STATEMENT OF THE PROBLEM How should Mr. Jerry Eckwood respond to Mr. Cowen’s requests of the renewal of the existing loan of $1,000,000.00 and of an additional $350,000.00 loan? III. POINT OF VIEW AND ASSUMPTIONS Point of View The group decided to use Mr. Jerry Eckwood’s perspective because the decision whether to extend the loan or to grant the additional $350,000.00 lies in his hands. Assumptions: • Hampton Machine Tools Company will surely pay the dividends on December. • St. Louis Bank will use the loan terms (e.g.
Put all of this together to simulate the lost revenue due to copier breakdowns over 1 year to answer the question asked in the case study. In a word processing program, write a brief description/explanation of how you implemented each component of the model. Write 1-2 paragraphs for each component of the model (days-to-repair; interval between breakdowns; lost revenue; putting it together). Answer the question posed in the case study. How confident are you that this answer is a good one?
Case Report: LL Bean Case Thibault Faramarzi Section 22 1) L.L. Bean uses several different calculations in order to determine the number of units of a item it should stock. It first freezes on the 1st May of each year a forecast for its demand for the next season. This figure is a result of a consensus between the product people, buyers and inventory managers. Once the predicted demand is frozen, L.L.
Executive Summary Cottrill Inc. had a 1 week trial with Saxton’s pagers but had a major technical issue with them near the end, which has so far been resolved. Whether Saxton’s pagers will have additional problems is unknown. Cottrill Inc. equipment failures can cost the company around $200,000 per hour and on average have problems once a week. Judy want to make the right decision in regards their pager supplier, which could result in a great annual saving for Cottrill Inc., or possible problems which could create a massive loss. Through analysis, it might be safer to stay with Tallant or prolonging a trial period with Saxton to ensure stability.
Issue Manzana’s commercial insurance is a product for which low price is important in order to compete, but serving customers (agents) is what produces loyalty. Agents want rapid request turnaround so that they, in turn, can impress their customers. The agents will also receive their commissions more quickly. Fruitvale’s performance has deteriorated, as has its competitive position. Average turnaround time (TAT) has grown from about three days in 1989 to more than five days in 1991 while its main competitor, Golden Gate, has achieved two-day TATs and is now promising one day.
Some tests have to be properly administered to do so. The Sarbanes Oxley act of 2002, requires the CEO and CFO to certify in periodic filings with the SEC the accuracy of the financial statements and the effectiveness of the company’s internal controls over financial reporting. The outside auditor is required to audit certain companies internal controls over financial reporting on an annual basis. There are phased in compliance dates for these requirements for certain smaller company filers. Company’s in the IPO process and newly public companies are not required to provide either a management assessment or an auditor attestation report until they file their second annual report with the SEC.
Solution CMI is aware of CTS’s financial position; and they seem to have the upper hand in the negotiation process. On focusing on its relationship with Elliot Burr CMI has as well modified the outcome of the acquisition. Intentionally it was to agree on a price that is acceptable by the parent company. CMI can start out May 24th negotiations with CTS after considering a solid strategy that addresses the following point to CTS. 1.
Step 6: The Board Directors received and review the budget for final approval. Step 3 should be eliminated as the budget process takes longer time to complete which took another 3 months. Furthermore, visiting by the HQ controllers makes the plant managers submissions of the budget seem a bit top down. Since the plant manager had the most knowledge of the operations, they should determine any areas for additional savings. The overall process of the budget took about 8 months which is from May until completion in December.
However, marketing departments provide forecasts based on actual shipping data from last year. Thus, planning department should have considerable understanding of how marketing department make forecasts and take the forecasts as given. Second, marketing department generate unfaithful forecasts by only making adjustments to the past shipment, not predicting future demands. Marketing departments should develop a forecasting system which could both reflect past shortages and future expected demands. Also, they should use actual demand data not shipment data.
Finally, a benchmarking analysis with a comparison to the same two companies mentioned above will be presented. Financial Statements Each statement gives the reader important information about the company, but the reader must also look at how the information flows from one statement to another through a ratio analysis. The Inernational Financial Reporting Standards and International Accounting Standards Board (2008) have proposed the use of the same section names and categories in each of the statements. Figure A shows details of their proposal, which is currently under consideration by the Financial Accounting Standard Board (FASB). This section will look at each statement and then an analysis between them using ratios.