Accounting Essays

Accounting is a service activity. Its function is “to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions in making reasoned choices among alternative courses of action” (Raiborn,& Watson 2003). The main purpose of accounting focuses on the preparation …

DCF Valuation 1. Forecast revenue for each year for from the firm’s financial data. 2. Select appropriate discount rate based on WACC 3. Discount each cashflow back to it present value 4. Obtain the terminal value through an application of terminal value multiple 5. You add these values together 6. …

Cinemex is a Mexican venture started by two Mexicans (Dávila and Fastlicht) and one American (Heyman) entrepreneurs, which met while doing their MBA degree at Harvard University. The venture consisted in creating a new cinema experience, including more screens and movie prints (4-14) per theater, excellent seating/service and outstanding projection …

Introduction Many accountants are familiar with the accounting standards and practices. They are always keeping their eyes on new standards and regulations roll-out. On the back of the new accounting practices, there are many accounting theories supported. Accounting standards are developed based on many descriptive and prescriptive accounting theories which …

-An inventory record indicates that 12 items of a specific product are on hand. A customer purchased two of the items, but when recording the order, the data entry clerk mistakenly entered 20 items sold. Which check could detect this error? LIMIT CHECK -Which check is not an input control? …

1. Calculate Breakeven cost (without discounted cash flow) per segment i. Little Leaguers Year 3, when their “Cumulative Profit to Date” turns ¥1,563 from (¥1,250) ii. Summer Sluggers Year 3, when their “Cumulative Profit to Date” turns ¥500 from (¥1,000) iii. Elite Ballplayers (print ad) Year 4, when their “Cumulative …

Having studied this chapter you will be able to: Evaluate the potential value added to a firm arising from a specified capital investment project or portfolio using the net present value model. Project modelling should include explicit treatment of: (a) Inflation & specific price variation (b) Taxation including capital allowances …

General Mills is a company that has many brands in the food industry, however, they are more famously known for their individual brands. Their primary brands include Cheerios, Nature Valley, Pillsbury, Green Giant, Old El Paso, Hamburger Helper, Betty Crocker and Yoplait (General Mills Canada). When these brands are organized …

Synopsis and Objectives These two cases present the capital investment decisions under consideration by executives of a large chemicals firm in January 2001. The A case (case 20) presents a go/no-go project evaluation regarding improvements to a polypropylene production plant. The B case (case 21) reviews the same project but …

Business Brief Justin Anson Distillery, Inc. has been distilling whiskey since 1935, turning into a million dollar firm by 1960. This unique brand uses iron-free spring water used in the distillation process and fire-charred oak barrels used in the aging process. In 2010, production was determined to expand and a …