...Chapter 2 USING FINANCIAL STATEMENTS AND BUDGETS © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Outline Relationship between financial plans and statements. Prepare a personal balance sheet Generate a personal income and expense statement. Develop a good record-keeping system and use ratios to evaluate personal financial statements. • Construct a cash budget and use it to monitor and control spending. • Apply time vale of money concepts to put a monetary value on financial goals. • • • • © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Mapping Out Your Financial Future Financial planning facilitates: • Greater Wealth • Financial Security • Attainment of Financial Goals © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Interlocking Network of Financial Plans and Statements © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Balance Sheet A statement of your financial position at a given point in time Balance Sheet Equation Assets: Things You Own • Liquid assets – low-risk, cash or investments that can be converted to cash with little...
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...Course Purchase here http://chosecourses.com/BUS%20401/bus-401-entire-course Description This document of BUS 401 Entire Course consists of: BUS 401 Week 1 Assignment, Comparative Analysis.doc BUS 401 Week 1 Assignment, Ratio Analysis, Problem (4-10).xlsx BUS 401 Week 1 DQ 1, Goals of the Firm and Real Interest Rates.doc BUS 401 Week 1 DQ 2, Cash Flow and Ratio Analysis, Problem (3-2, 4-5(Mitchem Marble ).doc BUS 401 Week 1 Quiz.pdf BUS 401 Week 1, DQ 1, Corporate Income Tax and Real Interest Rates, Problem 1-2(Page 26), 2-2(Page 58).xlsx BUS 401 Week 1, DQ 2, Cash Flow and Ratio Analysis, Problem 3-2 (Page 85), 4-2(Page 122).doc BUS 401 Week 2 Assignment, Mini Case, Alternative Investments(Page 254).xlsx BUS 401 Week 2 DQ 1, Annuity and Capital Asset Pricing(Problems 5-6, 6-4).doc BUS 401 Week 2 DQ 2, Bond and Common Stock (problem 7-8, 7-10, 8-16).doc BUS 401 Week 2 Quiz Version a.pdf BUS 401 Week 2 Quiz Version b.pdf BUS 401 Week 2 Quiz Version c.pdf BUS 401 Week 2, Assignment, Mini Case.xlsx BUS 401 Week 3 Assignment, Weighted Average Cost(Mini Case Page 368).xlsx BUS 401 Week 3 DQ 1 NPV, PI and IRR, Problem 9-4 (Page 289), 10-4(Page 235).doc BUS 401 Week 3 DQ 2 Calculating Free Cash Flow, Problem 11-4(Spartan Stores).doc BUS 401 Week 3 DQ 2 Cost of Debt, Problem 11-10(Page 365).doc BUS 401 Week 3 Quiz Version a.pdf BUS 401 Week 3 Quiz Version b.pdf BUS 401 Week 3 Quiz Version c.pdf BUS 401 Week 4 Assignment, Break Even...
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...Operating Leverage What Does Operating Leverage Mean? A measurement of the degree to which a firm or project incurs a combination of fixed and variable costs. (1) A business thathas limited sales, with each sale providing a very high gross margin, is said to be highly leveraged. A business that makesmany sales, with each sale contributing a very low margin, is said to be less leveraged. As the volume of sales in a businessincreases, each new sale contributes less to fixed costs and more to profitability. (2) A business that has a higher proportion offixed costs and a lower proportion of variable costs is said to use more operating leverage. Conversely, businesses with lowerfixed costs and higher variable costs are said to employ less operating leverage. Investopedia explains Operating Leverage The higher the degree of operating leverage, the greater the potential danger for inaccurately forecasting risk. That is, if arelatively small error is made in forecasting sales, it can be magnified into large errors in projections of cash flow. The oppositeis true for businesses that are less leveraged. A business that sells millions of products a year, with each contributing slightlyto paying for fixed costs, is not as dependent on each individual sale. For example, convenience stores are significantly lessleveraged than are high-end car dealershipsoperating leverage The extent to which fixed operating costs magnify changes in sales or revenues into even greater proportionate changesin operating income...
