FIN 333 Week 2 Assignment Calvin Seeks the Good Life: Case Problem 12.2 Ryan Lisonbee Independence University Authors Note: LisonbeeRH@gmail.com Calvin Seeks the Good Life: Case Problem 12.2 “The safe way to double your money is to fold it twice and put it in your pocket.” - Kin Hubbard, (Brainy Quotes, 2015) Calvin Jacobs is a widower that has worked hard for more than 30 years and has been overall pretty responsible with his finances. Calvin and Allie, his late wife, always tried to save money every month but their efforts hadn’t made them millionaires by any means. Calvin had well over six figures in CD’s and savings accounts that were liquid assets that were held at his bank (Smart, Gitman, & Joehnk, 2014). Calvin was even smart enough to buy a house just down the block from him and is able to rent it out. The rental income is large enough, that he is able to pay both of his mortgages.
State any business problem that the enterprise needs to resolve. The business problem facing National Air Express is the majority of customers want pickups as late as possible, around 5:00 p.m., but there are not enough drivers to satisfy this need. I would say a major problem is that the station manager, Frank Smith, is focusing on the budget constraints, which is important; however, the needs of the customers must be met. He is considering adding capital expenses when business does not seem to be increasing. Smith is preparing his quarterly budget report, which will be presented at the Southeast regional meeting in the following week.
By having rapid timing and synchronicity, Zara spends its money on things that can help increase the responsiveness and speed of the chain. Zara can reduce inventories and forecast error by postponement of the decisions after knowing the trends. The apparel industry cycle time has averaged more than six months. For five to six weeks cycle time has been achieved. By having this speed Zara can introduce new designs weekly and every three to four weeks 75% of their merchandise is displayed, which matches the customers preferences more than competitors.
If they have to go and get a car during the week, it will cost $75 per car, considering the lost time and good will of making the customer wait. Moving on Sunday gives the customer the option to return the car to any of the four locations and it has allowed Henry and the other agencies access to extra cars to meet their needs. Everyone is happy with this arrangement. Henry reviewed his company’s performance and he believes there is room for improvement. He has obtained records for the last three months.
City field rental: * CYSL rents 10 city soccer fields for 40 weeks a year and therefore this is a cost incurred and cannot be recovered regardless if the tournament is cancelled or not. We have determined this to be a sunk cost and have removed it from the overhead expenses. 2. Salaries: * Jansten’s salary would be considered a relevant cost since 100% of his salary is allocated to the Craddock Cup. His employment with the CYSL is dependent on whether there is a tournament or not.
Most bowling alleys were small, but that have change the more popular it became, not only men play the game women also play just as much. Joe Thum along with Dick Weber created the first bowling organization in the United States on September 9, 1895, a little after many regional bowling clubs formed American Bowling Congress (ABC).1940 through 1960 was known as the golden age of bowling the sport's great popularity increased in big numbers . 1945 bowling was a billion-dollar industry in the US. Around this period of time restaurants, as well as night clubs we built around each other stars would also perform there too. Bowling was really taking its peak when Don Carter became the
Due to her concerns, Maggie has used all of the company’s cash to pay off the increased inventory immediately to receive the two percent discount offered by suppliers. (Horniman Horticulture: Chapter 9) Issues/Problems According to Exhibit 1, cash has significantly declined over the past four years for a number of reasons. Both inventory and accounts receivable have increased substantially. Inventory accounts for nearly half of the total assets value which hinders Horniman Horticulture from having more cash on hand because the inventory is not very liquid. Horniman Horticulture would have extreme difficulty creating cash from its inventory is an
During these tough economic times, everyone is looking for ways to cut back on their spending. A huge monthly expense is daycare. Childcare ranges anywhere from $400/per year to $650/per year. When examining the rate an in-home daycare provider charges, the amount is considerably less when compared to that of a daycare center. The difference is usually around twelve dollars a week.
The budget for the robot is 5.5 million dollars. The actual cost is 7.2 million dollars, 1.7 million dollars over budget. e. Operations section ran out of part during the week of Aug 7. f. Quality of the incoming parts is causing major production problems. g. The president’s secretary called Ted twice on Saturday to complain about the janitorial contract. The windows were not properly cleaned.
negative 2500 $.The company needs to raise about 40,000 $ as the ending cash balance for the month of July is negative 40,000 $. The Company can get a short term loan for 40,000 $ which can be repaid in October. 2. Even though the Company started with a Capital of 250,000 $ it still ends up with a zero bank balance. This is because the increase in the collections of Accounts Receivable from customers is not sufficient to recover the total disbursements (variable production cost and the fixed cost).