...Lawrence Sports Working capital management is very important in running a business because it involves managing all current assets and liabilities. Working capital management involves making appropriate investments in cash, marketable securities, receivables, and inventories, as well as the level and mix of short-term financing (Emery, Finnerty, Stowe, 2007, p. 639, para. 3). Currently Lawrence sports, a multi-million dollar company that manufactures and distributes sports equipment is seeking a way to better manage its’ capital, lower loan burdens, and undertake better business deals with its’ three business partners. Management can solve this issue with working capital policies that reduce future difficulties. Alternative Working Capital Policies As the newly appointed finance manager, one must be fully aware of the companies operating expenses, principal source of finance, suppliers and current financial stance and process with the lending bank. Understanding how all of these relationships can cohesively work together is key to being a success in this new role. By being properly prepared and developing successful working capital policy, the company will always have balanced receivables and payables due to working and negotiating with Lawrence Sport’s customers and suppliers. This type of communication and action plan will result in optimizing revenue, decreasing cash borrowed turn-around time, positive business relations and maintaining positive cash balance thus...
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...Padgett Paper Products Case Study Solution Case Solution Outline -Summary -Problem Statement -Company -Market -Product -Projections -Options -Current Capital Structure -Proposed Capital Structure -Review Summary Objective: To find a mutually acceptable debt structure that will minimize lender risk while increasing company value. Constraints: 1) realistic cash flow projections, 2) Bank safety levels Situation for each Business Group Bank: Over extended and is in a bad situation. Lending exceeds reasonable levels and is not collateralized or subject to covenants. An $8 million loan is abnormal for the bank. The company’s management does not appear to understand the unrealistic debt situation, the impact on firm value and impact on the upcoming audit report. Management: Has unrealistic expectations and a lack of understanding of impact of current structure of firm value. Company: The Company has considerable levels of equity and is not maximizing its financial structure. It is capable of taking on considerably more debt, however, the debt needs to be more appropriately structured. Ownership: Closely-held company with owner having little interest in management. Owned for dividend distribution. Problem Statement: Because of inflation and an acquisition, Padgett's financial needs have risen to a permanent level rather than being merely seasonal in nature. Management at the company's bank must revise Padgett's debt structure in a mutually satisfactory...
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...Lawrence Sports Simulation: Managing Liquidity Lawrence Sports Simulation: Managing Liquidity This paper will discuss the three alternative working capital policies that manage working capital. Team D will identify the policy in which the team believes that Lawrence uses and will then make a recommendation on what policy Lawrence Sports should continue to use. This paper will then go on to include an evaluation of the risks that are associated with each of the policies as well as discuss the contingencies for the policy in which is recommended. This paper will also discuss the performance measures that could be used to evaluate the team’s recommendation. Finally, this paper will discuss an implementation plan for the team’s recommendation. Alternate Capital Policies Current Policy (Conservative Approach) The current policy in place at Lawrence is one that can be considered a conservative approach. The Conservative Approach uses long-term financing for the company’s long term assets, a few of the company’s temporary current assets, and all of the company’s permanent current assets (Emery et al., 2008). This has resulted in high costs of financing for Lawrence Sports with little risk; causing the company’s profitability to be low. Simply put; Lawrence has predominantly financed all of its current assets using long-term sources of financing where only a small portion of its assets sing short-term financing. This presents the risk of Lawrence developing a liquidity issue...
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...Table of Contents INTORDUCTION 2 A UNIFIED SYSTEMIC REGULATOR 3 CLOSING THE INFORMATION GAP 4 REGULATION OF RETIREMENT SAVINGS 4 CAPITAL REQUIREMENTS 6 EXECUTIVE COMPENSATION REFORM 9 RECAPITILIZATION THREW CONTINGENT CAPITAL 10 IMPROVING RESOLUTION OPTIONS 11 CREDIT DEFAULT SWAPS, CLEARINGHOUSES, AND EXCHANGES 12 PRIME BROKERS AND RUNS 13 FINAL WORD 14 REFRENCES 16 INTORDUCTION The Squam Lake Report is a brief volume that consists of the recommendations of a think tank of 15 leading financial economists in an attempt to provide direction on financial system reforms that might help anticipate and alleviate future Systemic Crisis. The report was written in 2008 in response to the crisis that was ongoing at that time. It is good to note that getting 15 scholars to agree on 37 recommendations is something worth of appraisal. However, one cannot but point that the report is somehow disjoint in its arrangement of chapters. I articulate that this slight disorder is because of the limitations of making 15 experts agree. This disjoint attribute has not prevented the report from being very constructive and direct in addressing very important policies and sensible issues relevant to reform. The paper has two central principles that the recommendation have been built on. The first is that policymakers have to consider how new regulations will affect not only individual firms, but also the financial setup as a whole. The second principal states that firms should...
