1. 2011 2012 ROCE = 30% ROCE = 34.58% Gearing = 32% Gearing = 28.2 % Asset turnover = 4.83 Asset turnover = 2 .38 Appendix A gave me a overall view of superstyles profitability and asset turnover. In 2012 superstyle has increased its return on capital employed by nearly 5 %. This is an advantage for the business, as it states that the business gets more money back from their money invested in 2012. Not only the ROCE has improved, the gearing ratio has decreased by 4%.
A couple of points to look at include the fact that utility expense increased 11% year over year. Considering the fact that production, sales and selling expenses were down this could indicate inefficiency in the company. The company also significantly cut back in research and development. In the previous period this was one of the fastest growing expenses. This may have been for any number of reasons, however if this was cut simply to conserve cash it could result in slower growth in the long term.
Western Governors University JET 2 Task #2 May 11, 2014 A1: Budget Planning Areas of Concern Sales Budget: 1. Competition Bikes, Inc., has budgeted a conservative increase in sales in units. In 2008, they sold 3,400 units and in 2009 they are budgeted for 3,510 units to be sold, a modest 3% increase. In addition, they have kept their price per unit the same at $1,495, with overall expenses increasing 5%. This is a concern, if it is costing more to manufacture the bikes, then the price of the bike should increase and the company should also consider a more aggressive “sales in units” budget.
Clarkson Lumber’s Company Case Analysis GROUP A: ANA GABRIELA SOTILLO JOHNSON FABIAN FREIHERR VON ROSEN IMRE IGNACIO SZAPARY GIL-CASARES RAYAN SEIF STEFAN RADISAVLJEVIC VERENA RIEDHART YANIS ALEM IE business School Section 4 September 2014 Question 1. Evaluate Clarkson Lumber’s financial performance. Can you explain why Clarkson borrowed so much of money during 1993-1995 despite its positive profitability? Although, the Income Statement of Clarkson Lumber seems profitable from 1993 to 1995 by generating positive net income of 60k and 77k respectively. Further it increased both sales and net income by 54% and 28% vs. 1993, but the company has a problem of a liquidity and a shortage of cash.
Operating income moved along the same path for the period albeit at a lower rate. The company’s invest ment in its self-insurance fund and interest income contributed significantly to the difference between operating income and net income. Revenue fell off by 12% in 2009 however; it increased by 22% in 2010. The company was able to increase it domestic and commercial rate after an application was made to the Fair Trading Commission. Fuel expenses grew at a faster rate than sales, fuel costs although seeing a fall off in 2009 by 20.52% rose by 29% in 2010.
1-6 Ending retained earnings $278,000. 1-8 (b) Net income $34,154. 1-9 Common stock $30,000; Cost of goods sold $55,000. 1-10 (b) Ending retained earnings $24,000; total assets $125,000. 1-11 (b) Net income $1,005.1.
Solving for FV you obtain $2.59. This formulation recognizes the “interest on interest” phenomenon. 8-4 For the same stated rate, daily compounding is best. You would earn more “interest on interest.” 8-5 False. One can find the present value of an embedded annuity and add this PV to the PVs of the other individual cash flows to determine the present value of the cash flow stream.
The 2012 net income of $44.88B reported showed a 9.30% growth of $3.82B compared to the $41.06B in net income reported in 2011 (ExxonMobil Corporation, 2013). While the amount of growth is substantial when standing alone, it was modest when comparing the 2010 and 2011 reporting periods. That time frame saw a 34.80% growth which equaled $10.60B (ExxonMobil Corporation, 2012). When considering ExxonMobil’s cash flow, one finds that cash flow for 2012 was a negative $3.08B. The company’s cash and cash equivalents started the year with $12.66B and ended with $9.58B, a 24.83% drop during the year.
Does this source appear on the financial statements? 1. Looking at the historical income statements, we can see that income from operations is down, interest expense is up, interest income is down income before taxes is low. If you are anticipating a business to grow, these things should be growing, rather than declining as they are on the income statements. When looking at earnings per share, we can see that between May 2003 and August 2004 they issued more shares, probably because of their expansion.
Budgeting, forecasting, and diversifying are the main common measures companies take to increase market shares. The Profit and Loss Statement shown on the Excel Workbook of XYZ Company Inc. by the end provides total accounting for the loss. It has been designed based and considering all selling and purchasing activity that has happened in each particular year for XYZ. Generally the Financial Department should be responsible of accounting the loss and profit of the company for each fiscal year. By increasing the sales by the percentage demonstrated in the workbook, you can see how much this influences the numbers for the next five years.