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Do you think an athlete, having no formal education or no apparent skills training, should earn $1 million plus annually for athletics?

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I do think that the salaries of athletes are outrageous. Even if the athlete did have a college degree and training in some other field, but for whatever reason became an athlete, it still wouldn't change my opinion on the compensation of athletes. The main issue is that an athlete is making millions of dollars. I remember several years ago in the news, this debate became really heated across the country when one of the main baseball teams (I believe it was New York) signed an athlete to a contract that guaranteed a salary of $252 million for ten years. $25,200,000 every year for ten years for playing baseball as a professional athlete! In my opinion, one of the many problems is that the payments ...

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The solution provides a thorough discussion examining the earnings of athletes, and if athletes, having no formal education or no apparent skills training, should earn $1 million plus annually for athletics. The solution is written based on 25+ years of professional experience in the accounting and finance industry.

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You are the manager of the apparel division of On Your Mark, a manufacturer of athletic equipment and apparel, which has recently gone through the initial public offering (IPO) process and has become a public company. On Your Mark has annual sales revenue of approximately $50 million and makes seven unique and distinct products (which serve seven different markets). Each product is represented by its own division within the company and has its own group of sales, marketing, and manufacturing personnel. Some departments, including human resources and the finance division, support the entire organization. Operations consist of a single headquarters and production (manufacturing) center.
In your role as division manager, you are responsible for compiling and reporting on budget / forecast data, and for assessing and valuing new business opportunities (which will ultimately be presented to upper management). You report directly to the Plant Manager; however, you work closely with the Chief Financial Officer (CFO), and the accounting department's staff accountants assist you with your budget / forecast responsibilities.
You have been informed by the CFO that On Your Mark will be aggressively pursuing new business opportunities, which may include expansion through acquisition and the development and implementation of new products. As a publicly traded company, On Your Mark is scrutinized by bankers and investors as never before. In fulfilling your responsibilities you must keep this in mind, and you must instill a new sense of financial discipline in the organization

On Your Mark is preparing to release its first Annual Stockholder Report since the company's recent initial public offering (IPO). The accounting department has already prepared and provided the financial statements and ratios (see below) for the most recent year. Now all the division managers are meeting to help create the written analysis portions for the annual report keeping in mind all the stakeholders who will be reading this information. ( i.e.,shareholders, regulators, investors, security analysts, credit rating agencies, etc.) Using what you know about On Your Mark from the scenario above, the financial documents, and details from your previous tasks, create On Your Mark's first Annual Stockholder Report for its' stakeholders. Provide as much detailed analysis as possible to your shareholders for each of the following areas, keeping in mind how the users of this information are likely to use it:
1. Summarize the nature of the firm's business and its business strategy
2. Assess the internal and external risk factors for the firm
3. Provide an analysis of the financial condition for the firm
4. Evaluate the firm's credit worthiness
5. Discuss the competitive position of the firm
6. Summarize the financial and accounting control procedures in place to ensure compliance with applicable regulatory agencies
You are to write their own draft of the written analysis to shareholders and submit it to the small group files area under your name and labeled 'draft'.


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