Each question would need to be a minimum of 250 words. At least two external scholarly sources on the analysis topics must be included and cited for EACH individual question
1. What is meant by "presentation of financial statement information in common-size amounts rather than dollar amounts?" Why is this type of presentation sometimes more meaningful than use of actual dollar amounts?
2. Why is trend just as important if not more important than information that pertains to only one year?
3. Why do manager put such a great amount of emphasis on controlling fixed cost in their organizations?
4. What is meant by the statement, my company has good operating leverage? How does good operating leverage magnify earnings results with modest revenue increase?
5. Describe the production characteristics (for example, high-volume, specialty, etc.) of the three products manufactured by Drilling Innovations, Inc. in our case study.
6. Describe the characteristics of products which would suggest it would be better to use ABC as an indirect cost allocation method over a traditional method such as direct labor hours.
7. Why is it important to investigate both price (rate) and volume (efficiency)variances when rewarding employees for satisfactory work when performance evaluations are based on meeting budgets?
8. What are some qualitative consideration that might be helpful in employee performance evaluations?
I. Vonage Holding Corporation provides telecommunication services using voice over Internet technology. It began operations in 2002 and has never made a profit. By the end of 2008 it had cumulative losses of $1 billion. Vonage’s statements of cash flows for 2006, 2007, and 2008 follow.
Required Each question would need to be a minimum of 200 words and at least two external scholarly sources
a. This chapter explained that many companies that report net losses on their earnings statements report positive cash flows from operating activities. How does Vonage’s net income for each year compare to its cash flows from operating activities?
b. Based only on the information in the statements of cash flows, does Vonage appear to be improving its position in the telecommunications business? Explain.
c. In 2008 Vonage paid off over $250 million in debt. Where did it get the funds to repay this debt?
d. All things considered, based on the information in its statements of cash flows, did Vonage’s cash position appear to be improving or deteriorating?