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.
Brandon Wallace Econ 270:03 Principles of Macro-Economics October 3, 2011 Section I: Inflationary Trends 1) 2) 3) Consumer Price Index is the average of consumer goods and services purchased by households. The consumer price index was fairly steady between January of 2010 and January of 2011. However, since January of 2011 consumer price index has steadily risen. It seemed to peak and slightly fall around May of 2011 but has started to rise again by July of 2011. Tables from the Bureau of Labor Statistics website show that the largest increases have been in the food, beverage, and transportation categories.
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.
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.
I would start off small and increase each month. The sooner I start saving, the more time my money will grow. Retirement is so expensive. 2. List two examples of goods you have purchased in the past or may purchase in the future.
The return on equity for 2012 was at -1.81% compared to a 32% return on a wedding in 2011. (http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsAnnual) Amazon had a downward trend on their return which could be an unhealthy position to be in if the trend continues into the year ending December 2013. Amazon did improve day’s receivable on average collection period. In 2012 days receivable was 81.2 days which was a decrease in time compared to 2011 for which day’s receivable was 87 days. As seen on the income statement by accounts receivable and annual credit sales Amazon was able to decrease the amount of days it took to collect on accounts receivable.
Greenspan kept lowering interest rates through 1992 and the changes in GDP from quarter to quarter started to increase in Q2 of 1991. However the impacts to the economy had already taken hold and unemployment was at 7% by 1992. Low consumer confidence levels caused consumer spending to significantly decrease during the recession. The Fed took action by continuing to reduce interest rates. The election of the new democratic administration also increased consumer confidence and eventually consumer spending started to increase over
m. a meeting was held by the FOMC (The Federal Reserve, 2011). Reports say developments in domestic and foreign markets are evident since the last FOMC meeting on June 21-22, 2011 (The Federal Reserve, 2011). An indication proved the recovery of the economy remained slow in recent months (The Federal Reserve, 2011). Labor markets conditions remained weak, and the recent recession was deeper than previously thought according to the Bureau of Economic Analysis (The Federal Reserve, 2011). This was realized by the real gross domestic product and how it did not attain its pre-recession peak by the second quarter of 2011 (The Federal Reserve, 2011).
According to the U.S. Census Bureau, median household income in the United States dropped 2.3% in 2010 after accounting for inflation. Overall, median household income in the United States has declined by a total of 6.8% once you account for inflation since December 2007. Should we be excited that our incomes are going down and that a record number of Americans slipped into poverty last year? Should we be thrilled that the economic pie is shrinking and that our debt levels are exploding? All of those that claimed that the U.S. economy was recovering and that everything were going to be just fine having some explaining to do.
During the intermeeting period the financial markets were able to stay the same. In a statement from the FOMC “Growth in household spending picked up late last year, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software is rising, while investment in nonresidential structures is still weak. Employers remain reluctant to add to payrolls” (Board of Governors Federal Reserve System, 2011).” In November, the committee decides to continue increasing its holdings of securities to promote a stronger pace of economic recovery. They also made this decision to help ensure that inflation is a consistent level with its mandate.