• CEDI, DOLLAR and POUND are into a partnership business for the sale of “DEPRECIATION” sharing profits in the ratio 1:2:2. The partners have agreed to charge interest on their capitalaccounts and drawings account. The trial balance of the partnership as at 31 st December 2013 after preparing
that involve economic values and occur between resident and nonresident entities. Also covered are of sets to economic values provided or acquired without a quid pro quo. Specifically, major classifications [are:] goods and services, income, and current transfers” (IMF 1996; p. 38). The capitalaccounts include the following items: “(i) capital transfers and (ii) acquisition or disposal of nonproduced, nonfinancial assets” (IMF 1996; p. 77). Capital account items are different from current transfers. Financial accounts include items like “financial assets [and investments] including the claims of nonresidents [; that is, the foreign liabilities of the economy or] indebtedness to nonresidents (IMF 1996; p. 78). “The convention [is that] ownership of some nonfinancial assets [is] construed as ownership of financial assets” (IMF 1996; p. 78). Note that “the reinvested earnings of a direct investment enterprise (which accrue to a direct investor in proportion to participation in the equity of the enterprise) are recorded in the current accounts [ … ] as paid to the direct investor as investment income on equity and in the financial accounts as being reinvested in the enterprise” (IMF 1996; p. 78).
The teacher will review the accounting equation and the type of business organization referred to as a partnership, analyze the structure of the partners’ capitalaccounts, compare structure to the sole proprietorship, have students solve sample exercises, assign students to independently identify similar problem formats, and assign students to solve a complex equation puzzle.
Most econometric evidence finds that regulations on the inflow of capital can have the desired impact if designed and implemented properly. A comprehensive review of the literature before the financial crisis—that includes nations with open capitalaccounts such as Chile and Colombia-- for the national Bureau of Economic Research in the United States concluded that “In sum, capital controls on inflows seem to: make monetary policy more independent and alter the composition of capital flows; to a lesser extent it seems to reduce real exchange rate pressures (Magud et al, 2011, 13).” In the wake of the financial crisis a number of countries with open capitalaccounts have begun to re-introduce regulations on the inflow and outflow of capital. nations such as Brazil, Indonesia, South Korea, and Taiwan are among those that regulated cross-border finance in the wake of the financial crisis, while maintaining some level of capital account openness (Erten and Ocampo, 2013; Gallagher, 2014).
In this paper we examine whether there is evidence of a link from capital account liberalization to financial depth and, through this channel, to overall economic growth. 4 Using a wide cross-section of countries, we show that countries with open capitalaccounts have significantly greater financial depth than countries with capital account restrictions. Estimates indicate an economically important and statistically significant effect of capital account liberalization on economic growth through the deepening of a country’s financial market. We also show, however, that the significance of the link between capital account convertibility and financial depth seems to be driven largely by the industrialized countries included in the cross-section. Therefore, one possible interpretation of our findings is that countries require a constellation of economic, legal, and social institutions in order to have capital account liberalization translate into greater
While a project that will increase a nation’s effective capital stock, will add to the present value of GDP, it need not have a similar effect on the present value of real consumption. In order to create the new capital it is necessary that some (public or private) consumption be forgone while the investment occurs (i.e. funding through domestic savings) or that there be an increase in external obligations (i.e. funding out of foreign savings). Recognizing this helps identify the sources of welfare gain from a project. Key factors are: the productivity of a project (i.e. private profitability, and the degree to which it relies on government inputs such as infrastructure, tax concessions and the like), the cost of foreign financing, the degree of taxation of foreign-owned profits, and effects on the terms-of-trade.
It is anticipated that the outcome will be helpful particularly not only to small scale business in Cebu but also to all SMEs all over the nation. This study would also guide owners and managers of the business to make and execute programs on how to efficiently manage the working capital. Decisive methods management can efficiently enhance their WCM. This study also yearned to deliver valuable information for scheming strategies to impact the steady growth of small-scale enterprise. The information would also support officials of the Small and Medium Enterprise Development Council (SMEDC) in framing and articulizing SME development guidelines and procedures which are responsive to the entrepreneur’s confined needs. Such evidence and data may be useful to non- governmental organizations who plays a vigorous role in improving small-scale entrepreneurial skills and development in Cebu and the whole country.
assets, return on stockholders’ equity, return on investment, and net profit margin, (2) Efficiency Ability- average collection period, accounts receivable turnover, inventory turnover, working capital, and (3) Liquidity- current ratio, quick ratio, and cash ratio. Additionally, the non-financial 5 indices are included as the fourth factor. Its KMO value for the 5 non-financial indices is 0.759>0.5, which means that factor analysis is also good enough. Furthermore, the value of the Bartlett’s test of sphericity, 0.0 <0.05, shows that the data are the multivariate normal and acceptable for factor analysis (see Tables 11 and 12). Consequently, there are four factors with 16 indices to process the AHP method to determine the weight of each index.
