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Certainty Vs. Doubt essay help free Geography

Everyone has. Having doubt leads you to accomplish more and improve at what you do. Certainty is something that helps you become confident in your actions and beliefs. You cannot become fully certain of things without doubt; it is a part of life. William Lyon Phelps once said, “If you develop the absolute sense of certainty that powerful beliefs provide, then you can get yourself to accomplish virtually everything…” What Phelps is saying, is that if you think positively you can accomplish anything you want.

Yes this is a good trait to have, but is everything accomplished with positive thinking? Doubt is a natural sort that everyone does and it affects everyone in some way. Even the most confident person has some area of doubt in their life, something that causes them to rethink their abilities. Throughout my life I have had many encounters with doubt. In the thirteen years that I have been dancing competitively I have worked hard to become a better dancer. If I was certain, at age eleven, that I had become the best I could be then I would not have become the dancer I am today.

Having no doubt in life would lead to the confidence that there is no room for improvement or any desire to get better. People would already think they are at the top of everything and that they are the best they can be. Although, if everyone was doubtful of their ideas or abilities, nothing could be improved to make them better. Even now I still have doubt in my skill and that doubt is only there to help me improve even more. Positive thinking is a good thing to have and will lead you to the right places. Even though doubt will be encountered it is natural and will only help improve things even more.

Insert surname4 Professor’s name Student’s name Course title Date ACCOUNTING Q1. What

Insert surname4

Professor’s name

Student’s name

Course title

Date

ACCOUNTING

Q1. What is the purpose of a free cash flow analysis?

Free cash flow is determination of performance of a company financially by calculating its operating cash flow less capital expenses. Free cash flow is important because it determines the cash that remains after spending on maintaining or expansion of asset base (Warren, Carl & Jeff, 2018).

Q2. What is the summary of significant Accounting Policies?  Give examples.

Summary of significant accounting policies is part of the footnotes that are presented with financial statements which describe the important policies used by the accounting team in a company. For example; policies governing assets (Revaluation)

Q3. Describe the major disclosure techniques for the balance sheet.

Parenthetical explanations, example Equity ($5 par value, 10,000 shares authorized, 5,000 issued)

Notes to financial statements – If certain information about an item in the financial statements is too long, the information is presented as a note disclosure, example Receivables (see Note 2).

Cross References – They are used if there is a direct connection between two transactions or accounts.

Accounting policies – describes the policies applied on items in the financial statements.

Q4. Describe the usefulness and format of the statement of cash flows.

Cash flow statement shows a summary of cash and cash equivalents in and out of the business.

It is important because it helps to gauge if a business is capable of meeting its short term obligation.

It also helps managers in decision making since they need to know if they have enough resources.

Format

Cash flow statement

Cash flow from operating activities ****

Cash flows from financing activities ****

Cashflows from investing activities ****

Net cash increase (decrease) ****

Cash at the beginning of the period ****

Net cash ****

Q5. Contrast the direct and indirect methods of calculating net cash flow from operating activities.

Both Indirect and direct methods of cash flows preparation use the same data (accounting data). The main difference between them is in the cash flows of operating activities where indirect method will start with net income then adjustments while direct method will have cash from sales, cash paid to creditors’ e.t.c

Q6. Discuss special problems in preparing a statement of cash flows.

It is difficult to match the period when cash is paid out and when cash is received. This can lead to a company having its receivables growing but cash is not deteriorating its financial position.

Cash flows from operating activities are sometimes too difficult to identify depending on the company which leads to difficulty in comparisons.

Q 7-10 Comparative Analysis Case

The Coca-Cola Company and PepsiCo, Inc

Q7. What format(s) did these companies use to present their balance sheets?

Coca-cola Company and Pepsi Company both utilize the comparative report formats where one section is listed above the other and they are all on the same page.

Q8. How much working capital did each of these companies have at the end of 2014? Speculate as to their rationale for the amount of working capital they maintain.

Working capital = current (non- fixed) assets – current (short term) liabilities

Coca Cola; $32,986,000 – $32,374,000 = $612,000

Pepsi; $ 20,663,000 – $ 18,092,000 = $2,541,000

Coca-cola maintains a lower working capital which is not healthy for a company its size.

Q9. What is the companies’ annual and 5-year (2010–2014) growth rates in total assets and long-term debt 2012?

