Berkshire Hathaway’s Class A shares noticed a gain of 2.4% in value. This translates to a per-share increase of $2,010 and a market value gain of $2.55 billion on the day of the announcement. Scottish Power plc noticed a share value increase of 6.28% (1). These noticeable gains experienced by both Berkshire Hathaway and Scottish Power plc could have numerous possible meanings/reasons for the change in stock
* Of the $18400 Rhodes made in mortgage payments last year, $8000 was interest. The income statement lists 2008 interest paid as $32000, which means that there are other debts that required payments of $24000. If possible, accelerating payback on these loans can be very beneficial in the long run. * At industry average levels, wages of a similar business would be approximately $79000, or $11000 lower. * Wages, advertising and rent total %23.1 of sales in the average business, leaving %1.9 of sales for property taxes, interest, utilities, depreciation and other expenses.
Introduction to Executive Tools for Decision Making TUI Financial Accounting ACC201 Introduction to Executive Tools for Decision Making APPLE Inc. The total amount of cash available for Apple to pay their current debts is $123.55 billion dollars in favor of assets. I derived this from Apple’s Assets $207 billion and subtracted their liabilities, which was $83.45 billion. I believe that Apple is in good shape due to the total assets the company has received. $207 – 83.45 = 123.55 billion Apple is increasing its investment in operations every year.
According to Trends in College Spending, a study done by the delta cost project, "Enrollment in U.S. postsecondary institutions totaled almost 18.6 million students in the 2008 academic year, a nearly 26 percent increase over the ten-year period beginning in 1998." The increase in demand for a college education has directly influenced college costs. It's simple economics, when demand goes up the price of the product being demanded will increase. The power lies on the side of the universities to determine whether their prices will rise or fall. Schools know that the quickest way to an elightened future is through their doors.
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. b. If the sales outlook for the coming three years were to increase to 30,000,000, the newly implemented system would prove valuable to B.E. Company. If production is kept the same, the company is predicted to sell every unit produced which would avoid a stockpile of inventory and also safeguarding an extra 5,000,000 units in ending inventory in case sales go above 30,000,000.
The net sales also increased from year 14 to year 17 ending at $7,115,112. This showed to be very profitable with trend percentages at 103.7%. A2) There are certain risks a banker might be concerned with. Over the years the advertising expenses have increased from $243,000 to $255,600. The increase in advertising can be helping with increase in net sales which has also increased from 46,520,500 in year 12 to $6,858,600 in year 14.
The company's gross margins went up by 126 basis points, to 29.7%, mainly because of better inventory management and a change in the product mix and selling and administration expenses range in at $274.4 million. Earnings before interest and taxes were up by 89%, to $71.6 million, and EBIT margins were up by a significant 340 basis points, to 6.1%. The company's net income also followed suit and soared by an amazing 146%, to $41.5 million, although it was slightly offset by higher
Looking at the data net sales increased over the five period from $2,097,000.00 to $5,218,007.04 increase $3,121.007. Totaling gross profit went from 816,000.00 to $2,030,469.12 increase of $1,214,469.10. In the above pro forma balance sheet, it has been established that one has assumed that current gross profit has increased in the ratio of gross profits. A reduction in any of the following selling expenses or administration expense will allow the company to retain more of its earnings and profit margin, and therefore will increase its need for external funding. The dividend disbursement rate is 25 percent of earnings, and the balance in retained earnings at the end of 2012 was $1,436,833.09.
The Second Strength: The current year 2014 gross profit is $27,390 which constitutes 34.75% of sales. The steady gross profit percentage is also a strength and further supports the net sales growth. The gross profit itself increased from $25,842 to $27,390 for an increase of 6% over the two periods. This is consistent with the 5.4% net sales growth. Operating expenses further support the strength with a 1.87% decrease from fiscal 2013 to fiscal
In 1992 they reported $761 million in sales, and $29 million in cash or cash equivalents (Spiceland, Sepe, & Nelson, 2013, p. 468). One year later you see that the sales grew 15% for a total of $877 million in sales, and they had $40 million in cash and cash equivalents. Stocks that were valued at $100 in 1988 was now up to $804.00 in 1993 (Spiceland, Sepe, & Nelson, 2013, p. 468). Based off the above numbers alone, it appears that the company was making all the right decisions. They were growing at a intensely fast pace, stock prices were rising, income was increasing and things looked great.