Berry’s Bug Blasters Ratio Analysis Memo ACC/291 Principals of Accounting II MEMO To: Berry’s Bug Blasters CEO From: Accounting Dept (Team B) Date: September 16, 2013 Re: Ratio Analysis Accounting Team B conducted a ratio analysis of Berry’s Bug Blasters to express the relationships among selected items of financial statement data. Ratios express mathematical relationships between one and another is expressed in terms of percentage, rate, or simple proportion. We used ratios to evaluate liquidity, profitability, and solvency. Listed below are the findings from the ratio calculations. The analyses reveal many things about the company’s financial position and performance, and also which users are interested in each type of ratios.
Chapter 17 Macroeconomic and Industry Analysis Multiple Choice Questions 1. A top down analysis of a firm starts with ____________. A. the relative value of the firm B. the absolute value of the firm C. the domestic economy D. the global economy E. the industry outlook A top down analysis of a firm starts with the global economy. Difficulty: Easy 2. An example of a highly cyclical industry is ________.
Wal-Mart mainly focuses on the role that the retail plays in the employment dynamics, especially wages, job error. Wal-Mart wage concern for new exiting workers and developments of jobs turnovers are affecting by each Wal-Mart store. The different things led to the control of other factors that led to decline retail business. The second variable for Wal-Mart the treatment of entirely absent in work performed through the 1990s. Hicks and Wilburn (2001) evaluated Wal-Mart entrance decision by testing on a contemporaneous and lagged growth variables.
Question No. 1 What factors explain why the world’s trading nations have become increasingly interdependent, from an economic and political point of view, during the post-World war II era? Answer: Economically the world has grown closer as financial markets, corporations and banks have all become multinational. Throughout the post-World war II era, the world’s economies have become increasingly interdependent in term of movement of goods and services, business enterprise (banking, financial markets), regional corporations (EU, NAFTA), capital and technology and also ownership of production facilities and labor force. Question No.2: What are the some of the major arguments for and against an open trading system?
Factors In Different Environment Unit 1: The Business Environment Factors in Different Environments P5, M2: In this assignment I am going to describe the influence of two contrasting economic environments on business activities within Tesco. I will then compare the challenges to Tesco’s business activities with a selected organisation, in two different economic environments. Tesco is affected by the two contrasting economic environments of both China and Britain as Tesco carries out both of their business activities in both of these countries, which has an influence on the business. The influences that affect Tesco for operating their business in Britain and China are: * Inflation * Employment * GDP * Interest Rates * Changes in Government Policy * Affordability * Competition * Availability of Raw materials * Labour Tesco are also influenced by changes in supply and demand and global interaction. The level of inflation in Britain and China’s economic environment affect Tesco.
Accounting addresses several ways a business may classify an expenditure and depreciation over time. Government makes their own rules or change existing rules to fit their needs. Structural, passive, nominal, deficits, and surpluses are ways of defining the economy based either on government actions designed to run a deficit, surplus, or other external factors adjusted for inflation or not (Colander, 2010, pp. 407-410). Our text states “Deficits are summary measures of the state of the economy.
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.
According to this view, the root cause of the Great Depression was a global over-investment in heavy industry capacity compared to wages and earnings from independent businesses, such as farms. The solution was the government must pump money into consumers' pockets. That is, it must redistribute purchasing power, maintain the industrial base, but re-inflate prices and wages to force as much of the inflationary increase in purchasing power into consumer spending. The economy was overbuilt, and new factories were not needed. The common view among economic historians is that the Great Depression ended with the advent of World War II.
The ups and downs, or fluctuations, occur during recessions or depressions. Keynes grand concept was encouraged by the failing economy during The Great Depression. Keynesians believe that “…fluctuations in aggregate demand are the major source of economic disturbances. Moreover, wise use of fiscal policy can help stabilize and maintain demand…” (Gwartney, Stroup, Sobel, & Macpherson, 2015,
Using a dynamic simultaneous equation to investigate the contemporaneous and lead/lag relations between markets over the year of 1972, 1980 and 1987, they find evidence of increasing market interdependence, particularly within the geographical region, over time. They also find an increasing influence of Japan stock exchange to compete with that of USA. Lee and Kim (1993) investigate the influence of the October 1987 crash on the co-movements among weekly returns of 12 stock markets using factor analysis over the period from August 1984 to December 1990. They show that stock markets became more interrelated after the crash and this strengthening relation continues for a longer period after the crash. Loretan and English (2000) examine the contagion effect for equities, bonds and foreign exchange following Mexican crisis in late 1994.