Desafio CFA - Readings 33 & 34

Date	Activity	Tons (000s)	$ per Ton
Beginning inventory	1	600
February	Purchase	5	650
May	Sale	2	700
August	Purchase	3	680
November	Sale	4	750

 

At the start of the year, a company acquired new equipment at a cost of €50,000, estimated to have a 3 year life and a residual value of €5,000. If the company depreciates the asset using the double declining balance method, the depreciation expense that the company will report for the third year is closest to:

The following is selected data from a company’s operations:

Net Income	$100,000
Increase in Accounts receivable	12,000
Increase in Accounts payable	9,000
Depreciation and amortization	8,000

An analyst gathered the following data for two companies in the same industry:

 

                                                             Company A                         Company B

Days in sales outstanding                             28                                           32

Days of inventory on hand                            32                                           35

Days of payables                                          42                                           40

Current assets                                             $203,000                             $189,000

Total assets                                                 581,000                                469,000

Current liabilities                                          73,000                                  71,000

Total liabilities                                              429,000                                350,000

Shareholders' equity                                     152,000                                119,000

 

Which of the following is the most appropriate conclusion the analyst can make? Compared to Company B, Company A:

A publicly listed company has a 12-person Board of Directors whose composition is as follows: • the Chairman, who is the past president of the company and was named Chairman on his retirement date four years ago, • five members of senior management including the current president, and • six outside directors. Each member is elected for a two-year term and one-half of the positions stand for election every year. The three members of the Audit Committee are all outside directors and have relevant financial experience. The Remuneration Committee is composed of the Chairman and two outside directors. Which of the following actions would provide the greatest improvement in the corporate governance of this company?