Problem 4-6 (Capital structure analysis) The Liabilities and owner’s equity for Campbell Industries is found below: Accounts Payable = $544,000 Notes Payable = $242,000 Current Liabilities = $786,000 Long-Term Debt = $1,300,000 Common Equity = $4,697,000 Total Liabilities and Equity = $6,783,000 A. What percentage of the firm’s assets does the firm finance using debt (liabilities)? (Round to one decimal place) B. If Campbell was to purchase a new warehouse for $1.1 million and finance it entirely with long-term debt, what would be the firm’s new debt ration? Solution: Total liabilities and equity = Total Assets = $6,783,000 Long term debt = $1,300,000 Current liabilities = $786,000 Total liabilities = $2,086,000 The fraction of the firm’s assets financed using debt = Debt Total Assets = $2,786,000 $6,783,000 = 30.75% If the firm purchase a new warehouse for $1.1 million and finance it entirely with long-term debt, the total liabilities and total assets would increase by the same amount.
I personally believe that the culture of ethics and integrity in all we do begins with every leader and each associate. We have a proud, rich heritage that must never be compromised by inappropriate conduct. (Schrimsher, 2014) Above are two statements from CEO’s to their employees. The first one is a statement in a letter from Kenneth Lay, CEO of Enron to his employees about conducting business affairs in a moral and honest manor. The second is a statement to the employees from the CEO of the company that I will begin working for January 31, 2014, Applied Industrial Technologies.
The rapid growth of Lowe’s leaded to opening stores in Mexico and Canada within 2008. In 2011 Lowe’s entered in to a joint venture with Woolworth’s Limited opening a home center store in Australia. Within 2011 Masters Home Improvement (Masters) became a publicly traded company with Lowe’s owning one-third of Masters. Throughout the world, Lowe’s became the second larges retailer of home improvement products as of 2012. In addition, Lowe’s employed over 234,000 individuals within their 1,749 retail locations.
Wells Fargo is a corporation that employs over several hundred thousand associates that supply financial services to customers in the United States. Choosing the most qualified individual may seem like a daunting task. Wells Fargo's policies and procedures for employing candidates present a basis for attaining the finest talent. Schifrin (2012) suggested that Wells Fargo has more than just a down to earth approach with its customers. Wells Fargo Home Mortgage merged with Wachovia Mortgage Corporation on December 31, 2008.
The idea situation for all involved is for Starbucks to place the customer’s needs and desires first. Ultimately, Starbucks is a business and in that, the CEO, is trying to increase profit for all employees and shareholders alike. With the mission statement and overall mission objectives, Starbucks is on the correct track. They are doing what they state they should. Taking care of it’s employees and customers is at the forefront of every decision.
According to Ethical Reasoning, AICPA’s principle for public interest is meant, “to include clients, credit grantors, governments, employers, investors, the business and financial community, and others who rely on the objectivity and integrity of CPAs to maintain the orderly function of commerce,” (p. 14). This means that, above all else it is a CPA’s job to ensure their work be accurate and in the best interest of the entire public. Effectively, this ensures a CPA is not tempted to do what’s best only for the company or individual and instead focuses on remaining ethical and doing what is right for the greater good. Another crucial principle of AICPA’s code is the call for
We believe that you have the right to know what level of service you can expect from us all the time, even in those rare moments when we fall short of the very high standards we have set ourselves.” This shows that they are a very customer care orientated company. We can tell this because all of their points are to do with making things better for the customer. In each point they are very specific in what they are looking to do for their customer, for example, in the second bullet, they say they want to notify customers of known delays, cancellations and diversions On their website, they go into it further
Analyse the impact of your own behaviour on individuals and your experience of the organisation’s culture and approach. Review the impact of how your own behaviour can impact on your organisation’s culture. Within every organisation there should be set policies and procedures to support Equality and Diversity. The company where I have been conducting training (3scoreyearsand10) is committed to fully embracing the policies and procedures. On their website accessed07/0702102 there vision is stated as; * To provide a full range of community driven services * Decrease isolation * Increase well being * Provide physical and emotional support * Provide solutions to social needs within the community * To be trustworthy and transparent in all our handlings * To protect individuals * To meet needs where other organizations are not able * To create employment A statement which is reflected in all areas of the company.
The main focus is their commitment to diversity. This is both ethical and smart business practice. Effective management of diversity is a never ending process and always should be monitored. In this day and age a diverse work force is what you need because you may deal companies worldwide with all types of people. (George & Jones 2011 pg175) What are the consequences of these initiatives?
Finding out all there is to know about this industry and the location that we are planning on opening in is crucial. This is why I, as well as my employees will follow and take heed to all legalities and technicalities involved in making this venture a success. Any mentoring courses or enrichment programs will be implemented for all employees to ensure that everyone is on the same page. We will accept nothing, but top notch workers because we