ACC501 Financial Accounting Second Major Examination
Sheet1
| This is the second major examination for ACC501 Financial Accounting. This take-home exam is due on Tuesday, May 6th. It is strongly recommended for students to attempt to answer the questions her or himself prior to discussing with others. | ||||||||||||||||
| 2013 (or most recent) | 2012 (or most recent) | |||||||||||||||
| Gross Margin (Net Sales - COGS / Net Sales) | ? | ? | ||||||||||||||
| Operating Margin (EBIT / Net Sales) | ? | ? | ||||||||||||||
| Efficiency Ratio (All Expenditures Except Interest / Net Sales) | ? | ? | ||||||||||||||
| Return on Equity (Net Income / Average Book Value of Common Stock + Preferred Stock) | ? | ? | ||||||||||||||
| Profit Margin (Net Income / Net Sales) | ? | ? | ||||||||||||||
| Asset Turnover (Net Sales / Average Assets) | ? | ? | ||||||||||||||
| Compare and Contrast Weibo Corporation's (CIK 0001595761) and Twitter Incorporated (CIK 0001418091) latest registration for securities issuance, S-1/A for Twitter and F-1/A for Weibo. Complete the following blanks. | Equity Multiplier (Average Assets / Average Equity) | ? | ? | |||||||||||||
| Return on Assets (Net Income / Average Total Assets) | ? | ? | ||||||||||||||
| Current Ratio (Current Assets / Current Liabilities) | ? | ? | ||||||||||||||
| We, [full names] recommend a [BUY/SHORT SELL/DO NOT BUY] of Weibo Corporation's initial public offering of no more than [estimated price lower limit] to [estimated price upper limit]. Due to [key highlights from the rest of the report], we believe [reasoning, qualitative analysis, quantitative analysis] | Cash Ratio (Cash and Marketable Securities / Current Liabilities) | ? | ? | |||||||||||||
| Operating Cash Flow Ratio (Operating Cash Flows / Total Debts) | ? | ? | ||||||||||||||
| Average Receivables Conversion (365 * Accounts Receivable / Credit Sales) | ? | ? | ||||||||||||||
| Average Payables Conversion (365 * Accounts Payable / Credit Purchases) | ? | ? | ||||||||||||||
| Average Inventory Conversion (365 * Average Inventory / COGS) | ? | ? | ||||||||||||||
| Cash Conversion Cycle (Inventory Conversion + Receivables Conversion - Payables Conversion) | ? | ? | ||||||||||||||
| Earnings Per Share (Net Profit / Weighted Average Shares Outstanding | ? | ? | ||||||||||||||
| Summary | ||||||||||||||||
| e.g. Twitter met/did not meet the market's expectations… | ||||||||||||||||
| Social Networking Industry Analysis | 2013 (or most recent) | 2012 (or most recent) | ||||||||||||||
| Threat of Rivalry | [high/med/low] | Gross Margin (Net Sales - COGS / Net Sales) | ? | ? | ||||||||||||
| [Description] | Operating Margin (EBIT / Net Sales) | ? | ? | |||||||||||||
| Efficiency Ratio (All Expenditures Except Interest / Net Sales) | ? | ? | ||||||||||||||
| Return on Equity (Net Income / Average Book Value of Common Stock + Preferred Stock) | ? | ? | ||||||||||||||
| Threat of New Entrants | [high/med/low] | Profit Margin (Net Income / Net Sales) | ? | ? | ||||||||||||
| [Description] | Asset Turnover (Net Sales / Average Assets) | ? | ? | |||||||||||||
| Equity Multiplier (Average Assets / Average Equity) | ? | ? | ||||||||||||||
| Return on Assets (Net Income / Average Total Assets) | ? | ? | ||||||||||||||
| Threat of Buyers | [high/med/low] | |||||||||||||||
| [Description] | Current Ratio (Current Assets / Current Liabilities) | ? | ? | |||||||||||||
| Cash Ratio (Cash and Marketable Securities / Current Liabilities) | ? | ? | ||||||||||||||
| Operating Cash Flow Ratio (Operating Cash Flows / Total Debts) | ? | ? | ||||||||||||||