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...Course Purchase here http://chosecourses.com/BUS%20401/bus-401-entire-course Description This document of BUS 401 Entire Course consists of: BUS 401 Week 1 Assignment, Comparative Analysis.doc BUS 401 Week 1 Assignment, Ratio Analysis, Problem (4-10).xlsx BUS 401 Week 1 DQ 1, Goals of the Firm and Real Interest Rates.doc BUS 401 Week 1 DQ 2, Cash Flow and Ratio Analysis, Problem (3-2, 4-5(Mitchem Marble ).doc BUS 401 Week 1 Quiz.pdf BUS 401 Week 1, DQ 1, Corporate Income Tax and Real Interest Rates, Problem 1-2(Page 26), 2-2(Page 58).xlsx BUS 401 Week 1, DQ 2, Cash Flow and Ratio Analysis, Problem 3-2 (Page 85), 4-2(Page 122).doc BUS 401 Week 2 Assignment, Mini Case, Alternative Investments(Page 254).xlsx BUS 401 Week 2 DQ 1, Annuity and Capital Asset Pricing(Problems 5-6, 6-4).doc BUS 401 Week 2 DQ 2, Bond and Common Stock (problem 7-8, 7-10, 8-16).doc BUS 401 Week 2 Quiz Version a.pdf BUS 401 Week 2 Quiz Version b.pdf BUS 401 Week 2 Quiz Version c.pdf BUS 401 Week 2, Assignment, Mini Case.xlsx BUS 401 Week 3 Assignment, Weighted Average Cost(Mini Case Page 368).xlsx BUS 401 Week 3 DQ 1 NPV, PI and IRR, Problem 9-4 (Page 289), 10-4(Page 235).doc BUS 401 Week 3 DQ 2 Calculating Free Cash Flow, Problem 11-4(Spartan Stores).doc BUS 401 Week 3 DQ 2 Cost of Debt, Problem 11-10(Page 365).doc BUS 401 Week 3 Quiz Version a.pdf BUS 401 Week 3 Quiz Version b.pdf BUS 401 Week 3 Quiz Version c.pdf BUS 401 Week 4 Assignment, Break Even...
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...matching solutions to make customers remain. In this report, the swimming pool and exercise class are taken as examples which are assumed to have peak time. All the numbers in the report are not real and just given as examples to show how to use the data recorded. In the Pool table, each record means one entry into the swimming pool. Each record includes the exact date and time when the person uses the pool. It needs to count how many customers enter the swimming pool every three hours, and then divide the result by the capacity of the facility to calculate the ratio. When the ratio is far beyond one, it indicates this time period is the peak time and solutions are needed to solve the problem. The figure 1 shows the pool usage on a typical Friday and Saturday. Since the pool capacity is assumed to be 150 people, the 18:00 to 21:00 time period on Friday and 18:00 to 21:00 time period on Saturday are peak time. The ratio of the two time periods are 1.47 and 1.42 respectively, which are far beyond one and show too many people are sharing the crowded pool area at the same time. To convince the customers to relax themselves with the free space in the pool, some solutions have been raised: (Figure 1) Solutions to swimming pool peak time * Limitation of pool usage at the peak time In general, users can use the pool with no limited time, which causes some customers stay at the pool for too many hours. The problems can be relieved by...
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...Rebeka Ramos Panther ID - 1948265 ACG – 6175 Case 3: United Parcel Service’s IPO 1. How is UPS performing? Back up your assessment with your financial analysis. What factors are driving this performance? Since it first opened for business 1907, UPS has proven to be a worthy competitor and more importantly a threat to be taken seriously. By 1999, after almost a century in business, UPS had captured 51% market share of the $43 billion dollar US package delivery industry. That same year they were named “Company of the Year” by Forbes and the “World’s Most Admirable Global Mail, Package, and Freight Delivery Company” by Fortune. They reported over $25 billion in revenue, which they attributed to their loyal employees, extensive geographical reach, and strong customer relations. They had become the largest parcel delivery company in the world, daily having contact with over 1.8 million customers, picking up 13 million packages, and making delivers to over 6 million business and residential addresses worldwide. Several key factors played a considerable role in UPS’ exceptional performance and industry success. For starters, UPS has always been committed to innovation, beginning as early as 1920 with its invention of the first ever-mechanical sorter and conveyor built system. UPS is also been credited with breaking new ground in delivery logistics, after creating the model for and implementing the practice of consolidating deliveries based on neighborhood groupings. However...
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...M&A, BARUCH COLLEGE, FALL 2012 Prof Harvey Poniachek Questions for Cooper Industries Harvard Case Study THE CASE SHOULD BE DONE BY TEAMS OF UP TO FOUR STUDENTS. The CASE WOULD BE PRESENTED AND DEFENDED IN CLASS BY TWO TEAMS. I EXPECT MANY OF YOU TO MAKE CLASS PRESENTATIONS BY UTILIZING POWERPOINT AND/OR OTHER MEANS. THE QUESTIONS BELOW WERE SUGGESETD BY THE AUTHORS OF THE CASE AND ADDRESS THE MAIN THE ISSUES, BUT YOU MAY EDIT / CONSOLIDATE THEM IF YOU FIND IT NECESSARY / CONVENIENT IN WRITING UP YOUR CASE. Cooper industries 1. If you were Mr. Cizik of Cooper Industries, would you try to gain control of Nicholson File Co in May 1972? ➢ yes o potential profit o COG from 69% to 65% o Saling expense from 22% to 19% o Leveraging European distributed system o Take benefits of the conflicts between VLN and Porter 2. What is the maximum price that Cooper can afford to pay for Nicholson and still keep the acquisition attractive from the standpoint of Cooper? As given in the case, Cooper Industries will get several synergies after the merger. 1) Cost of Goods sold of Nicholson could be reduced from 69% to 65%. 2) Elimination of the sales and advertising duplications would lower selling, general and administrative expense from 22% to 19% 3) Cooper will gain access to Nicholson’s strong European distribution system to sell its other hand tool lines. Based on the above factors, we prepared the pro forma statement...
