...Liquidity Ratio: describe a firm or facility’s capability to pay their currents obligation. It relays the entity availability of cash and other assets to cover accounts payable, short-term debt, and other liabilities. (Finker 2007). Most firms or companies whether new or established need to have a certain amount of liquidity on hand to pay their bills on time. The two most common ratio used to measure liquidity are current ratio and quick ratio. Current Ratio = current assets / current liabilities BH current ratio for 2012 = 675426 /195179 = 3.4 BH current ratio for 2013 = 698812 / 178421 = 3.9 The result of the ratio compared for 2012 and 2013 shows Broward health had a steady flow cash and will be able to meet their obligations on time. Factors that can affect these results are time of the season for admissions, patient volume, and the amount of inventories, the economy and sales. Quick ratio measure liquidity gives the entity a more rigorous measure of available cash on hand and ability to pay current liabilities. A quick ratio of one to one means the entity can pay its bills without selling its inventory. Quick ratio can be measured using current Asset minus inventories over current liabilities. Quick ratio = current assets – inventory / current liabilities (BH) Current Asset for 2012 = $ 675,426 - $24,276 / $195,179 = 3.3 (BH) Current Asset for 2013 = $698,812 -$23,359 / $178,421 = 3.7 According to the results of the quick ratio between 2012 and 2013,) means that...
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...In the Jet Copies Case Study, we are introduced to three college students: James, Ernie, and Terri. They have discovered that they have a possible solution to two separate problems that they face: the need to make money and the lack of adequate copy services near the university that they attend. The three students decide to open their own copy service but soon discovered that they may have acted too soon in their decision. The first obstacle they had was the initial purchase of equipment. Without doing enough research, they purchased a copier for $18,000 that was obtained as a loan from Terri’s parents. After the purchase, they discovered that the particular brand they purchased had a history of frequently breakdowns. Although the copier manufacturer promised prompt repair service, the machine down time could range from one to four days. In order to hopefully alleviate too much lost revenue for the beginning company, the trio wanted to purchase a backup machine to use during the primary machine breakdowns. The cost of the second machine would be $8,000. Before they approached their parents for another loan, they wanted to determine if it would actually be a profitable move or an unnecessary purchase on a whim. To do this, they set up a simulation to determine how often the main copier could break down within a fifty-two week period. They decided that if the simulation showed that they lost more than $12,000 in revenue with just the one copier they would go ahead with...
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...Knowledge, skill and ability, by themselves, can not guarantee performance. The linking factor is motivation. Performance is a vital link in Expectancy Theory. There are linkage between effort and performance, performance and reward, rewards and value, as perceived by people. Hence performance evaluation or appraisal plays a vital role in “Expectancy Model” of employees’ motivation. Does this word performance means effectiveness, efficiency or productivity of things like less numbers of accidents, less absence or grievances? Effectiveness is the achievement of objectives, efficiency is the ratio of output to input in terms of money or effort. Productivity is again number of items produced. But there are jobs where all these factors are not explicit or quantifiable. For example, a supervisor who is a task- master may get better productivity but the workers are unhappy and non-cooperative. Elsewhere morale and motivation of workers are very high but outputs in terms of numbers are less. Does this mean the second supervisor is less effective than the first? Systemic performance appraisal, has been adopted by various organizations, as a means of helping the supervisors/managers to evaluate the work of their subordinates. This will also assist the workers/juniors to come up in their career through promotion, based on their objective assessment of their performance. It also serve the purpose of knowing the effectiveness of recruitment and selection process as well as training and development...
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...Adelphia Communications Corporation Credit Analysis ______________________________________________________________________________ Overview We have performed a credit analysis on Adelphia Communications Corporation using information provided for the years 1992-1996. We compared Adelphia’s company practices to standard industry practices; evaluated its ability to repay debt; looked at Adelphia’s competitive position in the telecommunication industry; and evaluated its business strategy to grow and remain competitive within the industry. We based our analysis and recommendations on key business risk issues as discussed in the following: a) business risks of the company and the industry; b) possible warning signs of trouble at Adelphia; c) assessment of the company’s financial capability to cover operating and debt obligations; and d) appropriateness of Adelphia’s financial strategy in correlation with the overall industry. Finally, we gave recommendations for Adelphia to consider in the event the company does not obtain the new bank loan. Adelphia and the Industry The industry is highly competitive and capital intensive. Growth is necessary to remain competitive. This requires upgrades of cable systems and expansion of services, such as internet and phone services. By acquiring existing cable networks, companies in the industry are able to forego some of the initial expense associated with expansion. Adelphia’s growth strategy primarily focuses on acquisition rather than...
