Answer with Explanation:
Foreign exchange rates can have significant impact on the company's financial statements because the spot rate at that date can be affect the value of the company's assets. It is very common in consolidated financial statement of a multinational companies.
The impact on the financial statements can be as under:
- The fluctuation in currency value can under or over statement of assets. liabilities and Income & Expenses.
- The fluctuation makes the analysis of the financial statements meaningless. The performance of the company in a consolidated statement will be in a state that would not be better understood or time consuming by experts to develop understanding of what the financial statement is saying. It would be difficult for an ordinary person to understand the performance of the business.
- It can also also manipulate the value of the assets of the company because increase in devaluation of the currency means increase in inflation and vice versa.
- The value of the company acquired can be affected significantly which means that the investment (value of whole company) can turn into significant losses which means it can result reporting losses of in a consolidated financial statement. This would also result in decrease in the stock value of the group as a whole.
Answer:
$1,230,000
Explanation:
The computation of the amount included in the general and admin expense is shown below:
= Accounting and legal fees + Officer salaries + Half of rent
= $420,000 + $540,000 + (540,000 ÷ 2)
= $1,230,000
We simply added the accounting & legal fees, officer salaries and half rent so that the amount involved in general and admin expense could come
Answer:
An example of a customer would be someone buying one of your products like someone shopping at a store.
A consumer would be eating the food you have or bought
Examples of client in a Sentence. The accountant is meeting with another client right now, but she'll be able to see you later this afternoon. a law firm soliciting new clients through television advertising. Recent Examples on the Web.
Explanation:
According to the human-capital view, education is an indicator of natural ability. Human capital encompasses assets such as education, training, intelligence, skills, health, and other characteristics valued by employers such as loyalty and punctuality. As such, it is an intangible asset or characteristic that does not (and cannot) appear on a company's balance sheet.
Human capital is thought to boost productivity and consequently profitability. The more a firm invests in its personnel, the more likely it is to be productive and successful. Because not all labor is created equal, firms can develop human capital by investing in employers training, education, and perks.
To learn more about human-capital, click here.
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Answer:
Explanation:
b)
BBB-rated corporate bond:
Face value = 1000
semiannual coupon = 9%/2 = 4.5%
semiannual yield = 10%/2 = 5%
number of payments = 5*2 = 10
PV of bond = PV of maturity + PV of interest
PV of maturity = Face value * PVF(5%;10) = 1000*0.614=614
PV of interest = interest *PVIFA(5%;10) = 45*7.7217= 347.4765
Price of bond = 961.4765
a)
semiannual yield = 8.4%/2 = 4.2%
US treasury security:
PV of maturity = Face value * PVF(4.2%;10) = 1000*0.66271=662.71
PV of coupon = 45*8.03074 = 361.3833
Price of bond = 1024
c) credit spread = BBB yield - risk-free yield = 10% - 8.4% = 1.6%
