Which of the following methods of accounting for a business combination is based on the premise that no substantive transaction occurs between the companies involved?
a. Pooling of interests
b. The purchase method
c. The new entity approach
d. Proportionate consolidation
ANSWER: A
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The textbook points out that the best way to prevent out-group formation is to ______.
a. create stronger leaders b. delegate more responsibility to followers c. be less autocratic d. lead with love
Through the use of the Internet and mobile price comparison applications, ________ has helped to shift the balance of power from companies to customers.
Fill in the blank(s) with the appropriate word(s).
Q9 Networks is a leading provider of outsourced data center infrastructure such as web-servers and data storage. Forecast the financial statements for Q9 Networks for Year 6
Use the percent of sales method based on Year 5 and the assumptions listed below. Please note the ratios to sales provided in the table which are useful for making the forecast. Forecast the financial statements for Q9. What is the change in the cash account from Year 5 to Year 6? Sales growth of 20%. The cost of debt is 4%. The Tax rate is 35%. The depreciation rate is 5%. CAPEX is $4,000,000. Cash is the plug account. The following accounts are held constant: Long-term debt and Common Stock. No dividends are paid in Year 6. Q9 Networks Income Statement and Balance Sheet As of December 31, Year 5 ($ 000's) Year 5 Ratios Year 6 Revenue $37,829 $45,395 COGS 25,840 0.683074 SG&A 11,163 Dep. Exp. 535 EBIT 291 Int. Exp. 136 EBT 155 Provision for Income Taxes 55 Net Income 100 Assets Year 5 Year 6 Cash 71,301 Other Current Assets 5,046 0.133390 Total Current Assets 76,347 PP&E 36,757 Total Assets 113,104 Liabilities & Stockholders' Equity Total Current Liabilities 7,688 0.203230 Long-Term Debt 4,091 4,091 Total Liabilities 11,779 Shareholders' Equity Common Stock 178,328 178,328 Retained Earnings -77,003 Total Owner's Equity 101,325 Total Liabilities and Owner's Equity 113,104 A) $2.292 million B) $1.301 million C) -$2.220 million D) -$6.702 million E) -$7.081 million
Abdo supervises employees who work on the floor of the Nature's Secret Organic Snack Food factory. He cooperates closely with his manager to determine ways to improve the efficiency of the manufacturing process and then works to implement those plans. In this case, Abdo would be considered a ________ manager.
A. tactical B. strategic C. frontline D. middle-level E. top-level