...Leach-Melicher Ch. 6 - Problems Unfortunately, the textbook provided an electronic table 6.2 (which is on the final page of this handout) containing typos--the physical text contains a correct version. Specifically, in Schedule 3 you can see the beginning inventory is incorrectly input (it seems that the first one or two digits are dropped); it should be equal to the ending inventory from the previous period. Otherwise it looks OK, including the calculated amount of actual purchases. 1. [Short-Term Financial Planning] The PDC Company was described during the early part of this chapter. Refer to the PDC Company’s projected monthly operating schedules in Table 6.2. PDC’s sales are projected to be $80,000 in September 2011. A. Prepare PDC’s sales schedule, purchases schedule, and the wages schedule for August 2011. Here we are focusing just on projecting the month of August. Schedule 1: Sales Forecast Total sales = $92,000; Credit sales (40%) = $36,800; Cash sales (60%) = $55,200 Schedule 2: Cash Collections Cash sales = $55,200; Collection of July’s credit sales = $46,000; Total collections = $101,200 Purchases Schedule: Ending inventory at end of August is estimated as: Forecasted September sales = $80,000 times .8 of sales coverage times .7 to reflect cost of goods sold. Thus, ($80,000 x .8 x .7) = $44,800. PDC adds a $46,000 inventory cushion to get to the target ending inventory for August of: $90,800. Cost of goods...
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...Hampton Machine Tool Company On September 14, 1979, Mr. Jerry Eckwood, vice president of the St. Louis National Bank was considering a loan request from a customer located in a nearby city. The company, Hampton Machine Too] Company, had requested renewal of an existing $1 million loan originally due to be repaid on September 30. In addition to the renewal of the existin- loan, Hampton was asking for an additional loan of $350,000 for planned equipment purchases in October. Under the terms of the company's request, both loans, totaling $1.35 million, would be repayable at the end of 1979. Since its establishment in 1915, Hampton Machine Tool Company had successfully weathered the severe cyclical fluctuations characteristic of the macl-tine tool manufacturing business. In the most recent cvcle, Hampton had experienced record production and profitability during the niid- and late 1960s. Because Hampton's major customers included the aircraft manufacturers and automobile manufacturers in the St. Louis area, the company's success in the 1960s reflected a strong automobile market and the heavy defense spending associated with the Vietnam War. Hampton rode the 1960s boom into the early 1970s. Hampton, along with the rest of the capital goods industry, experienced a severe decline in sales and profitability in the rriid-1970s. Precipitous declines in the production of automobiles in St. Louis facilities reflected the Arab oil embargo, subsequent increases in the price of...
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...1978, the company had no debt because it had conservative financial policies, which maintained a strong working capital position as a buffer against economic uncertainty. In December,1978, Hampton requested a $1 million loan from the St. Louis National Bank. The loan’s terms were a monthly interest payment at a rate of 1.5%, with the principal to be paid back at the end of September, 1979. Now (September of 1979), Benjamin G. Cowins, president of Hampton, has asked to renew the initial loan until end of 1979, and, has requested an additional loan of $350,000 with promise of repayment at the end of December, 1979 with an interest rate of 1.5% per month. This additional loan is required for an update of their machinery which hasn’t been done since the economy went into a recession in the early 1970s. For the last several months, Hampton’s shipment schedule has been upset because they have had to wait for parts from their suppliers. On August 31, the accumulation of seven machines cost about $1,320,000, in addition to the installation cost for these parts. They received the parts last week, and will be able to complete a number of machines within next few weeks. The reduction in work in progress of about $1,320,000 is due to not receiving the electronic control mechanisms on time. However, the remainder of their work in progress inventories will probably remain steady for the foreseeable future because of their capacity rate of production. In July and August, Hampton bought raw...
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...Student ID#: 285 Firm: Hampton Machine Tool Company Nature of business: Machine Tool Manufacturing Overview Hampton Machine Tool Company was founded in 1915 and experienced record production and profitability throughout the years despite hard economic times for the machine manufacturing business. Sales declined throughout the mid 1970’s from the post Vietnam War demand, the declining automobile industry in St. Louis, and the gas embargo of the early 1970’s. Hampton did eventually recover due to an increase in military sales, the automobile industry rising, an overall improvement in the economy. Hampton is looking to take out a line of credit of $1,000,000 and an additional loan of $350,000 to purchase equipment, and an extend payment an additional three months to December 1979. Suppliers have hampered Hampton’s sales with late deliveries of machine parts. Because of this, Hampton is unable to pay its loan on time, which is due in September. Marketing Hampton Machine has bolstered its sales but is, unfortunately, not able to keep up with demand. This can be attributed once again to supply chain problems. The company currently has unfilled orders of $16,500,000 as of August 31. This accounts for 90% of its forecasted sales and the company is in desperate need to fill these orders by December so as to avoid disappointing its customers or sending a signal to the market that the company has severe management problems. Operations This company could possibly have severe...
