By a business conducting a cash flow forecast they can then predict future sales and costs that will occur in the business. By looking at Lily’s cleaning services cash flow forecast there’s a series of problems that may hinder future profits for the company. Below I will explain them in detail: • Fluctuations – Excluding January being the month that the company received an investment and bank loan adding up to £22,000 sales have been constant with little fluctuations. From February to June Lily’s cleaning service managed to generated sales of £5000 per month after which it declined by £1000 resulting in sales of £4000, this last lasted for a time period of two months. This could have been due to an increase in people going on holiday.
Overall, a rise in revenue and reduction in cost adds to CB’s profitability in Years 6 and 7. In reviewing Competition Bikes total selling expense, it was able to ascertain a huge 33% increase from Years 6 and 7 then managed to decrease that spending in Years 7 and 8 for about 14.9% (approximately $59,000) which is a strength for CB because they were managing their spending. For the Total General and Admin Expenses, Years 6 and 7 had a 20.4 % increase while the following years, 7
The shareowner’s deficit has decreased over the year substantially. This is very good news for shareholders because they do not want to be in a deficit but in a surplus so that they can being receiving dividend payouts. Concerns that investors and creditors may have just by looking at this statement are that it only shows one year of information. They may require more information to see a real trend over a period of time. Although from 2003 to 2004 was a positive year, before that there could have been negative trends.
Most banks have policies that allow exceptions for customers with good loan histories and reputations. An exception might be appropriate in this case if the loan applicant can explain how and how quickly the new equipment will increase income. The new equipment will increase depreciation expense, so at the same level of revenue the company must reduce costs by at least $184,615 (3.51%) plus the net increase in depreciation. This required expense reduction is shown below with some more-or-less reasonable assumptions. This estimate also is conservative because the cost of new equipment was not included in total assets.
InBev Acquires Anheuser Busch (AB) Why would rising commodity prices spark industry consolidation? Rising commodity prices usually means that there is a rise in demand for that particular commodity. Rise in demand can be of two types. Either there is a surge in the number of parties that want the same product, or there is a surge in the demand in volume. With Anheuser-Busch InBev coming together, then the demand in volume stays the same, or goes up, but the number of parties decreases.
India which had well under two-thirds of China’s population half a century ago is projected to surpass China by 200 million people around 2050. Acceptance of Nobel economic laureate, Amartya Sen’s view that development is freedom, the greater opportunities available to young women when fertility is reduced or delayed is itself a keep indicator of development success and population policy can help realize these goals. It is well know that as incomes rise, fertility falls since women experience an increase of opportunity cost for their time. The causality between fertility and economic growth runs in both directions. China’s rapid economic growth since the early 1980’s can be attributed to its lower fertility rate.
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.
First, if the government increases its purchases but keeps taxes constant, it increases demand directly. Second, if the government cuts taxes or increases transfer payments, households’ disposable income rises, and they will spend more on consumption. This rise in consumption will in turn raise aggregate demand” (Weil, 2008, para. 4). Consumer income has a huge effect on aggregate supply and demand just as the aggregate supply and demand can affect consumer income.
What role did Information Management play in turning things around? First of all, improved Information Management gave amazon a big competitive advantage, which can be determined from the numbers of turning inventory 20 times a year, which is at least 5 times more than the closest competitor in the industry. Constant development of automatization of warehouses dropped the operating costs for about 20%, saving Amazon a lot of expenses, thus increasing the value of shares, making the company more attractive for investors. Overall by improving efficiency, Amazon also improved it’s financial standing. 4.
Company A decided to lower the price of product qwerty to $5.00. This change resulted in 250 product qwerty being purchased the next week resulting in a revenue increase of $250.00. Demand more than doubled as price went down. This dramatic change tells us the demand is elastic. If in this example less than 200 units would have been purchased the revenue would have been less than the revenue before the price change signifying that while demand increased when price went down, it did not increase enough to take the demand category out of inelastic demand.