...1. The key aspects of Manufactured Homes(MNH) are the selling of manufactured homes at a big price range with the focus on the lower end of the market and the financial participation. MNH sells the mortgages of the customers to unrelated financial institutions and earn money by the difference in the interest rates. MNH sold mobile homes in the Southeast US, primarily to low-income individuals who could not afford a traditional single-family home. The company sells affordable comfort. The company believed that its focus on the lower end of the market had two advantages. First, since its customers were seeking to fulfill an essential housing need, sales were less affected by changes in general economic conditions. Second, the company’s repossession rates were significantly lower than those of the industry since its customers were likely to work very hard to keep their primary residences even when times were bad. Although the market will be very competitive this year, we think the company’s special attention to the low-end of the market, to which many large competitors pay less attention, will give MH a solid niche position. MNH has a viable business, because it earns their money with two different aspects that are related to each other. The selling of manufactured homes to the lower end of the market and the selling of the mortgages (installment contracts) on a recourse basis. When the customers buy a home it is easy for them to buy a mortgage with it at the same company. Another...
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...Financial Statement Analysis Assignment 1 “Manufactured Homes” 18 February 2015 Semester 2, Period 1 2014/2015 Student Name (Student Number), Tutorial Group Number ), 2 ___________________________________________________________________________ Question 1: The key aspects of Manufactured Homes business are, Manufactured Homes sells mobile homes for affordable prices. Their main focus is on low-income customers like retirees, people seeking a single-family residence but lacking to ability to buy a conventional house and people who want a second home for vacation purposes. Manufactured Homes sells 2 kinds of mobile homes, single-sectional homes and multiple sectional homes. Most of the sales Manufactured Homes makes are credit sales where to customer pays a down payment of 5-10% of the purchase price and the remaining amount through an installment contract over periods ranging from 84-180 months. The company sells the majority of these installment contracts to unrelated financial institutions on a recourse basis. Which means that Manufactured Homes is responsible for the payments to the financial institution if the customer defaults. I believe Manufactured Homes has a viable business, although the market is very competitive, because Manufactured Homes focuses on the low-end of the market to which many large competitors pay less attention Manufactured Homes will have a solid niche position. Manufactured Homes also has the potential to buy in bulk, which gives them...
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...Manufactured Homes 1. Manufactured Home business focuses on the lower end of the market. Its key aspects are marketing, price competitive (target individuals in the low income category) and offering both single and multi-sectional units. We think that the company does have a viable business, because revenues are increasing over the years (1984-1986). This can be caused due to the fact that revenues are being split in two sources: the sale of homes and the interest rate spread. But due to sales failures there is a concern about the increasing liabilities. So if these liabilities will rise till really high numbers and will overstate the assets, the business could get damaged and then it will loose its viability. 2. Most of Manufactured Homes its sales were credit sales whereby the customer paid a down payment of 5 to 10 percent of the sales price and entered into an installment sales contract with the company to pay the remaining amount over periods ranging from 84 to 180 months. A sale is recognized when payment is received or in this case of credit sales, when a down payment (5 to 10%) is received and the company and the customer enter into an installment contract. At the time of sale, the company receives immediate payment for the stated principal amount of the installment contract and a portion of the finance participation resulting from the interest rate differential. This accounting treatment is reasonable/not reasonable, because the way Manufactured Homes...
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...top-of-the-line manufactured house, but I am being offered bottom-of-the-line financing, even though my credit is pretty good. They want 8-9% when other mortgages are going for 5-6%. How come?" Most purchasers of manufactured housing, including you, are shut out of the mainstream mortgage market. They must find loans in a parallel market, which is much like the unsecured personal loan market. Lenders in this parallel market assume that loss rates on manufactured house loans will be high, as they are on personal loans, and they price them accordingly. They view manufactured houses as poor collateral that provides them with little protection. One reason for this view is that manufactured houses can be moved. Before the HUD building code went into effect in 1976, manufactured houses were called "mobile homes", and this term is still widely used. Even though few ever leave their first site, they remain tarnished by the image of mobility. Lender concern that the collateral can disappear is well grounded when the house sits on rented land, which is the case for about half of all manufactured houses. Most leases are short, and if the landowner decides that it is more profitable to use the land in some other way, the manufactured house owner must move it or leave it. Since the cost of moving is very high, and in many cases the property is worth little more than the debt, owners sometimes just walk away. The lender's collateral ends up in the trash heap. Few owners of manufactured houses...
