...Point of sale: Revenue is recognized the moment goods are sold and shipped to the customer FOB shipping point or when the goods are received by the customer if it is FOB destination. Completion-of-production:Companies recognize revenue when these metals are mined or agricultural crops harvested because the sales price is reasonably assured, the units are interchangeable, and no significant costs are involved in distributing the product Percentage-of-completion method: Companies recognize revenues and gross profits each period based upon the progress of the construction—that is, the percentage of completion. The company accumulates construction costs plus gross profit earned to date in an inventory account (Construction in Process), and it accumulates progress billings in a contra inventory account (Billings on Construction in Process). Installment-sales: Recognizes income in the periods of collection rather than in the period of sale. The logic underlying this method is that when there is no reasonable approach for estimating the degree of collectibility, companies should not recognize revenue until cash is collected. Pat's Electronics Division Billed and shipped in 2012 | $2,400,000 | Freight billed in 2012 | $70,000 | Commissions paid to Agents (after ship to customer) | 240000 | Warranty Returns as % of Sales | 24000 | Total of revenue | $2,066,000 | Pickle Construction Division Percent complete | Construction Costs incurred to date | $14,140,000 | 27%...
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...ACCOUNT ANALYSIS ➢ SALES ANALYSIS |MONTH |RM | | | | |JUNE |8432.00 | |JULY |8274.00 | |AUGUST |8986.00 | |SEPTEMBER |7626.00 | |OCTOBER |8167.00 | |NOVEMBER |7895.00 | |DECEMBER |7791.00 | [pic] For the month August, the sales are RM 8986, its means 18% for the total sales. August month are the month having highest turnover compare the overall sales. The lowest of the sales of the month is September. The total sales for the month September are RM 7626 and it becomes15% from the overall sales. The second highest are June, July and October which is RM8432 , RM 8274 and RM 8167 that contribute same percentage of total sales 17%. ➢ PURCHASES ANALYSIS |MONTH |RM | | | | |JANUARY |1,863.90 | |FEBRUARY |1,970.70 | |MARCH |2,886.20 | |APRIL |2,670.30 | |MAY |5,180.70 | |JUNE |6,328.90 | [pic] For the month June, the purchases are RM 6,328, its means 30% for the total purchases. June month are the month having highest purchase did by the MB BALA ENTERPRISE compare...
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...payments Sixty percent of all purchases: selling, Administrative, Advertising is paid in month incurred With the remainder paid in the following month. Ending Inventory is 25 percent of the next months budgeted cost of goods sold. October November December Equipment 250000 Other such dividends 45000 Accounts Payable 3541555 Other Payables 53200 Raw Materials Inventories 150388 Other At a meeting with Mr. Chester and Mr. Wayne to discuss concerns regarding findings in the Cash Budget has left both of them feeling uneasy regarding specific details of the Cash report budget. Accordingly, Mr. Wayne believes that the gross margin perhaps may shrink to 27.5 percent due to higher purchase prices and is also concerned with the impact that this may have on borrowings. This is a logical concern as gross margin shrinks amid higher purchasing prices/costs. As stated in Stewart (1987) Pricing is a crucial but often misunderstood aspect of retailing. Questions about pricing include the relation between margin and markup, the effect of lowering prices,...
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...QUESTION ONE PROTECTION FACTOR DESCRIPTION EXAMPLE NATURAL RESOURCES Everything that is provided by nature, Water, Crude oil Usually a scarce and limited. CAPITAL initial monetary investment a business loans taken by individuals business requires on start up with the intent to start a business LABOUR people who have the necessary skills, capabilities and knowledge to Technicians, Engineers provide a service or transform raw materials into finished goods ENTREPRENEURSHIP Is a process which combines capital, Michael Dell- ceo/founder of Dell labour, natural resources and links computers them to the risks associated with the provision of goods and services KNOWLEDGE Proper knowledge makes it possible Information technology to determine wants and needs and respond with the appropriate goods. It incorporates the economic principle (highest satisfaction with scarce factors of production) QUESTION TWO MACRO SUB ENVIRONMENT DESCRIPTION EXAMPLE Economic environment sub environment that affects interest and exchange rates, disposable income and purchasing inflation and trade cycles behaviour Social Environment linked to demographics and social Population growth, market and cultural aspects that influence composition, geographic location the market Technological environment embraces technological Cellphone industry advancement...
