FINANCIAL ANALYSIS (ACCT 411) PACKAGES LIMITED Group Members Introduction Page 3 Research Methodology Page 10 Analytical Adjustments Page 10 Ratio Analysis Page 15 Horizontal Analysis Page 21 Vertical Analysis Page 25 Cash Flow Statement Analysis Page 26 Recommendations Page 27 Limitations of Analysis Page 28 Work cited Page 29 Introduction We have chosen Packages Limited as the Company for the purposes of our analysis. We’ll be also analyzing Cherat Packaging
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years for the strategic planning workshop of senior managers. EEI’s managers were optimistic about the future‚ thus the forecast for the next three years should be guided by the growth in revenues‚ expenses‚ and income over the last four years – using the 1991 to 1994 financial statements‚ because the company experienced the business crisis prior to 1991 starting from 1986. It seemed proper to
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financial news service. He holds a Master of Business Administration from Kellogg Graduate School. Per: Hunkar Ozyasar‚ eHow Contributor‚ last updated September 17‚ 2011 Direct Method If the accountant prepares the cash flow statement by using the information in the income statement‚ she is using the direct method. Under such a scenario‚ she identifies and adds up all cash sales and collections of receivables from credit sales during previous periods. She subtracts all cash payments to arrive at the
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accounting period should be reckoned in the same period‚ irrespective of the fact whether these expenses have been paid in cash or not in that year. The same holds true for revenues‚ i.e.‚ revenues earned in a specific accounting period are construed as incomes of the same period‚ irrespective of their receipts. This concept is also known as the accrual theory of accounting or accrual accounting. This concept applies equally to revenues and expenses. In the accrual basis of accounting Revenue is recognized
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capitalization policy have on its financial statements? Ignore any potential tax effects. a. Assume that 60% of Microsoft’s research and development expenses were incurred after technological feasibility was established‚ that the average product life was two years‚ and that the company begins amortizing software costs at the beginning of the following year. Estimate the effect of capitalizing software costs on Microsoft’s fiscal 1997‚ 1998‚ and 1999 income statements and balance sheets. The decision involving
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June 28‚ 2012 FOR IMMEDIATE RELEASE RESEARCH IN MOTION REPORTS FIRST QUARTER FISCAL 2013 RESULTS Waterloo‚ ON – Research In Motion Limited (RIM) (Nasdaq: RIMM; TSX: RIM)‚ a world leader in the mobile communications market‚ today reported first quarter results for the three months ended June 2‚ 2012 (all figures in U.S. dollars and U.S. GAAP‚ except where otherwise indicated). Highlights: Cash‚ cash equivalents‚ short-term and long-term investments increased to $2.2 billion at the end of the first
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Chapter 1 CA1-1 (FASB and Standard-Setting) Presented below are four statements which you are to identify as true or false. If false‚ explain why the statement is false. 1. GAAP is the term used to indicate the whole body of FASB authoritative literature. 2. Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements. 3. The primary governmental body that has influence over the FASB is the SEC. 4. The FASB
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Integrated Case 3-16 D¡¦Leon Inc.‚ Part I Financial Statements and Taxes Donna Jamison‚ a 2000 graduate of the University of Florida with 4 years of banking experience‚ was recently brought in as assistant to the chairman of the board of D¡¦Leon Inc.‚ a small food producer that operates in north Florida and whose specialty is high-quality pecan and other nut products sold in the snack-foods market. D¡¦Leon¡¦s president‚ Al Watkins‚ decided in 2004 to undertake a major expansion and to ¡§go
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not an agent. Recording revenue in this manner means that Groupon was recording a “cost of goods sold” entry with each “revenue” entry on every sale it made. These entries heavily inflated the amount of revenue Groupon was reporting. Although net income was not affected by this‚ many other things were such as revenue growth rates and gross profit margins (Hilton‚ 2013). Herein lies the problem‚ Groupon is an agent‚ not a principal. To be considered a principal‚ a few criteria must be met. These
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CASE STUDY #2 – DARDEN RESTAURANTS‚ INC. – TRANSACTIONS AND ADJUSTMENTS Concepts a. To prepare accrual-based financial statements‚ a company must adjust its accounts. This is accomplished with periodic adjustments (also known as adjusting journal entries or accounting adjustments). For each account below‚ explain the types of transactions or events that necessitate periodic adjustments to the account for the typical company. i. “Inventories‚ net.” – If a company purchases products to be resold
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