...Financial Analysis Summary Report Task 1 Competition Bikes Incorporated Lisa A Castro, MSW Western Governors University Horizontal Analysis (A. 1. a) A horizontal analysis can be defined as “the study of percentage changes in comparative statements” (Charles T. Horngren, 2008, p. 746). It is useful in determining a company’s financial stability. This section will analyze Competition Bikes Incorporated’s (CBI) percentage changes from years 6 to 7 and then 7 to 8. The report will include an analysis of CBI’s comparative income statement and balance sheet. Between years 6 and 7 CBI’s Net Sales increased by 33.3% for a change of $1,495,000. The increase of 33% indicates strength for the company because it means that the company has become more profitable. This also indicates that demand for CBI’s product has increased and that their marketing strategies have been more successful. It is good news for the shareholders because more profits means more revenue. Between years 6 and 7 CBI’s Cost of Goods Sold increased by 31.8% for a change of $1,048,000. Even though the Cost of Good Sold increased significantly it is still less than the Net Sales increase of 33.3%. This resulted in a Gross Profit of 37.5% or $447,000. This indicates strength for CBI, as the management was able to control their costs to turn a profit on the increased sales. This is also a positive for the shareholders because increased profits mean more revenue for the shareholders. Between...
Words: 6540 - Pages: 27
...Competition Bikes Inc. Summary Report 2014 Here is the Horizontal Analysis for years 6 and 7 for Competition Bikes Inc. Income Statement Sales Revenue: Net sales for Competition Bikes Inc. increase from $4,485,000 to $5,980,000, which was an increase of 33.3% for the year. This is a strength for the company since it shows that the demand for Competitions Bike’s product has increase over the year. This figure should also make stockholders very happy since the money the company makes helps determine the stock price. In this case it was a positive increase so it’s stock price should reflect a positive increase as well. Cost of Goods Sold: Cost of Goods Sold (COGS) increased from $3,294,000 to $4,342,000, which was an increase of 31.8% for the year. The increase in COGS is not necessarily a bad thing (strength) for Competition bikes. The COGS should be in tandem with sales revenue since more products sold mean more goods to be produced. In this case the increase of COGS was slightly below the 33.3% increase in sales revenue which shows that some efficiency’s were made in the company. Gross Profits: Gross Profits showed an increase of $447,000 ($1,638,000 - $1,191,000) which is to be expected since net sales increased for the year. With an increase in efficiency (as mentioned in COGS) this figure should be increase as well. Having a increase in Gross Profit also states that Competitions Bike's product is selling very well and/or they have limited availability...
Words: 8250 - Pages: 33
...Competition Bikes Summary Report Sherri Silva Western Governor's University Abstract Competition Bikes, Inc. is a successful business that makes bikes for professional cyclists helping them to live their dreams and compete in major cycling events to include triathlons and other competitive cycling sports. After three years in business, Larry Ferguson, the business owner decided to take the company public in efforts to gain the capitol needed to build the current two manufacturing facilities. Both facilities are staffed to manage an increase in bike sales if necessary. Competition Bikes, Inc. is unique in that it really honors the quality and design of the bike being sold. Money is spent on research in efforts to ensure the lightest most custom bike is offered to its customers. The company also invented the CarbonLite which was the first designed bike to offer drive shaft technology. Although Competition Bikes, Inc. has experienced tremendous success over the past eight years in business, they have also experience a 15% sales decline over the most recent years. It is imperative that a financial analysis take place in efforts to trend where the financial issues are arising from allowing Competition Bikes, Inc. to explore other means of increasing profit margins. In completing a financial analysis for Competition Bikes, Inc. one must analyze financial data to include performing a horizontal analysis. This type of analysis is designed to show trends or changes between years...
Words: 4532 - Pages: 19
...Course Project – Part I Task 1: Assessing loan options for Air Jet Best Parts, Inc. The company needs to finance $8,000,000 for a new factory in Mexico. The funds will be obtained through a commercial loan and by issuing corporate bonds. Here is some of the information regarding the APRs offered by two well-known commercial banks. Bank APR Number of Times Compounded National First Prime Rate + 6.75% Semiannually Regions Best 13.17 Monthly 1. Assuming that Air Jet Parts, Inc. is considering loans from National First and Regions Best, what are the EARs for these two banks? Hint for National Bank: Go to the St. Louis Federal Reserve Board’s website (http://research.stlouisfed.org/fred2/). Select “Interest Rates” and then “Prime Bank Loan Rate”. Use the latest MPRIME. Show your calculations. (25 pts.) Bank Prime Loan Rate as of Jan 26, 2013 – 3.25% according to the Federal Reserve Bank of St. Louis. National First - EAR EAR = (1+(Prime Rate +6.75%)/2)^2-1 EAR = (1+(3.25% + 6.75%)/2)^2–1 EAR = (1+.10/2)^2–1 EAR = (1.05)^2-1 EAR = 1.1025-1 EAR = .1025 EAR = 10.25% Regions Best - EAR EAR = (1+13.17%/12)^12-1 EAR = (1+0.010975)^12-1 EAR = (1.010975)^12-1 EAR = 1.13995-1 EAR = 0.13995 EAR = 13.995% EAR = 14% 2. Based on your calculations above, which of the two banks would you recommend and why? Explain your rationale. (25 pts.) I would suggest that Jet Air go with National First to get their loan. I say this because of the lower...