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...including Automotive, Electronics, Medical device, Home appliance, and so on. The company’s income statements of 2012 through 2014 are as follows: Overall, both of its sales revenue and gross margin were growing steadily in the period. While emerging market regions such as China are playing the role of growth engine, challenges from rising local competitors are increasing significantly. Table 1 Income Statements 2012-2014 of C Company All figures in USD. M: Millions of USD, B: Billions of USD. Fiscal year is Jan - Dec. | 2014 | 2013 | 2012 | Net Sales or Revenues | 6.8B | 6.51B | 6.42B | Cost Of Goods Sold (COGS) | 5.19B | 5.15B | 5.23B | Gross Profit | 1.62B | 1.37B | 1.19B | Research & Development Expense | 86M | 85M | 102M | Selling General & Admin Expense | 752M | -260M | 528M | Income Before Depreciation Depletion Amortization | 778M | 1.54B | 562M | Depreciation Depletion Amortization | 20M | 32M | 51M | Non Operating Income | 330M | 273M | 331M | Interest Expense | 147M | 172M | 185M | Pretax Income | 941M | 1.61B | 657M | Provision for Income Taxes | 314M | 508M | 48M | Minority Interest | -4M | - | - | Income Before Extraordinaries & Disc Operations | 627M | 1.1B | 609M | Extraordinary Items & Discontinued Operations | -7M | - | -4M | Net Income (Profit/Loss) | 624M | 1.1B | 605M | Dividend Per Share Common | 0.93 | 0.53 | 0.27 | Competitive Environment Arena: Material Industry: Plastic Market: Thermoplastic for injection molding...
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...dealership. The profits of the dealership were fundamentally important to Rusty’s future lifestyle. As the founding owner of the dealership in 1968, he had seen the dealership grow to the current sales level of approximately 600 new cars and 600 used cars annually. His service facility has also expanded to 18 service bays. In Rusty’s opinion his long standing policy of emphasizing new car sales as the principle business of the dealership had lead to the growth. He also attributed this to developing the customers and playing close attention to the customer’s needs. Most customers both new and used had returned to the dealership several times to make additional purchases. The latest income statement is shown in the exhibit along with an analysis of the service department expenses. To accomplish semi-retirement Rusty needed to make organizational changes. Talking with his daughter, a recent Laurier MBA graduate, he felt that the profit centre approach would best fit his requirements. Thus the dealership was divided into three profit centres. The new cars sales department was to be run by Sue Me, the used car sales department by Le Mon and the service department by Otto Baun. All of these people had been key players at the dealership for the past ten years. Each manager was told to run their department as if it was an independent business. Under the profit centre approach each manager would receive their compensation based on a percentage of gross profits (revenue – cost...
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...AL 會計筆記 Reference: http://hk.f2.page.auctions.yahoo.com/hk/auction/b16111418 Contact : noteseller70@yahoo.com.hk ★★大家做會計題目時，硬係比一兩個entries卡住，最後永遠都bal唔到條題目。 ★★ 加上，相信大家做題目時好少寫番d tricky 位同特別既地方，就到exam時先再把題目重新做一次。但以AL 35mins/ 55mins 一條既速度，你又做得幾多條呢？ ★★ 我呢一份筆記記錄左AL pastpaper，HSSC papers同其他題目既tricky位，只要你考前睇一睇，記一記notes 寫的tricky位。對於經常番抄的學校題目同公開試題目，就自然得心應手，輕易拿得高分。 ★★ Paper 1 financial accounting 分開2 parts - (1)topic notes (over 100pages; $80) (2) pastpaper analysis (about 20 pages; $20) ★★ Paper 2 cost accounting 只有1 part - (1) pastpaper analysis (about 20 pages; $20) 歡迎留email，拎Sample。 General reminders |If mark-up or margin are given, the questions may require | |to find out the sales figures (cash or credit sales) | |to find out the inventory lost (by computing COGS) | |to find out the cost | |(required for RO, DR, closing inventory) | |to find out the selling price | |(required for RI, DA) ...
