negative 2500 $.The company needs to raise about 40,000 $ as the ending cash balance for the month of July is negative 40,000 $. The Company can get a short term loan for 40,000 $ which can be repaid in October. 2. Even though the Company started with a Capital of 250,000 $ it still ends up with a zero bank balance. This is because the increase in the collections of Accounts Receivable from customers is not sufficient to recover the total disbursements (variable production cost and the fixed cost).
The firms stock has declined $2 per share over the last nine months but the firms profits have been rising. Shareholders normally receive what is called cash dividends and from the text the firm has never paid a dividend in 20 years. From what is written in the first paragraph, shareholders wealth is reducing during this time, and this shows that there is an agency problem. With the management team their actions show that pollution controls will show a profit maximization try, which means the managers are trying to maximize his or her salary, instead of the attempt to maximize shareholders wealth, the stock price. Evaluate the firms approach to pollution control.
Audi's global sales rose 8.3% to 1.58 million vehicles in 2013 however despite the increase in revenue, the net profit fell 7.7% ($5.57billion) and the operating profit margin fell to 10.1% from 11% the previous year. Based on this one could assume Audi is experiencing diseconomy of scale. But when you dig deeper into their situation the reasons for a lower net profit is not because of a “per-unit” cost of production which would truly mean they are operating as a diseconomies of scale. The true reasons appear to be because of their expansion investments. As per the article Audi “warned that profit would be hit by investment in new models and tougher climate regulation”.
With a growing market in non disposable razors and refill cartridges, Clean Edge would have a good chance of capturing some of that growth. Non Disposable razors increased 19% from 2005 to 2006, but by 2007 they decreased almost 13% from $212 million in 2006 to $188 million in sales. This could be due to the financial crisis that
2010) is provided below. 1167872 4 Despite the leading position and the good business results, SWOT shows several sources of potential risks for UST. The company is losing market share against new price-value competitors because of slow innovation and late product introduction and extensions. Historically, UST relied on his leading market position boosting earnings with annual prices increases. But in the meanwhile smaller competitors started to quickly erode market share with prices cut.
Historically, December sales represented only 3% of yearly sales, but this year they mushroomed to over 25% of yearly sales. CCL would like to defer the profit on what they consider to be "excess" sales generated as the result of the looming price increase. CCL believes that 2001 sales will be lower because of the bottlers' overstocking to beat the January price increase. Management of CCL is convinced that bottlers are overstocking due to the frank and open discussions that they have had with the bottlers. If deferring this revenue will not be acceptable to the company's auditors, management would prefer to treat these "excess" sales as consignment sales, with the recognition of revenue taking place in 2001 or when the bottler eventually sells this product.
PPG anticipated its full-year share repurchases to be at the high end of what they had originally projected. They also reported earnings per share from continuing operations to be $1.52, which included previously announced charges from restricting and nonrecurring costs. (About PPG, 2013) The health of the economy is critical for the company because its products are not primary products; so during a recession, people will choose to purchase items of more importance than maintenance products. This explains the big decline in revenues for 2012; this equates to a 14% drop compared to the previous year. Also, it can be seen the earnings per share were down by 12% and the return on average capital was down by 10%.
That time, the company lost revenue around $2,144,000 per year. In December 2009, the company began to charge fee after sales, 1.5% of sale price and no higher than $5. After 3 months, the company could recover from loss and get the profit. Although eBay’s new CEO encourages entrepreneurship, we suggest eBay continue joint venture instead of acquisition in Taiwan because of two reasons. First, the e-commerce market in Taiwan is mature with many competitors.
He noted that increased sales year upon year had been generated. However, the growing profits generated since 2003, after eight years of negative income, has fallen in 2005. This led some investors to question whether Amazon was perhaps chasing unprofitable growth(Stockport: 629). Some one may wonder that whether the companies choice of strategies is applicable or not? What are they going to do in the future?
* A business should focus on increasing strategic advantages. Back then, the main goal of a business was to make a good profit, but today in addition to making a profit, companies pay more attention on ‘time to market’. Project management helps in shortening the product life cycle which makes it an important force of modern business. A product life cycle of 10 to 15 years those days has been compressed to a life cycle of 1 to 3 years. It is said that a delay of 6 months in a project can cause a loss of 33% in product revenue share.