value of common equity
+ Net effect of transactions with common shareholders
+ Capital contributions (share issues)
- Share repurchases
- Dividends
= Net cash contribution (negative net dividends)
+ Effect of operations and non-equity financing
+ Netincome (from income statement)
+ Other comprehensive income
- Preferred dividends
= Comprehensive income (available to
value is adjusted at the end of the period to a bad debt expense.
5. When Xerox posted the entry in “3)” for some of its subsidiaries in Mexico and throughout Latin America, what was its effect on Xerox’s assets? Netincome?
When Xerox posted the journal entry for “exposed receivables” after they have admitted it, it would have meant a decrease in the book value of account receivab
from affiliate 159 48 1 1 2
gross profit 2 161 219 93 53
As you can see above, loss from affiliate in 2009 increased a lot compare to 2008. It means that there is insufficient information to evaluate operating performance just by income statements. Thus investigation of cash flow statements is needed. Further analysis regarding cash flow statement will be dealt in problem D.
E. Check the main accounting policies of NHN. Choose one interesting/doubtful accounting policy. Then, comment on the chosen accounting policy. More specifically, is it too aggressive, too conservative or reasonable in terms of the effects on the related accounting information, such as netincome, ending balance of account receivable, etc.?
(1) revaluation of fixed assets
[as of 30.9.2009]
income were less than those of 2007. Moreover, Interest expense of 2008 is more than that of 2007. The reason of 2000 was same as 2008. In 2000 & 2008, therefore, EBIT decreased without the decrease in Revenue.
Compared with EBIT of Coca-cola, we can know that EBIT of Coca-cola had been greater than that of PepsiCo except for 2006. We will see the case of 2006 in the part of Netincome. However