Finance & Accounting Essays

The company embraces a hierarchical structure of management with the Barry Minkow as the chief executive director. This industry is relatively easy to join, particular the small amount of capital required. Despite stiff competition in this industry, most players are legitimate and do their businesses in an honest manner

In addition, the time allocated to each component of the production was computed using Excel solver and represented in the table below. From the output shown in the table above, the

The relationship it fosters is a committed and a lasting one for the long-term through maintenance of all the requirements of the customer. Through it, the management of debt, flow of cash, tax plans, investment and retirement solutions is

Long-term debts of $97000, $68000, and $54200 would act as additional sources of funds. The business is largely self-financed by the entrepreneurs to reduce the risks arising out of interest fluctuations and commitment toward banks and other financial institutions. Since the venture is seen to yield adequate profits, it is considered to be financially feasible.

Hedging can be cost-effective only when it is used sparingly and for major investments. Most investors who opt to use any hedging technique would likely spend all of their investment profits. This is a major concern because hedging as a process is not in itself profitable. It only helps to reduce or eliminate losses from an investment.

As far as the ‘sale and lease back’ question is considered in the Ijarah contract these two actions are to be executed separately, but they are allowed. Whereas in conventional leasing contract covers the sale of the property by one organization to another and this consequently lets out the property to be hired by the initial seller. 

Financial accounting can be defined as an accounting branch that tracks all the financial transactions of a firm, thus the financial performance of a company. Despite the fact that financial accounting and management accounting may be similar in certain ways, the two branches of accounting exhibit a host of differences.

A number of them are focusing on the funds to fight poverty in these countries. It is however in question whether the strategy will work in helping poor nations to fight poverty. Organizations like World Bank and the International Monetary Fund have put a lot of emphasis on the growth of the economy of some nations. 

Secular Islamic modernists and historians view Islamic banking as a recent situation whereas revivalists view it as old as religion as its principles were derived from the Quran. Early

Given also the higher PE ratios of the two companies than the industry average, Caterpillar, there is the basis to claim that their higher financial leverage than the industry was not a problem as higher stock values are generated. Since HD the two companies have very close PE ratios, HD should remain the better company between the two.

The analysis of the financial statements of Dell Inc. and Apple Inc. suggests that the standing value of the liabilities may differ from their current market value. Apple Inc. has disclosed liabilities and provisions relating to Marketable securities, Derivatives of Financial instruments, allowances for doubt full accounts (Apple Inc.).

The most commonly used financial statement is the balance sheet. A balance sheet gives a summary of what the company owns, also known as assets, and what the company needs to pay, also known as liabilities. For a company to be considered financially healthy, ideally it should have greater assets than liabilities.  

When business became more complex, then double-entry accounting was implemented; firstly, to avoid mistakes in the monies, but, also, to detect and prevent any fraudulent activity that may be occurring. Today there is far more elements within business

The net worth statement gives me an idea of how much I am worth as an individual. Furthermore, it gives a clear picture of how well I should fix my expenses to fit my budget with regard to my assets. The net

the company also deals with bars, shapes, tubular steel and iron products, wide rods, automotive steel, plates, special steel, and stainless steel among other products. The company also has other investments in steel and iron businesses such as steel manufacturing operations including electrical furnaces, steel processing service centers that take care of processing and distribution services, etc.

This is recommended to acquire accurate, fair and up to date representation of the financial health being and position of a company. This essay seeks to provide insight into the utilization of fair

The IMF is a special branch of the United Nations that is operated by 186 member states, though membership is open to any country that accepts the foreign policy and the statutes of the

The general approach is to fit VAR (p) models with orders p =0,...,p max and choose the value of p which minimizes some model selection criteria. Model selection criteria for VAR (p) model shave the form where Σ(p)=T−1PTt=1ˆεtˆε0t is the residual

When Ovitz disclosed the fraudulent use of funds and high compensation after his termination, Eisner terms him as incompetent and a psychopath. Additionally, Eisner refers to Ovitz as someone who is not trustworthy. Ironically, when he appeared in Los King Live, Eisner denies there were no problems between him and Ovitz.

Risk-retention is a strategy that recognizes the firm's profit in managing the eventuality of loss on its own rather than managing it through insurance or offsetting it to third parties. Apart from the usual financial decisions, it is vital that the firm looks at how much investment it is making into a particular project.

The industry within which the firm operates. The rules governing an industry determine the price of selling goods manufactured in the firm. The firm should, therefore, determine if it is violating any of these rules by lowering the price to $3.70.Violation of regulations can lead to legal sanctions and in extreme conditions the firm may be closed.

The CAFR program is the highest kind of recognition any country can achieve when it comes to financial reporting and governmental accounting. The letter of transmittal of the city of Anaheim gives a transparent overview of its primary government by elaborating

From a leveraged perspective on corporate credit, Collateralized Loan Obligations have begun to gain a firm corporate market. Furthermore, the low-interest-rate environment, more credit spreads, and promising laws have bolstered many performance metrics to better than pre-crisis levels.

The budgeting process and procedures of the Wal-Mart are focused lower business cost of capital for the company. It is because the volatile in the retailing market is relatively high. The budgets of the company are developed using Real Option Techniques, NPV and

My question to Mr. Lynch is essential in the sense that many people fear in investing in stock or bonds. Investors shy off from investing in securities but rather prefer investing in other forms of

Investment decisions are influenced by psychological and sociological factors, leading to the creation of various biases in investment decisions. According to Nofsinger, psychology affects investing. In terms of investment decisions and portfolio management, it should be expected that cognitive, affective, and social factors will influence an investor.