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...The U.S. subprime mortgage crisis was a set of events and conditions that led to the late-2000s financial crisis, characterized by a rise in subprimemortgage delinquencies and foreclosures, and the resulting decline of securities backed by said mortgages. The percentage of new lower-quality subprime mortgages rose from the historical 8% or lower range to approximately 20% from 2004 to 2006, with much higher ratios in some parts of the U.S.[1][2] A high percentage of these subprime mortgages, over 90% in 2006 for example, were adjustable-rate mortgages.[3] These two changes were part of a broader trend of lowered lending standards and higher-risk mortgage products.[3][4] Further, U.S. households had become increasingly indebted, with the ratio of debt to disposable personal income rising from 77% in 1990 to 127% at the end of 2007, much of this increase mortgage-related.[5] After U.S. house sales prices peaked in mid-2006 and began their steep decline forthwith, refinancing became more difficult. As adjustable-rate mortgages began to reset at higher interest rates (causing higher monthly payments), mortgage delinquencies soared. Securities backed with mortgages, including subprime mortgages, widely held by financial firms, lost most of their value. Global investors also drastically reduced purchases of mortgage-backed debt and other securities as part of a decline in the capacity and willingness of the private financial system to support lending.[1] Concerns about the soundness...
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...CASE STUDY: The first contract will be held between Agro developer and reward seeker and this contract will be a mudarabah contract. In this contract reward seeker will provide capital and agro developer will work as mudarib. This is an unrestricted mudarabah because reward seeker is only interested in reward whether the mudarib can invest the finance in any business. Firstly agro developer and reward seeker sign MOU. [pic] Contents of Mudarabah Contract: • This is unrestricted mudarabah. • This is short term mudarabah and mudarabah will be liquidated at the end. • Profit ratio will be 70% & 30% after excluding all expense (compensation of loss if any) • Mudarib as agro Developer will give access to your A/C • Reward Seeker is providing Rs five (5) lakh • Mudarabah contract is signed at the date of 01-01-2011 Now the Agro developer is doing another contract with the former to utilize the mudarabah capital. Agro developer enter in the salam contract with former at the date of 03-01-2011. Agro developer has verified that the former have 2 jareeb of land and he has no money to caltivate the land wit a potato. The average production of one jareeb is _________ ton and the average price of potato at the time is Rs 10 /kg. The agro developer has to provide a seeds and fertilize. The type of seeds for potato is ronaldo which give better average production. The price of ronaldo is Rs ________ per 50kg and the demand...
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...20% excess air C_8 H_18+15(O_2+3.76N_2 ) □(→┴ ) 8CO_2+56.4N_2+〖9H〗_2 O+10O_2 Molar mass of octane= 114 kg/kmol Converting calorific value of octane to kJ/mol; 43.7 MJ/kg×1000kJ/MJ×114/1000 kg/mol=4981.8 kJ/mol Molar mass of nitro methane= 61 kg/kmol Converting calorific value to kJ/mol; 11.3 MJ/kg×1000kJ/MJ×61/1000 kg/mol=689.3 kJ/mol Determining the molar consumption of octane to produce 100kW power. Assuming ideal efficiency. 100kJ/s×1/4981.8 mol/kJ=0.02007 mol/s For 0.2007 mol/s of octane, we would require 0.301 mol/s of air (20%excess) As volumetric efficiency of the engine remains the same, we assume that the air flow rate is the same in each case. Thus we will use 0.301mol/s of air for the dragster fuel mix. Using the ratio of reactants from the balanced equation, we require 0.013mol/s of (9CH3NO2 + C8H18). The power output with the dragster fuel would therefore be;...
