...Question 1: Westwood’s Gross Margin Percentage is calculated as (sales less cost of goods sold) as a percentage of net sales revenue. For Westwood it’s calculated as follows based on the financial statements (all in millions of dollars): 2010 Gross Margin: (2000-1100) = 900 2010 Sales Revenue = 2000 2010 Gross Margin Percentage = 45% 2009 Gross Margin: (1500 – 800) = 700 2009 Sales Revenue = 1500 2009 Gross Margin Percentage = 46.7% Westwood’s Pre-Tax Return on Sales is calculated as: 2010 Pre-tax income = 300 2010 Sales = 2000 2010 Pre-tax return on sales = 15% 2009 Pre-tax income = 250 2009 Sales = 1500 2009 Pre-tax return on sales = 16.67% Westwood’s Pre-tax return on assets is calculated as: 2010 Pre-tax income = 300 2010 Assets = 2240 2010 Pre-tax return on assets = 13.39% 2009 Pre-tax income = 250 2009 Assets = 1875 2009 Pre-tax return on assets = 13.33% Summary: Year Gross Margin % Pre-tax ROS Pre-tax ROA 2010 45% 15% 13.39% 2009 46.7% 16.67% 13.33% Question 2: The balance sheet accounts that are affected include inventory, which in turn affects total assets. Retained earnings is ultimately impacted because of the different way of accounting for profit. * Inventory * Total Assets * Retained Earnings The ratios and measurements affected include: * Cost of Goods Sold * Gross Margin * Gross Margin percentage of Sales * Income Before Taxes * Income Tax Expense * Pre-tax...
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...During the past two decades many organisations in both the manufacturing and service sectors have faced dramatic changes in their business environment. The secondary sector of the economy includes those economic sectors that create a finished, usable product: manufacturing and construction. Some economists contrast the wealth-producing sectors in an economy such as manufacturing with the service sector. Service’ can range from retail, insurance and government. Economists state that an economy begins to decline as its wealth-producing sector loses influence. Along with the service sector producing a service instead of an end product, both these sectors have faced dramatic changes in their business environments during the past two decades. In the last twenty years, there has been a ‘sectoral shift’, manufacturing, or the secondary industry has declined in parallel to the service sector, this has been more apparent in the UK business environment. One argument is that service costs have escalated, resulting in a greater influence being put on the home e.g. laundrettes having being replaced by washing machines globally. Manufacturing firms have recognised the wider markets here and have put increased emphasis on their marketing activities. The service sector following deindustrialisation has seen a decline in public transport although during the 1980’s financial and business services grew. One good example of this is the banking industry, in the service sector, which has gone...
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...Course Project: Stage II Name HRM340: Human Resource Information Systems INTRODUCTION Various types of HRIS systems and processes have been reviewed to help Jay Morgan and Family Castle Restaurant run more efficiently as a business. Jay Morgan the Operations Manager, have been using outdated methods for scheduling, recruiting, hiring, and answering questions from its employees. Maintaining accurate books and keeping constant communication with the Managers have been a challenge for Jay Morgan. If an accurate HRIS system can be implemented, Jay Morgan will be able to achieve more in business with less time and travel. BUSINESS ASSESSMENT Castle Family Restaurant is a family friendly dinning facility that has 8 locations, employing some part time employees and over 40% of fulltime employees. The locations are strategically located across the state of Florida in the hearts of neighborhoods that are suitable for any family. Castle Family provides a simple, old fashioned and pleasant dining experience. “Togetherness” is the culture that is promoted and the goal is to mimic the old fashioned restaurant environment where the family can sit, laugh and enjoy a meal together. Restaurants compete for customers every day, and proficiency is critical to providing quality customer service. In Rasmussen Reports, National Survey of 1000 Adults, more than 50 percent of Americans reported in 2011 say that they ate at a restaurant at least once a week, with...
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...Rationale behind the acquisition 1) This strategic combination will bring together two companies with highly complementary brands, geographic presence, and technological expertise to create a global leader in tire manufacturing and distribution. 2) The combined company will be the seventh-largest tire company in the world and will have a strong presence in high-growth end-markets across four continents. With a combined $6.6 billion in total sales in 2012, the combined company will have a full range of brands and greater ability to satisfy customer needs worldwide. 3) The combination is expected to deliver value creation benefits of approximately $80-120 million per annum at the EBITDA level. 4) The combined company will be uniquely positioned to address large, established markets, such as the United States and the European Union, as well as the fast-growing markets of India, China, Africa, and Latin America where there is significant potential for further growth. Our combined portfolio of brands and products will be amongst the most comprehensive in the industry. Funding the Cooper Deal In a deal that will make Apollo Tyres the world's seventh-largest tyre maker by revenue, the Onkar S Kanwar-promoted company will acquire a 100% stake in US-based tyre manufacturer Cooper Tire & Rubber Company for $2.5 billion, or around R14,500 crore. Apollo would fund the acquisition fully by raising fresh debt. The deal would be largest acquisition by an Indian company...
