Company #3 (in millions) 2,680.9 Operating revenues Operating Expenses: Compensation & benefits Assets Current assets: 835.7 Cash 176.4 62 Contract services 395.6 Accounts receivable (net) Selling general & admin. Total Operating Expense Operating Income (EBIT) Interest (net) 700.4 Prepaid expenses & other asset 98.6 337 1,096.0 Total current assets 1,584.9 Property, plant & equip. (net) Goodwill & other intangibles 291.8 140.3 28.1 Total assets 6769.1 Pretax 1,613.0 Таxes 580.7 Net Income 1,032.3 A. Company #1 is a: Service Organization Company #2 is a: В. Merchandising Organization Company #3 is a: C. Manufacturing Organization

Q: OCF analysis

A: Operating Cashflow Analysis  = Net Income + Depreciation and Amortization- Net Working capital

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A: Transaction: It is an event between a buyer and seller which involves money. It is an exchange of…

Q: Explain CMO Mechanics?

A: Collateralized mortgage obligation: It is a financial instrument that raises funds by…

Q: Explain the characteristics

A:

Q: Service- industry example

A: Service industry: A service industry is an economic sector that delivers particular intangible…

Q: Required: a. Prepare a statement of LLC liquidation. b. Provide the journal entry for the final cash…

A: Given Information: Lester Capital = $48,630 Torres Capital = $65,630 Hearst Capital = $26,190…

Q: Define value chain.

A: Value Chain: Value Chain is the combination of activities including all the costs to do such…

Q: Explain Matching Principles?

A: Matching concept is an accounting principle which explains the need to match revenue with the…

Q: What is WACC

A: Weighted average cost of capital(WACC) is the average cost of several source of financing. It is…

Q: What islockbox system?

A: Banks provide various services to the organizations such as lock box facility, overdraft facility,…

Q: Ifrs solution

A: According to the question given, we need to prepare the journal entries, and, the impairment…

Q: Explain red herring

A: Red herring It is an introductory prospectus recorded with the Securities and Exchange Commission…

Q: Explain CVP APPLICATIONS WITH EXAMPLE?

A: The CVP analysis is used to determine what will happen to the financial results when they are…

Q: What is the heart of ERP system?

A: Given: It is necessary to inquire about the element at the core of the ERP.

Q: Define customers

A: Inventory: It can be defined as all the goods, items, materials, and merchandise that are held by a…

Q: Explain MBBs and MPTs?

A: Mortgage-backed security: A mortgage-backed security is a kind of asset-backed security which is…

Q: Explain the benefits of JIT.

A: Just-in-time manufacturing system: Just-in-time (JIT) manufacturing system is an approach to…

Q: Use of CAATs?

A: Computer Assisted Audit Techniques or CAATs can be characterized as an auditing strategy that…

Q: What is scalability?

A:

Q: Define TED spread

A: The term TED spread stands for Treasury Euro Dollar Spread. It can be defined as the credit…

Q: Define value drivers

A: Introduction: Value drivers are related to concept of free cash flow valuation model. This helps the…

Q: a. Prepare a common-sized income statement comparing the results of operations for Sorenson…

A: Common size income statement is used for vertical analysis wherein each item in the income statement…

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.