If the sales outlook for the coming three years was only 20,000,000 and B.E. continued producing at the rate of 30,000,000 units, a total of 10,000,000 units would be dumped into ending inventory at the end of each year once again reducing costs of goods sold and falsely increasing income. By the end of year 2013, B.E. Company would have 35,000,000 units sitting in ending inventory taking up space and costing money to store. Once again if the president’s bonus is based off of net income, this situation is the most favorable for a high paying bonus and encourages stockpiling inventory to inflate net income.
Sales increased from 25,000 to 30,000 a) Based on this information, what is your best estimate of the price elasticity of demand? b) How valid is this procedure for estimating price elasticity of demand? When will it give reasonable estimates and when will it gives misleading one? c) Panasonic decided to hold the price of its 42” plasma TV at $3000. Their sales fell from 15,000 to 12,500.
The summer of 2000 showed a softening in the overall charcoal category and some consumers switching to gas grilling due to increased pricing. Research analysis showed that the charcoal category declined in growth from 4 percent in 1998 to 2 percent in 1999. While competitors such as Royal Oak and private label brands increased their prices, Kingsford was faced with the question of whether they should do the same. Upon receiving all the necessary data and information, brand managers Marcilie Smith Boyle and Allison Warren focused on four areas of development: pricing, advertising, promotion and production capacity. The 10 percent increase of private label bags led to some consumers switching to gas grilling and others moving to the Kingsford brand, increasing its market share.
FIN 340 - Fall 2014 Practice Exam Name: 1) The order of line items included in the Statement of Retained Earnings is as follows: a) Beginning RE, Dividends, Ending RE, NI b) Beginning RE, Depreciation, NI, Ending RE c) Beginning RE, NI, Dividends, Ending RE d) Beginning RE, NI, Depreciation, Ending RE 2) Playboy Inc. stated that its sales were the same as last year’s, except the cost of goods sold dropped 30%. The net cash flow had declined for some reason. What could be a possible reason for this decrease in net cash flow? a) The company’s depreciation expense increased. b) The PP&E had increased from the purchase of a new less expensive printer.
FI 515 Course Project a) The net cost of the spectrometer would include the original cost of the equipment, the modification costs and the increase in working capital due to having the equipment. Therefore, the net cost would be the $70,000 base costs, plus the $15,000 in modification costs and the $4,000 in capital, which equals $89,000. b) To find the operating cash flows for the three years, we have to find the cost savings after taxes and add the tax of depreciation. To find the cost savings, we have to take the $25,000 that is expected to be saved and reduce it based on a tax of 40%, or $25,000(1-.4), which equals $15,000. The tax on depreciation requires several steps to calculate.
Running head: INDIVIDUAL TEXT PROBLEMS WEEK 3 Individual Text Problems Week 3 University of Phoenix Individual Text Problems Week 3 P4-23 A. Interest Rate 11% Number of Periods 30 Annuity Payment 20,000 (20,000/.11)X(1-1/(1+.11)^30)=173,875.85 B. 173,875.85X(1+.09)^20=31,024.82 C. Higher compounding interest rates will generate more money, meaning less would be needed today to get the same output tomorrow. P4-32 End of year Budget PV Factor @8% PV 1 $ 5,000 0.9259 4629.63 2 4,000 0.8573 3429.36 3 6,000 0.7938 4762.99 4 10,000 0.7350 7350.30 5 3,000 0.6806 2041.75
Further I would like to know the co-operative advertising that she intends doing. The display design and the manner in which the product will be shown to customers; I would like to know if the display will match with the advertising layout and them. The next question that I would like to know is the amount of discount the on-package coupon will provide the customer. The next point is that we want to see the trial size that will be used for
We expected comparable store sales to increase 1% to 2% in 2011. We expected to open 25 to 30 stores during 2011, resulting in total square footage growth of approximately 1.5%. Earnings before interest and taxes as a percentage of sales (operating margin) was expected to increase approximately 30 basis points. In addition, depreciation expense was expected to be approximately $1.48 billion. Diluted earnings per share of $1.60 to $1.72 were expected for the fiscal year ending February 3, 2012.
Forbes. What to do with Home Depot’s Stock. Retrieved from http://www.forbes.com/sites/panosmourdoukoutas/2012/11/12/what-to-do-with-home-depots-stock/ Pig, D. (2011). Seeking Alpha. Home Depot Promises Yearly Dividend Increases and Targets 40% Payout Ratio.
They were able, however, to increase the eligibility threshold to require states to pay at least $20 in heating assistance before recipients could take advantage of the increased eligibility. It was expected that few states would continue trying to leverage the loophole once more of their own money was on the line, ultimately saving taxpayers $8.6 billion over ten