Rocket Ship Inc recently adopted more aggressive revenue recognition assumptions.  They will recognize more revenue sooner on sales of bundled software products.  The firm’s sales are projected to grow steadily at 15% for the next 5 years.  The quicker revenue recognition standard will likely lead to higher reported GAAP profits and higher GAAP sales in 3 to 5 years relative to if the firm had kept the old slower revenue recognition assumptions.

See the data for Betamax Inc and question below.  Assume Betamax is a non-taxable firm Cash flow statement   2020 2019 2018 Net Income 115 118 107 Plus depreciation 100 99 98 Plus stock based compensation 30 29 27 plus restructuring expense liability 20 0 0 less change in receivables -4 -3 -2 Less change in inventory -6 -2 -2 Plus change in accounts payable 30 -10 21 Cash flow from operations 285 231 249 Capital expenditures -105 -110 -110 Cash from investing -105 -110 -110 Dividends -110 -110 -110 Cash from financing -110 -110 -110 Change in cash Position 70 11 29   Partial Balance Sheet (in millions $) Balance sheet 2020 2019 Cash 120 50 Net Receivables 54 50 Inventories 156 150 Current Assets 330 250 PP&E 750 745 Total Assets 1080 995 Accounts Payable 90 60 Restructuring liability 20 0 Current liabilities 110 60   sales and gross profit data in millions of $ 2020 2019 Sales 1310 1200 Gross Profit   307 280 What is the CFSA (Cash flow standardized accrual for this firm)?  Write in decimal form to 3 places (like -0.025)

True or false: A firm’s managers have greater motive to manipulate earnings upward in a soon to be released earnings report if insiders previously filed a 10-B5 stock sales program that has specified dates for sale of the insiders’ stock in the next few months   

Firm A has a pension.  The dollar return on its pension assets for 2024 was -$22 million for a negative 11% return on $200 million of pension assets at the start of the year.    At the start of 2024 the pension liabilities were $200 million.  Interest rates remained unchanged during the year.  In past years, the pension performed about as expected with respect to actuarial assumptions. a) Assuming no special changes to the pension plan, the firm will now have a net pension liability included in its liabilities at the end of 2024 b) The other comprehensive income (OCI) is likely going to be more negative in 2024 because of events relating to the pension plan c) All else equal, the impact of pension costs on GAAP net income will likely be more negative in 2025 than 2024. d) all the above e) a) and b) f) b) and c) g)  a) and c)  

Management of a firm is more likely to use aggressive accounting techniques to bump up earnings if  a) Many top managers are about to have in the money stock options become exercisable b) The firm is contemplating a management led buyout of the firm c) The firm is entering labor negotiations d) none of the above  

The following will make Cash Flow from Operations increase and Net income Increase in the current year a) An increase in the value of a marketable Equity security during the year b) Cutting Cash Advertising at the last few days of the year c) A large impairment of land expense during the year d) A change of an assumption that lowers GAAP non-cash Depreciation and Amortization at the start of the current year e) all the above f)  b) and d) g) none of the above

Jim’s Apparel manufactures dresses for sale at various boutiques.  Jim’s dresses are popular as Christmas gifts and for summer galas Summary Data FY end Dec 2023 FY Dec 2022 Sales 1420 1395 Cost of Goods Sold 1120 1075 Gross profit   298   320 Inventory   140    136 Finished Goods    125    96 Raw material and work in process    15    40 Which of the below opinions are most consistent with your own view a) Some analysts say that there is no increase in (inventory/Cost of goods sold) at the end of 2023 versus 2022 suggesting that inventory is at manageable levels b) Some analysts believe that a close look at the data indicates that there is discounting of apparel prices and difficulty moving merchandise near the end of the year  

When guarding a patient during gait training on even surfaces, the best position is

Although many of his predecessors favored direct military force in international affairs, William Howard Taft’s forgiven policy was more popularly know as ____________, which seemed committed to gaining and maintaining Imperialist positions without war?

Although president Harding was likely unaware of the extravagant corruption himself, many of his cabinet members and appointed officials repeatedly took bribes and sold favors to individuals as well as corporations. Perhaps the most notorious of these publicized scandals was _________?