Discuss the key components of the financial statements. Trend Analysis: What is a trend analysis? What information does a trend analysis provide? What does the trend analysis tell you about Competition Bikes? Think about the company’s past performance.
Additional investment were made in four key areas; Advertising, Research and Development, Administrative Salaries, and Executive Compensation. The decision to invest in these areas, proved to be very profitable for the Competition, the percentage increase in Advertising and in R&D resulted in an equal percentage increase in gross profit. Increasing compensation for employees was a strong move for the company, decisions such as these motivate worker to perform more efficiently and productively. It is apparent by the 33.3 % increase in net sales a total of $1,495,000.00 that employees were more productive, and as a result more units were sold. Due to the increase in units sold, various other expensive natural increased, such as sales commissions, distribution network support, and transportation expenses.
Department stores have already begun to sell active- wear at double the turnover rate that Harrington collection has been turning over. It can take this opportunity to boost its sales by following the active-wear trend. The 2009 total projected number of active-wear units is expected to be 15 million units. Of these units, 6 million are expected to come from the relevant market of the “better” classification of active-wear
Due to an increase in labor rates, the company estimates that variable costs will increase by $3 per skateboard next year. If this change takes place and the selling price per skateboard remains constant at $37.50, what will be the new CM ratio and the new break-even point in skateboards? * 3. Refer to the data in (2) above. If the expected change in variable costs takes place, how many skateboards will have to be sold next year to earn the same net operating income, $120,000, as last year?
Examining year 7 and year 8, higher accounts receivables is seen $717,600 for year 7 from $271,503 in year 6, and $609,960. This could indicate that Competition Bikes is having trouble getting customers to pay their invoices. Some ways to improve the accounts receivable, are to improve the process of collecting receivables. This starts with a detailed invoicing system that tracks what is owed to Competition Bikes. Know the customer by examining; do they have the ability or credit to pay and do they pay by check, credit card, or electronically.
After a slight decline to 15% in 2011, the Gearing ratio appeared to rise noticeably for the following years. It arrived at 60% in 2014. This reflects that Morrison has been aggressive in financing its growth with debt since 2011. Compared with Sainsbury’s capital gearing which remained stably within the range between 30% and 40%, Morrison had large changes in it its capital structure as the proportion of debt finance used by Morrison has increased substantially. Source of debt finance Year | 2010 | 2011 | 2012 | 2013 | 2014 | Total bonds (£m) | 220 | - | 1,057 | 1,455 | 1,959 | Total loans (£m) | 598 | 621 | 164
ACC111 - Accounting Principles I Allissia Henz 8/18/2013 TARGET CORPORATION FINANCIAL ANALYSIS AND INTERPRETATION Financial analysis refers to a process individuals use to appraise the financial condition of a given firm or organization. Usually this can be done by the firm itself internal financial analysis to help it allocate resources wisely or externally by other individuals such as future shareholders, creditors, unions, competitors among others to gain a general overview of a firm’s financial condition. Among the financial ratios that are useful include liquidity, working capital current ratio among others. In this task I will calculate the working capital, turnover ratio and current ratios for Target Corporation for the years 2004 through 2006. From 2004-2006: Working Capital=Current Assets – Current Liabilities For 2006: Working capital = $14,405.
As the economy bounced back, so did Costco and its bottom line. The charts below show Costco’s consistent increase in all ratios and revenues over the past four years. Selected Income Statement Data(In Millions) | 2011 | 2010 | 2009 | 2008 | Total Revenue | 88,915 | 77,946 | 71,422 | 72,483 | Operating Income | 2,439 | 2,077 | 1,777 | 1,969 | Net Income | 1,462 | 1,303 | 1,086 | 1,283 | Diluted Net Income per Share | 3.30 | 2.92 | 2.47 | 2.89 | First thing I want to point out is the Diluted EPS (Net income per share), as you can see, the Diluted EPS follows suit of the other 3 ratios. I included Diluted EPS because it is a better indication than EPS because it shows what their EPS would be if all employee’s turned in their stock
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
In this case the return on investment on $1 is $17.26 ($2078.57/$120.36). An additional client would bring about a revenue increase of $2078.5 and assuming profit of about 4.5 %, assuming an increase to 308 clients per planner Cost to the company: $72,962,232 Revenue generated in 1987 would be: $3,880,889,733 If only this alternative and increasing the sales force were to be used, an additional expenditure of about 72 million is to be undertaken, this is quite a formidable investment Number of sales per planner: According to exhibit 5 average accounts per