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...Key Issues The ALPES S.A. case deals with Charles River Laboratories (CRL) and their consideration of a joint venture proposal with an animal vaccine company in Mexico. The senior V.P. is preparing to present the proposal of a $2 million investment for the firm. The CEO, Jim Foster, is concerned with the associated risks that CRL would be undertaking if they accept this venture. Key issues of concern are; the partnership with a relatively small, family run business; having operations in Mexico, which could pose difficulties; maintaining CRL’s focus on U.S. expansion; and the proposed partner’s lack of funds to invest, which will leave CRL to bear the entire cost of the venture. Internal Analysis: Business Strategy Diamond 1. Arenas Charles River Laboratories (CRL) is currently the market leader for the commercial supply and production of global laboratory animal models used in the development and testing of new pharmaceuticals, as well as discovery research. The most recent product development is that of SPF eggs, which are used in the development of human vaccines that have not yet been converted over to the newer production technology. 2. Vehicles Charles River Laboratories has two different options at this time for vehicles that will enable them to enter new arenas. These consist of entering into a joint venture, or other type of agreement, with ALPES, or making use of the SPAFAS franchises. Although the initial intention to purchase the existing franchises...
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...1. Consider the same items above in the horizontal analysis for the vertical analysis. A1c. Trend Analysis - The candidate provides a logical evaluation, with sufficient support, of the company’s strengths and weaknesses based on the trend analysis results. Some things to consider are: 1. What is trend analysis? 2. What information does a trend analysis provide, what does trend analysis tell you about Competition Bikes? Think about the company’s past performance and compare it to the forecasted performance. 3. What is the data telling you? Are there any concerns with the trend analysis going forward? A1d. Ratio Analysis - The candidate provides a logical evaluation, with sufficient support, of the company’s strengths and weaknesses based on the ratio analysis results. Some things to consider are: 1. Discuss all ratios, not just a few. 2. How does the current year compare to last year? How does the current year compare to the...
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...Second, management needed to decide whether to invest excess funds in new or existing businesses, or to return them to the companies shareholders by paying higher cash dividends or repurchasing stock. To resolve the first issue, it is recommended that the Marriott corporation calculates several coverage ratios so that it can evaluate it's ability to cover the costs associated with varying levels of debt. There are three coverage ratios, corresponding to the costs associated with increased debt leverage, recommended by Higgins n his book. These ratios are times interest covered, times burden covered, and times common covered. To calculate these ratios EBIT is divided by a specific cost, or sum of costs, to determine how well profits are able to support them. Alternatively, “percentage EBIT can fall” could be calculated with regards to each type of cost, to determine the percentage amount that EBIT could decline from its expected level before the corresponding coverage ratio drops to 1.0. A coverage ratio of 1.0 is critical because any lower coverage indicates that operating income will be insufficient to cover the financial burden under consideration. While each ratio is associated with a specific burden imposed by debt, they all communicate this similar concept. While...
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..."A House Divided" in 17th Century The seventeenth century proved to be a century of change as men and women crossed the Atlantic for various reasons. Some moved to escape bad marriages, some moved from poverty, and others moved from troubling royal policies. Whatever their reasons were, the colonists had one common goal--- to strive for a better life. Sharing this common bond, Americans banded together and fought for independence during the Revolution. As the Revolution ended, Americans felt overjoyed and united. They managed to overlook some of the differences between them that would eventually lead to an intense conflict in the years to come. Social, economical, and political differences between the two regions would eventually become so intense that they would cause one of the bloodiest battles of all time--- the Civil War. Differences began as early as the years of the colonial period. To begin, the Northern and Southern colonies developed vastly different economies. The Chesapeake colonies' most important staple crop became tobacco. Tobacco affected nearly every aspect of their lives. The colonies were able to collect many duties on tobacco. Harvesting tobacco called for a great deal of work. However, the colonists were unprepared for this work. They were lazy and greedy. Whenever possible, planters in Virginia and the Southern colonies purchased able-bodied workers who were capable of getting the job done. In all of the Southern...