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...A Sales Plan Defined Our sales plan should be short, simple and to the point. It's basically our strategic and tactical plan for acquiring new business, growing our existing book of business and making and/or exceeding our sales quota within our sales territory. Typically, a healthy mix would include 75 percent of your sales quota from new business and 25 percent of your quota from add-on business from your existing customers. There are four basic parts of a sales plan: 1. New business acquisition strategies 2. New business acquisition tactics 3. Existing business growth strategies 4. Existing business growth tactics Before you start, you need to get a handle on some definitions: • Sales quota: This critical element of your plan sets the tempo of your efforts throughout the year and provides quarterly, monthly, weekly and even daily sub-goals for you to achieve. • Sales territory: Refers to the geographic area, list of named accounts or specific market niche you have been assigned to in which you are to sell your products, services and solutions. • Strategies: The plan necessary to accomplish your goal. • Tactics: The steps necessary to carry out the plan. New Business Acquisition Strategies and Tactics Include the following four strategies in your sales plan. Remember, these strategies are all designed to capture new customers and new market share. Important note: The strategies are numbered and the tactics are italicized. 1. Exceed my quota. • Send no less than...
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...DEA | | | Evaluating the effectiveness of any process is one of the most challenging tasks faced by managers today, especially when there are multiple inputs and outputs of the process. The difficulty is further compounded when the relationships between the inputs and the outputs are complex and involve unknown tradeoffs. The challenge is in terms of comparing the performance of a process at different locations of the organization, or evaluating how the process has been performing at a particular location over consecutive periods of time (also called window analysis). DEA i.e. Data Envelopment Analysis tool is targeted towards solving such managerial problems, and can be applied to both macro-level and micro-level processes, thereby providing an effective performance measurement and monitoring framework for Business Process Intelligence (BPI). It caters to the performance evaluation needs of both top management as well as different functional managers within an organization. The tool can seamlessly integrate with an organization’s information management system to provide insightful dashboards for monitoring processes and identifying benchmark groups, so as to ensure continual improvement of processes. Various strategic, tactical, and operational decisions can be taken based on the insights provided. Performance Evaluation: Brief Introduction Performance Evaluation It is difficult to evaluate the performance of a process when there are multiple inputs and multiple...
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...Deliverables Company Selection – Week 1 Course Project Horizontal Analysis – Week 2 Course Project Vertical Analysis – Week 3 Course Project Final Ratio Analysis – Week 4 General Expectations for Your Final Course Project Submission – Week 7 Citation Help |Deliverables | | Course Project Company Selection Please post your chosen companies for comparison for my approval in the Week 1 Course Project Dropbox by Sunday, end of Week 1, 11:59 p.m. (MT). I will give you feedback to make sure that you're on the right track for this assignment. (5 points) Course Project Horizontal Analysis Please post the horizontal analysis for your Course Project in the Week 2 Course Project Dropbox by Sunday, end of Week 2, 11:59 p.m. (MT). (40 points) Course Project Vertical Analysis Please post the vertical Analysis for your Course Project in the Week 3 Course Project Dropbox by Sunday, end of Week 3, 11:59 p.m. (MT). (40 points) Course Project Final Ratio Analysis Please post the Ratio Analysis for your Course Project in the Week 4 Course Project Dropbox by Sunday, end of Week 4, 11:59 p.m. (MT). (40 points) Final Course Project Submission Please post the Course Project final summary assignment to the Week 7 Course Project Dropbox by Sunday, end of Week 7, 11:59 p.m. (MT). (75 points) |Category ...