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...Since the case is based on sale of good it will therefore include terms and conditions on which the contract is formed and the desired actions from both parties. The terms on which the sale of good is made and the clauses which make the contract null and void. The report will discuss the contract from seller perspective including the processes involved and stages throughout the selling process through a commercial contract. However, the report will also consider the buyer perspective as no contract is formed without the consent of two independent bodies therefore the terms and conditions laid down by buyer on which the sale is to be made will also be highlighted. The contract serves as a purpose to cushion both the parties against any foreseeable losses and provide a guideline to perform a profitable deal which provides a mean to conduct business. Therefore contracts cover every concerned authority involved with definite understood terms upon which they agree and sign contract. Upon finalizing, the contract serves as a mean to seek the guideline for desired actions and basis of deal and as and when necessary might be used as a measure to prevent from any loses with the help of law. There are some desired actions by the management in case of any disputes therefore effective management practice is vital in any B2B or B2C contract. Introduction: Bin Hashim Products are manufacturer of quality textile products that have a demand globally. They deal with manufacturing home textile...
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...costs to the job cost sheet. Calculate a predetermined overhead rate and use it to apply manufacturing overhead cost to jobs. Describe how costs flow through the accounting system in job order costing. Calculate and dispose of overapplied or underapplied manufacturing overhead. Calculate the cost of goods manufactured and cost of goods sold. Lecture Presentation–LP2 www.mhhe.com/whitecotton1e 36 FOCUS COMPANY: Toll Brothers Inc. “America’s Luxury Home Builder” www.tollbrothers.com H ave you ever found yourself in the following situation? You go out to a trendy new restaurant with a group of friends. You are on a limited budget, so you order the cheapest dish on the menu and a glass of ice water. Meanwhile, your friends indulge in a full-course meal with drinks, appetizers, entrees, and dessert. When it is time to pay the bill, would you prefer to split the check or get a separate tab for each person at the table? This common scenario illustrates the basic difference between the two costing systems discussed in the next two chapters. Process costing is similar to splitting the check, or spreading the total cost over the number of units produced (or in the case of a restaurant meal, the number of customers at the table). This simple method works well as long as each unit (or customer) consumes about the same amount of cost (or food). Process costing is discussed in the next chapter. With job order costing, a separate cost record is kept for each individual product...
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...CHAPTER 2: MANAGERIAL ACCOUNTING CONCEPTS/JOB COSTING ANSWERS TO QUESTIONS 1. The major differences between managerial and financial accounting are: |Financial Accounting |Managerial Accounting | |External users of information—usually stockholders, financial|Internal users of information—usually managers. | |analysts, and creditors. | | |Must comply with generally accepted accounting principals. |Need not comply with generally accepted accounting principles| | |Internal cost-benefit evaluation deter-mines how much | | |information is enough. | |Uses historical data. |May use estimates of the future for budgeting and decision | | |making. | |Summary data are presented. |More detailed data are provided about product costs, | | |revenues, and profits. | 2. The three elements of costs incurred in manufacturing a product...
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...costs to the job cost sheet. Calculate a predetermined overhead rate and use it to apply manufacturing overhead cost to jobs. Describe how costs flow through the accounting system in job order costing. Calculate and dispose of overapplied or underapplied manufacturing overhead. Calculate the cost of goods manufactured and cost of goods sold. Lecture Presentation–LP2 www.mhhe.com/whitecotton1e 36 FOCUS COMPANY: Toll Brothers Inc. “America’s Luxury Home Builder” www.tollbrothers.com H ave you ever found yourself in the following situation? You go out to a trendy new restaurant with a group of friends. You are on a limited budget, so you order the cheapest dish on the menu and a glass of ice water. Meanwhile, your friends indulge in a full-course meal with drinks, appetizers, entrees, and dessert. When it is time to pay the bill, would you prefer to split the check or get a separate tab for each person at the table? This common scenario illustrates the basic difference between the two costing systems discussed in the next two chapters. Process costing is similar to splitting the check, or spreading the total cost over the number of units produced (or in the case of a restaurant meal, the number of customers at the table). This simple method works well as long as each unit (or customer) consumes about the same amount of cost (or food). Process costing is discussed in the next chapter. With job order costing, a separate cost record is kept for each individual product...
