Financial Analysis JET2 Task 2 Karen Hatfield Summary Report for Competition Bikes Budget Concerns A budget is “a set of interlinked plans that quantitatively describe an entity’s projected future operations” (Budget, 2014). A company utilizes a budget to gauge in which to assess the actual working outcomes. This helps with the allocation of funding and to plan future operations of the company. The process of budgeting in a company originates with a strategy planning meeting by upper executives. The executives team decides a direction in which the company will place into a master budget.
A Balanced Scorecard is one of the effective strategic management tools that help businesses in defining their set objectives and focus on the action plans set in order to realize the set objectives. This article is a reflection of the Balanced Scorecard successes and its importance in the bank as in other financial institutions. The objectives under each of the four perspectives (financial, customer relations, internal business processes and employee learning and growth) have been highlighted, target metrics and their values defined as well, and at the same time the initiatives to facilitate the realization of the objectives. The discussion closes with how implementation will take place and the factors to consider
How do you calculate working capital? Calculate the working capital for Competition Bikes for year 7 and 8. Does the company have any excess working capital? How might they use this working capital to generate revenue or improve performance? Internal Controls: Understand what financial internal controls are.
Economic Forecasting Melissa Reamer, Daniel Heintzelman & Marcia D. McCants ECO/372 October 16, 2014 Mrs. Jill Winnington Economic Forecasting Introduction In the business world, the number of factors that affect the proficiency of loss verses gain rest on how well statistics and actual data reflect in the economy. Businesses, both small and large, treasure the information found in key economic guides. Useful numeric guidelines; discovered during research, contribute to business planning for future projects and business proposals. Forecasting financial characteristics and the present state of the economy enable businesses to avoid both current and future profit loss. Historical Economic Data Resources Here, Team A has gathered a list of Economic indicators released by the Economic and Statistics Administration (ESA).
The purpose of an 'Income Statement' or another given term 'Profit and loss account' is 'to report on certain financial aspects of transactions that have taken place during an accounting period' (The Open University Book 3, An Introduction to Accounting and Finance in Business', book 3, 3.2, p.39). SportswearKit will find an income statement useful as it will show the performance of the business. The performance can be judged 'by showing the income which has been earned and the expenses incurred in earning it' (The Open University Book 3, An Introduction to Accounting and Finance in Business, Book 3, 3.2 p.39). (b) Review the income statements for the years 2014 and 2013 and identify whether there are any particular concerns that should be considered by Jeremy. (15 marks).
CVP Discussion Question ACC/561 August 26, 2012 William Montgomery CVP Discussion Question What are the strengths and weaknesses of the CVP model? The CVP analysis is based on statistical models; it will help companies to see if they will break even and project how much spending within production will take place. When management understands the spending within the company, they can tweak the pending method within the company to maximize their profit margin. These methods help the analysis and distinguish between a profit margin or a nonprofit margin. CVP analysis allows management to use variable cost to identify future performances within the company.
Net Present Value and the Sprint Nextel and T-Mobile Merger In today’s business economy, it is increasingly important for businesses and investors to know and understand how different business decisions can affect a business and its prospect for growth. The Net Present Value (NPV) is a relatively simple calculation that businesses and investors can use in order to determine how much value an investment or project will add to a company (Wikipedia.com, 2012). According to Ben McClure (2011), Mergers and Acquisitions (M&A) and corporate restructuring are a big part of the corporate finance world. Everyday investors on Wall Street arrange M&A transactions to which brings smaller companies together to form larger ones. According to Wikipedia.com (2012), in finance the NPV of a time series of cash flows, both incoming and outgoing, is defined as the sum the present values of the individual cash flows of the same entity.
Describe the significance of these numbers- what do they indicate? Explain your report relates to our course and to practicing managers. http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=GM&dataset=balanceSheet&period=A&currency=native http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=HMC&dataset=cashFlow&period=A&currency=native According to Bloomberg Business Week some of the major difference in the finances of General Motors (GM) and Honda Motor Company come down to the way they handle their Inventory costs and their cost of goods sold. The following information will reveal in detail these differences. Year over year, General Motors Company has seen net income shrink from $9.2B USD to $6.2B USD despite relatively flat revenues.
Your boss has developed the following set of questions you must answer to explain the U.S. financial system to DellaTorre. Why is corporate finance important to all managers? Corporate finance is essential to each and every executive level position, which provides the skills to ascertain specific business strategies and particular tasks that integrate value to their organization. In addition to being able to foresee capital provisions and their implementation into the business Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form.
This type of research usually takes the raw data such as information collected through focus groups or/and surveys and interpret the data for different business purposes. * Secondary information. This of research gathers existing information through available sources which include: information on the internet, existing market research results and existing data from business’s own stock lists etc. Secondary information allows an initial understanding of the business’s market, its fast than primary data as someone has already started to analyse it. Market research should be done on a continual basis to keep up with trends in the market and keep a competitive edge against competitors.