The customers feel good. They spend more because they have jobs and sable income. More money is collected by the government from income taxes and VAT. The last, factor the prices tend to increase because of high demand so the inflation is rising. Recession- The recession is an opposite of boom stage.
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.
Even though the acid-test ratio is less than 1 which rates in the lower third quartile in the industry of 1.6, 0.9 to 0.6, it indicates a concern with repaying current liabilities. This could be due to quick expansion of inventory with the intention of increasing sales. While this is currently considered a weakness and is concerning, a rise in the ratio should be seen by 2013 due to the increase of suggested sales. 3. I calculated an “inventory turnover ratio” which measures the number of times a company sells its inventory during a year.
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. Lucent Technologies equity structure enhanced from a shortage representing a negative in their total liabilities and shareholder’s equity in the year of 2003 when it is compared to the year of 2004. Their equity position would be considered a deficit, but becomes less of an issue as the years pass. Lucent Technologies Case P.3 3. What concerns would investors and creditors have based on only this information?
In the years 1890-1914 in America, big businesses had a great impact on the growth of the economy. By the 1890 America was a booming economy due to the Steam Revolution of the 1830’s to the 1850’s, and the railroads supporting the growing US economy. Other factors are a huge number of unskilled and semi- skilled labour, talented entrepreneurs and the government willing to aid at all levels to stimulate economic growth. There are many factors suggesting that it was due to the rise of big businesses. One of them being that big businesses dominated the American economy, due to the chance of vertical integration.
There is a noticeable reduction in the receivables line and increase in cash. This indicates that the company is not extending as many dollars of purchases on credit or that the turnover for payment is faster from the customers. The total liability has increased but is a less of a percent total than in 1996. The largest increase in liabilities is in long-term debt. This debt would be long-terms loans that Coke has taken for operating and expansion expenses.
SciTronics had a total of $ 102,000 (75,000 + 27,000) of capital at year-end 2008 and earned before interest but after taxes (EBIAT) $ 16,120 (avg. tax rate = 38%) during 2008. Its return on capital was 15.8% in 2008 which represented an increase from the 8.7% earned in 2005. 4. SciTronics had $ 75,000 of owners’ equity and earned $ 14,000 after taxes in 2008.
Introduction of generics in 1981 by Liggett (1) Generics have increased in market share a. due to recession most significant increase was 1991-1992 c. RJR, Morris’s major competitor, began making house brand generics (1) Sold for up to a dollar cheaper than name brands a. Cheaper tobacco used b. Less advertising fees (2) RJR largest market share in generics (3) Cut prices due to competition from American Tobacco and Brown & Williamson 2. Possible Solutions: Solution A: Maintain the current pricing and utilize coupons to reduce the cost by forty (40) cents per pack. (1) Coupons could be placed inside of the cigarette package redeemable for the next pack purchased.
Due to the fact that Asian and other foreign textile manufacturers have been exported aggressively and consumer preferences are requiring higher-quality products with minimum defects, like other firms, Aurora tends to produce small amount of yarns produced with minimal period and provide to customized markets. Consequently, Aurora had decreased significantly its costs by reducing $3.9 million of SG&A expenses since 2000 and it was one reason of increasing operating profit and net earnings in 2002. Unfortunately, Aurora’s returned amount from retailers had been increased and the proportion of sales return of Aurora’s one plant named the Hunter reached 1.5% in 2002; thus, the firm’s income has not risen well. Figure 1 illustrates Aurora’s financial ratios by calculating given financial information through Exhibits 1, 2, and 6. The first, the company’s liquidity ratios-current ratio and quick ratio-had been increased smoothly for these four years.
This is shown by how there GDP is high, and the very large population. Productivity in China has also significantly increased in the last few decades. There are many different natural resources that can be found on China for example: coal, iron ore, petroleum, natural gas, mercury, tin, tungsten, antimony, manganese, molybdenum, vanadium, magnetite, aluminium, lead, zinc, uranium, hydropower potential (world's largest). China can make huge amounts of money by selling its natural resources to other countries where they may not be able to extract these resources from their own country. In 2006, out of all the consumer electrics in the world, 80% was exported from China.