Words: 901 - Pages: 4
... | | | |Qualification |Unit number and title | |BTEC Level 3 Extended Diploma/ Subsidiary Diploma in Business |Unit 2: Business Resources | |Assignment no and title | Assignment 1 : Know how human resources are managed | |Criteria reference|To achieve the criteria the evidence must show that | | |Task No | | |the student is able to: | | | | |P1 | | | |Task 1 | | |Describe the recruitment...
Words: 596 - Pages: 3
...[Company name] [Company address] Marrketing principles Contents Introduction 2 Learning Outcome 01 2 Task 1 2 Task 2 4 Learning Outcome 02 5 Task 3 5 Task 4 10 Task 5 12 Learning Outcome 03 12 Task 6 12 Task 7 13 References: 13 Introduction British Airways (BA) is the banner bearer aerial shuttle of the United Kingdom and its biggest carrier focused around armada size, universal flights and global ends. At the point when measured by travelers conveyed it is second-biggest, behind Buisness jet. The aerial shuttle is situated in Waterside close to its primary center point at London Heathrow Airport. A British Airways Board was built by the United Kingdom government in 1972 to deal with the two nationalized aerial shuttle companies, British Overseas Airways Corporation and British European Airways, and two littler, provincial carriers, Cambrian Airways, from Cardiff, and Northeast Airlines, from Newcastle upon Tyne. On 31 March 1974, every one of the four organizations was consolidated to structure British Airways. After very nearly 13 years as a state organization, British Airways was privatized in February 1987 as a feature of a more extensive privatization arrange by the Conservative government. The transporter soon stretched with the securing of British Caledonian in 1987, took after by Dan-Air in 1992 and British Midland International in 2012. British Airways is an establishing part of the one world aerial shuttle union, alongside American...
Words: 6241 - Pages: 25
...in Alberta, Canada. Kelly's father was a successful larvyer in Calgary, and her mother was a high school English teacher. Kelly had an older sister, Laurel, 27 , who had just passed the bar exam and was working fbr a corporate law firm in Edmonton. Kelly had studied Japanese in high school and in university and spoke and wrote the language quite well. When she was 15 years oid, Kelly spent tbur months in Japan on a school exchange. She had enjoyed the time she spent there and ahvays planned to return one day. Upon graduating tiom high school. Kelly lvent to the University of Alberta, in Ednonton, to stucly nlarragement. During her final year at the universitv, Kelly heard some of her friends talking about the Japan Exchange and Teaching (JET) Program. She rvas told ihat it rvas quite easy to get accepte(l-all an applicant needed was a university deglee and an interest in Japanand that it rvould be a...
Words: 2608 - Pages: 11
...Task Background: Suppose you are developing a statistical database in which information about professional football teams and records are stored. Consider the following 2 sets of data that list football teams and quarterbacks: D = {Jets, Giants, Cowboys, 49’ers, Patriots, Rams, Chiefs} Q = {Tom Brady, Joe Namath, Troy Aikman, Joe Montana, Eli Manning} NOTE: (You can also use http://www.pro-football-reference.com to find this information, but here it is as well :) The following list gives you the relationships (mapping) between team and QB. * Jets – Joe Namath * Giants – Eli Manning * Cowboys – Troy Aikman * 49’ers – Joe Montana * Patriots – Tom Brady * Rams – Joe Namath * Chiefs – Joe Montana 1. Using D as the domain and Q as the range, show the relation between the 2 sets, with the correspondences based on which players are on which team. Show the relation in the following forms: Set of ordered pairs (20 points) Directional graph (like the pictures draw in class in our live chats – see HINT below). (20 points) The ordered pairs when D is the domain are: {(Jets,Joe Namath),(Giants,Eli Manning),(Cowboys, Troy Aikman),(49ers,Joe Montana),(Patriots,Tom Brady),(Rams,Joe Namath),(Chiefs, Joe Montana)} 2. Is the relation a function? Explain. (10 points) This is a function, because every element (Quarterback) of the domain is mapped to exactly one unique element (Team) of the range. So with the one to one relation of player to team...
