The balance sheet connects to income statements, in turn also connected to cash flow statement. Occurrences or a change to the net cash activities of the cash flow statement affects the balance sheet. The balance sheet is useful when estimating the potential of the organization in order for them to achieve there long-term mission. However, cash flow statement displays the exchange of currency among an organization and external agents. For example, the cash flow can be affected when the company purchases products, and if the costs of the products are an outstanding amount in turn it will affect the assets on the balance sheet.
One thing we can be sure of is that a business cycle affects different sectors of our community in different ways. Gross domestic product is a great measure of an economies growth. The chair of the Federal Reserve uses information gathered from GDP to assist with making necessary adjustments to keep a balance between inflation and unemployment.
The analyses reveal many things about the company’s financial position and performance, and also which users are interested in each type of ratios. Liquidity Ratios Liquidity Ratios measure the short-term ability of the company to pays its maturing obligations and to meet the unexpected needs for cash. Short-term creditors such as bankers and suppliers are particularly interested in assessing liquidity. The current ratio, the acid test, receivables turnover, and inventory turnover are ratios that are used to determine Berry’s Bug Blasters short-term debt paying ability. (Scott.
Leslie Fay Companies 1.) Clearly Inventories was a big item to address along with Accounts Receivable. Sales and gross profit were stellar in a time of industry unease. Furthermore Accounts Payable decreases as a percentage of current liabilities while Inventories increase as a percentage of current assets. This is an implausible trend on the Balance sheet that BDO should have investigated further, especially with Leslie Fay’s outstanding Income Statement.
Financial Analysis A company’s strengths and weaknesses are better understood by their financial statements such as Income Statement, Cash Flow statement, and Balance sheet. As Financial consultants, our goal is to help CanGo understand their financial statements and where CanGo needs to improve to gain the competitive edge in the market. Every company needs to understand their own financials before analyzing the market or industry. After analyzing CanGo’s efficiency ratios, we found them to be very un-attractive for investors. For example, CanGo has a very high receivables turnover rate.
(TCO B) Cite two ways that the accounting function can contribute to the achievement of quality. 6. (TCO C) Compare and contrast the quality philosophies of Deming and Juran. • Page 2 1. (TCO G) Discuss the concept of best practices and their effect on quality management success.
For this method, we need to categorize costs pool and their costs in separate categories. To apply Activity Based Costing to this case we need to compute the cost per hour. It is very important for the manager to have this information. We can make the following computations to find a cost per hour: Cost pool|Amount|Amount|ABC rate| Machine expenses|$336,000|11,200 hrs|$30 per hr| Setup labor|$40,000|150 runs|$250 per run| R&P control|$180,000|160 runs|$1,225 per run| Enginneering|$100,000|1,250 hrs|$80 Hrs| P&S|$150,000|300 shipments|$500 per shipment| ABC calculation per product Product|Valves|Pumps|Flow Controllers| Units|7500|12500|4000| Direct Labor|75,000|156,250|40,000| Direct Material|120,000|250,000|88,000| Total Direct Costs|195,000|406,250|128,000| Machine expenses|112,500|187,500|36,000| Setup labor|2,500|12,500|25,000| R&P control|11,250|56,200|112,500| Engineering|20,000|30,000|50,000| P&S|5,000|35,000|110,000| Total Manufacturing overheads|151,250|321,250|333,500| Total cost|346,250|727,500|461, 500| Let’s
List any outside concepts that can be applied: A company such as Heinz needs to strategically set their prices keeping in mind historical data relevant to its consumers and at the same time have enough margin for the retailers that are shelving their product. There are different avenues that Heinz could primarily take in order to alleviate itself from any discrepancy through price setting that could arise from the retailer and/or the consumer. Cost-based pricing: This method of pricing is contingent upon accounting data and keeps the Return On Investment (ROI) in mind when setting prices. Typically, cost-based price approaches are cost-plus pricing, target return pricing, markup pricing or breakeven pricing. Competition-based pricing: This can be simply stated as the prices are being set with keeping in view what price tag the competition are putting up on their products.
Managerial Accounting, 3e (Braun/Tietz) Chapter 1 Introduction to Managerial Accounting 1) Evaluating operations by comparing actual results to budgeted results is a part of the controlling responsibility of management. Answer: TRUE Diff: 1 LO: 1-1 EOC: QC1-1 AACSB: Reflective Thinking Learning Outcome: Define and use cost-volume-profit analysis to analyze the effects of changes in costs and volume on a company's profits 2) Controlling means overseeing the company's day-to-day operations. Answer: FALSE Diff: 1 LO: 1-1 EOC: QC1-1 AACSB: Reflective Thinking Learning Outcome: Define and use cost-volume-profit analysis to analyze the effects of changes in costs and volume on a company's profits 3) The purpose of managerial accounting is to gather, summarize, and report the cost and revenue data relevant to each decision that is made. Answer: TRUE Diff: 1 LO: 1-1 EOC: QC1-3 AACSB: Reflective Thinking Learning Outcome: Define and use cost-volume-profit analysis to analyze the effects of changes in costs and volume on a company's profits 4) Budgeting is the process of evaluating the results of business operations against a plan and then making adjustments to that plan. Answer: FALSE Diff: 1 LO: 1-1 EOC: QC1-1 AACSB: Reflective Thinking Learning Outcome: Define and use cost-volume-profit analysis to analyze the effects of changes in costs and volume on a company's profits 5) Planning, directing, and controlling are a manager's three primary responsibilities.
The profit outcome for each firm depends not only on its own decisions concerning price and quantity, but on the decisions of its competitors. The investigation of oligopolistic markets is central in economics. The Cournot and Bertrand models of oligopoly share several important features that distinguish them from the bulk of other models of imperfect competition. The aim of this paper is to compare those two models of oligopoly, and particularly explain the case when number of Cournot competitors increases and compare its outcome with Bertrand model. Firstly, the paper will be giving the explanation of the basic Bertrand model and Cournot model