Reference no: EM13181766
An employee of Best Shoes Ltd. embezzled Rs. 4,50,000 during the year ended 31st March 2006. The company, instead of treating this amount as a loss, showed it as recoverable from the employee in its balance sheet. The net profit of the company for the year was Rs. 6,54,78,506. Do you think that this treatment makes any material impact on the assessment of the profitability of the company?
There may be information required by users, other than investors, which may not be available in the financial statements. Visualize such information needs for each of them. How can they get such information?
What are the objectives purported to be served by the financial statements? How do they meet the financial information needs of their various users?
Get annual report of a company. Look for the "Schedule of Notes to Accounts and Accounting Policies". What kind of financial information does it contain? How does it supplement the information provided by the three main statements?
Is accrual basis superior to cash basis in meeting the economic decision-making needs of the users of financial statements? Why or why not?
Qualitative characteristics are the attributes that make the information contained in the financial statements useful to the users." Examine this statement. Specially discuss the need for and implications of comparability in this context.
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What is the net present value for this project
: What is the net present value for this project and what is the adjusted present value for this project if the effect of financial distress is ignored?
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Recalculate the adjusted present value of the project
: chance that financial distress would result in a loss of 80% and 40%, respectively, of the project"s value. Recalculate the adjusted present value of the project.
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What is the strategic net present value
: What is the strategic net present value of this project if the cost of capital is 5% - Suppose that a project costs $1 million for each of the first five years. At the end of the fifth year,
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What is the static npv and what is the strategic npv
: If the cost of the capital is 15% by continuous compounding, the risk-free rate is 5% and the volatility is 0.3. What is the Static NPV and what is the Strategic NPV?
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What kind of financial information does it contain
: Is accrual basis superior to cash basis in meeting the economic decision-making needs of the users of financial statements? Why or why not?
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What were some of the tactics of protectionism employed
: What are the reasons why the colonized region in latin america remained underdeveloped? How/Why was the Great Depression considered an "imported crisis" for Latin America? Under ISI policies, Latin America became one of the most protectionist regio..
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Explain production possibilities frontier
: Given the elasticities in the above question and assuming that higher gasoline taxes would not shift either the SUV supply curve or the hybrid supply curve, explain how higher gasoline taxes would affect the equilibrium price and quantity of SUV's..
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What was the firms end-of-year cash balance
: Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end ..
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What was its charge for depreciation and amortization
: earson Brothers recently reported an EBITDA of $16.5 million and net income of $2.8 million. It had $2.0 million of interest expense, and its corporate tax rate was 30%. What was its charge for depreciation and amortization?
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