Words: 580 - Pages: 3
...Task 1: Assess Loan Options 1. National First Bank Prime Rate + 6.75%, Compounded Semiannually [1+ (6.75+3.25) /2]^2-1 = .1025 a EAR of 10.25% Regions Best [1+ ( .1317/12)^12-1 = .014 a EAR of 14 % 2. After calculating the EAR for both banks, I would recommend National First Bank because its EAR is 10.25% which is lower than Regions Best EAR of 14%. The best choice for Air Jet Best Parts Inc., should be the lower EAR of 10.25%. 3. Air Jet Best Parts Inc $6,950,000 loan with APR of 8.6% for 5 years. Monthly 6,950,000*8.6%/ 5%= $597,700/5 = $119,540/60 =$1992.33 monthly I would have to disagree with this move. National First Bank calculation with a 6.75% rate would yield a smaller monthly payment with a lower interest rate, which would save the company money. Task 2: Evaluate Competitors Stock 1. Lockheed Martin Price: 85.21 Dividend: 4.00 Rate of Return: 4*[(1+.05)/85.21+.05] =.1204=12.04% 2. Current Share Price 12.04% [1.50*(1+.01)]/ (.1204-.01) = $13.72 3. Preferred Stock Price 1.50/.1204= $12.46 In Review of the two Prices, I would have to say that this is a good thing. A company current share price should be over its Preferred Price. Meaning that stock pricing is better currently than what the pricing was projected to be. 4. Paying Dividends decreases the value of a stock. The amount of a dividend is subtracted from the Stock Price. In other words, subtracting from the stock price yields a negative change. Adding to the stock...
Words: 345 - Pages: 2
...49006- Risk Management In Engineering Risk Management Plan * Proposed Darling Harbour Water Feature Prepared by Vipin Appu Parambil Vikraman 11789373 29th March 2015 Executive Summary This report presents the risk assessment and risk treatment plan for the three new water features of Darling Harbour precinct along with the installation of the public realm. This project is a part of the Convention Centre Redevelopment plan and the risk assessment and treatment, is carried out by abiding with the AS/NZS ISO 31000:2009, SA/SNZ HB 436:2013 and IEC/ISO 31010:2009. Firstly, an introduction of the iconic location, Darling Harbour is briefed. The project objectives, scope and boundaries of the new water features installation is explained along with the risk management process adopted for this project. Secondly the context for risk is established inclusive of internal and external context. The stakeholder analysis and communication and consultation stage, explains the various stakeholders of this project and their mode of communication. Thirdly, risk criteria, risk identification, risk analysis and risk evaluation is developed based on the possible risks that may occur with this project. During risk identification potential risks related to the project was generated. The application of risk severity matrix and FEMA analysis were conducted to identify the likelihood and consequence of risks. ALARP principle was used for risk evaluation and identifying possible...
Words: 5780 - Pages: 24
...permit normal sleep quotas, rapid travel across multiple meridians and extreme athletic and recreational endeavours where sleep is restricted or totally deprived. There are methodological issues in quantifying the physiological and performance consequences of alterations in the sleep–wake cycle if the effects on circadian rhythms are to be separated from the fatigue process. Individual requirements for sleep show large variations but chronic reduction in sleep can lead to immuno-suppression. There are still unanswered questions about the sleep needs of athletes, the role of ‘power naps’ and the potential for exercise in improving the quality of sleep. © 2006 Elsevier Inc. All rights reserved. Keywords: Circadian rhythm; Exercise; Jet-lag; Shift-work 1. Introduction The sleep–wakefulness cycle is the most discernable of human circadian functions, activity being associated with the hours of daylight and sleep with the hours of darkness. This recurrence on a daily basis is linked with responses of the pineal gland to the environment, its secretion of melatonin being promoted at dusk and inhibited on exposure to morning light. There is a myriad of other biological functions that are knit into a common system of circadian rhythms, cycles in behaviour and in biological functions that recur with a...
