A firm reports a net profit margin of 10% on sales of $3 million when ignoring the effects of financing. If taxes are $200,000, how much is EBIT？

If a firm has a net profit margin of 21% and areturn on equity of 14%, its equity turnover ratiois closest to:

A.0.67x

B.0.78x

C.1.5x

ZXC Co currently has income of $30 million per year, of which 80% is from credit sales, and a net profit margin of 10%. Due to fierce competition, ZXC Co has lost market share and is looking for ways to win back former customers and to keep the loyalty of existing customers. The sales director has pointed out that a major competitor of ZXC Co currently offers an early settlement discount of 0·5% for settlement within 30 days, while ZXC Co itself does not offer an early settlement discount. He suggests that if ZXC Co could match this early settlement discount, annual income from credit sales would increase by 20%.

Credit customers of ZXC Co take an average of 51 days to settle invoices. Approximately 0·5% of the company’s credit sales have historically become bad debts each year and written off as irrecoverable. The finance director has been advised that offering an early settlement discount of 0·5% for payment within 30 days would increase administration costs by $35,000 per year, while 75% of credit customers would be likely to take the discount. The credit controller believes that bad debts would fall to 0·375% of credit sales if the early settlement discount were introduced.

ZXC Co has an average short-term cost of finance of 4% per year. Assume that there are 360 days in each year.

Required:

(a) Evaluate whether ZXC Co should introduce the early settlement discount. (6 marks)

(b) Discuss TWO ways in which a company could reduce the risk associated with foreign accounts receivable. (4 marks)

Not to Expect Profits Soon from Euro Disney

??The Euro Disney Corporation, acknowledging that its elaborate theme park had not performed as strongly as expected, announced Thursday that it would sustain a net financial loss of unpredictable scale in its first financial year.

??At the time of the April opening of the park, which stands on a 4,800-acre site 32 kilometers (20 miles) east of Paris, Euro Disney officials said they expected to make a small profit for the financial year ending September 30． But since then the park has been hit by a number of problems.

??"We were geared up for a very high level of operations," John Forsgren, the company's chief financial officer said in a telephone interview. "It has been very strong, but not as strong as we geared up for."

??"While attendance is very strong," he said, "our cost levels do require adjustment for the current revenue level."

??The parent company, Walt Disney Corporation, said Thursday that its income rose 33 percent in the quarter. But it warned investors against expecting profits soon from Euro Disney, of which it owns 49 percent.

??Euro Disney said that although attendance levels had been high, "the company anticipates that it will sustain a net loss for the financial year ending September 30, 1992". It added that "the amount of the loss will depend on attendance and hotel use rates achieved during the remaining portion of the critical European summer vacation period". The announcement amounted to an extraordinary reversal for Euro Disney, which opened amid immense celebration and widespread predictions of immediate success.

??At the time of the opening, on April 12, the company's shares were trading at 140.90 francs ($28.07), and had been as high as 170 francs earlier in the year. They dropped 2.75 percent Thursday to close at 97.25 francs. Mr. Forsgren said he thought the market had "reacted a bit emotionally to preliminary information". He added, "By all objective standards the park is very successful. The long-term acceptance is strong, the rest is just details."

??The company said that 3.6 million people had visited the park from April 12 to July 22, a performance superior to that of comparable start-up periods at other Disney theme parks. But it warned that, given the likely strong seasonal variation in attendance, it was not possible to predict future attendance or profits.

??Reacting to the announcement, stock market expert Paribas Capital Markets Group issued a "sell" recommendation on Euro Disney stock, saying that attendance levels for the period were 15 percent below its expectations and profit from sales of food and other goods was 10 percent below. It predicted that the company would lose 300 million francs in the current financial year and continue losing money for two more years.

??The main problem confronting Euro Disney appears to be managing its costs and finding an appropriate price level for its over 5,000 hotel rooms. Clearly, costs have been geared to a revenue level that has not been achieved, and the company is beginning to drop hotel prices that have been widely described as excessive.

??Mr. Forsgren said the number of staff, now at 17,000, would "come down significantly in the next two months, mainly through the loss of seasonal employees". Of the current staff, 5,000 are employed on a temporary basis, he said.

??He also acknowledged that the lowest-priced rooms at the resort had been cut to 550 francs ($110) from 750 francs at the time of the opening, and that some rooms were being offered at 400 francs for the winter season. Analysts believe hotel use has been running at about 68 percent of capacity, although it is currently over 90 percent.

