Strategic planning focuses on the long-term goals of an organization, therefore it differs from financial planning. Financial planning may also focus on long-term goals, but unlike strategic planning, financial planning focuses on short-term goals as well. It takes a strategic plan to develop a financial plan. Personnel must use a strategic plan to identify what direction the organization is going to go in its specific business industry. Once the strategic plan is implemented into the development of the organization, a financial plan can be developed to gain capital for organizational growth.
Assignment 1: Application of Financial Statement Lekicia Williams-Gist Dr. Peter McDaniel Financial Accounting – Acc 557 Monday, February 27, 2012 1. Explain how the use of the balance sheet may be applied to your everyday life. A balance sheet summarizes an organization or individual's assets, equity and liabilities at a specific point in time. I chose Target’s balance sheet to examine. Target’s balance sheet may be applied to my everyday life by showing me how the company is doing business wise and if my purchases are making a contribution towards their overall profit.
ECN 204 - 071 2-29-12 204W12T Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Other things the same, a government budget deficit a. reduces both public and national saving. b. increases both private saving and national saving. c. increases public saving but reduces national saving.
Costs would include reengineering research and development, plus higher component costs since more advanced parts would be needed for more torque. The manufacturing cost would now be $790 for the hot version and $867 for the larger frame same temperature version. These redesigns add to manufacturing costs and would be dilutive to the current margins and earnings. Margins would decline from $536 per motor to $410 or $333 with the respective redesign options. 2.
This also includes educating staff about the responsibilities of maintaining costs. What are the reports that can be used for financial planning in an organisation? Profit and Loss Balance sheet Revenue and Expenditure report Cash flow statement Debtors and Creditors reports What is the process for preparing budgets or other financial plans? 1. Identify data that needs to be collected.
If a company uses some of its bank deposits to buy short-term, highly liquid marketable securities, this will cause a decline in its current assets as shown on the balance sheet. c. If a company issues new long-term bonds during the current year, this will
a. Reduction in price will cause the contribution margin to decrease, thus, breakeven point will increase. b. Increase in Direct Labor cost will increase the cost and will cost the contribution margin to decrease, thus, the breakeven point will increase. c. Installation of new ventilating equipment produced depreciation (fixed cost) which will decrease contribution margin, thus the breakeven point will increase.
Manufacturer’s Buy-back Price | Retailer’s Optimal Order Quantity | Retailer’s Optimal Expected Profit | Manufacturer’s Expected Profit | $45 | 14000 | 497200 | 488500 | $50 | 14000 | 505500 | 480200 | $55 | 14000 | 513800 | 471900 | $60 | 14000 | 522100 | 463600 | $65 | 16000 | 534000 | 480500 | The profit would decrease as the buy-back price increases when the order quantity is fixed, and the quantity would increase until maximum one when buy-back price increase to some levels. (2) Suppose you are the manufacturer (seller), and you would like to induce the buyer by using this contract to purchase the maximum quantity; that is, 18,000 units. What would be the buy-back price you should offer to the buyer? Would this decision make sense? When the buy-back price is more than or equal to $75, the buyer would purchase 18,000 units because the buyer could receive the largest profit in 18,000 units compared with other quantities.
Case 12 REQUIRED 1. Given the unit sales information in Exhibit 1, develop an annual revenue forecast for 2004 through 2009. Forecast sales first assuming that the revised Bernoulli will be introduced one year from today, and then create a forecast which is based on sales of the current model, assuming that Working declines to invest more capital in Bernoulli. 2. Use the cost information Jennifer has assembled to construct a forecast of cost of goods sold and operating expenses for 2004 through 2009.
First, if the government increases its purchases but keeps taxes constant, it increases demand directly. Second, if the government cuts taxes or increases transfer payments, households’ disposable income rises, and they will spend more on consumption. This rise in consumption will in turn raise aggregate demand” (Weil, 2008, para. 4). Consumer income has a huge effect on aggregate supply and demand just as the aggregate supply and demand can affect consumer income.