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...# &! %& ,803,88430907$9 4:8 ,943, ,384:/,..059,25943 8.70/9706:0898 47349 0,8,8 /,7 0,489, #,1,0 /6:, #43,3 ,, ,7,30 #05,3 #43,/ #01:074 #433, , %:,43 789,3 ,25943 ,.30%44 425,3 ,25943,8,80/147,5,2039090384343902434,3/:0,99003/41 $05902-07 ,3/,3,//943, 94:8,3/4,3147.,59,0503/9:708 $4:/$9 4:8 ,943,,3,..059,25943 8706:089847349 8941 -98 -9 ,8 -:/09 843 90 0110.98 41 0903843 41 90 43 /0-9 ,3/ 7,39341 4,3 5,,-0430.02-07 -9 ,8 -:/09 843 90 0110.98 41 0903843 41 90 43 /0-9 ,3/ 7,393 41 4,3 9 39070898 43 -49 /0-98 5,,-0 3 :25 8:2 43 0.02-07 -9 ,8 -:/09 843 90 0110.98 41 700.943 41 90 0903843 41 43 /0-9 ,3/7,39341 4,3 5,,-0430.02-07 430.02-07 ,3/700.94341 4,3 -9,8-:/09843900110.984109038434190 43/0-9 5,,-0 -9 ,8 -:/09 843 90 0110.98 41 0903843 41 90 43 /0-9 5,,-0430.02-07 ,3/700.94341 4,3 ,.9:,8,080889,3 1470.,890/8,08 -9 ,8-:/09843900110...
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...Hampton Machine Tool Company, a profitable machine tool manufacturer, is trying to renew a 1 million dollar loan due September 30, 1979 until December 31, 1979. Through examination of the case, it is clear that Hampton will be unable to repay the loan; however, at first glance Hampton seems to be a profitable company that would be able to pain the loan on time and would not need more bank financing. Unfortunately, that is not the case. Hampton, by making a stock repurchase for which the loan was taken, forced a major cash expenditure onto the company a year prior- costing Hampton almost a 3 million dollar loss forcing Hampton to push back the date on the loan. Since a whole year went by with less cash on hand, it was nearly impossible for Hampton to be able to pay its loan on time. For example, in the period between November 1978 and August 1979, stock repurchase represented 58% of total expenditures for that period, while inventory purchases represented 42% of total expenditures. Furthermore, Hampton needs more bank financing ($350,00) because they had not been in contact with new equipment since the recession hit; it is important to the success of a company to be up to date on the newest equipment, especially dealing such important equipment. Moreover, Hampton needs more bank financing because of the vast amount of backorders and lack of current cash. Hampton claims the request is vital because it will improve the operational efficiency of the company, but cannot afford the...
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...HAMPTON MACHINE TOOL COMPANY On September 14, 2007, Jerry Eckwood, vice president of the Wellington National Bank was considering a loan request from a customer also located in Wellington, New Zealand. The company, Hampton Machine Tool Company, had requested renewal of an existing $1 million loan originally to be repaid September 30, 2007. In addition to the renewal of the existing loan, Hampton was asking for an additional load of $350,000 for planned equipment purchases in October. Under the terms of the company’s request, both loans, totaling $1.35 million would be repayable at the end of 2007. Since its establishment in 1915, Hampton Machine Tool Company has successfully weathered the server cyclical fluctuations that characterize the machine tool manufacturing business. In the most recent cycle Hampton had experience record production and profitability during the past decade – primarily due to export sales to Australia. While the economy in Australia continues to boom, the increasing value of the New Zealand dollar was significantly eroding the firm’s ability to export. Hampton’s conservative financial policies had contributed to its survival and success in the volatile capital goods industry. The company had traditionally maintained a strong working capital position as a buffer against economic uncertainty. As a result, the company had no debt on its balance sheet during the 10 years prior to December of 2006. In a meeting in early December 2006, Benjamin...