??"The key issue is costs, " said one financial expert. "They have no idea what their winter attendance levels will be and they're battling to get costs to an appropriate level. The stock's still too expensive, but I think in the long term they'll get it right."

??Still, huge doubt hangs over the company's plans to keep the theme park open through the cold European winter—something no other theme park in Europe has ever attempted. Last month, the company said it was having difficulty attracting people from the Paris region. Mr. Forsgren said that French attendance was improving and accounted for 1 million of the 3.6 million visitors, with most of the rest coming from Britain and Germany. Only 1 percent of visitors have been American.

??For its third quarter ending June 30, the first in which the park had been operating, the company announced revenues of 2.47 billion francs ($492 million), but gave no profit or loss figures in line with the French practice of only giving such figures at year's end. In the first half, the company earned 75 million francs, mainly from investment income and sale of construction rights on its site.

Passage 4

America’s most popular newspaper website today announced that the era of free online journalism is drawing to a close. The New York Times has become the biggest publisher yet to set out plans for a paywall around its digital offering, _1_ the accepted practice that internet users will not pay for news. Struggling with an evaporation of advertising and a downward drift in street corner sales, The New York Times intends to introduce a “metered” model at the beginning of 2011. Readers will be required to pay when they have _2_ a set number of its online articles per month. The decision puts the 159-year-old newspaper on the charging side of an _3_ wide chasm (鸿沟）in the media industry. But others, including the Guardian, have said they will not _4_ internet readers. The New York Times&39;s publisher, Arthur Sulzberger, _5_ that the move is a gamble. Boasting a print _6_ of 995,000 on weekdays and 1.4 million on Sundays, The New York Times is the third bestselling American newspaper, behind the Wall Street Journal and USA Today. While most US papers focus on a single city, The New York Times is among the few that can claim _7_ scope—as well as 16 bureaus in the New York area, it has 11 offices around the US and maintains 26 bureaus elsewhere in the world. But like many in the publishing industry, the paper is in the grip of a _8_ financial crisis. Its parent company, the New York Times Company, has 15 papers, but _9_ a loss of $70 million in the nine months to September and recently accepted a $250 million _10_ from a Mexican billionaire， Carlos Slim, to strengthen its balance sheet.

A) national

B) interactively

C) circulation

D) loan

E) crude

F) exceeded

G) charge

H) ascend

I) abandoning

J) suffered

K) serious

L) deducting

M) increasingly

N) evaluation

O) acknowledged

第1空答案是：

(b) On 31 May 2007, Leigh purchased property, plant and equipment for $4 million. The supplier has agreed to

accept payment for the property, plant and equipment either in cash or in shares. The supplier can either choose

1·5 million shares of the company to be issued in six months time or to receive a cash payment in three months

time equivalent to the market value of 1·3 million shares. It is estimated that the share price will be $3·50 in

three months time and $4 in six months time.

Additionally, at 31 May 2007, one of the directors recently appointed to the board has been granted the right to

choose either 50,000 shares of Leigh or receive a cash payment equal to the current value of 40,000 shares at

the settlement date. This right has been granted because of the performance of the director during the year and

is unconditional at 31 May 2007. The settlement date is 1 July 2008 and the company estimates the fair value

of the share alternative is $2·50 per share at 31 May 2007. The share price of Leigh at 31 May 2007 is $3 per

share, and if the director chooses the share alternative, they must be kept for a period of four years. (9 marks)

Required:

Discuss with suitable computations how the above share based transactions should be accounted for in the

financial statements of Leigh for the year ended 31 May 2007.

听力原文： NIT DoCoMo Inc, Japan's largest mobile phone service provider, has 50.5 million customers and KDDI Corp has 24.1 million. Vodafone KK has just 17 percent of the Japanese market and is straggling to match services such as wireless credit card payments and song downloads offered at the larger companies.

DoCoMo and KDDI "are trying to add new services such as auction sites, credit card and movie downloads," says Gerhard Fasol, president of Eurotechnology Japan KK, a telecommunications consulting and research company in Tokyo. "Vodafone KK doesn't have a real edge at the moment."

Vodafone, the world's largest mobile phone operator, and Tokyo-based Softbank said on March 3 that they are in talks on a transaction, but didn't provide details. Softbank may pay as much as 2 trillion yen (17.2 billion US dollars) for 98 percent of Vodafone KK, one of the biggest acquisitions by a Japanese company, the Nihon Keizai newspaper reported March 5, without citing anyone.

