2) The sales budget calculates how much the company will spend to produce the required number of units. The president should do further consideration in terms of capital and labor costs. Does company have an adequate capital to produce the required number of units? And if the answer is no, they should look for other alternatives such as borrowing and others. 3) The sales budget is to estimate the profitability.
3. St. Louis testified that while he had told his manager “there ha [d] been unreasonable delays on Mr. Hallee's part” in responding to the audit, he had refused to sign a letter formally accusing Hallee of the same. St. Pierre, claiming that this left the jury with the mistaken belief that St. Louis felt positively toward Hallee, wanted to cross-examine St. Louis regarding evidence that St. Louis, when asked by IRS personnel for names of tax preparers that they might investigate for misconduct, had recommended Hallee's firm to them as a possible
A merger would best be used in this situation since it will help lower his taxable income and he can improve his operations and competitiveness. If he feels that the investment in new manufacturing equipment will help increase profits and can take on the extra liability, then he should buy Smithon. His debt –to-equity ratio will rise and may cause him to have a hard time getting money to finance his company. But with a two year loss he is keeping his taxable income down and may be able to show investors that things are going to turn around when all operations are working together and
There are probably many companies out there that do not care about integrity ethics and only focus on making money, but investors should be aware that if they chose this money making company they risk much more than money. Discussion Question Suggestion Do you feel a company can have poor integrity and still maintain good ethical standards regardless of whether they follow the SOX laws or not? Reference Hazels, B. (2010, Nov/Dec). Eight Years After The Fact Is SOX Working?
Today, and for the past few decades, Wal-Mart and Proctor and Gamble (P&G) have had a successful and healthy relationship. However, value pricing as it is today, had not yet taken into effect until the early 1990s that which Wal-Mart and P&G achieved together. Following a sharp drop in earning in 1985, P&G executives made an effort to reinvigorate their company and increase sales. In 1987, through relations with Wal-Mart, the company gained a preferred supplier by reducing stock-outs and inventory levels. This was a strategic in cost reduction and increased profit, in response to recession driven growth of private label brands (Figure 1).
Introduction Bennett Alexander invented a glow light using a series of chemicals into a contraption he calls Chemalites. He started up his business by getting $500,000 from investors and to put his invention on the market (Wilson, 2008). But by the end of 2003, with operations in full swing for a good six months, Chemalite, Inc. saw its cash balance drop tremendously, which Alexander and his investors viewed as a negative. Even though they thought their business was doing well, the numbers they read indicated otherwise. Questions * What are some of the reasons the company should continue to operate?
Bob Waters, the sales representative that worked and lost the sale, has a low 20% success rate in selling the product. Doug Barnum needs to determine where the flaws lie in his sales strategy that resulted in the loss of this large opportunity. Key Issues and Solutions 1. Misidentified priority buying criteria overall & barely revised final bid after learning new information. a.
1) I think one of the mistakes Livingston made was to assume the source of the company's problem was the old computer financial reporting system. The old financial reporting system is only part of there was no collaboration to determine if the MCCS was the core problem of the company. Livingston made the determination that the MCCS was the root cause of losing contracts without other input. I would have gathered my team and perform an impact analysis to determine if there was any hidden problems with the current system that could be fixed in a faster cheaper way. Another issue is earlier on the meeting the MIS manager stated that he guessed the feasibility study would be the first step in the design, development and implementation of the new MCCS.
The second mistake involved Ernst & Whinney, which was the auditor for ZZZZ Best after Greenspan was let go. During the interview between Greenspan and the congressional subcommittee, Greenspan reported that Ernst & Whinney never got in touch with him to talk about ZZZZ Best and to hear his side of the story as to the reason of ZZZZ Best letting him go. Had this conversation occurred, Greenspan might have been able to discuss his neglection to inspect the insurance restoration sites, which therefore could have given Ernst & Whinney a heads up to do so. Ernst & Whinney should have contacted Greenspan because it's a normal protocol to adhere to, and because it could have stopped the fraudulent acts of ZZZZ Best
Instead of selling his stock, which he thought would further cause a decline in stock price on Wall Street, Ebbers requested the Board to approve personal loans to fill in the margins (Hopkins, 2003) To ease the process, Ebbers took advantage of the lack of independence of the board members who were loyal to him such as Stiles Kellett, chairman of the Compensation Committee, and Max Bobbitt, chairman of the audit committee. Not only did the two allow the loans to grow to more than $400 million, but also when the Board found out about these loans, they failed to take any action and allowed the loans to carry on (Hopkins, 2003). One main reason Ebbers’s loans were approved was the Compensation Committee. The Committee’s authority was stated in a charter from 1993 that listed a vague description of its power to supervise the compensation of the officers (Beresford, 2003). The management and accountants have the highest opportunity to perpetrate the fraud.