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...On September 12, 1979, Hampton Machine Tool Company (HMTC) requested from St. Louis National Bank a renewal to their loan of $1,000,000 due to be repaid on September 30, 1979 and also to be given an additional loan of $350,000 for new equipment purchases in October 1979. Both loans were to be repaid on December 31, 1979. Hampton M.T. Company wrote a letter to the St. Louis National Bank stating the reasons for the extension of the loan and the need of the additional loan, and giving the current and the predicted future financial position of the company. In order to decide whether to approve the loan extension and the additional new loan, it is most wise to examine the financial position of the company for the following months to come and calculate the forecasted Income Statement and Cash Flow Analysis to find out if the company will have the required cash flows to repay their loan and interest on time. It is important, however, to first examine why HMTC was unable to repay its initial loan. Hampton Machine Tool Company was unable to repay its loan on time due to several factors. One of such factors is the fact that the stock repurchase, for which the loan was initially requested, was a major cash disbursement of $3 million. In the period between November 1978 and August 1979, stock repurchase represented 58% of total expenditures for that period, while inventory purchases represented 42% of total expenditures. They also had a difficult time repaying because of the steep decline...
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...students experiencing problems in obtaining books independently can contact us to make a purchase using LCM’s account with Amazon. Question The marketing mix is a combination of marketing tools that are used to satisfy customers and company objectives. Mainly there are four elements: product, price, place and promotion. However, for service organisations, the extended marketing mix (7 Ps) are used including additional three elements; process, people and physical evidence. These elements are the basic, tactical components of a marketing plan that marketing managers can control. Examine the marketing mix of an organisation of your choice. Answer 1. Introduction Hampton inn and suites is a hotel chain which is a part of Hilton Hotels. Most Hampton hotels are independently owned and operated by franchisees, though a few are owned and/or managed by the Hilton Hotels Corporation. This hotel chain is a proud owner of more than 1700 hotels in the US, UK, Canada and Mexico. It is a part of a Hilton honours loyalty programme and caters to different customer segments such as business travellers, school teams, leisure travellers etc. The extended marketing mix of Hampton Inn is examined below: 2. Marketing mix Product Hampton offers accommodation facilities. It provides a variety of complimentary services such as hot breakfast, Wi-Fi facilities, free parking at some hotels, bathroom amenities, free local calls, free in-room movie channels and other...
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...7 Cities Do It Yourself Auto Repair Assignment 2Week 8: Marketing Plan Part B Roderick D Williams Strayer University Marketing Management Professor Caitlyn Worner 6/1/14 7 Cities Do It Yourself Auto Repair The concept of 7 Cities Do It Yourself Garage did not derive from the passion of an individual repairing their own automobiles, it derived from finding a money saving solution to small auto repairs. Many people do not change their own oil, which is a very inexpensive preventive maintenance cost. Once you get the feel for doing your own oil changes, it will lead to you learning more about vehicle repairs and the amount of money saved in the process. This knowledge will come in handy especially during difficult economic down times, like the economy in 2008. As you learn more about at home car repairs, some required tools and equipment are not available for use in the driveway or garage. Researching a few backyard mechanics you will find the same problems. In addition, many people that rent homes and apartments are not allowed to work on automobiles on the premise, of the rental property; in the city of Norfolk it is illegal and by owner discretion in others. Roderick Williams has been a vendor at a local flea market for over 10 years and through his consumer connections, he was often asked does he know of someone that can fix this or repair that. Another vendor sells stereo equipment, but there is no one to install the equipment, especially on rainy days...
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...world in ten years. The company had just been taken private by the Blackstone Group1 for a reported $26 billion, a 32% premium over the $32.05 share price the day prior to the announcement. The takeover announcement by Blackstone clearly framed the road ahead: “Blackstone intends to invest in the Hilton properties and brands globally to enhance and grow the business for the benefit of owners, franchisees, and customers... This transaction is about building the premier global hospitality business.” tC But growth would not be easy in the highly competitive global lodging business. Challenges in this market historically included access to capital, high levels of employee turnover, and difficulty achieving standardization typical of service delivery operations. Improving service delivery and consistency across the family of Hilton brands had been the major focus of the Customers Really Matter (CRM) strategy that the firm launched in 2002. With five years invested in CRM, the Blackstone acquisition provided the opportunity to evaluate the results to date and to devise an action plan going forward. Hilton Hotels’ Background Do No Hilton was perhaps the most internationally recognizable name in the lodging industry, in large part due to the role that the Hilton family had played throughout its history. The firm began its operations in 1919 with the Mobley Hotel in Cisco, Texas under the guiding leadership of Conrad Hilton. The company went public under the...
