Key Financial Data Points. One of the main components to show a firm’s strength and ability to repay debt is profitability, or how much income is left after all expenses are paid. This analysis will examine in some detail various financial results during years 12, 13 and 14 of Custom Snowboards operations
In addition, this report includes the recent history of the company and a recommendation on how to proceed with the expansion plans, which will be presented to the company’s CEO and the board of directors. A1. Key Points: There are several key points that could impact the bank officer’s decision in regards to extending a long-term loan to Custom Snowboards. The following summary will evaluate the company’s financial health, along with its ability to obtain resources and grow by utilizing several analytical techniques: horizontal analysis, vertical analysis, and trend analysis. Income Statement Horizontal Analysis: Revenue: Custom Snowboards was able to increase net sales between years 12 and 13 by 3.21% or $209,300.
Costco is doing great job in making sure that revenues constantly grow as shown below while maintaining a proportional amount of expenses to keep the profits the same or a little high from the previous year. Keeping these numbers high during a recessionary period is a very impressive feat by the management of Costco. One number to point out is that 2009 was a down year for Costco, all of the above ratios were lower than in 2008, but they bounced back in 2010 and in 2011. The 2009 year is merely an Outlier in Costco’s financial analysis because of the recession which was at a high in 2009. As the economy bounced back, so did Costco and its bottom line.
2.0 points) I would like a quarterly compounding because my interest can pile up every 3 months. My interest can also help me if I own an account. I can also get money faster with quarterly compound. 5. Which strategy for saving do you think would work best for you?
If the liquor industry were less regulated, more startups would occur. Applying Porter’s Diamond Model, a larger amount of businesses could stimulate firm rivalry and its related industries due to the framework government has implemented leading to national advantage. According to the LCBO website, the LCBO created a paltry 7 new stores in the province last year. Under privatization, the number of startups would likely increase leading to more opportunities for businesses and investment. This means a larger Ontario GDP and multiplier
The shareowner’s deficit has decreased over the year substantially. This is very good news for shareholders because they do not want to be in a deficit but in a surplus so that they can being receiving dividend payouts. Concerns that investors and creditors may have just by looking at this statement are that it only shows one year of information. They may require more information to see a real trend over a period of time. Although from 2003 to 2004 was a positive year, before that there could have been negative trends.
One must determine the income of the firm to know if it has been profitable. In the case of the Target Corporation, the net income for the year was $2,999,000,000 (United States Securities and Exchange Commission, 2013). From this number, one could surmise that the target corporation had a successful year, as they earned nearly $3 billion. To determine the assets and liabilities of the Target Corporation, one must simply examine the balance sheet the company has provided in their 10k report. The balance sheet provided lists the Target Corporation’s assets as: cash, credit card receivables, inventory, land, buildings, fixtures and equipment, computer hardware and software, and construction in progress (United States Securities and Exchange Commission, 2013).
The pro forma financial statements are based on the current business that my father owns, supply costs and other companies’ information, although most of this information on the pro forma statements will come from the expected growth of the industry within the following three years. According to IBISWorld.com, the landscaping industry is on its way up and within the next three years, revenue growth is expected to climb anywhere from 5.8% - 8.5%. As an up and coming industry, I believe that as a company we can increase our sales by at least 20% every year through effective marketing and advertisements. 341647.5 11.3 Pro Forma Income Statements Income Statement | | | | | Dec 14 | Dec 15 | Dec 16 | Net Sales | 194,700 | 295,500 | 324,000 | Cost of Sales | 145,494 | 228,480 | 268,800 | Gross Profit | 49,206 | 67,020 | 55,200 | Operating expenses | | | | General | 2,819 | 6,000 | 10,000 | Depreciation | 2,000 | 2,000 | 2,000 | Operating Income | 44,387 | 59,020 | 43,200 | Other Income | 0 | 0 | 0 | Interest Income | 0 | 0 | 0 | Interest Expense | 900 | 900 | 900 | Other Income expenses | 0 | 0 | 0 | Income before taxes | 43,487 | 58,120 | 42,300
Economists have also confirmed that these increases in the growth of the senior population will approximately account for fifty percent of Canadian population growth for the next 3 decades (Canada’s Aging Population). In 2001 “over 430,000 Canadians were 85 years or older” (Canada’s Aging Population Pg.9). The figure named above is expected to more then triple in less then three decades. Through these figures one can see that Canada in the future will be having a very large population consisting of senior people, which can as we will see later on, be bad for
Its three immediate goals include: creating new jobs and saving existing ones, spurring economic activity and investing in long-term growth, and fostering unprecedented levels of accountability and transparency in government spending. The Recovery Act intends to achieve those goals by the following: providing $288 billion in tax cuts and benefits for millions of working families and businesses, increasing federal funds for education and health care as well as entitlement programs (such as extending unemployment benefits) by $224 billion, making $275 billion available for federal contracts, grants and loans, and requiring recipients of Recovery funds to report quarterly on how they are using the money. The rationale for this stimulus comes out of the Keynesian economic tradition that argues that government budget deficits should be used to cover the output gap created by the drop in consumer spending during a recession. While offering financial aid directly to local school districts, expanding the Child Tax Credit, and underwriting a process to computerize health records so that medical errors can be reduced with health care costs being saved, the Recovery Act is targeted at infrastructure development and enhancement. For instance, investment in the domestic renewable energy industry and the weatherizing of 75 percent of federal buildings along with more than one million private homes around the country is planned.