Being that these types of assets are From significant parts of savings, this is a logical argument. 1982 to 1989, the Dow Jones Average went from 884 to 2,509 which drastically increased capital assets’ values. There was an impressive drop in the unemployment rate during Reagan’s administration as well. 17 million new jobs were created and the unemployment rate fell from 9.7% to 5.5% by the time Reagan’s presidential term ended (Niskanen & Moore 1996). The hours worked by working aged adults grew during
During 2004, the situation got worse and the assets had gone down to 48.5%. Lucent’s cash and cash equivalents went down from 24% of their entire assets in 2003 to almost 20% in 2004. Lucent’s inventories, however, came up from 4.0% in 2003 to 4.8% in 2004, this is about a 20 percent increase in the total inventory. Lucent Technologies had a quite significant drop of their debt structure between the years of 2003 and 2004. While the current liability dropped from 25.6% in 2003 to 24.3% in 2004, it is apparent that this company has allocated for this as a long-term debt since it rose from 23% of total liabilities in 2003 to 26.4% in 2004.
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.
Regarding operating gains and losses, in 2005 Tiffany realized gains of 33.8 million versus 150.7 million in losses in 2004. However, more importantly, Tiffany & Co. decreased inventories in fiscal 2005 from 175.4 million to 43.6 million. This significant reduction in inventory expense within its cash flow operations aided in Tiffany’s substantial increase in cash reserves for fiscal 2005. Increased Inventories and Operating Losses in 2006 In comparison, Tiffany’s net cash reserves in 2006 decreased to 176.5 million from 393.6 in the prior year. The company’s net cash from operations also decreased from 262.69 million to 233.58 million in 2005, a difference of 29.1 million.
In 2011 the current ratio was 1.86. By 2012, it decreased to 1.77 rating in the lower second quartile group in the industry. That said, Company G’s ability to repay its debt is consistent with showing a weakness from year to year based on the industry’s quartiles of 3.1 with a strong ability to cover liabilities 2.1 at the median to 1.4 stating a weakness. As such, this is an area of concern. 2.
The author of this article, Jeannine Aversa, is stating that key economic indicators point to the likelihood of a recession. Aversa supports her thoughts by noting the real GDP; “crawled at a 1.3 percent pace in the opening quarter of 2007…even weaker than the sluggish 2.5 percent rate in the closing quarter of last year.” The author suggests the main cause of the economic slowdown is due to “the housing slump.” Consumer expenditures are driving the economy, but Aversa worries about a “fallout from risky mortgages and rising energy prices.” Uncertainty of the Feds actions concerning the interest rates is leading to lower investment spending. The author also states that the Feds decision on raising or lowering the interest is due to the
The first concern is the projected units that will be sold and the amount of revenue in year 9. The company’s sales budget indicates that 3,510 units will be sold in year 9, generating $5.25M in revenue, which is an increase of 3.2% over year 8. While the forecasted units of 3,510 in year 9 seem in line with the 3,400 units sold in year 8, it is in sharp contrast with the trend over the past 2 years. In reviewing the horizontal analysis data, revenue increased by 33.3% between years 6 and 7 then dropped by 15% between years 7 and 8 due to the decline in economic conditions. The weaker economy resulted in sponsorship cutbacks for professional riders.
This problem has been coming on for some time. From the 1960s to about 1980s workers in finance made little more than those in the rest of the private sector, on average as it should be. Then, things changed: from the ’80s on, administrations embraced deregulation, undoing many of the rules put in place in the wake of the Great Depression to limit banks’ riskiest, and most lucrative, investments. Gone were the limits on interstate banking; down came the wall separating commercial and investment banks. From 1979 to 2006, the financial industry’s share in the nation’s corporate profits grew from a fifth to almost a third.
The unemployment rate consists of the labour force and number of people actively seeking work whom are unemployed within the labour force. The unemployment rate is calculated by :The number of employed x100 / Labour force. Between 1970 and 1983 there was a rise in this rate that peaked around 10%; this rise could have been attributed due to weak economic conditions that did not produce enough jobs for the supply of labour. From 1992 to 2007, Australia saw a gradual decline in the unemployment rate most likely due to prosperous economic conditions facilitating strong jobs growth. 2) Based on reading the chapter and our lecture discussions, you should be able to identify an “error” in Figure 11.2 (page 247).
In the U.S. Bureau of Labor Statistics, from February 2008 to November 2009 the unemployment rate went from a low 4.9% to a high 9.9%. As of November 2012, the unemployment rate went down to 7.7%, which are about 12.2 million individuals. The unemployment rate is still high compared to previous years even with the 2.2% decrease in unemployment. Many Americans have become unemployed during the past few years. When people are unemployed it means that they have less money which in returns means that there is a less of a demand in the economy.