Valuation of AirThread Connections Group 7 (Shaojin Ding/ Jin Wang/ Wenqi Gu/ Shijia Wu/ Tongtong Yin/ Canran Xie) Given the background of ACC and AirThread‚ do you think the acquisition is a good idea? Briefly explain your answer. Yes. First‚ American Cable Communication (ACC) and AirThread could help each other compete in the industry that was moving more and more bundled service offerings. Second‚ the acquisition could help both companies expand into the business market. Third‚
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Corporate Accounting III Assignment 2 Question 1: What is the difference between direct and indirect NCI? Under AASB127‚ the group is required to prepare the consolidation statement when parent entity acquires shares in the subsidiary. There are two parties who own shares in the subsidiary if it’s not a wholly-owned subsidiary consolidation. One is the parent entity while the other is non-controlling interest. Non-controlling interest (NCI) is defined as “the portion of the profit or loss and
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Remmers corporation for 2010. a. Depreciation reported on the tax return exceeded depreciation reported on the income statement by 120‚000. This difference will reverse in equal amounts of 30‚000 over the years 2011-2014. B. Interest received on municipal bonds was 10‚000. C. Rent collected in advance on Jan 1 2010 totaled 60‚000 for a 3 year period. Of this amount 40‚000 was reported as unearned at Dec 31 for book purposes. D. The tax rates are 40% for 2010 and 35% for 2011 and subsequent years
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Chapter 1 Demonstration Problem 1-2 Effect of Product and Period Costs Klyn Manufacturing Company experienced the following accounting events during its first year of operation. Except for the depreciation adjusting entries‚ all transactions are cash transactions. 1. Acquired $50‚000 cash from the issue of common stock. 2. Paid $6‚800 for the materials that were used to make its products. All products started were completed during the period. 3. Paid salaries of $4‚300 to selling and administrative
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Examples of spontaneous liabilities include accounts payable‚ accrued wages‚ and accrued taxes. No interest is normally paid on these spontaneous liabilities; however‚ their amounts are limited due to credit terms‚ contracts with workers‚ and tax laws. Therefore‚ spontaneous liabilities are used to the extent possible‚ but there is little flexibility in their usage. Note that notes payable‚ although a current liability account‚ is not a spontaneous liability since an increase in notes payable requires
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Accounting Principles i Running head: GENERAL ACCEPTED ACCOUNTING PRINCIPLES General Accepted Accounting Principles Accounting Principles ii Abstract My paper is about the GAAP (General Acceptance of Accounting Principles) which were created by the Accounting Principles Board (APB). The board was created by American Institute of Certified Public Accountants (AICPA) in 1959. APB issued 31 Opinions from 1959 to 1973 and those Opinions created GAAP. I think GAAP is interesting
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during time when raw materials are expensive. It will also affect firm’s collection period ratio because of the production matter. Fewer productions will cause increase on collection period which will incur lost of money. Since cash flow is slow during this stage a firm would have longer period on payable turnover as well. Net profit on sales shows how much James Confectioners have lost
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2010? Is this possible? Explain. Cash flow from assets = Operating cash flow – Net capital spending – Changes in NWC = $4‚720 – ($16‚340 - $13‚800 + $2‚370) – [(3‚280 – 2‚160) – (2‚940 -$2‚070)] = $4‚720 - $4‚910 - $250 = -$440 It is possible that the cash flow from assets are negative. Because it positive or negative are represent the firm distributed funds to the shareholders and creditors or they pay money to buy the assets to help the firm raised funds respectively. And in this case
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AirThread Valuation of AirThread This case deals with the valuation of AirThread Connections Business (ATC) from the perspective of its potential acquirer‚ American Cable Communication (ACC). ACC is a large cable operator which serves the video‚ internet and landline telephony needs of millions of users across America. However it is recently looking to acquire ATC which is one of the largest wireless companies in the United States. This acquisition will bring with it certain synergies that both
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Generally Accepted Auditing Standards Maxx Mayeux ACC/490 February 22nd‚ 2012 Linda Carr Generally Accepted Auditing Standard • Describe how these standards apply to financial‚ operational‚ and compliance audits. • Explain the effect that the Sarbanes-Oxley Act of 2002‚ and the Public Company Accounting Oversight Board (PCAOB)‚ will have on audits of publicly traded companies. • Discuss the additional requirements that are placed on auditors from this act and the actions
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