SciTronics had $ 75,000 of owners’ equity and earned $ 14,000 after taxes in 2008. Its return on equity was 18.67% an improvement from the 8.2% earned in 2005. Activity Ratios: How well does the company employ its assets? 1. Total asset turnover for SciTronics in 2008 can be calculated by dividing $ 244,000 into $ 159,000.
What would happen if B.E. wasn’t able to sell all of the 30,000,000 units? They would get stockpiled into ending inventory and allocated expense which would increase costs of goods sold and therefore net income. Since the presidents bonus is based off of net income and the amount he can
• Current performance metrics lead the Component division to inflate transfer prices. • The lack of communication among the management team has contributed to the existing conflict as well as an overall reduced net income for Seagull. Recommendations: • Based on Seagull’s overall net income the Device division should modify the external contract to reduce the order to 2 000 units. • Performance metrics for the
The following costs were incurred in the first processing department during the month: The ending inventory was 90% complete with respect to materials and 45% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. 8. award: 1 out of 1.00 point How many units are in ending work in process inventory in the first processing department at the end of the month?
During 2011, Z-Mart made installments sales of $300,000 and received payments of $135,000 on those sales. Z-Mart's gross profit on sales is 30%. Required: Prepare the necessary journal entries for 2011. 10 Solutions Multiple Choice Question Number Answer 1 a 2 c 3 b 4 c 5 d 6 c 7 a
Brazo 1. Is Cheddar’s an attractive investment? Did Brazos underpay, overpay or get it just right in their initial investment? The proposed LBO deal of Cheddar’s is an attractive investment for Brazos because it fits into Brazos’ “sweet spot”- a reasonable priced company with solid cash flow and good management. Cheddar’s had always been profitable through that it had ever closed a company-owned store and had shown steady increases in sales and customer counts over time.
Gutierrez Company reported net income of $225,000 for 2015. Gutierrez also reported depreciation expense of $45,000 and a loss of $5,000 on the disposal of equipment. The comparative balance sheet shows a decrease in accounts receivable of $15,000 for the year, a $17,000 increase in accounts payable, and a $4,000 decrease in prepaid expenses. Instructions Prepare the operating activities section of the statement of cash flows for 2015. Use the indirect method.
So, Dividend Yield is 0% for 2002 and 2003. The increase in Earnings per share from $0.49 in 2002 to $0.61 in 2003 evidence of the growth potential of the company. Company’s asset has also grown in 2003. This indicates that Krispy Kreme’s stock is a “Growth Stock” and explains why it has not paid any dividend. “We intend to retain our earnings to finance the expansion of our business and do not anticipate paying cash dividends in the foreseeable future……Dividend Payments are restricted by our bank credit facilities to 50% of our net income for the immediately preceding fiscal year.”i Cash Flow Statement Analysis: Krispy Kreme uses the Indirect Method of reporting Operating Cash Flows.
Which is exactly What KKR had to do when they won. They had to sell off parts of the company off to pay for debt that they had dug themselves into buying the company. After KKR had completed the buyout, then had to shed about 46,000 employees after 1998 consequently they ended up having to sell off 6.2 billion dollars in assets to help get rid of the debt that they had incurred in taking over the company. During the First years of the KKR Reign the equity for the company fell from 24% to 16% from 1998 through 1994. We think that if Ross Johnson was able to take over the company for the original offer of 75 dollars a share things would have turned out a lot better for Nabisco because they shouldn’t have had to sell of as many assets or shed as much of the labor Force as KKR did when they bought the
A more detailed environmental analysis is provided below: Economic Trends:  Net profit trend - Although the forecasts of the International Air Transport Association (IATA) seemed to be promising for 2007(collective profit of about $2.5 Billion), the situation till December 2006, seemed to be pretty bleak (Threat)  Seasonal Fluctuations - Another problem was the seasonal fluctuations in demand. Increased travel during summer and severe weather conditions during winter led to flight cancellations and delays, leading to losses (Threat)  Recession – The recession in 2000 led to lower demand. Other factors, such as increased fuel costs, competitive pressures, fear of terrorists led to huge losses (Threat)  Insolvency - The financial crisis lead many airlines, such as United Airlines, US Airways, Northwest, Delta and several others to file bankruptcy. At this point, some of the Airlines, sought to combine with each other in order to survive. The fallouts were both good and bad.