1. Business OrganizationGreen Corporation (GC) is stock corporation engaged in the events management.The major customers of GC are companies engaged in concerts, trade fairs andexpositions, weddings, corporate events and seminars in the different eventscenters in Metro Manila, Clark, Cebu and Davao.Due to the effects of the pandemic, GC would need to increase their capital to givethem more funds to survive the economic challenges for the next 2-4 years. Theoriginal investors who control more than 50% of the stocks, fear that the companymay not survive the pandemic if they did not increase their capital.The Board of Directors identified 3 options below to increase their capital and getadditional funds:a. Enter into a joint venture with their competitor Blazing Company (BC).b. To sell additional preferred shares in the stock market.c. To sell additional common stocks in the stock market.Question:I.II.What option shall you recommend to your Board of Directors for thecompany to take and why did you choose this option?What would be the financial risks if the company chooses this option

Answer:- I Option shall be recommended to the board of director:- b. To sell additional preferred…

Answered: 1. Business Organization Green…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Currently, the world economy is facing an unprecedented challenge due to corona-virus pandemic. In Bangladesh, most of the businesses have been severely affected by corona-virus pandemic and possibly the effects of this virus will last throughout this year. Last year, you started a cement manufacturing business and currently evaluating your capital investment decision for another unit. What will be the effect of corona-virus in your existing business? Will be it a good strategy to invest another unit this year? Provide a detailed explanation
(b) Explain one advantage and one disadvantage for CH of having a mission statement. (c) Explain two possible external sources of finance CH could use to continue production of Copper Health (CH) was the market leader in the production of anti-venom* vaccines to treat (CSR) – is to put customers first and profits second in the treatment of snake bites. poisonous snake bites. CH's mission - influenced heavily by corporate social responsibility Despite 100000 deaths worldwide each year from snake bites and 400000 serious injuries, CH recently announced that it will no longer produce anti-venom vaccines. Several large Mexican, Brazilian and Indian pharmaceutical companies have entered the market selling anti-venom 5. Copper Health (CH) vaccines at a much lower price than CH. A spokesperson for CH said: "We will remain a private limited company where corporate Social responsibility (CSR) remains an important driving force for our mission. Our medical research is only financed from retained…
Amman Ltd. is a manufacturing company that produces paper cups and plates in Nizwa. The company was able to sustain a reasonable amount of sales in the last two quarters despite the pandemic-crisis during the last year. However, the company has faced some serious liquidity problems due to delayed payment by the customers and lower sales in the first two quarters. Hence, the company is seriously thinking about revising its working capital standards by considering the changes in the market. The finance manager of the company is seeking your help in assessing the Average payment period from the following financial data. The company had an opening stock of OMR 20,000 during the last year and made a total purchase of 48,000 OMR. The company has returned OMR 3000 worth material due to quality issues. During the last year, the business has paid OMR 6000 as wages and OMR 8000 as salaries. The company sold goods for a total amount of OMR 70,000 of which OMR 30,000 sales was on cash basis.…
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Over the semester we have learned that one of the three pillars of our economy is capital expenditures (CAPEX) by private and public businesses. On an annual basis companies allocate a certain amount of their free cash to develop projects that will facilitate company growth and earnings, which will, in turn, improve stock prices and shareholder value. Inside this process is the selection of projects that will be selected among many different available projects. Those companies that make the best choices are the ones that will successfully grow. Those that do not will join the garbage heap of companies that fail. You have that choice as the CFO of Almost Done (AD) Enterprises. Below are the specifics about a project that has been presented. Questions concerning this project follow the specifics of the project. AD, a pharmaceutical company, has developed a new drug that will supposedly cure COVID-19 and provide immunity to the general population. The results are so promising that the…
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Athif trading company is a popular distributor in Salala, having operations in the entire Oman. Over these years, the company has gained a very good public opinion and quiet a big number of loyal customers. During the last year, the company has faced some financial struggles due to the pandemic – crisis. The company has decided to plan well for the current year based on the past performance so that the company will be able to regain its status. The management of the company has given with you the Income statement for the last year and asked you to calculate the gross profit and net profit margin Choose the Gross profit margin and net profit margin of the business from the following options? a. Gross profit margin is 24.36% and Net profit margin is 45.45% b. Gross profit margin is 40% and Net profit margin is 30.66% c. Gross profit margin is 30.66% and Net profit margin is 40% d. Gross profit margin is 45.45% and the Net profit margin is 24.36%
Athif trading company is a popular distributor in Salala, having operations in the entire Oman. Over these years, the company has gained a very good public opinion and quiet a big number of loyal customers. During the last year, the company has faced some financial struggles due to the pandemic – crisis. The company has decided to plan well for the current year based on the past performance so that the company will be able to regain its status. The management of the company has given with you the Income statement for the last year and asked you to calculate the gross profit and net profit margin Opening Stock Purchases Carriage and Freight Wages Gross Profit b/d 76,250 By Sales 3,15 250 2,000 5,000 2,50,000 То 5,50.000 Closing stock 98,500 6,48,500 2,50,000 6,48,500 Administration expenses "Selling and Dist. expenses *Non-operating expenses Financial Expenses Net Profit c/d 101,000 By Gross Profit b/d 12,000 2,000 "Interest on Securities 7,000 134,000 "Profit on sale of shares 2,56,000…
Athif trading company is a popular distributor in Salala, having operations in the entire Oman. Over these years, the company has gained a very good public opinion and quiet a big number of loyal customers. During the last year, the company has faced some financial struggles due to the pandemic- crisis. The company has decided to plan well for the current year based on the past performance so that the company will be able to regain its status. The management of the company has given with you the Income statement for the last year and asked you to calculate the gross profit and net profit margin Particular OMR Particular OMR Opening Stock Purchases Carriage and Freight Wages Gross Profit b/d 76250 By Sales 3,15 250 2,000 5,000 2,50,000 6,48,500 1,01,000 By Gross Profit b/d 12,000 "Non-operating incomes: 2,000 7,000 "Divde nd on shares 134,000 2,56,000 To 5,50,000 Closing stock 98,500 6,48,500 2,50,000 To Administra tion expenses " Selling and Dist. expenses "Non-operating expenses "…
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The following quote appeared in an article entitled ‘Business and society in the coming decades’, which was available on the website of McKinsey & Company (accessed in October 2015). “There are compelling reasons companies should seize the initiative to drive social and business benefits. First, in an interconnected world facing unprecedented environmental and social challenges, society will demand it. Increasingly, a basic expectation among customers, governments, and communities will be that the companies they do business with provide a significant net positive return for society at large, not just for investors. This will be part of the implicit contract or license to operate”. Now a) Explain the above statement in the context of corporate social responsibility. b) Further, do you think such a statement would impact the perceived ‘legitimacy’ of companies? Explain.
The following quote appeared in an article entitled ‘Business and society in the coming decades’, which was available on the website of McKinsey & Company (accessed in October 2015).“There are compelling reasons companies should seize the initiative to drive social and business benefits. First, in an interconnected world facing unprecedented environmental and social challenges,society will demand it. Increasingly, a basic expectation among customers, governments, and communities will be that the companies they do business with provide a significant net positive return for society at large, not just for investors. This will be part of the implicit contract or license to operate”.Required:a) Explain the above statement in the context of corporate social responsibility. [Word limit 150-200words] b) Further, do you think such a statement would impact the perceived ‘legitimacy’ of companies?Explain. [Word limit 200 – 250]

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