“ Complexity of the Business Environment. The increasing complexity of business operations magnifies the difficulty of distilling economic events into summarized reports.” (Weygandt, 2007) 2. “Necessity for Timely Information. Today, more than ever before, users are demanding information that is current and predictive.” (Weygandt, 2007) 3. “Accounting as a Control and Monitoring Device.
We need to begin today, by making spending cuts ACROSS THE BOARD. These cuts must be enacted sensitively, however, in order to keep the economy stable as we move toward a balanced budget. The need for spending cuts across the board cannot be understated. For just one example of how imbalanced our policies are, notice how 63% of all entitlements go
WESTERN GOVERNORS UNIVERSITY Financial Analysis RJET Task 1 Executive Summary An extremely crucial element to any business entity is the financial analysis process. So what exactly is financial analysis? The actual definition is The assessment of the (1) effectiveness with which funds (investment and debt) are employed in a firm, (2) efficiency and profitability of its operations, and (3) value and safety of debtors' claims against the firm's assets. It employs techniques such as 'funds flow analysis' and financial ratios to understand the problems and opportunities inherent in an investment or financing decision. (WebFinance, Inc, 2013) Simplified it is the process of evaluating the current business, let’s say their effectiveness, and their future in their industry.
Tootsie Roll Industries Inc. Loan Package In the current corporate arena, the steady decline of business has been evident with company closures, loss of jobs, and foreclosures on properties. For a business to survive in such a harsh environment, a sound business plan is necessary along with knowledge of the marketplace and the needs of consumers (The U.S. Small Business Administration, 2012). A company also needs to review operations to ensure its processes are efficient and cost effective. As a business expands and ages, it requires updating equipment that integrates advanced technology. The proposed plan for financing new equipment and technology will reduce costs, increase product gross margins, and maximize opportunities for dividends.
The interest charged on the multimillion dollar loan clearly will have a significant impact on the company’s financial reports. Thus, the Financial Accounting Standards Board (FASB) established SFAS No. 34, “Capitalization of Interest Costs,” to provide guidance on how to record this type of interest properly. Basically, this standard explains that the interest on the loan for building your new facility can be capitalized, as part of the costs of the facility because it meets their two criteria, (1) it is not yet ready for use, and (2) it is currently under construction (p.
The company needs to identify what is the contributing factor in loss sales and revenue. Internal and External surveys should be done to identify the contributing factor for loss sales and revenue and the key will be to pay attention to details to locate the trouble indicators. Once the company has identified their strength and weakness they will need to identify opportunity for sales and revenue increase for the future. Some of the key questions to identify areas of opportunity are; what are the trends patterns of the customer, what changes in technology will affect this market, what affect the economy
There are several economic considerations that must be evaluated and addressed prior to expanding into Kava. Nik’s team must properly analyze each issue and provide alternatives as well as propose contingencies in case an alternative fails or is no longer feasible. Some of the issues that will need to be considered include; * Economic growth opportunities * Current and future interest rates * Exchange rates * Inflation, market and trade cycles Due to the nature of the organization, developing a solid plan for addressing each economic factor associated with bank expansion is vital to the survival of the venture and will determine if future branches can be supported. Social Factors Due to the large disparity between the numbers of adults versus the number of children, evaluating the social factors involved with the bank’s expansion and how those factors will affect the bank’s ability to sustain a branch on this island is the most important part of the analysis process. Social factors that will need to be considered include; * Population growth rate * Demographics * Ethnic and religious factors * Advertising and publicity * Age distribution and career emphasis * Attitudes and opinions of the
SOX Reforms Corporate America The Sarbanes-Oxley Act of 2002 (SOX) enacted July 30, 2002 introduced significant changes to financial practice and corporate management regulation. Passed in the wake of numerous scandals SOX is a complex piece of legislation that requires companies to make major changes to bring their organizations into compliance (Bumgardner 2). Many believe this act has not proven worthy and will not change effect in the business world, but I think this act will help businesses and outside investing. The act holds top executives personally responsible for the accuracy and timelines of their company’s financial data — under threat of criminal prosecution. Sox address weaknesses with internal issues, requiring yearly
ECO 509 – Business Conditions Analysis November 2013 Essay Assignment 2 Dr. Michael S. Miller The decision as to the timing of the business cycle can have important implications. Knowing that a recession has been declared could affect household and corporate confidence and expectations. A drop in confidence can lead to further weakness in spending, and thus in the economy. So, let’s consider how the decision is made to establish the two turning points of the business cycle – the peak and the trough. To get an idea of how this process is done, please access the website of the National Bureau of Economic Research, or NBER, and focus on the business cycle material (http://www.nber.org/cycles/main.html).
We are living in fear. The federal government is run by control freaks, and paranoia has become a standard operating procedure. What we have allowed to happen to this nation is absolutely shameful. After 9/11, mortgage-backed securities struck right where hijackers failed, which was at the heart of the U.S's