ECON545: Project 2—Macroeconomic Analysis By Shawn M. Gilliam Professor Peterson 4/17/15 Looking at the decision of Melanin Car Manufacturing Company expanding their operations to meet the increasing demand from car manufacturers to produces parts for the auto industry. After strong research in various areas to make this expansion successful I concluded that through looking into the industry in the eyes of already profitable plans along with the resources we have there is no way to fail. Three years ago, the nation barely avoided a double-dip recession, after emerging in the second half of 2018 from the longest period of U.S. economic contraction in eight decades. Emerging from the Great Recession, the U.S. economy picked up in 2025 to nearly the level it is
The forecast horizon taken for RMAG assumes the development of their most economically lucrative product Human therapeutics (HG) takes “15 years to proceed from the lab to the drug store”. Big Sur forecast human therapeutics not to realise cash flows for 7 years due to FDA blockages resulting in growth of this product post 2005. It was assumed that a forecast to 2010 was required, as this would capture all cash flows from the two earlier released products, in addition to favourable market reaction when pharmaceutical cooperation was achieved. It was assumed that sales growth would remain constant from 2010 onwards due to the royalty agreements from HG and sales from established segments. RMAG as it stands is a high growth biotechnology/research start-up that is wholly equity funded.
With this increase in sales, the company has improved its sales revenue by 3.2% from year 8. However, as with all business, expected sales does not always go according to plan. Due to increasing costs of operations, the company may think about increasing their price per bike to ensure profits. i. For instance, the company may try to increase the price of the bikes by $55/bike.
The company's gross margins went up by 126 basis points, to 29.7%, mainly because of better inventory management and a change in the product mix and selling and administration expenses range in at $274.4 million. Earnings before interest and taxes were up by 89%, to $71.6 million, and EBIT margins were up by a significant 340 basis points, to 6.1%. The company's net income also followed suit and soared by an amazing 146%, to $41.5 million, although it was slightly offset by higher
I increased Advertising for Allround+ at $20 Million and Allright at $19 Million to support their good sales improvement. Promotion budget was increased from $8.5 to $ 9.5 Million for Allroud, from $6.5 to $8.0 with launching of coupons $2.0 Million (matured product) and Allright from $5.7 to $6.25 Million with launching (period of coupons $2.0 Million to stabilize repurchase for matured products. By launching of coupons I started with cheaper coupons ($0.25) and continued with ($0.5) In the Period 10, I reached the highest Retail Sales volume $1,449.6 Million among competitors on the market, the highest Net Income $277.5 Million, the highest Stock Price $211.42 and Capacity Utilization 110.9 % The Allround product reached the highest awareness on the Cold, Cough market (95.1%) and Allright second highest (95.4%) on the allergy market. Allround has the highest (68.6%) satisfaction ratio on the Could, Cough market and Allright the highest (51.5%) on the Allergy
Introduction to Executive Tools for Decision Making TUI Financial Accounting ACC201 Introduction to Executive Tools for Decision Making APPLE Inc. The total amount of cash available for Apple to pay their current debts is $123.55 billion dollars in favor of assets. I derived this from Apple’s Assets $207 billion and subtracted their liabilities, which was $83.45 billion. I believe that Apple is in good shape due to the total assets the company has received. $207 – 83.45 = 123.55 billion Apple is increasing its investment in operations every year.
* Accounting Rate of Return (ARR) is 76.4% * Net income growth over the next 5 years from 11.3-33%. * 4.1 Cashflows, 4.2 NPV Analysis, 4.3 Rate of Return, 4.4 Payback Period * * * * * * * * * 5.0 Pro-Forma Financial Statements 5.0 Pro-Forma Financial Statements The following financial projections are based on conservative sales forecasts by year for the next five years. 5.1 Pro-Forma Income Statement * * * The above financial statement shows a steady incremental increase in revenue over five years, due to the steady increase in popularity of designer products that are not readily available within regular retail channels. * 5.2 Pro-Forma Cash Flow Statement * Five-Year Pro Forma Cash Flow Statement | | | | | Wireless World | | | | | | | | | | | | | | | | | Optional $ or % Budget Factor | 1 | 2 | 3 | 4 | 5 | | | | 2012 | 2013 | 2014 | 2015 | 2016 | Beginning cash balance | | $0 | $635,357 | $1,129,793 | $1,762,920 | $2,577,638 | | | | | | | | | Add: Cash receipts from customers | | | | | | | | Cash sales | | 310476 | 351587 | 413681 | 491383 | 587382
Communications revolution – number of telephone doubled/ number of radios increased from 60,000 to 10 million. Stock market – Wall Street boomed (a 'bull' market) with many people buying shares to make a profit. Many new businesses were 'floated' on the stock market such as skyscrapers, highways and urban development. Skyscrapers became a symbol of wealth and boom in America in 1920’s this was showing that the prosperity was shared across the country The industry boomed for several reasons such as; Population growing rapidly increased demand for consumer goods. Abundant raw materials such as coal iron and oil allowed cheap
The rapid industrialisation increased immigration into the US making necessary city growth. Exemplifying this, the borough of Queens, across from the East River of Manhattan, doubled its population in the 1920s. Similarly, Grosse Point Park near Detroit grew 7000 percent as well as Shaker Heights outside Cleveland growing 1000 percent. Urbanisation was impacted greatly by industrialisation and caused great changes to the US in the 1920s. In the 1920s period, America experienced rapid economic growth.
In recent years, Australia’s population has increased significantly due to immigration. The growth rate of its population was 2.1% in 2010, which is higher than that of in China, US and Canada. It is predicted to reach 36 million in 2050. However, both positive and negative impacts come into being because of ‘Big Australia’. It impacts on environmental, social and economical issues in Australia.