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...Introduction The purpose of our report is to provide our analysis, assessment, and recommendations related to Aloha Products (AP) and the current control systems for the manufacturing, marketing, and purchasing departments. Based on the case information, we believe the current implementation of measurements and controls do not best serve the current business strategy of AP. As a result, we have included recommended changes for the three departments that best align with AP’s business model and will create a more thorough and effective measurement for performance for each department and the firm as a whole. The following subsections of this memo will consider the current situation, the evaluation of current controls and the performance measurements in place, and then provide our alternatives that we believe are more aligned with the organization. Current Situation The coffee industry has proven to be volatile and prone to a variety of price drivers and threats. While green coffee is produced year round at least somewhere in the world, harvests are constantly at risk. Weather and insects are constant pests to crops and impact growers all over the world. Inventories have also been negatively affected in the past due to dock strikes restricting the flow of goods from ports. While gourmet and specialty coffees have sold well over the last 30 years, the general liquid consumption trend has shifted away from coffee. This might be attributed to the growing health concerns at the...
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...Kenya oils liabilities are increasing faster than the assets arising therefore the ratio is falling. Both companies should control their liabilities. Inventory turn over ratio This is how fast a company sells its inventory over a financial period. The higher the ratio, the faster the turnover. This shows good company performance. Kenya oil has a better inventory turnover than Total. Since Kenya oil has a higher sales turnover volume. It takes less time to sell the oil than Total. Profitability Ratios Net Profit Ratio: The net profit ratio tells us the amount of net profit of turnover a business has earned after taking account of the cost of sales, the administration costs, the selling and distributions costs and all other costs, the net profit is the profit that is left, out of which they will pay interest, tax, dividends and all the other expenses. Total Kenya got 1.58 million in 2008 and 1.50 million in 2009, this shows a reduction in the net profits they made. While Kenya Oil...
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...Question 1: Herman Miller’s Strategies: evidence on its competitive advantage and good financial performance 1. Corporate Strategy: Diversified Strategy From the headquarters of Herman Miller Inc., Curt Pullen talks amid the unmistakable pounding sounds and commotion associated with a construction work site about his company's plan to rebound from the recession. Pullen, the firm's executive vice president and president of North America, says the workers are installing new lower-height Herman Miller workstations designed to accommodate a growing trend in offices toward more open, collaborative environments. The new product, called Canvas, is part of the company's market-shift strategy after the demand for office furniture fell hard during the economic downturn. The plan also involves diversifying into the health care and academic furniture markets and more emphasis on emerging economies. The plan appears to be paying off. For the first time in nearly four years the company reported two consecutive quarters of double-digit percentage sales growth after releasing its second-quarter earnings statement on Dec 15th. Orders in the second quarter rose 34% to $462 million. CEO Brian Walker noted the company's expanded market reach as a contributing factor to growth. Significant increases occurred in international markets where sales rose 33%. In 2010 the company acquired UK-based ergonomic workstation manufacturer Colebrook Bosson Saunders and purchased assets...
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...strategies in order to be able to gain success. As their web-site cited, their mission statement is: Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity. (PepsiCo, 2015). Most people agree that PepsiCo have competitive advantage through their products line. What gain them their competitive advantage was their strengths of the internal environment. PepsiCo strength are, first of all, their product diversity which earn them more profit because the company will be selling more and different products. Second, their distribution channel is fairly large compare to other beverage drinks and snack companies....
