Longwell Corp. announced that its profit for the current fiscal year increased by $15 million, or 20%,
Question:
Longwell Corp. announced that its profit for the current fiscal year increased by $15 million, or 20%, compared with the previous year. Further inspection of its income statement revealed that the company reported a $20-million gain as "Other Revenues and Gains" from the sale of one of its factories. Discuss the implications of Longwell's announcement in terms of its predictive value.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 64% (14 reviews)
In its announcement Longwell emphasizes its increase in profits The company is not re...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118024492
5th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Question Posted:
Students also viewed these Cost Accounting questions
-
In its year-end earnings announcement press release, Longwell Corp. announced that its earnings increased by $15 million relative to the previous year. This represented a 20% increase. Inspection of...
-
In its year-end earnings announcement press release, Optimistic Corp. announced that its earnings increased by $15 million relative to the previous year. This represented a 20% increase. Inspection...
-
In its year-end earnings announcement press release, Ransome Corp. announced that its earnings increased by SI 5 million relative to the previous year. This represented a 20% increase. Inspection of...
-
The data in the chart below is for the distance (in cm) to the near point, the point nearest the eye at which the eye can accurately focus, at a persons age. Age (years) Near Point (cm) 10 7.5 20 9...
-
Calculate the diameter and height for the column of Example 6.15 if the tower is packed with 1.5-in. metal Pall rings. Assume that the absorbing solution has the properties of water and use...
-
Determine the driving point impedance at the input terminals of the network shown in fig P11.1 as a function of s. R. Vi(t) Vo(t)
-
Why do researchers often need to use innovative approaches to estimate demand in emerging markets? lo1
-
Five years ago, Gerald invested $150,000 in a passive activity, his sole investment venture. On January 1, 2013, his amount at risk in the activity was $30,000. His shares of the income and losses...
-
A customer's order is delivered (received by the customer) on November 4, 2022. This order was placed with the company on August 8, 2022, and received by the manufacturing department on August 15,...
-
Derive the transfer function H(s)/Q(s) for the liquid-level system of Fig. P5-1 when (a) The tank level operates about the steady-state value of hs = 1 ft (b) The tank level operates about the...
-
Which type of income statement-single-step or multiple-step-does Eastplats use? You can find its financial statements in Appendix A at the back of this textbook.
-
How do the gross profit margin and profit margin differ??
-
Hedging Continual Exposure. Clearlake, Inc., produces its products in its factory in Texas and exports most of the products to Mexico each month. The exports are denominated in pesos. Clearlake...
-
Nelsie Corporation has an outstanding 60-day 6% note receivable amounting to P 15,000 dated December of the ne year. The company is using the calendar year in preparing its financial statements. What...
-
Which resource is the bottleneck? What is the overall capacity of the orthopedist's office in patients/hour?
-
What are the comprehensive strategic implentation issues of Kmart with reference
-
1. Create both the written plan and the educational material to help African American women age 65+ control high blood pressure, take the special circumstances into consideration for the plan. 2. For...
-
Write down D & S equations for wireless phones; include two exogenous variables in each equation.
-
On what basis shall a reporting entity allocate a transaction price to separate performance obligations within a contract with a customer?
-
The Taylor's series expansion for cosx about x = 0 is given by: where x is in radians. Write a user-defined function that determines cosx using Taylor's series expansion. For function name and...
-
Red River Theatre has a cashier's booth located near the theatre entrance. There are two cashiers: one works from 1 p.m. to 5 p.m., the other from 5 p.m. to 9 p.m. Each cashier is bonded. The...
-
Bev's Design Services Ltd. commenced operations approximately nine months ago. Bev, the sole shareholder and designer, organizes the hall and table decorations for a variety of functions. Bev has...
-
High Tech Inc. commenced operations recently. Two friends from university, John Deol and Rehana Gerdman, jointly own the company's shares. John and Rehana have developed a new soft ware application...
-
En prenant un exemple de votre choix, montrer comment on value un swap de taux de change.
-
How much would you need to invest today in order to receive: a. $10,000 in 5 years at 11%? b. $11,000 in 12 years at 8%? c. $12,000 each year for 10 years at 8%? d. $12,000 at the beginning of each...
-
A company that manufactures pulse Doppler insertion flow meters uses the Straight Line method for book depreciation purposes. Newly acquired equipment has a first cost of $190,000 with a 3-year life...
Study smarter with the SolutionInn App