The statement of cash flows is a very important statement. In fact, the FASB and other authorities recently published an article that implies some changes may be in order. Historically, earnings have been the main measurement of profitability of a firm. Today, some folks believe that the cash flow statement may be a more appropriate predictor.
Do you agree? Why or why not?
What makes a cost relevant for decision making? Why are fixed costs not relevant for most short term decisions?
The objective of the theory of constraints is to maximize throughput contribution while minimizing investments and operating costs. The theory of constraints assumes a short run time horizon. How is this accomplished?
Discuss the other advantages of using standard costs.
Purchasing of services often involves creating a statement of work. You need to hire some financial auditors to help with the annual audit. Create a statement of work for these auditors, and discuss why you chose to include that content.
Pablo s Pizza International Inc. s common stock currently sells for $20 per share. The stock has just paid an annual dividend of $1.00 (D0 = $1.00). The dividend is expected to grow at a constant rate of 10% per year.
a. Calculate the stock price expected 1 year from now.
b. Calculate the required rate of return on PPI s common stock.
Flanigan Corporation has just paid an annual dividend of $1.50 per share (D0 = $1.50). The dividend is expected to grow 5% per year for the next 3 years, and then 10% a year thereafter.
Calculate Flanigan Corporation s expected dividend per share for each of the next 5 years.
EMC has preferred stock outstanding which pays a dividend of $5.00 at the end of each year. This stock was issued in perpetuity and has no maturity date. EMC s preferred stock sells for $60 per share.
Calculate this preferred stock s required rate of return.
At the beginning of the current fiscal year, the balance sheet of Hughey Inc. showed owners equity of $520,000. During the year, liabilities increased by $21,000 to $234,000: paid in capital increased by $40,000 to $175,000: and assets increased by $260,000. Dividends declared and paid during the year were $55,000.
Calculate net income or loss for the year.
Annual credit sales of Nadak Co. total $340 million. The firm gives a 2% cash discount fort payment within 10 days of the invoice date: 90% of Nadak s accounts receivable are paid within the discount period.
What is the total amount of cash discounts allowed in a year?
Calculate the approximate annual rate of return on investment that Nadak Co. cash discount terms represent to customers who take the discount.
Identify and evaluate contemporary issues in international financial management.
APA format with 2 references and in text citations.