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...Competition Bikes Inc. Budget Analysis Summary Report Budgetary Concerns There are several budget areas in Competitions Bikes year nine budget forecast that are areas for concern. The factory overhead budget for the year was budgeted at $481,798 less $150,000 depreciation. Total depreciation over the last three years has remained at $130,000 per year for the past three years as identified on the company's balance sheets. Therefore setting depreciation at $150,000 for the 9th year is too high without identifying any new major purchases that would add to this depreciation. Even though depreciation is not actual cash flow it does define the reduction of company assets and should be reported accurately. The cost of distribution network support needs to be adjusted. A distribution network is everything involved in getting the product from the manufacturer to the retailer. The estimated expense for year nine is $50,830 which is equal to the year eight dollar amount however, year nine forecasted 110 more units sold. The cost per unit of distribution network support is equal to $14.95 when comparing the previous three years data. This meant the forecasted budget for an estimated 3510 units should be set to $52,474.50. Executive and Administrative salaries have not changed for three years and are budgeted at $220,000 and $170,000 respectively. Not providing any raise for the employees at Competition Bikes could make employees feel unappreciated and devalued. Decrease morale causes...
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...Entrepreneur Interview Essay Considering any business, people imagine rich, prosperous, initiative and resourceful entrepreneurs, who successfully started and developed their own company. Today’s interview deals with spa business. Chief Manager of an International A.B.C. Spa company will help us to understand the system of spa business and its profitability. A.B.C Spa cooperates with world leaders and professionals in this sphere. It efficiently provides qualified service for clients. Our interview will help to learn more about spa business on the example of a small A.B.C. Spa branch in America. _________________________________________________________ We Can Write Custom Essays on Entrepreneur Interview for You! __________________________________________________________ 1. What was your first step in starting your business? I know people who started business spontaneously: without business-plan, market analysis etc. Most of them managed to achieve goals and expand their enterprise. However in recent years too many people are involved in different business affairs. Spa business becomes more and more popular. That’s why we decided not to run risks as it could lead to waste of time, finances and even complete failure. Firstly we’ve chosen a place with lower rate of competition. Everybody knows that this business expands and grows very fast. In the USA one may count over 100 millions spa visits a year. The first step to start our business was to find finances and place...
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...Finance MBA − Cases in Corporate Finance The Super Project (HBS) Instructor: Pål E. Korsvold BI Norwegian School of Management McGraw-Hill/Irwin abc McGraw−Hill Primis ISBN: 0−390−68861−4 Text: Harvard Business School Negotiation Cases This book was printed on recycled paper. Finance http://www.mhhe.com/primis/online/ Copyright ©2006 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw−Hill Primis text may include materials submitted to McGraw−Hill for publication by the instructor of this course. The instructor is solely responsible for the editorial content of such materials. 111 FINAGEN ISBN: 0−390−68861−4 Finance Contents Harvard Business School Negotiation Cases Super Project 1 1 Case iii Harvard Business School Negotiation Cases The Super Project Case © The McGraw−Hill Companies, 2005 1 9-112-034 REV: MAY 27, 2004 The Super Project In March 1967, Crosby Sanberg, manager-financial analysis at General Foods Corporation, told a casewriter, “What I learned about incremental analysis at the Business School doesn’t always work.” He was convinced that under some circumstances sunk costs were relevant to capital...
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...Canon Inc. Firm Profile Report Econ. 102, Principles of Microeconomics Tuesdays 7-9:30 pm. 4-08-14 INTRODUCTION Canon Inc., a global company that is a based manufacturing company located in Japan. This company has an extensive history, in which it has gone through many ups and downs. Founded in 1933 and incorporated in the year of 1937, predating World War II. Canon has become one of the most recognizable brands in the world because of its leadership in manufacturing electronics, mainly optical. Throughout the years, Canon has been one of the top ten companies receiving multiple US patents, and collecting a wealth of history and innovation that has led the company to a competitive leading position in copiers, laser and bubble jet printers, facsimile machines, cameras and camcorders. Also, later on, adding on more diversification in the production of personal computers, binoculars, calculators, electronic typewriters, word processors, medical broadcasting, and semi conductor equipment. Canon Inc. is a company that conducts business worldwide. After the fledging company navigated through the turmoil of World War II, postwar while Japan was occupied, Takeshi Mitarai the main founder of the company persuaded the allied occupation to stock precision optical cameras in their post’s and ship’s stores. This agreement would lay the groundwork for Canon’s later success as an exporter;...
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