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...aspect ratio ~ depth/width ! rather than the absolute feature size. 1 Several mechanisms have been invoked to explain the ‘‘rule’’ of aspect-ratio-dependent etching ~ ARDE ! , but no general theory has emerged that captures the variety of seemingly conflicting experimental observations reported in the literature. 1,2 For example, while an ion-neutral synergy model with pure neutral flux shadowing appears to be con- sistent with a wealth of ARDE measurements in semiconductors, 2 it does not hold for the etching of insula- tors. Indeed, Doemling et al. 3 have reported inverse ARDE of trenches and holes in SiO 2 in a high-density CHF 3 plasma at 20 mTorr. Remarkably, they also reported aspect ratio independent etching ~ ARIE ! when the pressure was lowered to 6.7 mTorr; for fixed etching time, the etch depth was the same for a variety of trench widths and hole diameters ~ as low as 0.25 m m, corresponding to an aspect ratio of 8.5:1 ! . These authors convincingly argued that the strong influence of feature geometry on neutral flux of an etch inhibitor, pro- duced in the CHF 3 plasma, is responsible for the inverse ARDE at the higher pressure. The low pressure results were explained by hypothesizing that the neutral density at the bottom of the trench or hole, while ‘‘too low to cause inverse ARDE, it was still sufficient to suppress regular ARDE.’’ This hypothesis must be valid for all trenches and holes etched at the low pressure, which spanned the regime of aspect ratios between...
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...Demand Forecasting is the business process that involves calculating future demands for products and services that consumers will buy. It also helps predict the quantity of products or services that must be manufactured and shipped. It is an important tool for managing a sustainable business, whether it comes from customer surveys, general predictions, market trends, or in-depth economical analysis (Hartman, 2015). Demand forecasts are necessary since the basic operations process, moving from the suppliers' raw materials to finished goods in the customers' hands, takes time. There are many advantages that come with demand forecasting, if done accurately, such as having adequate supply – business has to make sure it has enough supply of a product/service to meet the demands. If there is not enough supply, it can lead to lost of sales as customers buy from a competitor and if there is more supply than demand then the business’ revenue will be effected because of the expenses for labour, production, and shipping (Hartman, 2015). Also, managing human resources – this allows the business to manage human resources more efficiently by looking at information that gives managers an idea of how many workers they will need, and where their labour needs will be the highest (Hartman, 2015). For example, retail stores higher more staff in September to December because of Black Friday and Christmas/Boxing Day. However, there can be many challenges that businesses may overcome when...
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...examples, the relative advantages and disadvantages of ratio analysis as an aid to decision-making by investors. Advantages and Uses of Ratio Analysis There are various groups of people who are interested in analysis of financial position of a company. They use the ratio analysis to workout a particular financial characteristic of the company in which they are interested. Ratio analysis helps the various groups in the following manner: - 1. To workout the profitability: Accounting ratio help to measure the profitability of the business by calculating the various profitability ratios. It helps the management to know about the earning capacity of the business concern. In this way profitability ratios show the actual performance of the business. 2. To workout the solvency: With the help of solvency ratios, solvency of the company can be measured. These ratios show the relationship between the liabilities and assets. In case external liabilities are more than that of the assets of the company, it shows the unsound position of the business. In this case the business has to make it possible to repay its loans. 3. Helpful in analysis of financial statement: Ratio analysis help the outsiders just like creditors, shareholders, debenture-holders, bankers to know about the profitability and ability of the company to pay them interest and dividend etc. 4. Helpful in comparative analysis of the performance: With the help of ratio analysis a company may have comparative study of...
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...Why is it important for an organization to have an eyeball view of its financial performance? Companies need to constantly monitor their performance in terms of finances. Some companies use boards to assist in monitoring the financial activities of their organization. Monitoring corporate performance is a critical function of every board. An effective board monitors the overall performance of an organization, including its operational, strategic, and financial objectives. A key aspect of the board’s oversight role is to actively monitor management’s execution of approved plans, as well as the organization’s progress toward meeting its objectives. It is essential for the board to prioritize and enumerate the organization’s objectives in monitoring its performance. Boards should establish a consistent method for receiving, reviewing, and utilizing the data received. Boards use many data points to monitor company performance, including financial and non-financial metrics, and industry and peer information, which can come from board reports, trend analyses, surveys, financial statements, industry benchmarks, and audit opinions. Knowing which metrics are most effective in understanding performance and indicating potential issues can be challenging, yet beneficial to the organization. Organization’s financial plan typically links to the annual operating plan that has been established. The annual operating plan provides details on the organization’s objectives and how they will be...
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...|[pic] |SYLLABUS | | |Axia College/College of Social Sciences | | |HSM/260 Version 3 | | |Financial Management for Human | | |Service Managers | Copyright © 2009, 2007 by University of Phoenix. All rights reserved. Course Description This course focuses on conceptual understanding and practice of financial management as it applies to human service agencies. Students complete the course with a better understanding of basic accounting concepts, budgets and budgeting systems, how to create performance measures, and the ability to analyze financial statements for the purpose of cost analysis and forecasting. Aspects of setting fees, funding, and risk management are also covered. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must...
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