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...Press All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of Oxford University Press. Library of Congress Cataloging-in-Publication Data is available ISBN-13: 978-0-19-530792-4 ISBN-10: 0-19-530792-5 1 3 5 7 9 8 6 4 2 Printed in the United States of America on acid-free paper For Chaille Bianca and Vivienne Lael and William Grant who says he wants to be an investment banker ACKNOWLEDGEMENTS As a f i r s t - t i m e au t h o r , I have many people to thank. Luckily for the reader, most of them are current and former employees of Goldman Sachs and Morgan Stanley who would prefer not to be cited. Their support and insight were invaluable to this enterprise. For early encouragement and guidance I must also thank Clare Reihill at Harper Collins, Brian Kempner and Peter Kaplan at the New York Observer, L. Gordon Crovitz...
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...Benefit and Drivers for Riordan Manufacturing David Morgan, Jamie Perez, Marial Lawson, Renatta Coonor OI/361 Nov. 9, 2014 Alvin Keen Jr Benefit and Drivers Paper Riordan Manufac turing has several internal drives of innovation. Their customers are their main focus because if the customer needs and wants are not taken care of on a regular basis. The company will be at risk of losing their loyal customers. Riordan Manufacturing strives on keep a long term relationship with their customer. The company focus on maintaining a rigorous quality control, reasonable pricing, innovative solutions and a responsive business attitude. The company has another internal drive of innovation which is their staff. Riordan Manufacturing maintains an innovative and team oriented working environment (Apollo Group, 2013). Their employees are equally trained, have the essential support they need, and the employees sustains the chance to make a good environment for the company long time success. Keeping the employees well informed and properly supported is a great internal innovation drive (Apollo Group, 2013). Riordan Manufacturing realizes that for the company to maintain a high level of profit the company needs to have a stable financial innovation drive. The Riordan Manufacturing company mission statement is “Our R&D is, and will remain the industry leader in identifying the industry trends (Apollo Group, 2013)”. Riordan Manufacturing realizes that their staff is their number one internal...
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...Electronics Contract Manufacturing: Global Production and the International Division of Labor in the Age of the Internet Boy Lüthje Institute of Social Research Johann Wolfgang Goethe-Universität Senckenberganlage 26 60325 Frankfurt Germany E-mail: luethje@soz.uni-frankfurt.de Submitted for publication to Industry and Innovation – special issue on “Global Production Networks, Information Technology and Local Capabilities”, coordinated by Linsu Kim and Dieter Ernst Comments welcome, please do not quote December 2001 2 The role of information technology for production networks in developing countries cannot be assessed without an analysis of the profound changes in the productive structure of global capitalism. In contrast to the general perception of the “informational economy” (Carnoy e.a. 1993, Castells 1996) as service- or science-based, it has to be stressed that in the "new economy" manufacturing continues to matter (Cohen/Zysman 1987). In the electronics industry, a new model of outsourced manufacturing has emerged as a centerpiece of globalized production networks: Contract Manufacturing (CM) or Electronics Manufacturing Services (EMS). This form of network-based mass production closely linked to the emergence of the “Wintelist” (Borrus/Zysman 1997 model of competition and the rise of “fabless” product design companies in key sectors of the information technology (IT) industry. Our analysis of electronics contract manufacturing explores three interrelated...
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...managerial accounting. Identify the three broad functions of management. Define the three classes of manufacturing costs. Distinguish between product and period costs. Explain the difference between a merchandising and a manufacturing income statement. Indicate how cost of goods manufactured is determined. Explain the difference between a merchandising and a manufacturing balance sheet. Identify trends in managerial accounting. Prepare a worksheet and closing entries for a manufacturing company. Questions 1, 2, 3 Do It! 1 Exercises 1 *2. 4, 5, 6, 7, 8 11, 12 2, 3 1 *3. 4, 5, 7 2 2, 3, 4, 5, 6 3, 4, 5, 7, 13 8, 12, 13, 14, 15, 17 1A, 2A 1B, 2B *4. 13 6 2 1A, 2A 1B, 2B *5. 9, 14 3A, 4A, 5A 3B, 4B, 5B *6. 15, 16, 17, 18 8, 10, 11 3 8, 9, 10, 11, 12, 13, 14, 15, 16, 17 14, 15, 16, 17 3A, 4A, 5A 3B, 4B, 5B *7. 10, 19, 20, 21 9 3A, 4A 3B, 4B *8. 22, 23, 24 25, 26 27, 28, 29 12 4 18 *9. 19 6A *Note: All asterisked Questions, Exercises, and Problems relate to material contained in the appendix to the chapter. Copyright © 2011 John Wiley & Sons, Inc. Kimmel, Accounting, 4/e, Solutions Manual (For Instructor Use Only) 14-1 ASSIGNMENT CHARACTERISTICS TABLE Problem Number 1A Difficulty Level Simple Time Allotted (min.) 20–30 Description Classify manufacturing costs into different categories and compute the unit cost. Classify manufacturing costs into different categories and compute the unit cost. Indicate the missing amount of different cost...