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...1990 [Group] Case Study Prepared By: Aman Chahal Vikash Chand Eric Jou Xiang (Sean) Li Students of: Corporate Finance 6215 California State University – East Bay Prepared For: Scott Fung Professor of: Corporate Finance 6215 California State University – East Bay November 7, 2012 Table of Contents: Business Analysis Financial Analysis Valuation Analysis Policy Analysis Conclusion Appendix A: xx – Aman to include for her section B: 1990 Ratio Analysis C: D: XX * Business Analysis Fleetwood Enterprises, Inc. was the nation's largest maker of both manufactured housing and recreational vehicles (including motor homes, travel trailers, folding trailers, and truck campers) in the late 1980's and early 1990's. As a whole, Fleetwood recreational vehicles span the full range of the market, with their retail prices ranging from $3,000 to more than $200,000. The 1970s was a period of rapid growth and expansion for Fleetwood. As the decade ended, the revolution in Iran -- sky-rocketing gasoline costs, and the buying public's fear of a recession, along with rising interest rates -- created an across-the-board slump in sales. Since most of Fleetwood's production line were vehicles, gasoline shortages, along with the spiraling costs of fuel, shook the RV market to its foundations. Value Creation: In 1990, Fleetwood produced about 35,000 houses in 26 plants in 13 U.S. states. Its manufactured housing revenues...
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...predetermined overhead rate and use it to apply manufacturing overhead cost to jobs. Describe how costs flow through the accounting system in job order costing. Calculate and dispose of overapplied or underapplied manufacturing overhead. Calculate the cost of goods manufactured and cost of goods sold. Lecture Presentation–LP2 www.mhhe.com/whitecotton1e 36 whi10777_ch02_036-087.indd 36 9/17/09 2:29:08 PM Confirming Pages FOCUS COMPANY: Toll Brothers Inc. “America’s Luxury Home Builder” www.tollbrothers.com H ave you ever found yourself in the following situation? You go out to a trendy new restaurant with a group of friends. You are on a limited budget, so you order the cheapest dish on the menu and a glass of ice water. Meanwhile, your friends indulge in a full-course meal with drinks, appetizers, entrees, and dessert. When it is time to pay the bill, would you prefer to split the check or get a separate tab for each person at the table? This common scenario illustrates the basic difference between the two costing systems discussed in the next two chapters. Process costing is similar to splitting the check, or spreading the total cost over the number of units produced (or in the case of a restaurant meal, the number of customers at the table). This simple method works well as long as each unit (or customer) consumes about the same amount of cost (or food). Process costing is discussed in the next chapter. With job order costing, a separate...
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...Commerce Department issues a preliminary decision. The case was brought by SolarWorld Industries America, Inc. the U.S. subsidiary of German company SolarWorld AG. SolarWorld alleged that Chinese companies were selling solar panels in the U.S. market below manufacturing cost, a practice known as “dumping”, with the intent being to cause harm to domestic manufactures of similar products. This particular case dates back to 2012 when SolarWorld first successfully petitioned to impose solar panel import tariffs. Chinese manufactures of solar panels then started using solar cells, the central component of the technology used to harvest the sun’s energy and convert it into electricity, made in Taiwan as a means to circumvent the restrictions. This led SolarWorld to again ask the Department of Commerce to expand the tariffs to include Taiwanese manufactured panels. The proposal will next go to the U.S. International Trade Commission for review, and if approved, keep the assessed duties in place for at least five years. A SolarWorld spokesperson has declared this action as a major victory that has “paved the way for expansion of solar manufacturing” in the U.S. market. However, not everyone is cheering: opponents of the ruling cite trade tariffs as a major factor driving up the cost of home solar systems, slowing adoption and negatively impacting retailers and installers of such systems. Imports of Chinese-manufactured solar panels have dropped from more than 93 million units...
