Notwithstanding increasing dividends and a moderately stable share price, the home improvement retail industry remains to struggle due to the fragmentary world wide economic complications. Throughout 2009 Home Depot recorded expenses as much higher as well as the drop in sales. While Home Depot the company is very strong, the drop in sales and net earnings brought fourth some restraints until the economy shows signs of improvement. With this in mind The Home Depot, Inc. initiated strategies in the fiscal year 2008, to help minimize losses while maintaining a strong customer base. Which in turn may have the company to increase their credit programs for consumers with the intention to increase sales.
CFO is larger than net income each year due to the noncash charges of depreciation and amortization. In 2008, net income is negative, but CFO is still positive as $1,879 million due to the one time goodwill impairment charges. Inventory has decreased from 2006 to 2008, after its acquisition of May in 2005. Receivables also decreased each year, which maybe a sign that the company’s receivable quality has improved. Macy’s decreased its purchase of inventory and property and equipment and decrease disposition of property and equipment year by year.
over the 3-year period from 2003 to 2005. Total assets dropped $1 million, or 3%, but remain near $35 million. The most notable asset change is the $500,000, or 8%, decrease in accounts receivable. However, cash did increase $200,000 which gives the company the opportunity for business investment in the coming fiscal year (“University of Phoenix,” 2006). A positive trend shows that total liabilities have dropped $1.7 million, which is accounted for by a $2 million, or 42%, decrease in long-term debt.
The diagram above shows that real GDP has increased from Y1 to Y2 which means that economic growth has increased. As a result, unemployment falls as we are getting closer to the inelastic part of the AS curve, which is much needed as “unemployment has shot up” in this economic crisis. However, inflation has risen from P1 to P2 which means that our exports become less competitive so our trade deficit gets worse. However, the rise in inflation is needed as inflation is falling below the 2% target. The changes in the government’s macroeconomic objectives depends on where we are on the AS curve as shown below.
Adding to that the lows median income (lowest among the 5 projects) can be among the reasons why Walmart has performed well with its low price policy. Brand Awareness impact: While the closes Target is 80 miles away from the project store, it can be assumed that Target brand dose not have a well-known brand awareness. It will take time and investment for Target to increase the brand awareness and also compete with established brand such as Walmart; all expected marketing investment on brand awareness would contribute to 25% sales increase in 5 years. Further comparison with other projects in
Over a five year period, starting in 2005, Lincare has reduced their ratio from 40.6 to 39.6. Gentiva Health Services remained nearly the same with a ratio of 57.1 in 2000 down to 56.9 in 2009. From an efficiency standpoint, Lincare is converting their receivables into cash faster than its competitor. In addition, Lincare has outperformed their cash conversion rate from 2008 to 2009. Lincare’s conversion rate went from 14 days to 17.5 days which means Lincare’s cash flow generation improves year after
Productivity, as measured by the output per hour by the business sector, grew at a lower rate during the Reagan years than the 7 years prior. The growth rate of 1.3% during Reagan’s tenure was .2% higher than the 6 years afterwards, but .3% lower than the years preceding (Niskanen & Moore 1996). Inflation is an increase in the average price level and is not a positive occurrence. When Reagan took office, the REAGAN-SIDE ECONOMICS consumer price index (CPI) was at a high 13.5%, by the end of his terms, the CPI had been decreased to 4.1% (Niskanen & Moore 1996). Those who are critical of Reagan’s policy speak of the explosion of the United States’ budget deficit during the 1980s.
FIN 340 - Fall 2014 Practice Exam Name: 1) The order of line items included in the Statement of Retained Earnings is as follows: a) Beginning RE, Dividends, Ending RE, NI b) Beginning RE, Depreciation, NI, Ending RE c) Beginning RE, NI, Dividends, Ending RE d) Beginning RE, NI, Depreciation, Ending RE 2) Playboy Inc. stated that its sales were the same as last year’s, except the cost of goods sold dropped 30%. The net cash flow had declined for some reason. What could be a possible reason for this decrease in net cash flow? a) The company’s depreciation expense increased. b) The PP&E had increased from the purchase of a new less expensive printer.
Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. TARGET has very weak liquidity. Currently, the Quick Ratio is 0.45 which clearly shows a lack of ability to cover short-term cash needs. The company’s liquidity has decreased from the same period last year. During the same period, stockholders’ equity (“net worth”) has increased by 7.12% from the same quarter last year.
The figure on the right shows the trend of total population from 1800 to 2005 and from there in three projections out to 2100 (low, medium, and high). The second figure shows the annual growth rate over the same period. If population growth were exactly exponential, then the growth rate would be a flat line. The fact that it was increasing from 1920 to 1960 indicates faster-than-exponential growth over this period. However, the growth rate has been decreasing since then, and is projected to continue decreasing.