Dear sir/madam
I hope this messeag find you will
I attached file to you I need solve and answe the Q.please if possible thanks a lot
Hammouri
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Dear sir/madam
I hope this messeag find you will
I attached file to you I need solve and answe the Q.please if possible thanks a lot
Hammouri
Sorry can't see the fileQuote:
Originally Posted by ibrahim1234
I attached the file againQuote:
Originally Posted by paraclete
I hope its OK now
Thanks to you
Right side up would be nice but two out of four might be a pass where you come from. It would also be useful to have all the data in one document so you don't have to jump backwards and forwards but you can't have everythingQuote:
Originally Posted by ibrahim1234
There is a lot of data here what is your question or specific problem? You may also have breached copyright by copying and transmitting these files
This is from book on financial accounting appendix B CASE 2 EIGHTH EDITIONQuote:
Originally Posted by paraclete
The question is on the first paper there is 6 question need treat and answer I hope you get it from fille
This is all the data for the company 4 page and in the first attachment no one the question need to answer soory about thatQuote:
Originally Posted by paraclete
I get it but I won't do your work for. You. Implicit in the data is that certain ratios must be achieved or maintained. I suggest you determine whether that criteria has been met. I also see there is some opportunistic treatment of liabilities which may affect whether the criteria is met. Creative accounting must be identified and reported upon.
You have been given specific terms of reference, do you have difficulty identifying these or any aspect of the analysis?
I suggest you calculate some specific ratios to determine whether this apparently highly successful acquisition is in fact what it seems. You should calculate EVA and times interest earned.
Please lay those 6 questions out with your answer and I will review it for you
OK I understand thanks soory againe please I will if you can review it let me knowQuote:
Originally Posted by paraclete
Thanks to your time really thanks from my haret ,my proplems was in my langueg my langueg not so good in inglish so I codont understand the case and the question so ,I tray to find some one to helpe me to answer the Q, AND AFTER THAT I WANT STUDY THE ANSWE TO UNDERSTAND THE SULUTION HOW WE CAN GET ,ANY WAY THANKS TO YOU Really THANKSQuote:
Originally Posted by ibrahim1234
We can go through this step by step start with the first question and I will use simple words please understand I can't copy the documents and as they are proprietary I should not transcribe them here is what I said in simple terms'
You have been asked some general questions, you have also been asked to answer six specific questions.
There are financial ratios that lenders have insisted upon. You should include in your report whether these conditions have been met. I see that there are attempts to alter these ratios using some less than honest methods we call creative accounting
OKQuote:
Originally Posted by paraclete
About the ratio I will calculat by my selff ,
Q1 asking is there any evidence that management bonus caused it to enter any transaction ,specially at year -end , that may not have been in the shareholders interest
How can I find as in the question
I think you must carefully read the data and look for a transaction with a date close to balance date. The short term notes may be part of the answer It may be to answer this question you must calculate what the management bonus actually is and do all the other analysis needed and how much it might have increased.Quote:
Originally Posted by ibrahim1234
What I was telling you earlier is that some key ratios may show you that some things are not in the best interests of shareholders calculation of EVA is one such ratio
Ok , the sucuned q2 has the debt covenant imposed any restriction that may have influenced any of managements reporting choices? How i should find?
Again we are talking about the treatment of the short term notes so you must calculate the liquidity ratio in both cases and determine whether the lenders requirements are met. You must decide whether the presentation of the accounts represents a true and fair view in regard to the short term notes.Quote:
Originally Posted by ibrahim1234
Things to think about how can the company be sure they can borrow the money short term over and over again, are they a good credit risk?
Ok I will tray , and I will contact you for q no 3 thanks thanks thanks
Toooooo much
Dear my every thing ,Quote:
Originally Posted by ibrahim1234
I do it, and I hope my answer is correct ,you know it tack mor than 10 our to solve the ratio and treat some what the Q, ASK any way I finish at 2:20 on the morning at my country time thanks to you too much for your help me to aprched this distance I attached to you my solving the question please its writ or wrong and let me know after that when we solve the Q I want from you to give me your mobil no I like to talk with you if possible
I am waiting your answer
Best regardless
Ibrahim there is an issue I must take up with you and that is presentation, not all of us write well but an accountant must train so that writing is legiable and what you have done is well presented
I'm not sure you have addressed the specific questions you were asked and it will take me some time to work out what you have done but I see some of your conclusions
The company is in a sorry financial state. The earnings indicate a trading loss as all the income has come from other income items and most of these will only happen once. So in answering the question on sustaining earnings you would have to report that although sales have risen profit has fallen and a reason is interest on additional debt.There has been a manipulation in regard to the short term notes and current liabilities need to be restated.
The average number of days sales in receivables has risen, this may be structural and depend on when the sales were made or it may indicate bad debts. By my calculation the allowance for bad debts is inadequate
These are just some thoughts and I will get back to you
Hello Ibraham
I have looked at your calculations and while on the face of it some ratios are positive I don't agree with your upbeat assessment of this company. When calculating ratios on sales you must exclude other revenue items to get a proper picture and there is a trading loss
I will attach a file so you can see what I think about the specific questions
Hello my brother ,Quote:
Originally Posted by paraclete
I am thanks to you, my langueg not so good there is so many worlds I want tell you from my believe haert really thanks .now I understand the life still good not bad ,because still there is real respect in human beings for other, I see your instinct,which the loard has not changed still as it is ,any way I am really thanks not just to solve the question for other thing also .
About my calculation ratio you means I shuld calculat againe there is some wrong on my calculation ,soory I made you stress and I catched your time ,so soory
Now on your openuon I shuld calculat the ratio again
trying to understand your writing and your comments a number of times you used raw data rather than looking behind the figures Your assessment that because net profit as a percentage of sales has increased this is good while in fact if you remove the other income you will see there is a trading loss which is not good and there has been a decline since 2010. In the same way you will see I have adjusted the current ratio and the liquidity ratio because there has been a misstatement of a current liability. The notes to the accounts are there so you can see what might not be obvious such as the company has a short term liquidity problemQuote:
Originally Posted by ibrahim1234
I said to you you should calculate EVA this is not easy to do but it would show you that the decisions of management had destroyed value in 2011
OK, I understand what yo meanQuote:
Originally Posted by paraclete
[QUOTE=ibrahim1234;3168633]OK, I understand what yo mean[/QUO
D
Dear sir , thanks to you I tray to calculate the EVA,I can't but now I understand the question and I have experience to treat sam like this question ,and I hope on the future if I have problem you can help me thanks again
[QUOTE=ibrahim1234;3170036]EVA makes certain adjustments to the accounts to calculate NOPAT (net operating profit after tax) which is then used in conjunction with a risk adjusted average cost of capital to determine whether the acts of management has resulted in a growth in shareholder value or not. When used as tool to measure performance over time it can guide management in making those decisions which create value.Quote:
Originally Posted by ibrahim1234
In the case of this question the cost of debt can be used as a proxy for a risk adjusted cost of capital because you do not know what the risk rate is but moneys loaned to the company would include a risk factor
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