income statement and balance sheets in the common size format many trends can be associated with and analyzed with their current situation. As a whole on their income statement operating expenses are increasing while net income available to stockholders is decreasing as a percentage of total sales. In 2006, 3.63% of their sales were available to stockholders, while in 2008 only 1.44% of net income was available to shareholders. Some of the major factors affecting Whole Foods, Inc. income statement include an increase in research and development by 1.31% over a two year period ending September 28, 2008. They also faced increased operational expenses of selling, general, and administrative costs by 0.49%.
RECOMMENDATION Buying the old one which costs less money than another. Reduce workers to 8 people. If the old one does not work well, returned it and to buy the new one. THICKETWOOD LTD. PROBLEM STATEMENT Main problem In the spring of 2003, Mark Taylor, recently promoted to operations manager at Thicketwood Ltd., a custom kitchen cabinet manufacturer in Kitchener, Ontario, had several ideas to improve the efficiency and cost-effectiveness of the company's production line.
This increases the inherent risk: * There could be problems like slow moving inventory for Target, Kmart or Officeworks * Also consumer preferences and tastes change frequently so this also increases the risk for slow moving stock * There are a lot of cash dealings. This increases sensitivity of theft, fraud and inventory valuation, the level of account balance might be considered inherently risky. Cash payments will increase risk associated with theft or fraud because of the fact that cash is more easily diverted than customers check or credit card payment. * Foreign exchange rates fluctuations: * Trading goods in foreign currency increases inherent risk, because foreign currency transactions may not be recorded accurately due to purchases and export to overseas particularly in coal business. In the first half of the year earnings for the Resources division have increased, due to higher export coal prices.
As a startup business without the marketing and resources that a chain offers I aimed lower initially but looked to build to this range. * I arrived at 875,000 for the initial year by taking into consideration sales from dining and entertainment. The Business profile mentioned that the average family size was 4 people and that the average family spends on average $4 on tokens. So as an average, for every 1 buffet purchased $1 was spent on tokens, which lead me to calculate the average customer spending $8 a visit. I took the 925,000 (the low end) of the CiCi’s pizza average and divided it by the price of their buffett, $5, and
• Non-traditional retail stores increased their share of consumers food-at-home from 1 7.7% to 30.8 in 2003. • According to the USDA traditional retailers market share declined from 82.3% to 69.2%. • Wal-Mart was both a driver and a beneficiary of this change, as its share of U.S supermarket sales reached 15.2% by 2003. • In 2004, Wal-Mart opened its first California supercenter. • By 2007, the number of Wal-Mart supercenters nationwide were forecasted to reach 2000, translating to 35% share of food store industry.
Reference: http://www.peapod.com/site/companyPages/our-company-info-for-students.jsp From table 13.3 of the case, the COGS accounts for 70% of the revenue of Peapod. Applying this cost to major activities that the company is involved in, the following chart can be tabulated, Clearly, the majority of activity costs are spent in Order Picking and Order Delivery to customer homes as this involves the most resources and can be used as a strategic differentiator for companies to beat competition. However this result is intuitive, this is subject to the assumption of $157 average basket size and this is sensitive to this assumption. 4) What is the shortest path to profitability if one exists? Determine the profitability of an order and break out its key drivers.
Should Mr. Jones convert Smithon to an S corporation and change the fiscal year end to a calendar year end? A: Converting Smithon to an S corporation has merit if the goal is for Smithon to remain controlled by a small number of shareholders. However, the equipment deductions for the corporation may be more valuable than it would be to Johnson personally. Either way, Smithon's value to Johnson will be the same, if he purchases Smithon outright. Changing to a calendar year end has little useful effect, and it requires that Smithon produce a short-year tax return from Dec to Jan, which is a relatively unnecessary administrative expense.
For the cinema market building something which can seat enough people with the right equipment (e.g. huge high definition screen with state of the art projectors) can be hard to create, due to high set up costs. Furthermore there is more to do, for example gain the rights to shoe new films, which can be very expensive unless you benefit from economies of scale. A natural barrier to entry is the exploitation of economies of scale, where the big firms in the business, in this case Vue, Cineworld and Odeon are using their economies of scale to deter any new entrant away. The top three firms have a relationship and power to obtain the viewing rights to screen 2”first-run” films and to do so at a lower price.
An instantaneous examination of income statements reads that there were strong sales figures with a worth around $70 billion sales per year. Nonetheless, there was something that caught my eye in 2009, which was the critical drop in sales paralleled to previous years. In 2009 Home Depot net sales plummeted approximately 7.8% compared to the net earnings that were dejected in 48.5% in 2009. In the 2009, dividends were declared quarterly at $0.22500 per share while in July the market price was roughly $28.51 per share. Notwithstanding increasing dividends and a moderately stable share price, the home improvement retail industry remains to struggle due to the fragmentary world wide economic complications.
However, in Fahrenheit 451, a utopian society seems to have been reached. Perfection seemed to exist in “laws, government, and social conditions.” Compared to our modern world, this future seemed to be happier and their lives less chaotic. Humans have never liked laws because they give off a sense of restriction as well as authority. In the future, laws don’t exist and anything seemed feasible and within one’s reach. There was only a simple law, and that was to not read books as well as think, making “the mind drink less and less.” This doesn’t seem much of a sacrifice because society was filled with far more excitement than literature could offer.