If the sales outlook for the coming three years was only 20,000,000 and B.E. continued producing at the rate of 30,000,000 units, a total of 10,000,000 units would be dumped into ending inventory at the end of each year once again reducing costs of goods sold and falsely increasing income. By the end of year 2013, B.E. Company would have 35,000,000 units sitting in ending inventory taking up space and costing money to store. Once again if the president’s bonus is based off of net income, this situation is the most favorable for a high paying bonus and encourages stockpiling inventory to inflate net income.
By looking at the trading, profit & loss forecast for the year, you can see that things look like they will go reasonably well over the year as it shows a net profit of £15808. You may need to consider the possibility of a rise in fuel prices or the possibility of a fuel shortage in the current climate. This could affect your business by raising the cost of sales. You should look at increasing your revenue figure in order to counteract this. Look at your pricing policy and make changes appropriately.
Even though the acid-test ratio is less than 1 which rates in the lower third quartile in the industry of 1.6, 0.9 to 0.6, it indicates a concern with repaying current liabilities. This could be due to quick expansion of inventory with the intention of increasing sales. While this is currently considered a weakness and is concerning, a rise in the ratio should be seen by 2013 due to the increase of suggested sales. 3. I calculated an “inventory turnover ratio” which measures the number of times a company sells its inventory during a year.
Facts of the Case Navy welder Charles Richmond was receiving disability annuity based on his prior civilian service in the Navy. Charles made more than the allotted monies he was supposed to during the months he was receiving the benefits. Charles asked an employee relations specialist at the Navy Public Works Center's Civilian Personnel Department for information about how much he could earn without exceeding the 80% eligibility limit. The specialist gave Charles the wrong information about the OPM 2 year eligibility rule that dated before in 1982. The Office of Personnel Management (OPM) denied him six months of benefits after the year he had made the additional money that disqualified him for the benefits.
They gave a good estimate of how my decisions would affect business performance for the upcoming quarter. I was able to look at the pro-forma statements and make adjustments in my decisions before moving into the next quarter. For example, in quarter 2, I had decided to not add another sales site due to not having enough cash on hand. After looking over the pro-forma statements, I realized that I would have enough money to add another location for the next quarter and still have more than $300,000 cash left over at the end of the quarter. Operating efficiency was improved using just-in-time and lean operations techniques.
• It was recommended to Will, by his friend Elsa that he increases the price of his product to allow for additional funds for advertising. • It is recommended that Will increase the price of the lapsed copyright books to $13 and increase the copyright books to $18. • Will could look into the option of renting these digitized books, which could increase profit because he would incur only the initial cost for producing the product and every time is rented out after that initial time, would be mainly
C) The answers are different because if the interest is left untouched, it makes the principal amount higher each year, giving more money after 10 years. Compounded interest allows for more money that simple interest would. 2. A) If the individual retires at the age of 65, having started the program at age 40, there would be $219,318 in the account. $3,000 x (8% in 25 years) 3000 x 73.106 = $219,318 B) If
The trends in are in percentage to evaluate the economic statistics for research in budget. Duke Energy has a trend in their balance sheet revealing that they usually pick up from one period to another, and then they decrease back down after they pick back up. When they were behind in current assets they decreased by 20% but then increased greatly by 100%. This analysis is provided to help build the income and make the statements greater so they can continue to try to pick up from where they left off
As seen on the income statement by accounts receivable and annual credit sales Amazon was able to decrease the amount of days it took to collect on accounts receivable. The financial state of Amazon at this point of review, as some concerns with common stock outstanding, this led to the period in which the income statement shows a $-39 million dollar on net income. In 2012 sales did increase only due to more electronic transactions, new innovative Internet transactions and the rise in shipping costs, due to this there was a significant rise in prices of the products that Amazon sells. In 2013 Amazon must increase net income and retained earnings in order to continue to be a successful corporation.
The base average is 215.495 (US Government). To maintain Social Security’s purchasing power, retirement benefits, effective December, automatically increase each year by the percentage change in the consumer price index for urban wage earners and clerical workers (CPI), a measure of price inflation. Some experts argue that the CPI overstates cost-of-living increases. • Critics argue that the CPI does not adequately factor in consumers’ ability to find cheaper substitutes when the prices of those goods increase. • COLA reductions would lower the cost of Social Security and help preserve the program’s solvency for a longer period of