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3 years ago

Enron and Tyco failed primarily because they______.

Business

1 answer:

faltersainse [42]3 years ago

3 0

The correct answer is D. manipulated accounting Procedures.

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From the following information, construct a simple income statement and a balance sheet:

yaroslaw [1]

Answer and Explanation:

The Preparation of the simple income statement and a balance sheet is shown below:-

Corporation X

Income Statement

for the Year Ended xxxx

Particulars Amount

Sales $1,000,000

Less: Cost of goods sold $500,000

Gross profit $500,000

Less: Other expenses $60,000

EBIT $440,000

Less: Interest $70,000

EBT $370,000

Less: Income tax $100,000

Net income $270,000

Number of shares outstanding $80,000

Earning per share $3.375

(Net income ÷ Number of shares outstanding)

Corporation X

Income Statement

for the Year Ended xxxx

Particulars Amount

Assets

Cash $70,000

Accounts Receivable $150,000

Inventory

Raw Material $80,000

Finished Goods $250,000

Total Current Assets $550,000

Plant & Equipment $410,000

Total Assets $960,000

Liabilities

Accounts Payable $160,000

Other Current Liabilities $60,000

Total Current Liabilities $220,000

Long term Debt $200,000

Equity $540,000

Total Liabilities & Equity $960,000

6 0

3 years ago

Breakmorning Corporation produces a product that requires 2.6 pounds of materials per unit. The allowance for waste is 0.3 pound

Rasek [7]

Answer:

Total= $4.33

Explanation:

Giving the following information:

Breakmorning Corporation produces a product that requires 2.6 pounds of materials per unit. The allowance for waste is 0.3 pounds; the allowance for spoilage is 0.1 pounds. The purchase price is $4 per pound, but a 2% discount is always taken. Freight costs are $0.15 per pound and receiving and handling costs are $0.10 per pound.

Purchase price= 4*0.98= 3.92

Allowance for waste= (0.03*3.92)= 0.1176

Allowance for spoilage= (0.01*3.92)= 0.0392

Freight= 0.15

Receiving and handling= 0.10

Total= $4.33

4 0

3 years ago

A company wants to forecast demand using the simple moving average. If the company uses four prior yearly sales values (i.e., ye

Doss [256]

Answer:

142.5

Explanation:

To determine the price forecast for year 2006 we must find the average price for the prior four years:

price forecast for 2006 = (100 + 120 + 140 + 210) / 4 = 570 / 4 = 142.5

The simple moving average (SMA) is just the average price for the previous years.

5 0

3 years ago

Read 2 more answers

Gilmore, Inc., just paid a dividend of $3.05 per share on its stock. The dividends are expected to grow at a constant rate of 5.

Alona [7]

Answer:

intrinsic value: 49.50

value in four years: $ 61.32

value in fourteen years: $ 104.75

Explanation:

we solve using the gordon model:

$\frac{divends_1}{return-growth} = Intrinsic \: Value$

D0 = 3.05

D1 = 3.05 x ( 1 + 0.055) = 3.21775‬

$\frac{3.21775}{0.12 - 0.055} = Intrinsic \: Value$

Value: 49.50384615

<u>In the future will grow at the same rate as dividends:</u>

price in four years: 49.50 x (1.055)^4 = 61.32182021

price in fourteen years: 49.50 x (1.055)^14 = 104.7465274

7 0

3 years ago

The United States has laws meant to stop any one company from dominating

valina [46]

I think that it might be D

8 0

2 years ago