| Threat of Suppliers | [high/med/low] | |||||||||||||||
| [Description] | Average Receivables Conversion (365 * Accounts Receivable / Credit Sales) | ? | ? | |||||||||||||
| Average Payables Conversion (365 * Accounts Payable / Credit Purchases) | ? | ? | ||||||||||||||
| Average Inventory Conversion (365 * Average Inventory / COGS) | ? | ? | ||||||||||||||
| Threat of Substitutes | [high/med/low] | Cash Conversion Cycle (Inventory Conversion + Receivables Conversion - Payables Conversion) | ? | ? | ||||||||||||
| [Description] | ||||||||||||||||
| Earnings Per Share (Net Profit / Weighted Average Shares Outstanding | ? | ? | ||||||||||||||
| Threat of Complements | [high/med/low] | |||||||||||||||
| [Description] | Summary | |||||||||||||||
| e.g. We can expect Weibo to… | ||||||||||||||||
| Summary | ||||||||||||||||
| The social networking industry… | ||||||||||||||||
| Competition Analysis | ||||||||||||||||
| e.g. Country of Origin | United States | China | ||||||||||||||
| [Description] | ||||||||||||||||
| [Factor 2] | [attribute] | [attribute] | ||||||||||||||
| [Description] | ||||||||||||||||
| [Factor 3] | [attribute] | [attribute] | ||||||||||||||
| [Description] | ||||||||||||||||
| [Factor 4] | [attribute] | [attribute] | ||||||||||||||
| [Description] | ||||||||||||||||
| [Factor 5] | [attribute] | [attribute] | ||||||||||||||
| [Description] | ||||||||||||||||
| [Factor 6] | [attribute] | [attribute] | ||||||||||||||
| [Description] | ||||||||||||||||
| [Factor 7] | [attribute] | [attribute] | ||||||||||||||
| [Description] | ||||||||||||||||
| Summary | ||||||||||||||||
| e.g. Weibo, unlike Twitter,… | ||||||||||||||||
| Operational Focus | ||||||||||||||||
| e.g. Relationship with the Government | Compliant with Chinese government | Blocked in some countries | ||||||||||||||
| [Description] | ||||||||||||||||
| [Factor 2] | [attribute] | [attribute] | ||||||||||||||
| [Description] | ||||||||||||||||
| [Factor 3] | [attribute] | [attribute] | ||||||||||||||
| [Description] | ||||||||||||||||
| [Factor 4] | [attribute] | [attribute] | ||||||||||||||
| [Description] | ||||||||||||||||
| [Factor 5] | [attribute] | [attribute] | ||||||||||||||
| [Description] | ||||||||||||||||
| [Factor 6] | [attribute] | [attribute] | ||||||||||||||
| [Description] | ||||||||||||||||
| [Factor 7] | [attribute] | [attribute] | ||||||||||||||
| [Description] | ||||||||||||||||
| Summary | ||||||||||||||||
| e.g. Weibo, unlike Twitter,… | ||||||||||||||||
| Profit Generation + Value Creation | ||||||||||||||||
| e.g. 1) Attract User base | [Good/Bad] | [Good/Bad] | ||||||||||||||
| [Description] | ||||||||||||||||
| e.g. 2) Develop Social Network | [Good/Bad] | [Good/Bad] | ||||||||||||||
| [Description] | ||||||||||||||||
| e.g. 3) Attract Advertisers | [Good/Bad] | [Good/Bad] | ||||||||||||||
| [Description] | ||||||||||||||||
| e.g. 4) Generate Profit from Advertising | [Good/Bad] | [Good/Bad] | ||||||||||||||
| [Description] | ||||||||||||||||
| [Factor 5] | [Good/Bad] | [Good/Bad] | ||||||||||||||
| [Description] | ||||||||||||||||
| [Factor 6] | [Good/Bad] | [Good/Bad] | ||||||||||||||
| [Description] | ||||||||||||||||
| [Factor 7] | [Good/Bad] | [Good/Bad] | ||||||||||||||
| [Description] | ||||||||||||||||
| Summary | ||||||||||||||||
| e.g. Weibo, unlike Twitter,… |
&"Times New Roman,Regular"&12ACC501 Financial Accounting Second Major Examination &"Times New Roman,Regular"[Authors with first name initial + last name, e.g.
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