‚000 of notes payable‚ and $450‚000 of accruals. The after-tax profit margin is forecasted to be 6%‚ and the forecasted payout ratio is 40%. Use the AFN equation to forecast Brous- sard’s additional funds needed for the coming year. Required increase in assets – Increase in spontaneous liabilities – Increase in retained earnings = AFN AFN=($5/$8)*$1.2 – ($1
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INTRODUCTION British American Tobacco (Malaysia) Berhad (BAT) has a history of over 90 years in Malaysia‚ which is the No.1 Malaysian cigarette company. It conduct imports‚ and sells cigarettes‚ cigars‚ and pipe tobacco under the names Dunhill‚ Kent‚ and Pall Mall‚ among others. These unrivalled portfolios making them the clear market leader in Malaysia with over 60% market share‚ and ranks amongst the top 25 companies on Bursa Malaysia Securities Berhad in terms of market capitalisation. Some quality
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Ahold vs. Tesco Case Analysis Group 5: Rayan Alqubaysi‚ Yuchen (Jason) Jin‚ Laura Payne‚ Lei Wang Introduction of Case ● Alpha Plus Asset Management- investment decision ● Analyzed history‚ business strategy‚ recent performance and future goals ○ ○ Differences in stock prices with similar ROEs How should cash position be taken into account when assessing performance? Porter’s Five Forces of Competitive Position Ahold Threat of new entrants (Market) Bargaining power of customers (Products) Bargaining
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(c) (d) (b) (c) (e) (c) (a) (b) (c) (c) (c) (c) EXERCISE 1. Fill in the Blanks 1.1 (a) Increase in liabilities (b) Increase in Equity (c) Decrease in any other asset 1 “Suggested Solutions to Exercise” in Financial Accounting for Management by Ramachandran & Kakani Authored by Ram Kumar Kakani‚ “Copyright with Tata McGraw Hill Education Private Limited‚ 2011” 1.2 (a) (b) (c) 1.3 Liabilities 1.4 1.5 Asset 1.6 1.7 Increase; decrease 1.8 1.9 Footnotes 1.10 2) True or False Statements
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to the correct address 2. Years customer has been in this business Other – establishes track record and history 3. Total assets and estimates of values of assets in the business Economic – establishes size of asset base of business 4. Total liabilities (total commitments) Economic – establishes how much the business currently owes others to assess the extent of claims against assets 5. Profits of the business for the most recent and previous periods Economic – used to assess whether the business
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Student Course Date Instructor Accounting Equation Paper The accounting equation which we know as Assets equals to Liabilities plus Equity for a sole proprietorship and for a corporation we know it as Assets equals to liabilities plus stockholders & equity. Assets are company owned‚ liabilities are what company owes and the difference between the both of them is the owner’s equity‚ these three things are what the companies are measured by in the financial
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(its equity and liabilities). It normally also provides information about the future earnings capacity of a company ’s assets as well as an indication of cash flows that may come from receivables and inventories. Liabilities represent obligations of a company arising from past events‚ the settlement of which is expected to result in an outflow of economic benefits from the entity. First of all‚ the accounts payable is carrying value as of the balance sheet date of liabilities incurred and for
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Vertical Balance Sheet 2006 2005 2004 ASSETS Current Assets Cash On Hand $ 1‚895 $ 1‚900 $ 1‚900 Petty Cash 250 250 250 Checking Account 39‚595 32‚557 16‚557 Inventory - Groceries 10‚985 11‚381 10‚629 Inventory - Liquor 6‚825 7‚284 6‚548 Inventory
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