CHAPTER 1: EXERCISE 1-5 Asset Cash Equipment Supplies Accounts receivable Liability Accounts payable Notes payable Salaries and wages payable Stockholders’ Equity Common stock EXERCISE 1-6 1. 2. 3. 4. 5. 6. 7. 8. 9. Increase in assets and increase in stockholders’ equity. Decrease in assets and decrease in stockholders’ equity. Increase in assets and increase in liabilities. Increase in assets and increase in stockholders’ equity. Decrease in assets and decrease in stockholders’
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shareholder wealth d. minimizing risk of the firm 4. One of the major disadvantages of a sole proprietorship is a. that there is unlimited liability to the owner b. the simplicity of decision making c. low organizational costs d. low operating costs 5. A corporation is a. owned by stockholders who enjoy the privilege of limited liability b. easily divisible between owners c. a separate legal entity with unlimited life d. all of the above 6. Which of the following
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Term Project Final Report Atlantic Butler MGMT 3907 December 7‚ 2011 “I hereby certify that I am the author of this document and that any assistance I received in its preparation is fully acknowledged and disclosed in the document. I have also cited all sources from which I obtained data‚ ideas‚ or words that are copied directly or paraphrased in the document. Sources are properly credited according to accepted standards for professional publications. I also certify that this paper was
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For a measure of both a company’s efficiency and its short-term financial health‚ the working capital is calculated as: Working Capital = Current Assets – Current Liabilities. At the end of 2007‚ the Coca-Cola Company has a negative working capital of $1‚120 million from the current assets of $12‚105million and the current liabilities of $13‚225 million. The Coca-Cola Company’s negative working capital might be impacted by the effects of transactions occurred in 2007. Trade accounts receivable
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Regulation of Companies & Company Operations Legal nature of company Separate legal identity‚ distinct from owners Companies act through ‘agents’. eg. shareholders elect board of directors to act on their behalf Public Company (Ltd.) Limited liability of owners • Raises funds from public Types of companies Private Company (Pty. Ltd.) • • • • • • • • • Regulation of companies Corporations Law: Companies must keep proper accounting records; prepare yearly & half-yearly FS; ensure FS comply with
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Assets Liabilities Current Liabilities Accounts payable Unsecured loan payable Total Current Liabilities 2 400 4 800 12 000 24 000 7 200 6 000 18 000 30 000 36 000 600 3 600 6 000 54 000 61 200 21 600 31 200 10 200 46 200 4 800 7 200 52 800 12 000 ---- ---- Total Liabilities 52 800 12 000 Net Assets Owner’s Equity 8 400 34 200 Capital Total Owners’ Equity 8 400 8 400 34 200 34 200 Non-current Liabilities
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Review Questions 5.1 What is asset-liability management? Asset/liability management is the coordinated management of the entire portfolio of a financial institution. It considers both the acquisition of funds from various sources and the allocation of funds to profitable investments. The traditional focus of ALM has been on net interest income. However‚ it also considers market values‚ via duration. Finally‚ simulations allow other aspects of risk management to be brought into the ALM process
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I have seen many changes growing up in Prince Georges County (PG)‚ a minority-dominated county in Maryland. The government has spent a massive amount of money to revitalize the county. This includes the 250.5 million transformation of Jack Kent Cooke Stadium (now FedEx Field) and the massive 2 billion National Harbor project in Oxon Hill‚ MD. There are rumors the county plans to rename the crime-infested city of Landover‚ where I currently live‚ to Hyattsville‚ a neighboring city‚ predicting that
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The purpose of comparing the rate of General Motors and the Industry is to rate their performance in solvency‚ profitability and efficiency. General Motors ratio improved in profitability from 2011 to 2012 and 2012 to 2013 the assets and liabilities ratio was 1.31 that means in profit earned relatively to sales and total assets. In the Industry that means GM did pretty well in assets and sales compared to the Industry. In solvency the ratio was 13.19‚ it has more than 202‚000 employees supporting
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for rent. Expense Debit B. Amounts to be paid in 10 days to suppliers. Liability Credit C. A new fax machine purchased for office use. Asset Debit D. Land held as an investment. Asset Debit E. Amounts due from customers. Asset Debit F. Daily sales of merchandise sold. Revenue Credit G. Promotional costs to publicize a concert. Expense Debit H. A long-term loan owed to Citizens Bank. Liability Credit I. The albums‚ tapes‚ and CDs held for sale to customers. Asset
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