THE UNIVERSITY OF HONG KONG School of Economics and Finance FINA1001: Financial Statement Analysis Second Semester 2009-2010 Dr. Kam-Ming Wan Midterm Examination (90 minutes) April 1, 2010 10:40a.m.(12:10p.m. Candidates may use any self-contained, silent, battery-operated and pocket-sized calculator. The calculator should have numeral-display facilities only and should be used only for the purposes of calculation. It is the candidate’s responsibility to ensure that his calculator operates satisfactorily. Candidates must record the name and type of their calculators on the front page of their examination scripts. Name: _______________________ University ID: _______________________ …show more content…
2. (20 points) Cash Flow Analysis JEM Company 's comparative balance sheets for 2004 and 2005 appear below. [pic] The following additional information is available: net income for the year 2005 (as reported on the income statement) was $50,000; dividends of $40,000 were declared and paid; and equipment that cost $8,000 and had a book value of $1,000 was sold during the year for $2,500. Based on the information provided, answer the following: a. (5 points) What was cash provided by operations? b. (5 points) What was cash provided by investing activity? c. (5 points) How much was cash provided by financing activity? d. (5 points) An analyst argues that the net income of the firm in 2005 could be inflated. Justify the validity of this statement. [Hint: Let us presume that JEM uses the LIFO inventory costing method.] 3. (20 points) Classification of Investment Securities Brandon Ltd. is an investment company and has no debt outstanding. The only investment for Brandon Ltd is ABC security. Imagine the company bought 100 shares of ABC at $100/share on January 1, 2001, the company sold 30 shares of ABC a year later at $60/share, and another 30 shares of ABC two years later at $50/share. Suppose the market price per share of ABC was $70, $80, and $90, respectively, by the end of
Ron Abrams has come into your office for his weekly 1 on 1 in which you update him on your weekly progress on your projects. He has arrived with a stack of paperwork in his hands and a befuddled look on his face. You ask what’s going on and he responds as follows. “Last year, as you know, we purchased a bankrupt, closed down bottling facility in The Ukraine. I don’t know if you know this but in countries other than Canada they are using somewhat different accounting policies than we do, and the reports I have for the first few months of
(g)Observe that Mayne Pharma has reported negative ‘Net cash flows from investing activities’ for 2013. Explain whether, in your opinion, these negative net cash flows represent a potential problem for Mayne Pharma. (1 mark)
The election to itemize is appropriate when total itemized deductions are less than the standard deduction based on the taxpayer’s filing status.
In my social psychology class, there was a recent examination given to the class. It was the mid-term examination. For the mid-term examination, the class was instructed to read chapter's 1-6 in the text book. The class was also instructed to study for the exam by reviewing the lecture notes. In this paper I will focus on a few questions I answered incorrectly on my mid-term examination.
f) To evaluate the material misstatement in the accounts, I think both of the consolidated income statement and the three financial statements are useful. We need to use the information properly from all the financial statements. However the consolidated income statement is the most useful one. If there is a significant change in an account balance comparing with preceding two years, the auditor will examine whether there a material misstatement exists. For instance, the bad debt expense as a percent of net sales in 2011, 2010 and 2009 are 0.56%, 0.70% and 0.69%, respectively. There should
Under the Occupants Liability Act the defendant as an occupier, owed a standard of care to the licensee. The defendant failed to meet this standard of care, resulting in liability for the plaintiff. The plaintiff was a licensee on the university premises as the act within Ontario eliminates the distinction between invitees and licensees; therefore, the plaintiff was still owed the same duty of care as an invitee from the defendant. The injuries the plaintiff suffered were within foreseeable harm as the plaintiff left the university business building and was returning to university residence. The defendant should have been aware of the anticipated risk of university students being in the vicinity because the field was a central location. The defendant owed the plaintiff and all licensees including Kingston High School, Cataraqui Secondary and
The income statement provided represents the financials for a five year reporting period - 1998 to 2002.
14. Weiland Co. shows the following information on its 2014 income statement: sales = $167,000; costs = $88,600; other expenses = $4,900; depreciation expense =
Operating Income 87,775 2019 Revenue 227,141 Less: Operating Expenses Wage Expense Rent Expense Utilities Expense Maintenance expense 68,000 13,000 22,516 4,000 Total Operating Expenses 107,516 Operating Income
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.
Lecturer – Amedeo Pugliese Tutors – Amedeo Pugliese – Julie Greenhalgh – Kevin Plastow – Natalee Jennings – Sharron Genrich – Tereaze Hubner
This makes the company look good and they can afford to do this from good financial skills. Decisions like this make a good profit in the long run and all in all this is why it is so important to have a good management team.
The author has experience in dealing with financial data during his day to day job. Therefore he is comfortable with extracting relevant figures and come to a conclusion on his
In deciding which questions to answer for this mid-term exam I read the rubric and midterm exam paper/questions. Spending time thinking about what was important to me and what has had the biggest effect on me over the course of my career. Which types of people I enjoyed working for, who has had the biggest impact on me, who made the daily grind of coming to work a whole lot of fun. Coming up with a couple of names I then spent the next few minutes thinking about the attributes of those mentors and quality people I have worked for, reaching some conclusion about the skills , abilities and what was observed watching and learning from them it was pretty easy to decide which question to answer. Today we will be discussing and answering questions one, two and three, specifically the topics of; Servant Leadership, Hersey and Blanchard’s Situational Leadership and leadership vs. management.
An advantage of technology is that advances can in no way harm an industry’s growth.