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.
(10 points) |Score | | | 2. An online store that has been successfully growing on its initial angel investment and revenues wants to invest $5 million to expand the business. The bank is willing to lend the business this money at a 10 percent interest rate over an eight-year term. Calculate the monthly payment, and explain what the business must be able to do with this money in order for this to be a smart business decision. The monthly payment would be $53,084.34.
Following the MBO the company moved away from the household paints market and towards the niche market of specialised paints as there is less competition and profit margins are higher. The shareholding of the company is as follows:Managing Director 25% shareholdingFinance Director 25% shareholdingSales Director 20% shareholdingProduction Director 15% shareholdingHRM Director 15% shareholdingThe Sales and Production directors have indicated that they would like to sell their shares and retire. In July 2 possible replacements were found who are thought to have the necessary skills.Chic Paints Ltd turnover is currently £120 million having steadily reduced from £200 million over the 6 years but profit margins are around 30% having risen in the same timeframe from 12%. Net assets are over £25 million and the company employs 350 staff.Who are the businesses major stakeholders (internal and external) and why?Stakeholders of the business would include internal and external parties who have an interest in the business.The major stakeholders of Chic Paints Ltd would include the following:• Shareholders - Would
He negotiated a new lease on the warehouse with his landlord; the lease has a term of 5 years with two options to renew each for an additional 5 years. The lease period commenced on March 14, 2013. Cost of the leasehold improvements was $88,000. The cost of leasehold improvements is included in class 13. The capital cost is amortized over the initial lease term plus the first option period under Schedule III.
How are your suggestion linked to improve customer satisfaction? In business literature, Delta had a primary capability on human relations by paying competitive wages, treating personnel equitably as it grew, and adopting a “no-layoff policy”. Things changed in the 1990’s for Delta though. Key business trends altered the competitive advantage, and the human resource strategy had to change too. After two straight years of financial losses in 1994, CEO Ron Allen rolled out a new strategy called “Leadership 7.5.” Allen targeted to reduce Delta’s cost per each available seat mile from more than 10 cents to 7.5 cents, which would match that of major competitor Southwest Airlines (Bryant, 1997).
Then, Yannis Costas joined Blue Ridge in 1984, and one year later they signed a JV agreement with Terralumen S.A.. The JV model achieved success and growth through the years, especially during the period of time from 1995 – 1998. Costas played an integral role in driving the JV model’s success, but in January of 2000 he was asked by Sodergran, a Vice President in the role for less than one year with Delta, to dissolve the JV with Terralumen in Spain in two weeks time. After 16 years of perceived success with the JV in Spain, Costas was left in a challenging position. ANALYSIS The “Blue Ridge Spain” case study introduces several individuals and organizations.
Calexico Hospital plans to invest $1.6 million in a new MRI machine. The MRI will be depreciated its 5-year economic life to a $200,000 salvage value. Additional revenues attributed to the new MRI will be in the amount of $1.5 million per year for 5 years. Additional operating expenses, excluding depreciation expense, will amount to $1 million per year for 5 years. Over the life of the machine, net working capital will increase by $30,000 over the life of the project.
Executive Summary The USG Company was formed through consolidation of 35 gypsum companies in 1901. USG had a diverse group of building materials for residential construction, nonresidential construction, building repair and remodeling, and industrial processes. USG divided its operations into four divisions: gypsum, interior systems, wood fiber and other products. Since 1986, the building products industry had become a hotbed for takeover activity, and USG was not immune to this. Therefore, USG’s board decided to proceed with a leveraged recapitalization on May 2, 1988.
Stalin’s five year plans set goals for farms and factories. These objectives would help agriculture and industries catch up to their neighbors. They overall were a success because industry picked up five point eight times more than when started (Five year plans had a down side to them because they set unrealistic goals for farmers, this killed many people ( Doc.8). If you didn’t meet quota the farm leader would get shot and the quota would increase again, this created a mass killing cycle and killed thousands. However collectivized farms were an overall success because of higher grain numbers and
III. The new immigration reform is said to going to cost approximately $5.3 trillion dollars. A. It is said that the bill will increase GDP $1.5 trillion dollars in 10 years, and Increase personal income and raise an additional $4.5-$5.5 billion dollars in Tax revenue in the first 3 years of implementation of the new bill. B.