{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-09-14T00:08:25-04:00", "answer_date": "2024-09-14 00:08:25", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "10722337", "url": "\/study-help\/questions\/questions-1-financial-statement-analysts-increasingly-demand-more-nonfinancial-information-10722337", "question_creation_date_js": "2024-09-14T00:08:25-04:00", "question_creation_date": "Sep 14, 2024 12:08 AM", "meta_title": "[Solved] Questions 1. Financial statement analysts | SolutionInn", "meta_description": "Answer of - Questions 1. Financial statement analysts increasingly demand more non-financial information from the companies they e | SolutionInn", "meta_keywords": "questions,1,financial,statement,analysts,increasingly,demand,-financial,information,companies,evaluate,requests", "question_title_h1": "Questions 1. Financial statement analysts increasingly demand more non-financial information from the companies they evaluate. Such requests include: detailed disclosures about company's long-term strategic initiatives,", "question_title": "Questions 1. Financial statement analysts increasingly demand more non-financial information from the", "question_title_for_js_snippet": "Questions 1 Financial statement analysts increasingly demand more non financial information from the companies they evaluate Such requests include detailed disclosures about company's long term strategic initiatives, formal financial plans and budgets, planned capital purchases and likely strategic business acquisition and or corporate alliances However, when accounting rule makers propose disclosure rules requiring such information, corporate managers indicate their reluctance to provide such disclosures Required a Suggest reasons why management might be reluctant to provide such financial statement disclosures b What is your opinion, should companies be required to publicly disclose, i e in their formal 10K annual report, their corporate strategies, annual profit plans, and details about proposed business alliances, among other internal long term senior management discussions Please explain your answer, briefly 2 Financial statements rely on countless estimates by accountants, including the useful life of buildings and equipment, the dollar amounts that will be collected from customers who purchase on credit, the prediction of future costs related to warranty claims or future pension obligations Required Prepare a short argument to explain why estimates are an acceptable and important ingredient in the preparation of financial statements 3 Recent financial statements for a major public company reports the following Average total assets Average shareholders' equity Net income $2,355,000 $1,295,000 $211,750 a Required Calculate the company's return on equity and return on assets b If the average ROE 10 5 and average ROA 6 5 discuss the company's ROE and ROA performance relative to its industry's average If the mean 5 year average ROE and ROA for the company are 6 2 and 3 8 discuss the company's ROE and ROA performance relative to their recent average performance d Given your comments above, would you consider investing in the company's common stock, pending further investigation of other relevant issues Please explain your answer C 4 Book value of stockholders' equity usually differs from company market value Explain some reasons why a company's book value of stockholders' equity can differ from a company's market value Questions 1 Financial statement analysts increasingly demand more non financial information from the companies they evaluate Such requests include detailed disclosures about company's long term strategic initiatives, formal financial plans and budgets, planned capital purchases and likely strategic business acquisition and or corporate alliances However, when accounting rule makers propose disclosure rules requiring such information, corporate managers indicate their reluctance to provide such disclosures Required a Suggest reasons why management might be reluctant to provide such financial statement disclosures b What is your opinion, should companies be required to publicly disclose, i e in their formal 10K annual report, their corporate strategies, annual profit plans, and details about proposed business alliances, among other internal long term senior management discussions Please explain your answer, briefly 2 Financial statements rely on countless estimates by accountants, including the useful life of buildings and equipment, the dollar amounts that will be collected from customers who purchase on credit, the prediction of future costs related to warranty claims or future pension obligations Required Prepare a short argument to explain why estimates are an acceptable and important ingredient in the preparation of financial statements 3 Recent financial statements for a major public company reports the following Average total assets Average shareholders' equity Net income $2,355,000 $1,295,000 $211,750 a Required Calculate the company's return on equity and return on assets b If the average ROE 10 5 and average ROA 6 5 discuss the company's ROE and ROA performance relative to its industry's average If the mean 5 year average ROE and ROA for the company are 6 2 and 3 8 discuss the company's ROE and ROA performance relative to their recent average performance d Given your comments above, would you consider investing in the company's common stock, pending further investigation of other relevant issues Please explain your answer C 4 Book value of stockholders' equity usually differs from company market value Explain some reasons why a company's book value of stockholders' equity can differ from a company's market value", "question_description": "