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...Gordon Bellamy 07/15/2013 THE BABY BOOM During the Great Depression the marriage rate fell as uncertainty over economic conditions caused people to postpone decisions that would significantly affect their lives. Birthrates also dropped: pessimism shrouded Americans' expectations of a promising future for themselves and their children. After World War II ended, however, prospects seemed considerably brighter. Young Americans returned home from war in 1945 ready to reap the benefits of victory and a prospering economy. Accordingly, there were almost 2.3 million marriages in 1946, an increase of more than six hundred thousand over the previous year. Many of these newlyweds had children within a year: a record 3.8 million babies were born in 1947. This was the first year of the baby boom, which lasted for most of the 1950s. Between 1948 and 1953 more babies were born than had been over the previous thirty years. In 1954 a record birthrate, a low death rate, and an influx of 144,000 immigrants created the largest one-year population gain in U.S. history. (Thomson Gale) In the United States, the term Baby Boomers commonly applied to people with birth years after World War II and before the Vietnam War. A large part of the cause of the Baby Boom was an after effect of World War II where the bombed out cities and fractured economies increased the needs for goods and services in unprecedented...
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...Statistics in Business Statistics is the science of collecting, organizing, analyzing, interpreting, and presenting data. Some experts prefer to call statistics data science, a trilogy of tasks involving data modeling, analysis, and decision making. In contrast, a statistic is a single measure, reported as a number, used to summarize a sample data set. Knowing statistics will make you a better consumer of other people’s data. You should know enough to handle everyday data problems, to feel confident that others cannot deceive you with spurious arguments, and to know when you’ve reached the limits of your expertise. Statistical knowledge gives your company a competitive advantage against organizations that cannot understand their internal or external market data. And mastery of basic statistics gives you, the individual manager, a competitive advantage as you work your way through the promotion process, or when you move to a new employer. Nominal Level of Measurement The nominal level of measurement is the lowest of the four ways to characterize data. Nominal means "in name only" and that should help to remember what this level is all about. Nominal data deals with names, categories, or labels. Data at the nominal level is qualitative. Colors of eyes, yes or no responses to a survey, and favorite breakfast cereal all deal with the nominal level of measurement. Even some things with numbers associated with them, such as a number on the back of a football jersey, are nominal since...
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...The Jones Electric Case utilizes the major learnings to date, analysis of financial statements and the use of ratios to project future performance. You are the financial analyst or banker who has to decide if Mr. Jones can increase his loan level. Note use the annual data for the following questions, the single quarter for 2007 presented should not be used. * Question 1. * How does Jones Electric compare to other electrical distributors? * Prepare ratio, common size and cash flow analysis. * See the file attached with industry ratio data. Use just the Data from the highlighted column. * You can assume I know how to calculate the ratios and their definition. Your answer should be more than the ratio is more or less than the past or industry, please go beyond the numbers and tell me what the numbers are telling us. * Question 2. * Project 2007 using ratios and identities. Assume the new sales will be the $2,700 he told the bank. Use the annual data not Quarter 1 to do the projections. * Determine if the line of credit offered is adequate. (This is what we are solving for!) * Determine if Jones should or should not take the cash discount from suppliers. * Question 3 * Based on questions 1 & 2, do you recommend any changes in the way Mr. Jones is running his business? Assignment deliverables * Case analysis write-up no more than 5 typed pages with imbedded tables and charts. (Tables and charts...
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...it always also has a high odds of happening. In reality, the Probability of something happening and the odds of something happening are two completely different ways of describing the chances. Simple probability of event A occurring is mathematically defined as: Odds are the ratio of favorable outcomes to unfavorable outcomes: The best way to illustrate this is with the classic marbles-in-a-bag example. The graphic below depicts all the marbles in an opaque bag that one marble will be pulled out of. There are 6 blue, 3 red, 2 yellow, and 1 green for a total of 12 marbles in the bag. The probability of pulling a red marble would be calculated by taking the total number of red marbles and dividing it by the total number of marbles. Probability is defined as the fraction of desired outcomes in the context of every possible outcome with a value between 0 and 1, where 0 would be an impossible event and 1 would represent an inevitable event. Example: A coin has 50% chance to land on heads when flipped Example: A coin has 1:1 chance to land on heads when flipped Odds can have any value from zero to infinity and they represent a ratio of desired outcomes versus the field. Odds are a ratio, and can be given in two different ways: ‘odds in favor’ and ‘odds against’. ‘Odds in favor’ are odds describing the if an event will occur, while ‘odds against’ will describe if an event will not...
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