This ratio shows that the average collection period in the year was approximately 24 days. This would indicate the effectiveness of Huffman’s collection policies promote rapid repayment. The calculations computed to determine these liquidity ratios of financial information are key components in examining Huffman’s ability to pay off short term debt. This information is necessary in deciding whether it is worth the risk to remain as a creditor of investor of this company. In the case of Huffman Trucking, these ratios impact their customer base, including their contracts with the United States Government and various automotive parts suppliers.
WGU JGT2 Task 2 Decision Analysis JGT Task 2 May 15th, 2015 The report is requested by Alistair Wu and the purpose of this report is to do the analysis for the most efficient shipping schedule and expense utilizing the data provided. The goal is to find out the least possible delivery and distribution cost that can be incurred. Mr. Wu is furthermore contemplating Shanghai plant expansion by producing 2,800 units instead of 1,300 units, and needs assurance that this expansion will be within the means. The data provided has different graphs that give essential information regarding the production performance. The first table shows the capacity of the production line along with the demand per warehouse.
LYNCNBURG FOUNDRY The materials manager for Lynchburg Foundary was faced with the decision of whether he should ship ductile iron return from the ductile iron castings plants at Lynchburg and Archer Creek to the pipe-making plant at Radford, Virginia. A decision to ship the ductile iron return would be complex and would involve determining the appropriate value of the maaterial as well as a creating a transfer pricing system. In addition, the effect of changing inventory values for this material and the resulting implications for the financial statements and investment decicions could be a potential problem. Founded in 1896 as the Lynchburg Plow Company, manufacturing gray iron plows and plow replacement parts, the company grew and diversified, producing cast iron pipe, and changed its name to Lynchburg Foundry Company in the early 1900s. With the 1948 discovery of ductile iron, a new form of cast iron with properties similar to steel, the company began to take its present form as a major producer of gray and ductile iron precision castings and pipe.
The interest charged on the multimillion dollar loan clearly will have a significant impact on the company’s financial reports. Thus, the Financial Accounting Standards Board (FASB) established SFAS No. 34, “Capitalization of Interest Costs,” to provide guidance on how to record this type of interest properly. Basically, this standard explains that the interest on the loan for building your new facility can be capitalized, as part of the costs of the facility because it meets their two criteria, (1) it is not yet ready for use, and (2) it is currently under construction (p.
The reason of all the expenditures can be done by the financial determination of all the expenses. The budget can be determining the expenses and revenue from the previous year. If the revenues will be higher than last year, the expenditures will be a plus for the store. The comparables of the revenue with the sales plan of the store will be another area to focus. The process of attracting new customers can be an alarming duty for any business.
There are several economic considerations that must be evaluated and addressed prior to expanding into Kava. Nik’s team must properly analyze each issue and provide alternatives as well as propose contingencies in case an alternative fails or is no longer feasible. Some of the issues that will need to be considered include; * Economic growth opportunities * Current and future interest rates * Exchange rates * Inflation, market and trade cycles Due to the nature of the organization, developing a solid plan for addressing each economic factor associated with bank expansion is vital to the survival of the venture and will determine if future branches can be supported. Social Factors Due to the large disparity between the numbers of adults versus the number of children, evaluating the social factors involved with the bank’s expansion and how those factors will affect the bank’s ability to sustain a branch on this island is the most important part of the analysis process. Social factors that will need to be considered include; * Population growth rate * Demographics * Ethnic and religious factors * Advertising and publicity * Age distribution and career emphasis * Attitudes and opinions of the
| Outsourcing and offshoring | Outsourcing is the aspect of tasking a third party contractor. Offshoring is basically moving the headquarters of a business to another country. | Investipedia.com | Inventory turnover | The inventory turnover ratio is the inventory sold and replenished over a period of time. | Investipedia.com | Just-in-time inventory (JIT) | A plan that is conducted when receiving and producing inventory; maximizing efficiency of warehousing. | Titman, S., Keown, A. J., & Martin, J. D. (2014).
After this evaluation United Airlines should look at the numbers from the flight to make sure it covers all cost associated. United Airlines should make sure the total revenue collected covers the cost of all the services stated. United Airlines should also consider competitive equilibrium due to the fact that firms produce output at the minimum point on their average cost curves (Brickley Smith & Zimmerman). After this analysis is completed and for some reason the numbers don’t match up then united Airlines should reevaluate the flights from San Francisco to Washington D.C. The issues should be whether or not all services and products are needed, and if some services and products need to be cut.
Micro Devices Division 1. The “excess” capacity of the facility is associated with four causes Long term yield: the solution is to change the calculation into the new available capacity. With the production that exceeds the demand we could have an improvement in marketing and selling part. Also, can have a discount rate for large quantity selling or cash payment, etc Short term yield: The company should hold extra capacity in order to make up for statistical fluctuations in earlier operations. A buffer inventory will protect constraint from a work shutdown caused by a shortage of processed materials coming from upstream workstation or by the fluctuation of the demand Product mix changes: Introduction of new products could lead to the purchasing of additional equipment which lead to an incremental increasing in fixed cost.
United Metal Abstract This case is loosely based on a make-versus-buy decision faced by Standard Telephones and Cables (STC) Components Group (alias United Metal). Switching over from manufacturing to purchasing a particular component will affect costs, have personnel implications, free up a recently purchased machine, require some additional capital expenditure, and alter the amount of stock held, and hence the space required. Internally, there is a debate between the purchasing and production managers about the importance and relevance of these various issues. Judgements are needed on which manager is correct, and what decision United Metal should take. Case Just over a year ago, United Metal purchased new machinery for £45 000 for use in the manufacture of a particular component.