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Adventures in Wild Life conducts tours of wildlife reserves around the world. They have recently purchased a new lodge in Adak, Alaska, utilizing a 4% mortgage from Bank of Alaska. As part of the agreement they must provide an annual report showing they are achieving a current ratio of 1.2 or better. In order to ensure they achieve this ratio, the CEO requested the CFO to reclassify the long-term debt investments into brokerage accounts to allow them to sell them soon. The adjustments were done knowing the company was not planning on selling these long-term investments. The economy took a downturn and the business saw revenues drop more than 60%.

  1. Explain how the move of long-term investments to brokerage investments would change the financial statements and how this movement would affect the current ratio.
  2. What information on the financial statements should have shown the bank of this movement?
  3. Determine if there was fraud in this movement and the type of fraud.

 

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June 16, 2021by

write my assignment 243

Tommy was a partner in a law firm.  One day, at approximately 4:30 p.m., Tommy went to a restaurant-cocktail establishment in Charlotte, NC.  From that time until about 1:00 a.m., he drank considerable alcohol while socializing and discussing personal and firm-related business.  After 11:00 p.m., Tommy did not discuss firm business but continued to socialize and drink until approximately 1:45 a.m., when he and Fred, another bar patron,exchanged words.  Shortly thereafter, the two encountered each other outside, and after another exchange,Tommy shot Fred.  Fred sued Tommy and the law firm for damages.  Who is liable?

 

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June 16, 2021by

write my assignment 9490

Quantitative Problem 1: Assume today is December 31, 2013. Barrington Industries expects that its 2014 after-tax operating income [EBIT(1 – T)] will be $410 million and its 2014 depreciation expense will be $65 million. Barrington’s 2014 gross capital expenditures are expected to be $100 million and the change in its net operating working capital for 2014 will be $30 million. The firm’s free cash flow is expected to grow at a constant rate of 5.5% annually. Assume that its free cash flow occurs at the end of each year. The firm’s weighted average cost of capital is 8.9%; the market value of the company’s debt is $2.65 billion; and the company has 180 million shares of common stock outstanding. The firm has no preferred stock on its balance sheet and has no plans to use it for future capital budgeting projects. Using the corporate valuation model, what should be the company’s stock price today (December 31, 2013)? Round your answer to the nearest cent. Do not round intermediate calculations.

 

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June 16, 2021by

write my assignment 25822

Need help with my writing homework on Are the German Banks Riskier than the European Competitors. Write a 2250 word paper answering; The risk and lowered safety of German banking business is compared by tracing the performance of certain noted German banks like IKB Deutsche Industrie bank, Commerzbank, Deutsche bank credits and Hypo real credit Bank, taking parameters like Equity/Total Assets, Return on Average Assets (ROAA), Net Loans to total Assets, Liquid assets/total assets, etc. These figures are compared with leading European banks like Societe Generale Bank AXA Bank Europe, Compass SPA, GE Money Bank.

The general consensus based on the comparative paper using these parameters shows that German banks do have lower risk capacity bearing abilities, especially when we consider the case of banks like IKB Deutsche Industrie bank (which had to be bailed out) and several other major banks that had to go under the hammer or have significantly reduced their business, or have become inactive. In the end, certain reconstruction strategies have been provided that could provide a sense of direction and thrust to German banks for the future.

“Germanys “three-pillar” banking structure separates ownership of state banks, cooperatives, and listed lenders, forcing big players such as Deutsche Bank (DBKGn.DE) to look abroad or to focus on investment banking or other specialized areas for growth.” (Gould, 2007).

Although market conditions are improving it is also predicted that Commerzbank would end 2009 with a net loss. As one of the premier banks in Germany, having also acquired Dresdner Bank, it is expected to do well. But the parameters speak differently. There is apparently a heavy loan burden for this bank, with debt-equity at around 98 when ideally it should be around 3-4. Thus, this bank does carry a high degree of risk.&nbsp.

One of the main aspects of the risk of a bank is the Debt equity asset ratio, and in this count, Commerzbank is indeed much riskier than other banks. Coming to return on average assets, both are equal at 0.75, while net loan on total assets is only around 9% for Commerzbank, while for other banks it is – Societe General bank (32%), AXA Bank, Europe (55%), Compass SPA, (83%) and GE Capital ( 97%).

 

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June 16, 2021by