7. Purchase of New Loans from Affiliates. Manager is an active mortgage loan broker, mortgage banker and California finance lender. Manager currently funds a significant portion of mortgage loans it originates and sells interest in such loans to its investors. Existing loans funded by or acquired by the Manager or its affiliates may be purchased by FMF. FMF may also purchase loans from third parties. Loans purchased by FMF shall generally not be in default at the time of purchase and must otherwise satisfy the foregoing lending guidelines; however, in order to take advantage of special opportunities that may arise to purchase loans at significant discounts (and thus yield additional profit to FMF), the Manager has the authority to cause FMF to acquire loans (or interests in loans) that are in default, but only so long as: (i) the loan is being purchased from a third party unrelated to the Manager or its affiliates; (ii) the loan otherwise satisfies the lending guidelines described above; and (iii) FMF shall not acquire or invest in a defaulted loan if, immediately after such transaction, the aggregate principal amount of all loans held by FMF that are in default would exceed 5% of total Fund capital. Generally, the purchase price to FMF for any such loan will not exceed the par value of the note or its fair market value, whichever is lower, but the Manager may purchase loans for a premium if the Manager believes the total purchase price is fair and reasonable and in the best interest of FMF.
When the graphs were analyzed in terms of net working capital turnover rate of THY, an increase until 2011, a decrease in 2012 and then later on an upward trend in 2013 can be seen. Similar evaluation was revealed for Pegasus, the working capital turnover rate is increasing until 2011, declining slightly in 2011 and then again an increasing trend appearing. The increasing sales are considered to be the cause of the upward trend. However, the negative values took part in the net working capital turnover rates of both companies; this indicates that the short-term liabilities of the companies are higher than the current assets. This points out that the long term assets of the companies are financed with the short-term liabilities.
Abramovsky and Grith, 2009). Less is known, however, about productivity eects of other types of intangible assets. We contribute to this strand of literature in two ways. First we simultaneously account for dierent types of intangibles in the spirit of Corrado et al. (2009). In addition to R&D and human capital, we examine how and to what extent other intangible capital input factors like investments in design and licenses, brand capital and organizational capital can explain the variability of rm productivity. By simultaneously accounting for dierent types of intangi- bles we are better able to identify and isolate productivity eects of each category. Second, we provide evidence on whether complementarity or substitutability exists between investments in dierent kinds of intangible assets. In order to detect com- plementary or substitutive relationships we follow a recent test approach proposed by Carree et al. (2011). The empirical analysis is based on the Mannheim Inno- vation Panel (MIP), the German contribution to the European-wide Community Innovation Surveys (CIS). As a distinctive feature MIP provides information on ex- penditures related to intangible assets for German companies from the period 2006 to 2010.
11 Total long term capital gain chargeable under I.T. Act [B1e +B2e+ B3e +B4e + B5c + B6e + B7c + B7f + B8e+ B9-B10] (In case of loss take the figure to 9xi of schedule CFL) B11 C Income chargeable under the head “CAPITAL GAINS” (A10 + B11) (take B11as nil, if loss) C D Information about deduction claimed
iv Short-term capital gain taxable @ 15% (5v of schedule CYLA) (B/f short-term capital loss) v Short-term capital gain taxable @ 30% (5vi of schedule CYLA) (B/f short-term capital loss) vi Short-term capital gain taxable at applicable rates (5vii of schedule CYLA) (B/f short-term capital loss) vii Long-term capital gain taxable @ 10% (5viii of schedule CYLA) (B/f short-term or long-term capital loss) viii Long term capital gain taxable @ 20% (5ix of schedule CYLA) (B/f short-term or long-term capital loss)
wanted to maintain low interest rates and, at the same time, prevent capital flight, severe restrictions on capital flows were introduced. Hence Malta became an unusual case of fiscal conservatism coexisting with financial repression and rigid controls on capital movement and trade (Findlay & Wellisz, 1993). While import controls constrained the level of consumption, capital controls prevented Maltese saving from being invested abroad. In this way, the current account surpluses recorded during these years did not result in the Maltese private sector increasing its holdings of foreign assets, but rather boosted the level of the official reserves 14 .
Many developing countries are facing difficult debt repayment problems which sometimes can become interlinked with international trade negotiations in ways that are not the best for the multilateral trading system or the individual countries. For example, during 2001, in its road to disaster, Argentina walked into the IMF headquarters more often than ever before as successive financial arrangements failed to convince the international capital markets that things were moving in the correct direction. In their efforts to send positive signals, thefinancial negotiators sought a bilateral trade agreement with the US and under the pressing economic conditions, they concluded that any deal which could offer a signal that exports and GDP will soon start growing was good. For these negotiators, the sooner an agreement was signed the better quite irrespective of the its ‘content’. In the end, things did not work either on the finance or the trade side, but if they would had worked, it is likely that the trade agreement would not had been the best for the country simply because it would had been negotiated under a pressing debt and financial situation that was not receptive to trade negotiations in the interests of the real economy. In any case, I believe this example illustrates the existence of circumstances where developing countries’ trade negotiations can be weakened by pressing financial problems.