Words: 9172 - Pages: 37
...Air Jet Best Parts, Inc. Financial Analysis Task 1: Financing $8,000,000.00 for new factory in Mexico 1. Assuming that AirJet Parts, Inc. is considering loans from National First and Regions Best, what are the EARs for these two banks? Hint for National Bank: Go to the St. Louis Federal Reserve Board’s website (http://research.stlouisfed.org/fred2/). Select “Interest Rates” and then “Prime Bank Loan Rate”. Use the latest MPRIME. Show your calculations. a. National First Bank: 3.25%(prime rate) + 6.75% =10% compounded semiannually .10/2 = 0.05 =5% semiannually 1 x 1.05^2 = 1.1025 Effective Annual Rate = 10.25% b. Regions Best Bank: 13.17% monthly .1317/12= 0.010975 = 1.0975% monthly 1 x 1.010975^12 = 1.139948 Effective Annual Rate = 13.99% 2. Based on your calculations above, which of the two banks would you recommend and why? Explain your rationale. Based on the above calculations I would have to recommend Air Jet Best Parts, Inc. secure financing with National First Bank. Based on the effective annual rate the amount of interest that Air Jet would pay is significantly less than obtaining a loan from Regions Best Bank. Also, the fact that National First Bank’s interest is compounded semi-annually, helps as well. 3. AirJet Best Parts, Inc. has decided to take a $6,950,000 loan being offered by Regions Best at 8.6% APR for 5 years. What is the monthly payment amount on this loan? Do you agree with this decision? Explain your rationale. ...
Words: 377 - Pages: 2
...1. Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy. The rising oil prices are increasing the cost of the flight in spite of reduction in the prices of the flight. There is less scope now to get the tickets urgently because all the tickets are booked at least 2 months before to counteract the demand. Although the fares are declining but the airlines increasing the prices of checking, refreshment, which ultimately have negligible impact in the prices of the flights. It has been seen that most of the travelers are selecting economy class instead of business class so that they can meet their expenditure as per their budget. But the airlines are trying to sell their business class seats first to generate higher revenue. To reach their target, the nearby hotels are making contract with the airlines. The specific percentage is associated with the airlines. The main objective of them is to attract more customers to increase their revenue (Thompson, Strickland & Gamble, 2010). Therefore they are cutting their cost by decreasing the fares but on the other hand they are giving fewer facilities to the passengers like they are not providing any meal if providing it is chargeable. Again it is seen that some flights are providing only drinks and cakes to the customer. But the registrations of flights tickets are seem to be very easier and convenient for the customer. Now they can book the ticket online without bearing any charge of brokers...
Words: 1419 - Pages: 6
...Hero Essay English 9 Mr. Castellano Our next major writing assignment is to write an essay about someone you consider to be a hero. We are doing this essay now because it coincides nicely with our reading of The Odyssey. As we have discussed in class, Odysseus is the archetypal Western hero: brave, strong, clever, quick-thinking, steadfast. The list could go one. My point is that as we read about this ancient and, I believe, still relevant hero I want you to think and write about someone who is a hero to you. This should be a fun assignment. I am sure you have heard all too often that there are no more heroes today, that everyone we look up to is corrupt and will ultimately disillusion us. I whole heartedly disagree. Heroes are everywhere we look: we just need to look. (In a book I read this Summer, one of the characters says, “We find what we look for.”) Heroes can be people we know personally and people we have only heard about. Here are only a few suggestions: Jesus Christ, St. Francis, Mother Theresa, Martin Luther King, Jr., Barack Obama, Captain Chesley Sullenberger, your Mom or Dad, an athlete, coach, teacher, or friend. Again, the list goes on. Just thinking about and planning this essay (as well as writing it, of course) will be a good exercise in recognizing how many heroes you have – how many people strive for high ideals and live virtuous lives. They’re there: look for them. Part of this essay will include what you define as...
Words: 1188 - Pages: 5
...orange airline: Intro: Easy jet is an European airline which was launched in 1995 by its founder Greekcy Priot Stelios Haji-Loannou. It was started with two wet leased Boeing like 737-200 aircrafts and today it operates 196 aircrafts with 20 buses all over around the Europe. It carried 45.2 million passengers in the year of 2009 which made it as a second largest low cost European airline behind Ryanair. In 2002, Easy jet bought London Stansted based Go airline £ 374 million (easy-jet.com). Go was the low cost scheduled passenger airline which provides service within the Europe. The main reason behind this acquisition was profitable and established airline with strong growing aspects that reveals a year to year increase of 232 per cent. Nearly 90% of sales in Easy jet are online from this website. There are two significant features based on its success are: low price and E- commerce strategies .The purpose of this Easy jet‘s, online the presence of information’s and procedures to sketch and propose suggestion on the progression involved in creating a booming online presence( David & Cynthia1999). Apart from this it will define its approaches for its significant success of industry. In this paper, we will first discuss about the approaches and it applies. Then based on PESETEL framework we will find out the reason for applying. And in final the merits and demerits approaches in order to discuss about the alternatives approaches for easy jet. The above figure shows out about...
Words: 2161 - Pages: 9
