Fly-By-Night International Group Fly-By-Night International Group’s major problems began in Year 13 (technically the end of Year 12). By observing the Cash Flow Statement, we see that even though there’s a huge increase in cash from all of the company’s operations, the largest increase from previous years is Accounts Payable. Notice how AP goes from a mere $54,000 to $5,286,000 in just one year. This should have been a red flag to accountants/managers that signaled trouble. FBN has made significant investments (property, plant and equipment) on account, thereby getting into financial trouble by owing their creditors quite a bit of money.
Low customer satisfaction is another internal weakness that is crucial to the success of CanGo. Another internal weakness includes severe communication issues within CanGo’s management and employees. External threats such as competition, plays a big role in the future success of CanGo. Your organizations internal organizational strengths such as online growth, and cost advantage offers great potential if properly utilized. Another external threat includes economic slowdown.
An integral part in performing a horizontal analysis is the ability to see the variation from one period to the next which are called trends (Horizontal analysis, n.d.). . Within the income statement, net sales increased by 33.3%, $150k, from Year 6 to Year 7. Then, a drastic decrease of 15% which is roughly $900k, took place from Year 7 to Year 8. The 33% increase showed the strength of the company, but the huge drop in sales demonstrated how Competition Bikes, Inc. (CB) struggled to attain a surge in its revenue which is the result of the 15% decline in sales caused by economic situations.
The weaknesses that Kudler may face would be the financial burden of going public. Sometimes expenses pile up just from seeking help from outsiders to protect the investments. The economy has fluctuated over the years; therefore the company needs to ensure they have contingency plans in place when business may not be as stable. There are ample opportunities that can come about from selecting an IPO. A company's debt-to-equity ratio will usually improve after going public, which tends to result in more favorable financing arrangements (2014, Going Public, para 1).
Problem 2: Chapter 30 Web Question 2; Consumer Product Safety Commission According to the website (http://www.cpsc.gov/about/about.html), the "CPSC Overview" section of the page says, "The U.S. Consumer Product Safety Commission is charged with protecting the public from unreasonable risks of serious injury or death from more than 15,000 types of consumer products under the agency's jurisdiction." The About page further describes the scope of the issue by stating the economic impact of its protective activity exceeds $700 billion in annual costs to the country and has caused a 30% decline in death and injury rates associated with consumer products over the last 30 years. Two products on the "Most Wanted" list are Lane Cedar Chests and older cribs. These present potentially deadly danger to infants that could suffocate and die because of defects in their manufacture. Two Product Categories of interest: I've had these specific
A franchise is a form of business organization in which a firm already has a successful product or service, ("Investorsword.com", 2012). The franchisor then enters into a continuing contractual relationship with other businesses for the use of their product or service for a fee. A franchise would be an excellent choice for an individual who has the funds to start up a business. Starting up a business is a high risk taker because one doesn’t know what to expect. With a franchise the risk is somewhat lower because the business has already proven itself to be successful.
Legalizing immigrants would be a stimulus to the United States’ economy because legalized workers contribute to the economy through taxes. a. For the past decade, more than two thirds of these undocumented and illegal immigrants have contributed to the United States’ financial system and society (Fitz, 2011). b. Immigrants’ involvement in the workforces has engaged a key function in lengthening the ability to pay all just debts of the Social Security Trust Fund (Fitz et al., 2013). c. If the reform is passed for these immigrants, it will add major economic growth, earnings, tax revenues, and jobs (Lynch et al., 2013).
The nation’s new economy “high advanced technology” is proving a mix bag for workers. It also has ushered in a long period of unprecedented national prosperity. But at the same time that with profits many employees are changing, Employer say the changes in traditional pension plans, health insurance, and other no salary are necessitated by broad shifts in work patterns and demographics. Cooper, M. (1992, November 20 “Paying for college”. CQ Researcher, 2 1001-1024.
Unemployment rates were steadily on the rise just a few months ago and corporate profits are at all time highs. This will lead to companies not hiring workers and a sluggish job recovery rate. Technology is replacing the uneducated worker at an alarming rate as machines increase labor productivity faster than other areas of the economy can absorb the now surplus of labor. This doesn’t mean we need to slow technology, just that we need to be a more educated society. Another link to the great depression would be the precious metals market.
"The State's university system, once the envy of the nation, has fallen in quality combined with increased demands for admission by an ever-growing number of applicants," says the CAPS report. In the schools, from kindergarten through twelfth grade, enrollments rose from 4.8 million in 1990-91 to almost 6 million ten years later. By 2000, "there were more Hispanics than other children enrolled in the State's schools." California is currently spending $6,837 per student, "so more than $16 billion was spent last year on students whose native language was other than English." California has been so mismanaged by its governors and legislature that it is billions in debt.