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...com/product/hrm-531-week-2-employment-law-compliance-plan/ Contact us at: SUPPORT@ACTIVITYMODE.COM HRM 531 WEEK 2 EMPLOYMENT LAW COMPLIANCE PLAN HRM/531 Human Capital Management Complete the Employment Law Compliance Plan task as described in the message from Traci on the Atwood and Allen Consulting Page. Individual Assignment: Employment Law Compliance Plan Purpose of Assignment For this task, Traci has asked you to develop an employment law compliance plan for your chosen client. This task will help you gain a better understanding of employment laws at the city, state, or national level. It is also important for you to understand how to be compliant with the applicable laws, and what the consequences are of noncompliance. Knowing laws that are applicable to employment in various business situations is essential starting and maintaining a successful business. Lists at least 3 employment laws the client must be concerned about Includes brief summary of each law Includes consequences of noncompliance with laws Includes recommendations for compliance with identified laws The paper is no more than 1,400 words in length. Format your paper consistent with APA guidelines. Use at least two (4) references from the reading assignment, Internet articles, Electronic Reserve Readings articles, or HR journal articles to support your paper. At least one(1) in-text citation must be from the text book. HRM 531 WEEK 2 EMPLOYMENT LAW COMPLIANCE PLAN To purchase this, Click here http://www...
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...Guillermo Furniture Store Recommendation Guillermo Furniture Store (Guillermo) is a small business that deals in handmade custom furniture that is created by the sole proprietor Guillermo Navallez and his employees. Guillermo is located in Sonora, Mexico, an area that has become both a tourist attraction and a place for some people to call home. Guillermo is facing the liquidation of the store if the decision maker does not analyze all possible alternatives and accept the recommendation of a final decision (University of Phoenix, 2010). This paper will examine a few alternatives that have been suggested for the success of the enterprise. A recommendation of a final decision for Guillermo has been included, in addition to, the justification for the recommendation. A pro forma cash flow budget for the company has been included as a guide for the next five years beginning with year 2012 and ending with year 2016. Alternatives Applying the principles of finance to any situation can result in a more informed decision that is made from a suggested recommendation. Capital Market Efficiency, Time Value of Money, Signaling, Behavioral, and Risk Return Trade-off are financial principles that the decision maker can focus on before accepting a final recommendation about the firm’s capital structure (Emery, Finnerty, & Stowe, 2007). Final recommendation Pro forma cash flow budget 2012-2016 ...
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...FIN 403 Week 5 Learning Team Assignment Direct Foreign Investment Decision Proposal Paper To Buy This material Click below link http://www.uoptutors.com/FIN-403/FIN-403-Week-5-Learning-Team-Assignment-Direct-Foreign-Investment-Decision-Proposal-Paper FIN 403 Week 5 Learning Team Assignment Direct Foreign Investment Decision Proposal Paper Prepare a 5,250- to 7,000-word proposal in which you select the optimal financing and investment strategy for your scenario. Include the following information in your proposal: Identify which country you chose and why. Identify foreign exchange rate data. Use foreign exchange and cost of capital data to determine appropriate capital sources. Conduct a sensitivity analysis, based on the following questions: What if funds are blocked? How does this affect the parent organization? What if the subsidiary provided funds? How does the source of capital affect the subsidiary and parent organization? What sources of capital would minimize the cost of capital to the subsidiary? What happens if the country you chose provides incentives to invest? Now that your organization is profitable, the country is taking incentives back. How do you determine the residual value at the end of the project life? How is the value of an organization determined from the following perspectives? Expiration of project life Friendly or unfriendly buyout Economic decision to change locations Nationalization or confiscation of organization Identify available...
