ofborrowing from the bank. Also, cash flows from investing activities suggest that they should restrain themselves from over-investment.
E. Check the main accounting policies of KAL. Choose one interesting/doubtful accounting policy. Then, comment on the chosen accounting policy
I. Main accounting policies
We could find the main accounting policies of KAL by looking into its footnotes
of Generation Market Shares
in 2020
Liquidity Crisis (2008.08 ~ 2009.06)
Process Of M&A
Burden on Doosan Heavy Industry
• Cash-equivalent asset (3,811억)
• Disposal Subsidiary Companies
▪ Burden on Borrowed Money
• Operating Profit will recover soon
▪ Loan from 한국수출입은행 (2mil Euro)
• Low interest
•
rate 3%, using incentive system to reduce turnover rate
3. Wage
administrative employees - U$150-250
laborer - U$80-90
4. Producing, Selling, Exporting
Daily average production 3,000 PCs, Error rate 5%, Export100%(us 90%, europe 10%)
5. Financial management
borrowing money from Indonesia finance institution through their partner company, with 9% interest rate per year
II. Yen carry trade
II. 1. What is Yen carry trade?
II. 1. (1) Typical meaning
The typical meaning is “borrowing at low interest rates in yen and using the loan to buy higher yielding assets elsewhere.” During the past decade, the trade has become a “staple” for many investors. One of the most popular forms of the strategy exploits the gap between US and Japanese yields. Anyone
of the resources it had at its disposal (the shareholders’ capital plus short and long-term borrowed funds). Thus, it is the most stringent and excessive test of return to shareholders. If a company has no debt, the return on assets and ROE figures will be the same. It is computed as “Net income+ Interest Expenses (net of tax)/ Avg. Total assets. SK Energy’s ROA in 2008 is 7.2%.
3) Fin