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...How News Lifts- or Sinks- Worlds Stock This paper will speak about the changes in consumer demand trends after the crash for two different stock companies as well as the attempt the companies made to make profits from rising consumer demands after the crash. The local news that some of us can do without, while others must have it like a morning cup of coffee can get the world wrapped up in 30 minutes to an hour. We get the good, the bad, the ugly, and let us not forget our local weather. News has a very profound effect on us whether we realize it or not. How many times has the weather man been wrong, but regardless, we prepare for the weather they predict? After all, they do have the latest Doppler forecasts. We feed into the frenzy fed to us by our local newscasters. We rely on them to keep us up to date concerning the world around us. It is because of this insatiable need for the news is precisely why it has such an impact on our lives. So it goes without saying, that when the local news reports on how bad our economy is doing, it strikes fear into all viewers. Fear unchecked will inevitably lead to panic. A few short years ago, our country faced the worst recession since The Great Depression. One company after another failed. Companies that had been around for generations fell victim and had to close their doors. And how did we stay abreast, by watching the news daily. Not only did we hear of the many companies that were failing daily, we were also privileged...
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...Google’s Cash Management Google Inc., the world’s largest searching engine operator, has huge cash amount during operation. According to the news on Bloomberg, the company wants to keep money on hand in order to be able to invest quickly when needed, (2013). On Feb 28th, Patrick Pichette, Chief Financial Officer of Google, disclosed the company’s strategy to retain its “strategic ability to pounce” at a Morgan Stanley conference. In general, Google wants to maintain the ability of quick acquisition in cash to make the investment more sufficient, just like the $12.5 billion acquisition of Motorola in 2011(Pichette, 2013). At the end of 2012, Google had $48.1 billion in cash and short-term investment, and the number increased to $44.4 billion on Jun 30th, 2013(Yahoo, 2013). Patrick Pichette also mentioned that the accumulating money on hand might increase the pressure to return more to shareholder, but Google thought preparing for future investment was the best use of money for shareholders(2012). In addition, while the cash is increasing, Google keeps most of its cash overseas to reduce its tax bill, and in order to avoid large transfer fee, Google mostly uses the foreign cash outside the United States (Washington Times, 2013). Basically, Google’s cash management strategy shows the company’s stress on speculative purposes of cash, which enable the company to quickly take advantage of bargains, discounts, new investments, shifts in interest rates and...
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...ones that I overheard my mom telling Sidney’s mom over the phone are totally wasted on a guy. He snaked an arm around my waist and gave me a squeeze. “Hi,” I said, a little breathlessly. Not just because of the squeeze, but because I had a twelve-top (Mrs. Hogarth’s ninety-seventh birthday party) that was running me ragged, refilling their iced tea glasses and such, so I was panting a little anyway. “How was the movie?” “Lame,” Sidney answered for everyone. “You didn’t miss anything. Lindsay should stick with red; blond does nothing for her. Seriously, though. What’s Morgan Castle doing here?” Sidney used the menu I’d just given her to point at a table over in Shaniqua’s section. “I mean, she’s got some nerve.” I started to say Sidney was wrong—no way would Morgan Castle be caught dead at the Gull ’n Gulp. Especially at the height of the summer season, when the place was so packed. Locals—like Morgan—know better than to try to set foot near this place during high season. At least, not without a reservation. If you don’t have a reservation at the Gull ’n Gulp—even on a Tuesday night, like tonight—during high season, you...
