They gave a good estimate of how my decisions would affect business performance for the upcoming quarter. I was able to look at the pro-forma statements and make adjustments in my decisions before moving into the next quarter. For example, in quarter 2, I had decided to not add another sales site due to not having enough cash on hand. After looking over the pro-forma statements, I realized that I would have enough money to add another location for the next quarter and still have more than $300,000 cash left over at the end of the quarter. Operating efficiency was improved using just-in-time and lean operations techniques.
The first way to improve working capital is to make the excess liquid funds work for the company. These funds should be invested back into the company. This can be accomplished by reducing long-term liabilities with high interest rates such as the mortgages on facilities. The second is to manage the inventory held by the company. Currently Competition Bikes purchases inventory for production the month before it goes to the production line.
Improving Working Capital There are several ways a company can improve its working capital. A major way to improve Competition Bikes’ working capital is to increase its finished goods inventory. For example, the company is currently showing zero finished goods on the balance sheet for all three years. By finishing product, the current assets would be increased, and therefore the working capital would be increased. Another way to improve the company’s working capital is by reducing costly expenses.
If the sales outlook for the coming three years was only 20,000,000 and B.E. continued producing at the rate of 30,000,000 units, a total of 10,000,000 units would be dumped into ending inventory at the end of each year once again reducing costs of goods sold and falsely increasing income. By the end of year 2013, B.E. Company would have 35,000,000 units sitting in ending inventory taking up space and costing money to store. Once again if the president’s bonus is based off of net income, this situation is the most favorable for a high paying bonus and encourages stockpiling inventory to inflate net income.
Macy’s decreased its purchase of inventory and property and equipment and decrease disposition of property and equipment year by year. The cash flow changes of property and equipment are difficult to evaluate because the company opens and closes several stores each year. The cash used to capitalized software increased each year, which maybe a good investment because it could help the company generate more website sells. In 2006, Macy’s got $1,887 million from proceeds from the disposition of After Hours Formalwear and Lord & Taylor, which caused a cash inflow from
These salaries seem very competitive compared to their Competitor Wal-Mart who pays their employees 3% under Market average. (payscale.com) Along with base pay, Target employees are also eligible for Merit pay which is assessed every year through an employee overview, if the employee has proven themselves over the year then they can get a raise, if not they miss out on the opportunity. This is a great system it ties Merit pay and Seniority pay together. Every year you are eligible but you must prove yourself to receive the pay. Other pay increases that are available are through promotions and bonuses and they vary from year to year and on employee’s
KU Med doesn’t utilize hiring bonuses, due to the fact that experienced individuals who are in high demand are paid much more upon being hired. This is because of the 5% increases in the yearly salaries offered for 2 years of experience. This essentially means that an individual with eight years of experience will start with a 20% increase in their first year starting salary over an individual with no experience. Have you ever thought of changing the pay systems? I haven’t considered changing the system all together.
PSD offers competitive pay and that allows its employees to get an annual pay raise for the first three years based on their advancement in steps. They do not offer overtime pay. Most employees start out at the same step level and should get an annual pay increase. With the government imposing a two year federal freeze many federal employees are losing a lot of benefits and seeking employment elsewhere. The freeze will only apply
This suggest that for every $1 that the company earns in Sales, they paid 23.1 cents for their employee. The fact that Country Road has decreased the percentage means that they became more efficient in paying their employee over the years. (c) Judging from the Vertical Analysis, Country Road might have been opening new stores , thus increasing Occupancy Expense. By doing this they have to save more money, cutting cost which led to decrease in Employment Expense, cutting their employee’s wages. ??
At first glance I was appalled at this, thinking of the hundreds of thousands of Americans that would be put out of work. But he later goes on to explain that within the next ten years or so somewhere around forty-two percent of these bureaucrats will retire. But even so, Giuliani wants to replace only half of those jobs creating a more streamlined and smarter government. Where I feel the greatest economic impact will be felt in this plan is the privatization of the excess jobs. Although; the cut in governmental jobs would give taxpayers a relief thus cutting governmental non-defense spending, the jobs and business investment created by the privatization will be a much larger gain for our