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. b. If the sales outlook for the coming three years were to increase to 30,000,000, the newly implemented system would prove valuable to B.E. Company. If production is kept the same, the company is predicted to sell every unit produced which would avoid a stockpile of inventory and also safeguarding an extra 5,000,000 units in ending inventory in case sales go above 30,000,000.
He needs to have $21,000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target? (Round to nearest dollar) • $26,454 • $19,444 • $22,680 • $16,670 21. Which of the following presents a summary of changes in a firm’s balance sheet from the beginning of an accounting period to the end of that accounting period? • the statement of net worth • the statement of cash flows • the statement of working capital • the statement of retained
The team looked at the company’s tangible and intangible resources. In the fourth quarter of the simulation the team sprung into action by looking at the company’s financial resources, paying close attention to the firms borrowing capacity and its ability to generate internal funds. The team withdrew $50,000 from the company’s 3 month certificate of deposit and obtained $1 millions from common stocks. With additional capital available the team modified its Elite 101 brand of computers and modified Elite Class and renamed it Top Class. The company now focused its attention on its intangible resources such as Human Resources, Innovation Resources and Reputable Resources.
I have also considered legal and moral responsibilities to our customers. We pride ourselves on the business ability to exceed highest quality standards to our customers. This has built an environment of trust. Our reputation and image should be a high priority in action that we take. After careful consideration of possible options three viable options are highlighted that I feel would maintain the trust and our reputation with our customers.
With regards to the "character and condition of the company", Kim needs to provide support about the financial and business strength of the company, and that the company is performing exceptionally well because of Kim. He needs to be rewarded for his efforts. With regards to 'conflict of interest', Kim needs to establish that the operating results of the company are at par with industry standards or are
The first way to improve working capital is to make the excess liquid funds work for the company. These funds should be invested back into the company. This can be accomplished by reducing long-term liabilities with high interest rates such as the mortgages on facilities. The second is to manage the inventory held by the company. Currently Competition Bikes purchases inventory for production the month before it goes to the production line.
TMA 01 Part A To Nick Newbury, Below is a list of stakeholders I have compiled to give you and insight on how to go about your current situation with some power/interest matrix analysis. i. The Founders of Original Travel (internal Stakeholders) Alastair Poulain, Nick Newbury and Tom Barber. Your main concern is to achieve financial return from your business. It is important to note that all of the founders would need to be well informed and kept satisfied with the decisions as you are the key players in any choices related to Original Travel.
Competitors – they will be only interested if the Business means “ASDA” is not doing so well as this will mean more business for them , because they are offering the same services within the same area. They can use the financial statement of “ASDA” as a “bench mark” for their own performance. Owners- they are the most important stakeholders, because they have established the business and they devoted a lot of their time for the company success. They are the stakeholders, who have the higher interest for the business to raise on profit and value. Employees and Managers- their interest is that the company provides them with decent live hood.
The main purpose of the cash flow statement is to allow external users to assess the solvency and profitability of the company, to ensure the safety of their investment decisions. This projection can be made for the entire period covered by the business plan but because the date from it is used for making the Balance sheet it is recommended to go gradually year by
Budgeting is the foundation of every financial plan of operation. A sound budget comes from understanding how much money you have, where it goes, and then planning how to best allocate those funds for a company. A financial budget is a financial plan that is structured to note projections on incomes and expenses on both a long and short term basis. Budgets incorporate budgeting strategies for a period of at least one year, although in some case organizations may prepare a budget to cover from anywhere to two to five years at a time. (Tatum, 2012) There are numerous reasons that a budget is important.