Over the past year the company sold 40,000 skateboards, with the following operating results: Management is anxious to maintain and perhaps even improve its present level of income from the skateboards. Required: * 1. Compute (a) the CM ratio and the break-even point in skateboards, and (b) the degree of operating leverage at last year's level of sales. * 2. Due to an increase in labor rates, the company estimates that variable costs will increase by $3 per skateboard next year.
(DoD Civilian Personnel Management System: Employment in Foreign Areas and Employee Return Rights, 2012) The second publication published by the Peace Corp addresses the issues with employee turnover. This issued described as a managerial challenge causes employee turnover to exceed the usual 20% annually since the strict implementation of the rule. The turnover rate has increased to 38%. That is an 18% increase annually and is expected to continue to rise until the program becomes stable. (Office of Inspector General,
Excello Telecommunications (from Ethical Obligations and Decision Making in Accounting: Text and Cases, 2 nd Edition by Steven M. Mintz and Roselyn E. Morris) Excello Telecommunications has been profitable for many years but recently has been faced with increased competition for its products by overseas manufacturers. For the first time in the company’s history, it appears that earnings estimates will not be met. Top management is concerned about the effect on bonuses, stock options, and the share price of Excello stock. That is when Terry Reed, the CFO, learns of a transaction on December 20, 2010, that might solve the problem. On December 20, 2010, Excello sold $1.2 million of equipment to Data Equipment Systems.
B120 TMA03 Part I Question 1 a) The income statement's purpose is to show the financial position of a business by assessing its incomings and outgoings over a given period of time. The problem that arises from this statement in relation to Designer Labels is that this business has to purchase its merchandise well in advance of each season. This means that there will always be a significant amount held in assets. b) I note that although sales were down in 2012, the figure in comparison isn't such a large drop and the gross profit remains at a similar level to the previous year. I am concerned by the large leap in total expenses for the year 2012 and I see that although the majority of these totals have dropped, the ones that have increased have been by large amounts in the areas of wages and salary, maintenance and depreciation.
As the economy bounced back, so did Costco and its bottom line. The charts below show Costco’s consistent increase in all ratios and revenues over the past four years. Selected Income Statement Data(In Millions) | 2011 | 2010 | 2009 | 2008 | Total Revenue | 88,915 | 77,946 | 71,422 | 72,483 | Operating Income | 2,439 | 2,077 | 1,777 | 1,969 | Net Income | 1,462 | 1,303 | 1,086 | 1,283 | Diluted Net Income per Share | 3.30 | 2.92 | 2.47 | 2.89 | First thing I want to point out is the Diluted EPS (Net income per share), as you can see, the Diluted EPS follows suit of the other 3 ratios. I included Diluted EPS because it is a better indication than EPS because it shows what their EPS would be if all employee’s turned in their stock
The company's growth led the board of directors to expand the group of companies it uses to gauge the adequacy of its executive compensation and said it increased Grant's annual salary 18 percent to $1.36 million for 2008.” Although Grant “earned” is compensation by leading the company to an increase in sales, I am not sure if his executive compensation was equal to the job he did. I think the restrictions on executive compensation by the Sarbanes Oxley act on executive compensation are fair, but if I am ever in a position of receiving executive compensation I may have a different
During 10 years, the investors will reinvest all the cash flows into the company, so maintaining the growth of 7.45% each year. The return on equity used for the valuation is the rate of 7.45% which is the return on PacifiCorp equity on 2005. For the cost of equity, the capital would be invested in MidAmerican if the company did not take the acquisition. Therefore, I consider the rate of return on MidAmerican on 2004 (5.72%) as the cost of equity of PacifiCorp. Dividing the present value of future cash flows by the cost of the investment indicates that every dollar invested buys securities worth $1.18.
Construct Brandywine’s 2007 income statement. 2. What were Brandywine’s 2007 net income, total profit margin, and cash flow? 3. Suppose the company changed its depreciation calculation procedures (still within GAAP) such that its depreciation expense doubled.
In this case the return on investment on $1 is $17.26 ($2078.57/$120.36). An additional client would bring about a revenue increase of $2078.5 and assuming profit of about 4.5 %, assuming an increase to 308 clients per planner Cost to the company: $72,962,232 Revenue generated in 1987 would be: $3,880,889,733 If only this alternative and increasing the sales force were to be used, an additional expenditure of about 72 million is to be undertaken, this is quite a formidable investment Number of sales per planner: According to exhibit 5 average accounts per
Clapton Construction has annual net revenue of $10,000,000. Their current revenue growth is -3%, with a 20% turnover rate. They have come to Atwood and Allen Consulting for advice and information they require to begin the expansion. The covered areas of the report are “alignment of the performance management framework to the organizational business strategy, organizational performance philosophy, job analysis process to identify the skills needed by employees, methods used for measuring the employee's skills, process for addressing skill gaps, and the approach for delivering effective performance feedback” (University of Phoenix, 2015). The research has provided Clapton Commercial Construction with the most efficient ways of performance management.