\"image<\/p> Questions 1. Financial statement analysts increasingly demand more non-financial information from the companies they evaluate. Such requests include: detailed disclosures about company's long-term strategic initiatives, formal financial plans and budgets, planned capital purchases and likely strategic business acquisition and\/or corporate alliances. However, when accounting rule makers propose disclosure rules requiring such information, corporate managers indicate their reluctance to provide such disclosures. Required: a. Suggest reasons why management might be reluctant to provide such financial statement disclosures. b. What is your opinion, should companies be required to publicly disclose, i.e. in their formal 10K\/annual report, their corporate strategies, annual profit plans, and details about proposed business alliances, among other internal long-term senior management discussions? Please explain your answer, briefly. 2. Financial statements rely on countless estimates by accountants, including the useful life of buildings and equipment, the dollar amounts that will be collected from customers who purchase on credit, the prediction of future costs related to warranty claims or future pension obligations. Required: Prepare a short argument to explain why estimates are an acceptable and important ingredient in the preparation of financial statements. 3. Recent financial statements for a major public company reports the following: Average total assets Average shareholders' equity Net income $2,355,000 $1,295,000 $211,750 a. Required: Calculate the company's return on equity and return on assets. b. If the average ROE = 10.5% and average ROA = 6.5%; discuss the company's ROE and ROA performance relative to its industry's average. If the mean 5-year average ROE and ROA for the company are 6.2% and 3.8%; discuss the company's ROE and ROA performance relative to their recent average performance. d. Given your comments above, would you consider investing in the company's common stock, pending further investigation of other relevant issues? Please explain your answer. C. 4. Book value of stockholders' equity usually differs from company market value. Explain some reasons why a company's book value of stockholders' equity can differ from a company's market value. Questions 1. Financial statement analysts increasingly demand more non-financial information from the companies they evaluate. Such requests include: detailed disclosures about company's long-term strategic initiatives, formal financial plans and budgets, planned capital purchases and likely strategic business acquisition and\/or corporate alliances. However, when accounting rule makers propose disclosure rules requiring such information, corporate managers indicate their reluctance to provide such disclosures. Required: a. Suggest reasons why management might be reluctant to provide such financial statement disclosures. b. What is your opinion, should companies be required to publicly disclose, i.e. in their formal 10K\/annual report, their corporate strategies, annual profit plans, and details about proposed business alliances, among other internal long-term senior management discussions? Please explain your answer, briefly. 2. Financial statements rely on countless estimates by accountants, including the useful life of buildings and equipment, the dollar amounts that will be collected from customers who purchase on credit, the prediction of future costs related to warranty claims or future pension obligations. Required: Prepare a short argument to explain why estimates are an acceptable and important ingredient in the preparation of financial statements. 3. Recent financial statements for a major public company reports the following: Average total assets Average shareholders' equity Net income $2,355,000 $1,295,000 $211,750 a. Required: Calculate the company's return on equity and return on assets. b. If the average ROE = 10.5% and average ROA = 6.5%; discuss the company's ROE and ROA performance relative to its industry's average. If the mean 5-year average ROE and ROA for the company are 6.2% and 3.8%; discuss the company's ROE and ROA performance relative to their recent average performance. d. Given your comments above, would you consider investing in the company's common stock, pending further investigation of other relevant issues? Please explain your answer. C. 4. Book value of stockholders' equity usually differs from company market value. Explain some reasons why a company's book value of stockholders' equity can differ from a company's market value", "transcribed_text": "", "related_book": { "title": "Cost management a strategic approach", "isbn": "73526940, 978-0073526942", "edition": "5th edition", "authors": "Edward J. Blocher, David E. Stout, Gary Cokins", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/249.jpg", "uri": "\/textbooks\/cost-management-a-strategic-approach-5th-edition-249", "see_more_uri": "" }, "free_related_book": { "isbn": "", "uri": "", "name": "", "edition": "" }, "question_posted": "2024-09-14 00:08:25", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/technical-communication\/how-do-you-think-perception-gaps-form-does-its-formation-2010545", "description": "How do you think perception gaps form? 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