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...Mary E. Jones 2/27/2011 ACC 560 Week 8: Case 4 Greetings Inc: Capital Budgeting 1. Calculate the net present value using the numbers provided. Assume that annual cash flows occur at the end of the year. Initial investment $800,000 Estimated useful life 5 years Estimated salvage value -0- Estimated annual cash flows Annual cash flow savings for Wall Décor $175,000 Annual additional store cash flow from increased sales 100,000 Sale of ink and paper supplies 10,000 Net annual cash flow $285,000 Present Value at 12% Discount factor for 5 periods 3.60478 Present value of net cash flows $$285,000 X 3.60478 $1,027,362 12% Present value of net cash flows $1,027,362 Capital investment 800,000 Net present value $ 227,362 2. Mr. Burns is concerned that the original estimates may be too optimistic. He has suggested that you do a sensitivity analysis assuming all costs are 10% higher than expected and that all inflows are 10% less than expected. Initial investment $880,000 Estimated useful life 5 years Estimated salvage value -0- Estimated annual cash flows Annual cash flow savings for Wall Décor $157,500 Annual additional store cash flow from increased sales 90,000 Sale of ink and paper supplies 9,000 Net annual cash flow $256,500 Present Value ...
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...Furniture store recommendations As a financial organizational tool, a budget represents a working document that helps in the day-to-day operations of any organization. Ongko Furniture Store’s financial reports give an overview of its current financial performance. The company also uses a flex budget that allows the company to project revenues and costs at various levels of output. This paper will therefore give an analysis of the alternatives available to the company to help the owner make an appropriate business decision. The paper will also suggest a recommendation using a pro forma cash flow budget to help justify the decision. Likewise, the paper will establish the company’s opportunities and risks associated with global growth. Analysis of Alternatives Ongko Furniture has three alternatives available to the company. The best alternative selected must consider the incremental benefits and risk-trade off determinants. Ongko’s first option, although expensive, involves investing in a high-tech solution that would increase production and reduce labor costs. The second option involves a forward vertical integration in the form of distribution and this would put the company in a new global market. The third option involves exploring the market that demands a flame retardant finish on furniture. However, this means keeping the current operations and suffering losses from the competition and changes already affecting the company (University of Phoenix, 2010). Recommendation and Justification ...
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... Email Embed Like Save Fin 571 week 6 furniture store recommendation cash per forma 1 of 2 Fin 571 week 1 Fin 571 week 1 It 284 week 2 discussion question 1 Mgt 380 week 1 discussion 1 Mgt 380 week 4 discussion 1 Ad by SelectionLinks | Close Recommended More from User Fin 571 week 1 Fin 571 week 1 jennalden 471 views Fin 571 week 1 Fin 571 week 1 jennalden 471 views It 284 week 2 discussion question 1 It 284 week 2 discussion question 1 brigbarwason1977 1,047 views Mgt 380 week 1 discussion 1 Mgt 380 week 1 discussion 1 silkpitaha1979 929 views Mgt 380 week 4 discussion 1 Mgt 380 week 4 discussion 1 blinanaham1976 1,218 views Cmgt 445 week 4 d qs Psy 350 week 4 dq 2 eating disorders Fin 571 week 6 furniture store recommendation cash per forma 928 views rongeserre1970 rongeserre1970 (3 SlideShares) + Follow ...
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...Capital Budget Recommendation University of Phoenix John ACC 543 Bruce MCMenemy This paper will discuss various capital budget evaluation techniques. This paper will differentiate between these techniques to determine the best course of action for Guillermo. This paper will provide a course of action based on capital budget evaluation techniques. This paper will provide present value calculations to support the recommended course of action for Guillermo Furniture. Evaluation Techniques There are many evaluation techniques that can be utilized when evaluating capital budget opportunities. This paper will discuss the most relevant techniques to utilize at Guillermo Furniture. The techniques implemented should utilize Time Value of Money (TVM) for larger investments and for small investments one can utilize a quick method for analysis of opportunity for investment purposes. The TVM is an explanation of the current value of a future dollar. “This concept recognizes that the present value of a dollar received in the future is less than a dollar. For example, you may be willing to pay only $0.90 today for a promise to receive $1.00 one year from today”. (Edmonds, Edmonds, Olds, McNair, Tsay, Schneider, 2007) This technique analysis the amount of money received in future payments and calculates the value of that money as if it were in hand today. Payback Method The Payback method does not take TVM into consideration; however, it can be utilized to evaluate fast turnaround...