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... Here, we highlight their strategies for success and goals for the upcoming year. 1. Hampton Hotels Image credit: Hampton Hotels Culture may not be the first thing you consider when choosing a hotel. But at Hampton Hotels, a culture of hospitality, aka “Hamptonality,” is an invaluable commodity, and it’s the reason the company tops the Franchise 500® for the fourth time in five years. It’s a system-wide attitude toward providing friendly service and, on a more basic level, conveniences like rooms with plenty of outlets, a “clean and fresh bed” guarantee and a no-questions-asked money-back policy. The real coup for Hampton has been learning that its culture can translate internationally. In the past year, the brand has opened properties in London, Poland and Russia, raising its unit count to almost 2,000 hotels in 16 countries. On the horizon: China, where Hampton plans to open 400 hotels in the next several years. 2. Anytime Fitness Image credit: Anytime Fitness | Video Screenshot Just because Anytime Fitness slipped from first to second place in this year’s Franchise 500® doesn’t mean the 24-hour club chain has lost any of its mojo. In fact, 2014 was one of its most stellar years yet: Anytime signed up its 2 millionth member in January, before going on to open nearly 350 new gyms—the seventh year in a row it has topped the 300-unit mark. The expansion brings the company to almost 3,000 locations in all 50 states and in 20 countries, including, for the first...
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...Worldwide (Hilton) is a leading global hospitality company which was established in the year 1919 by its founder Conrad Hilton. Since then the company has expanded geographically, produced original hotel and travel concepts, and developed innovative technologies to enhance the guest experience. Their 93-year history as pioneers in the industry makes them the number one venue for travelers, developers, partners, and team members alike. The company was until recently known as Hilton Hotels Corporation. The new Hilton Worldwide is now owned by the private equity firm "The Blackstone Group". The name Hilton Worldwide signifies the company’s global breadth and reach. Hilton Worldwide retains a chain of hotels from luxurious full-service hotels and resorts to extended stay suites and mid-priced hotels. This means that Hilton Worldwide is mainly focused on the lodging sector. One of the world's largest hoteliers is operated by Hilton. This includes a lodging empire of over 3,900 hotels and resorts in almost 91 countries. The company provides services that include lodging rooms, health and fitness facilities, and meeting facilities, dining options, swimming pools, exercise facilities, laundry facilities and spa treatments. Hilton operates and maintains a trusted portfolio of brands such as, Waldorf Astoria, Conrad, Doubletree, Embassy Suites, Hilton Garden Inn, Hampton Inn & Suites, and Homewood Suites etc. Additionally, the company also operates resorts, guest suites, and clubs...
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...A++PAPER;http://www.homeworkproviders.com/shop/acc-560-week-3-assignment-1/ ACC 560 WEEK 3 ASSIGNMENT 1 ACC 560 WeeK 3 Assignment 1, Hilton Worldwide Management Services Hilton Worldwide Management Services is the brains and brawn behind the Hilton brand. The Hilton brand consists of hotel chains across the Americas like Hilton, Hampton, Embassy Suites, Waldorf and more. This management services group has a portfolio of over 340 properties in the Americas with nearly 69,000 team members. Hilton worldwide. (n.d.) The support functionof this group is fairly extensive. They have legal services, supply management, HR & Training, finance, technology, architecture and construction, owner relations and communications. The last note on the company is they created a specialist global ecommerce force to manage the online presence of their partners. Hilton worldwide. (n.d.) Discuss how a time driven ABC cost system can be implemented in thecompany you researched and the benefits that the use will yield to the business performance First, this service company uses a hub and spoke concept so they are always in the right place to assist their partners.This tells me that HMS has already looked at TDABC and understands that moving services closer to their partners saves time and money. Even with this concept in place, there is always room for improvement, and this is how HMS can design TDABC to improve their services. After you have buy-in from management, the...
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...before the October 2001 Enron fiasco and at that time, accountants serving “sophisticated” clients were expected to sometimes be creative in their accounting practices. Not to say that I ever witnessed any “creativity” such as that shown at Enron. If, however, if a client wanted to record a transaction a certain way, for example, a good CPA would do his best to find a way to support his client’s accounting. A great CPA was nearly always successful. Since then, I have left public accounting (pre-Enron, not as a result) and have been on the client side for the last twenty or so years. I’ve witnessed that most people in business do not appear to be creative and, in fact, many seem to be stuck thinking “that’s just the way we do it.” Most companies have a couple of people who do most of the creative thinking and the rest of the people just react…or resist. Over time, I have found it difficult not to slip into that mindset. It is certainly the easiest path to follow. It has the least resistance and is a fairly safe way of doing things. You’re not likely to screw anything up if you simply follow the standard way of doing things. An employee might not be faulted for not coming up with new, creative ideas, but may be criticized or even fired if he...
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