Assignment: Balance Sheet and Basic Industries

Ross, S. A., Westerfield, R. W., & Jordan, B. D. (Eds.). (2011). Essentials of corporate finance (7th ed., Rev.). New York, NY: McGraw-Hill Irwin.

This memo has been constructed for the purpose of reporting information the president of the company in reflection the purchasing of a supplier in the near future. It reflects information concerning Calculate Net Present (NPV), Internal Rate of Return (IRR), along with the payback of the investment opportunity. In this company memo the following information will be discussed:

The company’s sales for the current period are $185,000. The current period’s entry to record warranty expense is:

| (TCO C) Presented below is information related to Bruce Van Company. Retained earnings, December 31, 2010

3. What are each of the financial statements commonly called in for-profit health care organizations and in not for-profit care organizations?

1. Cash (Exhibit 7-11)............................................ $1,875 2. Gross sales revenue (Exhibit 7-9)................... $7,491 Less: Sales discounts (Exhibit 7-9)................ (35) Net sales revenue............................................. $7,456 3. Purchased furniture on account— Purchases journal p. 8 (Exhibit 7-10) 4. City Office Supply November 30 balance (Exhibit 7-11)............... $ 543

Like several companies, Nortel stipendiary their executives with stock choices (Collins, 2011). This compensation solely inspired the tendency to be but honest regarding the company’s finances. author closely-held stock choices that solely inspired his actions to fulfill or beat the benchmark set by analysts. If Nortel’s earnings showed to be higher than the benchmark, Nortel’s stock costs would rise creating the stock closely-held by management to be even a lot of valuable. By tweaking the books to indicate the road earnings price as critical the allowable accumulation price he created the stakeholders assume that the corporate was creating extra money than it had been. “Nortel ne'er incomprehensible a benchmark over the sixteen quarters (Collins, 2011).” it had been too tempting to bump the numbers up so the stocks gave the impression to be value over they were. “Nortel’s accounting practices junction rectifier to AN investigation by AN freelance review committee, that found that insubordination with accumulation and accounting fraud were undertaken to fulfill internally obligatory earnings targets (Collins, 2011).”

The productive assets of property, plant, and equipment changed dramatically in 1996 they were 5,581 to 2010 an increase to 21,706. In total current assets there was a increase in 1996 from 5,910 to in 2010 21,579. Another significant change is in long term debt in 1996 of 1,116 to in 2010 an increase to 14,041. Also an important figure to note is in the retained earning in 1996 they were 94% (15,127) to 2010 68%

1993 Operating Cost Structure ($/metric ton except where noted) Average Total electricity and alumina cost Other raw materials Plant power and fuel Consumables Maintenance Labor Freight General and administrative Total 683

Net income totaled $97.8 million in 1984, an increase of 5% from 1983.when looking at the Consolidated Balance Sheet (Exhibit2), we found that the total assets grew 15% to $2.7 billion at the end of fiscal 1984 due to addition of real estate inventories as part of the acquisition of another company. The ratio of debt to total capitalization jumped to 43% at 1984 from 20% at previous year.

YEAR 0 2009 1 2010 2 2011 3 2012 4 2013 5 2014 6 2015 7 2016 8 2017 9 2018 10 Initial Investment Gross Revenue 2 COGS 3 Add'l revenue Less: COGS Loan down payment 4 Loan repayment Depreciation Additional workers Land square required Moving cost 5 Operating Expenses Total Expenses Net Income Before Tax Income Tax Net Income After Tax After Tax Cash Flow ATCF Cummulative ATCF NPV through Year N

Financial results and conditions vary among companies for a number of reasons. One reason for the variation can be traced to the characteristics of the industries in which companies operate. For example, some industries require large investments in property, plant, and equipment (PP&E), while others require very little. In some industries, the competitive productpricing structure permits companies to earn significant profits per sales dollar, while in other industries the product-pricing structure imposes a much lower profit margin. In most low-margin industries, however, companies often experience a relatively high rate of product throughput. A second reason for some of the

2. At the end of its first year of operations, Matlocke Company has total assets of $2,000,000 and total liabilities of $1,200,000. The owner originally invested $200,000 in the business, but has not made any further investments or taken any withdrawals. What is the first year 's net income for Matlocke Company?

For this research I need financial information from the Balance Sheets and Financial Statements of listed non-financial firms. According to the previously discussed theory, entrusted loans can be tracked down on the lender 's side more easily, not only because of the distinctive movement in their balance sheets, but because bigger, listed corporation usually face much stricter reporting obligations, thus it is easier to acquire their financial data. The Standard and Poor 's Capital IQ database (Standard and Poor 's, 2015) provides financial data on listed corporations all around the globe. It has a great coverage of data across countries and time periods for all sectors. All the data is provided in million US dollars. The database uses the Global Industry Classification Standard (GICS) (Standard and Poor 's, 2008), which categorizes firms into 10 sectors, with further sub-groups for better transparency. Since I am only interested in non-financial corporations, firms, whose principal activity is not finance, such as a telecommunication or a railway company, I have to drop all financial companies from my sample. GICS designates the financial sector with the number 40(Standard and Poor 's, 2008), thus non-financial corporations are defined as firms, whose industry classification is not equal 40. As it is very important to only have non-financial corporations in my sample, any firms with ambiguous or missing industry classification, was dropped.

In this report, it will refer to the business structure, balance sheet, income statement and accounting information and those is surround the case study to clarify every point. The case is a couple who is come from Malaysia and they want to open a restaurant in New Zealand. The report purpose is to delicate the comprehend about the four aspects.The report will be divided four aspects to help them solve the problem and analyse every aspect the influence and effect in an accounting. The reason for the report is classify the four aspects and get relationship between them. Those are the basic information for an accounting.