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...Skip to Navigation Skip to Content TermPaperWarehouse.com - Free Term Papers, Essays and Research Documents The Research Paper Factory Join Search Browse Saved Papers Search Home page » Business and Management New Heritage DollIn: Business and Management New Heritage Doll New Heritage Doll Company: Capital Budgeting MGT 6060 20 September 2011 Overview Two business proposals from the Production division of the New Heritage Doll Company are being considered for submission to the capital budgeting committee. Only one proposal will be submitted. The proposals are: Match My Doll Clothing Line Expansion and Design Your Own Doll. A systematic process will be used to determine which proposal to recommend. Criteria Include: 1. Comparison of the business cases 2. NPV analysis 3. IRR and payback period analysis 4. Analysis of additional information 5. Recommendation Comparison of the Business Cases Most Compelling Business Case Match My Doll Clothing Line Expansion Match My Doll Clothing Line Expansion is the the most compelling opportunity. This initial recommendation is based solely on a qualitative comparison of the cases and the financial exhibits provided by the brand managers. A SWOT (Strength, Weakness, Opportunity, & Threat) analysis was used to aid the decision process. See Tables 1 & 2 for SWOT analysis. Benefits of the Match My Doll Clothing Line Expansion: * Success of the original line of business ...
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...ACCOUNTING & FINANCE SUBDOMAIN 319.2 - INFORMATION TECHNOLOGY Competency 319.1.3 Capital Budgeting Analysis - The graduate correctly applies time value of money techniques and techniques that ignore present value for capital investment decisions. Competency 319.2.1 Technology Tools - The graduate uses information technology tools for specified business purposes. Competency 319.2.5 Information Management - The graduate selects appropriate technology applications to manage information and make decisions in given situations. Objectives: 319.1.3-01: Calculate net present value based on a given set of facts. 319.1.3-02: Apply the results of a net present value calculation to a given decision situation. 319.1.3-03: Calculate internal rate of return based on a given set of facts. 319.1.3-04: Apply the results of an internal rate of return calculation to a given decision situation. 319.1.3-05: Calculate the period of time required to recoup the money expended for new equipment in a given situation. 319.1.3-06: Calculate the accounting rate of return based on a given set of facts. 319.1.3-07: Explain the relationship of the accounting rate of return to the internal rate of return for the same capital investment alternative. 319.1.3-08: Calculate net cash flow in a given situation. 319.1.3-09: Explain the impact of depreciation on net cash flow. 319.1.3-10: Explain the role of the weighted average cost of capital in capital budgeting analysis. 319.2.1-04: Produce a computer-based presentation on...
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...A Term Paper On Performance Evaluation through Deposit Mobilization Of Private Sector Banks in Bangladesh – A Critical Analysis on Mutual Trust Bank Ltd.. A Term Paper On Performance Evolution through Deposit Mobilization Bangladesh Of Private Sector Banks in – A Critical Analysis on Mutual Trust Bank Ltd. Under the Guidance of Supervision of Mohammed Didarul Alam Associate professor Department of Accounting Govt. City College, Chittagong. Submitted By MEHRAJ UDDIN Roll: 9799577 Reg: 1794467 BBA (Hon’s.) Second Year Department of Accounting Govt. City College, Chittagong. Letter of Transmittal Date: Mohammed Didarul Alam Associate professor Department of Accounting Govt. City College, Chittagong. Subject: Submission of Term Paper . Sir, It is a great pleasure and privilege to present the term paper “Performance Evolution of Private Sector Banks in Bangladesh through Deposit Mobilization - A Critical Analysis on Mutual Trust Bank Ltd.” which was assigned to me as a partial requirement for the competition of BBA (Hon’s.). Throughout the study I tried with the best of my capacity to accommodate as mush information and relevant issues as possible and tried to follow the instructions as you have suggested. I tried...
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...Assigning a term project Case seminar series_Su H Chan A Short Case Phuket Beach Hotel: Valuing Mutually Exclusive Capital Projects* (4 pages) Synopsis Phuket Beach Hotel has an opportunity to lease its underutilized space to a karaoke pub and earn a rental income. Alternatively, the hotel could develop the unused space and create its own pub. The general manager of the hotel must decide which of the two capital projects to recommend to the hotel owners. This case presents sufficient information to build cash flow forecasts for each project and to rank the mutually exclusive projects using various evaluation criteria. *The case is available from HBSP.com Case seminar series_Su H Chan Using the case Undergraduate, graduate, and executive levels Exposes students to a wide range of capital budgeting issues Questions built into the case Student group presentations (2 teams presenting the same case) Class members evaluate team presentations Instructor debriefs case Lessons learned Evaluator__Please write your name on the back__________________ Group ___________________________ Grading Checklist for Case Presentation Content (scale of 0-4) 0 = Poorly developed or not covered 1 = Touched on point, but did not weave it strongly into the fabric of the paper 2 = Satisfactory coverage 3 = Well-developed, and woven strongly into the fabric of the paper 4 = Clearly superior development and linkage to other points SCORE 1. PROBLEM IDENTIFICATION: How well did the group...
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