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...MORGAN STANLEY RESEARCH ASIA/PACIFIC Morgan Stanley Asia Limited+ Brian Y Leung Brian.Leung@morganstanley.com +852 2848 5220 Jacky Chan Jacky.K.Chan@morganstanley.com +852 2848 5973 Angus Chan, CFA October 25, 2013 Industry View In-Line Angus.Kon.Chan@morganstanley.com +852 2848 5259 China Property Asia Insight: Is 2014 Another Robust Year? We expect 2014 contracted sales growth to be flat while policy risk is on the rise given the strong ASPs. We downgrade our industry view to In-Line. We favor stocks with greater exposure to the mass market segment of non-top-tier cities; Vanke, CG and Shimao are our top picks. Industry view downgraded to In-Line: We are less optimistic than consensus about the contracted sales and ASP outlook in 2014; we expect flat growth amid the increased policy risk and steady demand. MSCI China Real Estate index has outperformed MSCI China by 15% in the last 12 months. The average share price upside of our coverage universe has narrowed to 11%. Favor non-HPR/mass-market: We are more skeptical about tier-one cities given the 56% jump in land sales volume YTD and heightened policy risk amid the surge in ASPs. Demand-supply in lower-tier cities should continue to improve; we think there could be a third consecutive year of zero growth/decline in land sales in 2013, bringing down inventory-turnover. 17% contracted sales growth in 2014: We expect our coverage universe to continue to gain market share but they may only achieve half...
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...Raising Capital 10 Goldman Sachs 2011 Annual Report For Prada, the time had come to capitalize on the power of a global brand In 2010, Prada, one of the world’s most recognizable fashion brands, knew it was time to go public, and that the place to do it was Hong Kong. The reason for choosing Hong Kong was simple: Asia, with its fast-growing economies, had become Prada’s biggest growth market. By 2010, Asia had rivaled Europe and had outpaced North America, accounting for 43 percent of Prada’s annual sales. With Goldman Sachs’ London investment banking team working with the family-owned company, Prada began preparing to go public in 2007. Postponed by the global financial crisis, the IPO was moving forward again in 2011, with Goldman Sachs as lead underwriter. As the IPO approached, work on the complex transaction stretched across continents and disciplines. While our London team worked with the company on capital markets strategy, our Hong Kong investment banking team took responsibility for deal execution. In marketing the offering worldwide, Goldman Sachs helped Prada present its story to more than 250 leading investors. The IPO raised $2.5 billion. It was the largest consumer goods IPO ever in Hong Kong, and the largest IPO to date of any global luxury brand. The offering enabled Prada to reduce its debt while funding future growth across China and the rest of Asia. By 2015, China alone is estimated to comprise 20 percent of the world’s luxury goods market. Prada...
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...Morgan Stanley (MS) * Describe the nature of this company’s business according to the Annual Report. Morgan Stanley is a financial services holding company that operates on a global basis through its subsidiaries and affiliates to maintain a competitive market position within its business segments. The three segments MS primarily positions itself in are the following: Institutional Securities, Global Wealth Management Group, and Asset Management. MS provides these services to a wide and varying client base consisting of governments, individuals, and almost everything in between. (p 50) * Was that description of business in line with what you thought the company’s main business was before reading the MD&A? Yes, it was in line with what I thought MS, and their subsidiaries business interests were involved with. I was however unaware that the Global Wealth Management Group position of MS made up 65% of the company’s operating interest. * List five positive events (outcomes) mentioned in the MD&A. What is the source of/reasons for these positive things? Were those things good/positive due to management’s effort or due to external factors? In other words, who should/did take credit for these good things? 1. Morgan Stanley’s DVA income increased from 2011 to 2012 by $721 million. This can be considered a positive event because the decrease in the company’s liabilities is in a sense, a source of profit. (p 58) 2. Global Wealth Management Group...
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...The New York Times Co. Why is the newspaper industry so family controlled? What other industries have a lot of family-controlled companies? What attributes might support family control? Family owned newspaper companies believe that the journalistic integrity of the newspaper demands family control, so called “family values”. The reason the families give is that the ownership of a newspaper is a "public trust" because of the role of the press in a democracy. Therefore, if a person unrelated to the founder (or some long-ago acquirer as in the New York Times case) takes control over the newspaper, they would manage it with the aim of maximizing profits and thus change the company’s value and reliability in providing quality information to its customers. Family-owned enterprises play a powerful role in the world economy. The auto Industry such as Porsche, Ford Motor Co., Hyundai Motor, and Peugeot Citroen S.A., and retail grocery and consumable business such as Walmart and Carrefour are great examples of family-controlled companies. In order to be successful as both the company and the family grow, a family business must achieve strong business performance and keep the family committed to and capable of carrying on as the owner. A prime determinant of how long a family dynasty will endure is how well its business is run and how effective its management is. Attributes such as control of ownership (how shares can be traded inside and outside de family), governance...
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