Babson College is a private business school located in Wellesley, Massachusetts.
Accruals
Accruals
Agenda:
Review accrual accounting
Statement preparation exercise
Discuss cases
International Paper (accruals)
Sears (A/R reserves)
Projections (Coca-Cola mini-case)
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Equity Investments (significant Influence)
Equity Investments (significant Influence)
When a company can exert significant influence over another, the equity securities it owns of that company must be accounted for using the Equity Method. Significant influence is usually believed to result if the company owns in excess of 20-25% of the outstanding shares of the other company.
Under this method of accounting, we
Record dividends as a return of investment (credit investment account), rather than as income
Report income (and increase investment account) equal to percentage ownership in earnings of investee company.
The investment account, thus, rises (falls) with those events that increase (decrease) retained earnings of investee company
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Agenda
Agenda
Review Accrual Basis Income Statements
Preparation of Statement of Cash Flows
Interpretation of Statement of Cash Flows
Reversal of S-T accruals (IBM)
Manipulation of NCFO (Tyco)
Valuation of cash flows
Free Cash Flow definitions
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Agenda
Agenda
Leasing
FAS 13 criteria for capitalization
Lessee and lessor accounting
Capitalization of operating leases (FedEx mini-case)
Synthetic leases
VIEs
Legitimate financing technique
Consolidation under Fin-46 (Target mini-case)
Derivatives
Campbell soup mini-case
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The Company
The Market The Nature of Marketing Revenue - Expenses
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Profit Price X Quantity Sold Number of
Potential Customers Share
of
Customers Consumption
Rate x x
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Mkt 7000 Ch 4 Demand...
Mkt 7000 Ch 4 Demand...
Skim..
Pay particular attention to…
the marketing research process p105ff
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Mkt 7000 Ch 20 Salesforce
Mkt 7000 Ch 20 Salesforce
Skim…
Also Think About Sales Potential Measurement As Part Of This Process...
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Mkt 7000 Ch 7 Business Markets
Mkt 7000 Ch 7 Business Markets
Skim…
Pay particular attention to…
The business Market vs Cons p192-4
Systems Buying p195-6
Stages in the Process p203-208
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MKT 7000 Pricing
MKT 7000 Pricing
Skim
Pay particular attention to..
Setting the price p457-463,
Selecting a Pricing Method p465-471
Promotional Pricing p473
Discriminatory pricing p 473-475
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How important is low price?
How important is high quality?
How important is good service?
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
Not
Important Very
Important Traditional Method for Collecting Information
About Customer Needs and Wants
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Ch 9 Segmentation, Positioning...
Ch 9 Segmentation, Positioning...
Skim..
Pay particular attention to…
Market Segmentation Procedure p262ff
Bases for Segmentation p263ff
Selecting Targets p274ff
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