CRAFT MARINE CORPORATION 1. How would you characterize the U.S. boating industry? Industry dollar sales 1999---- $22.2 billion 2000----$25.5 billion 2001----$25.6 billion (Attributed to 13% increase in the price of new boat) Heavily dependent on general economic conditions (should consider about the influence of 911), reflect personal discretionary income patterns in the US. Over 100 full-line boat manufactures No one manufacture holds over 10% industry market share Many manufactures are privately owned or are part of larger companies that sell a variety of products Industry sales occur between March and August with April, May, and June being the peak buying months. 2.
Depreciation affects cash flow by reducing the amount of cash a business must pay in income taxes. 3. Calculate the current and quick ratios based on the projected balance sheet and income statement data. What can you say about the company’s liquidity position in 2013? AS the current and quick ratios both went down over the past year, I am concerned that the company liabilities may be rising faster than assets and we may not be able to liquidate assets quickly enough to cover debt, if necessary.
Banks should consider the difference in asset size between the two. Fortunately, banks have failed so far in their efforts to contain the competition. How Much of The Market Do Credit Unions Really Have? According to data released as of year-end 2012 and reported by the Credit Union National Association (CUNA), banking institutions assets held $14.45 trillion, versus credit unions which held $1.03 trillion. The average bank is over fourteen times larger than the average credit union, $2.4 billion, compared to $148.8 million in assets.
Other capital re-organizations alternatives involve significant tax liability and considering the present state with Seagate being a public company, tax liability will result in loss of wealth for the shareholders since it involves corporate taxes as well as personal tax liability. The stock of Seagate Inc., is experiencing an adverse value gap such that the market value of the corporation is significantly lower than the asset value. The management have evaluated different options to re-state the stock price to represent the fair value of the group. These includes divestment, discontinue and other capital restructuring strategies resulting in considering an eventual swap with VERITAS Ltd. stock for Network and Storage Management Group. Seagate management have a fiduciary duty to protect the wealth of shareholders and ensure a fair offer tendering hence they have narrowed down to opt for this two-staged LBO transaction.
Memo To: Chip & Charles Carroway, Carroway Clothing Limited (CCL) From: Date: Re: Current accounting issues, employment benefits and financing options. Thank you for the opportunity to address the current accounting issues, employment benefits and financing options facing Carroway Clothing Limited (CCL) 1. SR& ED and Development costs treatment: In reviewing the financial statements it appears that the development costs and SR&ED treatment may not have been recorded appropriately. The SR&ED are tax credits to be used towards taxable income and should not have been recorded as government grants. Since CCL may not have needed them in the initial years, it can use SR&ED tax credits against taxable income
The restatement results from the lack of payments received by certain Chinese customers for shipments already accounted for (Savitz, 2011). Previously, AMSC recognized revenues once customers received shipments not once payment was received. In the case of Chinese customer Sinovel Wind Group, AMSC stated that they should have used the cash-based method of accounting for shipments after September 30, 2010 (Fredette, 2011). This improper recognition of revenue by AMSC will negatively affect previously reported earnings. The adjustments for 2010, 3rd quarter earnings will reduce to $98 million, down from $101.5 million, and 4th quarter will be reduced to $43 million from $114.2 million (Savitz, 2011).
Contents Introduction 2 PART A: 3 Neptune Gourmet business model 3 Strengths and weaknesses of the Neptune business philosophy 3 Opportunities and threats 4 Neptune vision statement 5 PART B 6 Consequences of launching a lower price brand 6 Neptune position in the next two years with only a single premium brand 7 Part C: 9 Radical change from premium products to value priced products 9 Brand extension strategies 10 Recommendations 10 References 12 Introduction Neptune Gourmet Seafood, North America's third-largest seafood producer. It has the intention of maintaining its premium image and is obsessed in investing in new technology in an effort to surpass its competitors from Peru, China and Japan. For that reason, the company has invested in a multi-millions state-of-the-art fishing boats equipped with modern technology of harvesting fish in an environmental friendly way and capable of preserving the catch for days before selling to the consumers. This has increased their market advantage and the company has been able to maintain its premium image. Unfortunately, the technology has resulted to an unpredicted increase in supply of the seafood and consequently their inventory of finished goods has shot up to sixty days supply which is twice the normal levels and close to three times a year ago.
Ocean Carrier’s current fleet met the requirements of the Charterer, Mary Linn, the Vice President of Finance, had to decide whether to commission a new capsize carrier to meet the requirements of the Charterer, and whether this will be profitable in the upcoming years. Market demand conditions also were not clearly predictable due to changes in trade patterns. The daily hire rates are driven by supply and demand. The long-term forecasts of the capesizes of dry bulk industry are linked to the volume of vessel shipments of iron ore and coal. We expect the long-term prospects to grow.
Make two different calculations: a) Assume that Ocean Carriers is a U.S. firm subject to 35% taxation. b) Assume that Ocean Carriers is located in Hong Kong, where owners of Hong Kong registered ships are not required to pay any tax on profits. Comparing the NPV without tax, assuming the Company is located in Hong Kong, to NPV with a 35% tax rate, assuming the Company is based in the US, the project would not cover the cost of capital of 9% if the company has to bear a tax of 35%. Question 3 In no more than five lines, summarise your recommendations to Mary Linn based on your analyses above. It is highly
Is the use of a monthly average price a net advantage or disadvantage to J & L? Using NYMEX contracts will minimize the asset mismatch aspect of basic risk, along with a better liquidity. However, since diesel fuel is not a traded commodity, it cannot be directly hedged and J&L will suffer a certain amount of basis risk. J&L will also need to post a margin for their future contracts at NYMEX. Using product offered by Continental Bank would require a higher cost for J&L, and illiquid compared with NYMEX.