An example of a time when the underlying circumstances may be such that the current ratio is unfavorable is when the accounts receivable increase from current credit sales only rather than from other sales. This means that the debtors of the company or business are not paying their debt meaning that the business goes into a bad debt situation.

In conclusion, free cash flow is an effective measure of the profitability of a firm. This is because a positive relationship has been evidenced to exist between the free cash flow and the performance of a firm. The effectiveness of free cash flow for this measure has been observed to outweigh the other measures of performance. 

The author states that the principals of risk management suggest that the credit providing institutions must maintain a minimum level of financial capital in order to sustain the various risk shocks to which they are exposed to. The basic aim of this approach is to ensure that the banks and financial institutions must maintain financial soundness.

The ratios employed to assess the profitability of two competitive airlines are Operating profit margin, Net Profit Margin, ROCE, and earnings per share. Gross profit margin cannot be employed as the airline business is not a goods trading business. Operating Profit Margin “measures the percentage of each sales dollar remaining after all costs.

From the modern-day perspective, the operations of any organization are strongly influenced by various factors, such as economic factors, environmental factors, and social factors. With this regard, it is most likely that the functions of the management will also differ from one region to another based on these factors.

Wells Fargo and Company has its headquarters at 420 Montgomery Street, San Francisco, California. The firm’s forerunner was founded in 1852 in New York City by Henry Wells and William Fargo.   It was originally conceived as a “banking and express services” company, it eventually began offering services in the West were miners, farmers, and ranchers had begun to migrate.

The author states that diversity, as seen in the study of AusBank, establishes an environment in which people have the opportunity to learn from distinct people, backgrounds, skills, thought, and experience. This reflects AusBank’s external and internal customer base and there place as a banking firm in the country.

I often go to the mall to purchase clothes, electronics, and other items. “Some of the most insightful writing about the American character over the

data that is used for calculating different ratios is historic that implies that the financial ratio analysis provides findings regarding the companys past performance which may not have relevance to the businesss current position. This restricts analysts from using the results

Stock valuation is similar to bond valuation but difficult as cash flows are uncertain. Common stock valuation is very useful in any company. It helps shareholders determine the worth of their

 Refusing to provide proper health care and services for sake of cost reduction is against the ethical guidelines provided to the employees of this profession. If the nurse has intentionally denied of care on a patient for sake of gaining monetary bonus at the end of the month then it is unethical. That nurse if found guilty can also be penalized for this unethical act.

Government pension benefits have the benefit of providing a modest source of retirement income. However, I will be faced with the challenge of maintaining a pre-retirement lifestyle and this where personal savings and employer pension plans come in handy (Brown, Chambers &

A comparison between two publicly traded companies namely, Apple and Samsung have been given below. The comparison between the two companies is carried out with the help of ratio analysis and subsequent observation of the financial statements of the two companies. The analysis gives a comparative overview of the businesses and size of Apple and Samsung, an insight into the liquidity and funding and efficient management of assets by the company.

CAPM stands for capital asset pricing model (CAPM) which is used for relating the risk and the associated trade-offs with market returns. The security price is associated directly with the cost of the capital. However, the interest rates can be used in relation to the cost of capital while the beta is used as a proxy for the level risk.

A company having a brand with a certain reputation or status in the market can be used to measure its reputation. Goodwill is a fixed asset, something valuable within a company (Economic International 2014). Goodwill is realized by getting the difference between the total fair values of acquired assets and the total purchase consideration.

It can be interpreted as the cost of reversing an asset into cash immediately after the trade has been made. Illiquidity is defined with the consideration that all assets are illiquid. The difference between assets is a continuum as some assets appear to be more illiquid than others. Publicly traded firms are liquid while non-publicly traded firms are not.

In addition, stores and warehouses are the largest assets for supermarkets and they are constructed to be relatively inexpensive. Therefore, high volumes of sales result in high rates of asset turnover. On the other hand, the jewelry

The regulations made by analogy are the tools that get applied by agencies as well as courts in an effort to improve the novel system. The current novel systems do not shape up with the modern regulatory structure.

In practical application, organizations may deviate from pre-established rules of operations with stakeholders. In such cases, an internal audit process measures actual operations of an organization. Whenever there is a deviation from pre-established standards, the process recommends ways of ensuring compliance of daily operations with best business practices.

Walt Disney Co. is an American multinational company that specializes in film studio products. Their last expansion saw Disney establish two theme parks in France. The motivating benefits behind this strategic move are debatable. Disney has since then increased their revenue significantly, hence making France the best choice.

eive leaders as accountable for making decisions, then they are less likely to be active in decision making process, thereby forcing the top management to adopt a different leadership style (Hughes, Ginnett & Curphy, 2012). Such employees may also expect leaders to motivate them

Derivatives are financial assets with no intrinsic value to offer but do derive their value from other instruments.  In such a case, these instruments will hedge the risk of holding on to an instrument that is subject to unexpected risks and price fluctuations in the financial market. An example of the risks involved in the use of derivatives was in a Proctor and Gamble vs. Bankers Trust deal.

It is basically the extension of Markowitz Portfolio Theory, which was established by William Sharpe, Jan Mossin and John Lintner. This portfolio model helps in examining the risk-return relationship in capital market (Elton, et al, 2011; Blume

The major economic issues that may cause risks to MNCs in terms of financing are the interest rates in the various countries. As noted earlier, MNCs can either use equity financing or debt financing. In a country where the interest rates are high, the best option for an MNC is to use equity financing as it is a cheaper option.