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...Chapter 3 Systems Design: Job-Order Costing Solutions to Questions 3-1 By definition, manufacturing overhead consists of costs that cannot be practically traced to jobs. Therefore, if these costs are to be assigned to jobs, they must be allocated rather than traced. 3-2 Job-order costing is used in situations where many different products or services are produced each period. Process costing is used in situations where a single, homogeneous product, such as cement, bricks, or gasoline, is produced for long periods. 3-3 The job cost sheet is used to record all costs that are assigned to a particular job. These costs include direct materials costs traced to the job, direct labor costs traced to the job, and manufacturing overhead costs applied to the job. When a job is completed, the job cost sheet is used to compute the unit product cost. 3-4 A predetermined overhead rate is used to apply overhead cost to jobs. It is computed before a period begins by dividing the period’s estimated total manufacturing overhead by the period’s estimated total amount of the allocation base. Thereafter, overhead cost is applied to jobs by multiplying the predetermined overhead rate by the actual amount of the allocation base that is recorded for each job. 3-5 A sales order is issued after an agreement has been reached with a customer on quantities, prices, and shipment dates for goods. The sales order forms the basis for the production order. The production order specifies what is to be produced...
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...For this assignment, you will need to access the LexisNexis database in the Keller Library, from the Student Resources area under Course Home. Go to Kubasek, Chapter 13, page 369, problem 13-16. Use LexisNexis in the Keller library and look up the Nadel et al. v. Burger King Corp. & Emil, Inc. case. Use the citation you find in your book to do the search. Read the case and answer these questions. Copy and paste this information into a Word document, include your name on that document, and answer the questions. 1. What court decided the case in the assignment? (2 points) COURT OF APPEALS OF OHIO, FIRST APPELLATE DISTRICT, HAMILTON COUNTY 2. According to the case, what must a party establish to prevail on a motion for summary judgment? (3 points) 3. Briefly state the facts of this case, using the information found in the case in LexisNexis. (5 points) Plaintiff child was burned by spilled restaurant coffee. Plaintiffs, the child and his mother, grandmother, and father, filed an action in breach of warranty, products liability, and negligence against defendants, the restaurant franchisor and franchisee. The trial court granted the motions of both defendants for summary judgment. Plaintiffs appealed. The court affirmed in part and reversed in part. The spilled coffee was not so unforeseeable as to constitute an intervening cause. Summary judgment was proper for the breach of warranty claims because they were pre-empted by the Ohio Products Liability Law....
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...QUALITY INC CASE STUDY SCM880ZS February 18, 2015 OVERVIEW Air Quality Inc. was founded in 1984, and Patrick Wallace is the plant manager at Air Quality Inc. Their mission is to improve the quality of life by creating manufacturing and marketing innovative energy recovery products. Their management belief was based on 4 principal keys: assembly, design, steel fabrication and the manufacture of aluminium head recovery ventilators. Patrick believed that defective equipment had been shipped to customers and he had to react immediately. BACKGROUND AQS manufactured ventilation, air-cleaning and heating equipment for residential and commercial applications. They have a very high reputation for quality and technical innovations. Approximately 60% of 3400 parts used in manufacturing operations is procured from suppliers, while the remaining 40% remains in house. Most important products are singled sourced and less important one were usually purchased from other suppliers at low cost that met the expectation of quality, quantity, and delivery. They sold more than 300 different products under Air Purity brand to large distributors that sod the wholesalers, which in return sold them to independent contractors. These products were installed in homes and commercial properties. Their product prices for HRV varied between $550-750. QUALITY PROBLEM Wallace noticed that the foam insulation was peeling off the doors in a batch of HRV equipment that had been manufactured recently...
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...Fire Administration, over 35,000 fires are set by children each year and 8,000 of those fires are set in homes (“Curious Kids”, 2006). Fires can be very attractive and many children are fascinated by it. Oftentimes children are exposed to some type of fire, from a lit candle on a birthday cake to campfires and fireplaces, or even fireworks. Many children become curious of this phenomenon and almost always, they will attempt to start a fire. Because lighters and matches are an attractive item for children to play with, parents should take extra caution when potentially dangerous items are in the home. For that reason, fire starting tools such as lighters and matches should be kept hidden or stored in secured areas away from children. The following court case stemmed from a child’s curiosity in playing with a utility lighter. On the night of March 31, 1998, Ms. Susan Calles returned from the video store to find her home surrounded by an emergency response team. Upon arrival, she was informed by fire investigators that her home had been set on fire. She later learned that while she was out with her daughter Victoria to get videos for Amanda, Jenna had started a fire using a utility lighter. Ms. Calles, along with her four daughters, Amanda (age 11), Victoria (age 5), and twins, Jenna and Jillian (ages 3) share a home in Illinois. Before Ms. Calles left her home earlier that night, she had put the twins to bed while Amanda watched TV. During the time period that...
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