Pepsi Company: annual growth rate of assets is 5.10%

5 year (2010-2014) average assets growth rate is 6.30%

Annual growth rate of long term debt 2012 was ($23,544 – $20,568) /$20,568* 100% = 14.47%

Coca-Cola Co: Annual growth rate of assets is 1.27%

5 years (2010-2014) average assets growth rate was 14.43%

Annual growth rate of long term debt 2012 was 12%

Q10. Compute both companies’ (1) current cash debt coverage, (2) cash debt coverage, and (3) free cash flow. What do these ratios indicate about the financial condition of the two companies?

Pepsi:

Current cash debt coverage = cash fom operating activities / current liabilities

= $9,994,000/ $20,502,000

= 0.4875

Cash debt coverage = (cash from operation activities – dividends) / total debt

= ($9,994,000-0)/$68,759,000

= 0.1453

Free cash flow = operating cash – capital expenses

($9,994,000 – $ 2,969,000) = $ 7,025,000

Coca-Cola:

Current cash debt coverage = cash from operating activities / current liabilities

= $6,995,000/ $27,194,000

= 0.2572

Cash debt coverage = (cash from operation activities – dividends) / total debt

= ($6,995,000-0)/$70,824,000

= 0.0988

Free cash flow = operating cash – capital expense

=$6,995,000- $1,675,000 = $ 5,320,000

All the ratios use cash from operating activities thus the ratios show the amount of cash the business is capable of generating from its operations hence meeting its obligations. From the calculations Pepsi shows better results because it has more cash left to meet its obligations (Renz, Franziska & Julian, 2016).

Financial Reporting Problem

The Procter & Gamble Company (P&G)

Instructions

Q11 – 13 Refer to P&G’s financial statements and the accompanying notes to answer the following questions.

Q11. What specific items does P&G discuss in its Note 1—Summary of Significant Accounting Policies? (List the headings only.)

Nature of operation

Basis of presentation

Use of estimate

Revenue recognition

Cost of products sold

Selling, General and Administrative expense

Other non operating income / (expense), Net

Currency Translation

Cash Flow presentation

Investments

Inventory valuation

Property plant and equipment

Goodwill and other intangible assets

Fair value of financial instruments.

New accounting pronouncements and policies.

Q12. For what segments did P&G report segmented information? Which segment is the largest? Who is P&G’s largest customer?

P&G reported segmented information on Beauty, Health care, Grooming, Fabric and Home Care and Baby, Feminine & family care. Health Care segment is the largest.

Their main customer is Wall- Mart Stores, Inc and its subsidiaries accounting about 16% of net sales in 2017, 15% of consolidated net sales in 2016 and 2015. They don’t have a customer that buys above 10% of their net sales (Eades, Kenneth & Kenneth, 2017).

Q13. What interim information was reported by P&G?

Interim information (quarterly information) was on dividends declaration, net sales, operating income, gross margin , net earnings from continuing operations , net earnings/(loss) from discontinued operations , net earnings attributed to Procter and Gamble , Earning from continued operations, earning (loss) from discontinued operations together with net earnings. They are unaudited.

Q14. ETHICS (Reporting of Subsequent Events) In June 2017, the board of directors for McElroy Enterprises Inc. authorized the sale of $10,000,000 of corporate bonds. Jennifer Grayson, treasurer for McElroy Enterprises Inc., is concerned about the date when the bonds are issued. The company really needs the cash, but she is worried that if the bonds are issued before the company’s year-end (December 31, 2017) the additional liability will have an adverse effect on a number of important ratios. In July, she explains to company president William McElroy that if they delay issuing the bonds until after December 31 the bonds will not affect the ratios until December 31, 2018. They will have to report the issuance as a subsequent event which requires only footnote disclosure. Grayson expects that with expected improved financial performance in 2018, ratios should be better.

Instructions

(a) What are the ethical issues involved?

The main ethical issue involved is decision- making. The board of directors is tasked with making decisions for the company, they are to make good decisions for the going concern of the business and increase in share holder’s wealth. Decisions are to be made for the benefit of the company not self interest.

(b) Should McElroy agree to the delay?

To my knowledge, the board of directors should hold selling bonds since the company needs cash as informed by the treasurer. Cash is the driver of a company; it should be available for the business in meeting its short term objectives. It also determines the position of a company towards liquidation and so they should consider not selling the bonds now.

Works Cited

Eades, Kenneth M., and Kenneth M. Eades. “Procter and Gamble: Cost of Capital.” Darden Business Publishing Cases(2017): 1-16.

Renz, Franziska, and Julian Vogel. “Analysis of The Coca-Cola Company.” (2016).

Warren, Carl S., and Jeff Jones. Corporate financial accounting. Cengage Learning, 2018.

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