Discussion Question One Week Two Who uses financial ratio analysis information? How can you determine if an organization is paying its bills? How can you determine if an organization is using too much debt? How can you compare an organization to its competitors? How can organizations with increasing sales run into difficulties?
Details: Your employer, an electrical fixtures supply company has decided to purchase company cars for all of the sales staff. You have been asked to select the line of automobiles that should be purchased. You have decided that on grounds of economy and longevity that it is in the company's best interesting to purchase Volvo's.
The Bret Company's total sales for the year were $4,250,000. It sells on terms of 2/15, net 30. Thirty percent of its customers pay on the fifteenth day; the other 70 percent pay, on average, in 52 days. a) What's the firm's days sales outstanding? b) What's the firm's average amount of receivables?
Professional Sales Consulting, Inc. is a company that specializes in providing training to anexisting sales force and providing sourcing and recruiting services to retain sales and marketing professionals. Please enumerate what a sales consulting firm actually does and the service the firm will be offering.
Would each of the following increase, decrease, or have an indeterminate effect on a firm's breakeven point (unit sales)? a. An increase in the sales price with no change in unit costs. b. An increase in fixed costs accompanied by a decrease in variable costs. c. A new firm decides to use MACRS depreciation for both book and
You are the recently hired sales manager for a photocopier company, Photocopiex. You are responsible for managing 10 representatives across Canada. The product is a low-weight, highly reliable photocopier that is targeted at small ($10-50 M in annual sales) to medium sized businesses ($50-250M). It sells for $5,000. Your current
When revenues increase assets and expenses decrease assets, why are revenues credits and expenses debits and not the other way around? Explain why revenue is credits and expenses are debits with an example.
List the pros and cons for each of these 3 incentive plan Bonuses, Sales incentives, and Standard hour plan. For a supervisor position which of these would be most appropriate? Explain your answer.
Lin Corporation has a single product whose selling price is $120 and whose variable cost is $80 per unit. The company's monthly fixed expense is $50,000. Required: 1. using the equation method, solve for the unit sales that are required to earn a target profit of $10,000. 2. using the contribution margin approach, solve fo
Please help with the following problems. Choose an organization and answer the following questions. 1. What are its major source of revenues (include an explanation of what a revenue is). 2. Name three expenses involved in the operation of the business (discuss why they are matched to revenues). 3. Name three assets (was the
Mansfield Corporation had 2007 sales of $100 million. The balance sheet items that vary directly with sales and the profit margin are as follows: Cash 5% Accounts Receivable 15% Inventory 20% Net Fixed Assets 40% Accounts payable 15% Accruals 10% Profit Margin after taxes 10% The dividend payout rate is 50 percent of
Pierce Furnishings generated $2.0 million in sales during 2004, and its year-end total assets were $1.5 million. Also, at year-end 2004, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of account payable, and $100,000 of accruals. Looking ahead to 2005, the company estimates that its assets
The company has a variable cost ratio of 65% and monthly fixed costs of $91000. What is the company's break-even point in terms of sales dollars?
The attached spreadsheet is for estimating R&E Supplies' external financing required for 2006. With modifications to the equations for equity and net sales, the forecast can be extended through 2007. Write the modified Excel equations for equity and net sales.
Assume you sold short 200 shares of GAP at $30 per share. What was your profit and rate of return, if after one year, GAP paid $.25 per share in dividends and you covered your short position when the price was $25 per share? Assume a 100% initial margin requirement. Account at the time you sell the stock short: Assets and Li
Company A places orders for goods equal to 75% of its sales forecast in the next quarter. What will be orders in each quarter of the year if the sales forecast for the next 5 quarters are: 1st $372 2nd $360 3rd $336 4th $384 Following year 1st quarter $384
Phatty Phun Corporation sells electronic games. Its three salespersons are currently being paid fixed salaries of $30,000 each; however, the sales manager has suggested that it might be more profitable to pay the salespersons on a straight commission basis. He has suggested a commission of 15% of sales. Current data for Phatty
Bonds payable: On January 1, 2005, Solomon Sales Co. issued zero coupon bonds with a face value of $6 million for cash. The bonds mature in 10 years and were issued at a price of $3,050,100. a. Required: What is the annual effective interest rate in the market when the bonds were issued? b. Required: What amount of int
A bank has offices in six different markets. It is feasible to say the annual sales of offices are related to the population of the communities they are in. The dependent variable, y, is annual sales. The independent variable, x is market population. The data are as follows: Data on Annual Sale and Market Population for
The Herald Company manufactures and sells a single product that sells for $50 per unit and has a contribution margin ratio of 30%. The company's monthly fixed expenses are $25,000. If Herald desires a monthly target net operating income equal to 20% of sales dollars, sales in units will have to be: 2,500 5,000 1
Home Town Bank has two types of individual customers who make demand deposits: college students and regular customers. The bank charges college students$.10 per check but regular customers get free checking service. The bank earns 10% on the customer deposits by lending money to other clients and pays the customers 5% on deposit
You have just received an assignment from your Director. Responses to a recent employee satisfaction survey have shown that employee attitudes within the Marketing department are on the decline and reports from human resources have shown that absenteeism is on the rise. Your director wants you to put together a short presentatio
Upton Computers makes bulk purchases of small computers, stock them in conveniently located warehouses, and ship them to its chain of retail stores. Upton's balance sheet as of December 31, 2004, is shown here (millions): Cash $3.5 Accounts payable
Using your on your own personal international business experience; a colleague's personal international business experience; research on the Web; or readings from sources other than the textbook address the following question: What are some common mistakes new Vice-Presidents of International Sales make, such as PM Company's VP,
Identify the elements of legally enforceable sales contracts. Include speaker notes for each bit of information to help me better understand the topic. It does not have to be excessively detailed but enough to explain. The presentation should have at least 6 different parts of information helping to explain the topic above.
Cajun Foods Inc operating at full capacity, sold 29,200 units at a price of $90 per unit during 2006. Its income statement for 2006 is as follows: Sales 2,628,000 Cost of goods sold 1,600,000 Gross profit 1,028,000 Oper
Graphing Revenues and Costs Montana Company manufactures chocolate candy. Its manufacturing costs are as follows: Annual fixed costs $15,000 Variable costs $2 per box of candy 1. Plot variable costs, fixed costs, and total costs on a graph for activity levels of 0 to 30,000 boxes of candy. 2. Plot a revenue line
See attached file for full problem description. The C-V-P Equation The company sells lawnmowers for $895 each. The variable cost per lawnmower is $20. The company's monthly fixed costs are $84,500. Using the C-V-P equation, compute the amount of profit the company will have for a month in which the company sells 375 lawnmo
A firm has revenues of $120,000, a contribution margin ratio of 30%, and fixed expenses that total $56,000. If revenues increase $20,000, then: operating income will increase by $6000. operating income will be 0. fixed expenses will increase $8000. the contribution margin ratio will incre
The Minnetonka Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The company is considering the production of cross-country skis. After considerable research, a cross-country ski line has been developed. Because of the