"We're committing all our efforts into the talks," says Softbank spokesman Hideo Azuma on March 4. "We can't comment on time frame, price or any other details." Softbank's stock has more than doubled in the past year. "Investors are less concerned about Softbank's risk of large-scale financing but are reacting positively to the forward-looking move," says Hiroichi Nishi, an equities manager at Nikko Cordial Securities Inc in Tokyo.

What's the share of Vodafone KK in the mobile market?

A．About 1/4.

B．Below 1/5.

C．Over 1/4.

D．Over 1/3.

It is the unique nutrient profile of flaxseed__________

Not to Expect Profits Soon from Euro Disney

  The Euro Disney Corporation, acknowledging that its elaborate theme park had not performed as strongly as expected, announced Thursday that it would sustain a net financial loss of unpredictable scale in its first financial year.

  At the time of the April opening of the park, which stands on a 4,800-acre site 32 kilometers (20 miles) east of Paris, Euro Disney officials said they expected to make a small profit for the financial year ending September 30． But since then the park has been hit by a number of problems.

  "We were geared up for a very high level of operations," John Forsgren, the company's chief financial officer said in a telephone interview. "It has been very strong, but not as strong as we geared up for."

  "While attendance is very strong," he said, "our cost levels do require adjustment for the current revenue level."

  The parent company, Walt Disney Corporation, said Thursday that its income rose 33 percent in the quarter. But it warned investors against expecting profits soon from Euro Disney, of which it owns 49 percent.

  Euro Disney said that although attendance levels had been high, "the company anticipates that it will sustain a net loss for the financial year ending September 30, 1992". It added that "the amount of the loss will depend on attendance and hotel use rates achieved during the remaining portion of the critical European summer vacation period". The announcement amounted to an extraordinary reversal for Euro Disney, which opened amid immense celebration and widespread predictions of immediate success.

  At the time of the opening, on April 12, the company's shares were trading at 140.90 francs ($28.07), and had been as high as 170 francs earlier in the year. They dropped 2.75 percent Thursday to close at 97.25 francs. Mr. Forsgren said he thought the market had "reacted a bit emotionally to preliminary information". He added, "By all objective standards the park is very successful. The long-term acceptance is strong, the rest is just details."

  The company said that 3.6 million people had visited the park from April 12 to July 22, a performance superior to that of comparable start-up periods at other Disney theme parks. But it warned that, given the likely strong seasonal variation in attendance, it was not possible to predict future attendance or profits.

  Reacting to the announcement, stock market expert Paribas Capital Markets Group issued a "sell" recommendation on Euro Disney stock, saying that attendance levels for the period were 15 percent below its expectations and profit from sales of food and other goods was 10 percent below. It predicted that the company would lose 300 million francs in the current financial year and continue losing money for two more years.

  The main problem confronting Euro Disney appears to be managing its costs and finding an appropriate price level for its over 5,000 hotel rooms. Clearly, costs have been geared to a revenue level that has not been achieved, and the company is beginning to drop hotel prices that have been widely described as excessive.

  Mr. Forsgren said the number of staff, now at 17,000, would "come down significantly in the next two months, mainly through the loss of seasonal employees". Of the current staff, 5,000 are employed on a temporary basis, he said.

  He also acknowledged that the lowest-priced rooms at the resort had been cut to 550 francs ($110) from 750 francs at the time of the opening, and that some rooms were being offered at 400 francs for the winter season. Analysts believe hotel use has been running at about 68 percent of capacity, although it is currently over 90 percent.

  "The key issue is costs, " said one financial expert. "They have no idea what their winter attendance levels will be and they're battling to get costs to an appropriate level. The stock's still too expensive, but I think in the long term they'll get it right."

  Still, huge doubt hangs over the company's plans to keep the theme park open through the cold European winter—something no other theme park in Europe has ever attempted. Last month, the company said it was having difficulty attracting people from the Paris region. Mr. Forsgren said that French attendance was improving and accounted for 1 million of the 3.6 million visitors, with most of the rest coming from Britain and Germany. Only 1 percent of visitors have been American.

  For its third quarter ending June 30, the first in which the park had been operating, the company announced revenues of 2.47 billion francs ($492 million), but gave no profit or loss figures in line with the French practice of only giving such figures at year's end. In the first half, the company earned 75 million francs, mainly from investment income and sale of construction rights on its site.

Sina ( ) a net profit of US$1.5 million.新浪公布了150万美元的净利润。

A、most

B、past

C、posted

D、lost