Swisher Mower Company • The numbers and facts o Maintaining small company image o Three types of lawn mowers Ride King zero turning radius • Manufactures list price $650 • COGS for labor $100 • COGS for parts $453 o = 553 $650 -553 = $97 • Gross Profit Margin = 15% o 15% of 650 = $97.5 Our sales • 63.6% = Riding mowers o And 57.8 of total gross profit • T- 44 o 8.2% of sales And 13.2% of total gross profit • Kits o 8.2% of sales • Replacement Parts o 20% of sales
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profitability, liquidity, and solvency • Make better, more informed investment decisions Financial Report Basics Financial reports, or financial statements, are documents that summarize a company’s financial performance. All publicly traded U.S. companies that have more than 500 investors and $10 million in net assets, or that are listed on a major national stock exchange such as the New York Stock Exchange (NYSE) or the NASDAQ, are required by law to issue financial statements on both a quarterly
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John’s company currently has a 40% share of a 1 million unit market. The current price for his product is $100, but in a direct attempt to gain market share from a competitor, he is considering lowering the price of his company’s product by 10% in an attempt to increase market share to 50%. Marketing expenses and cost per unit will remain at the level of 15% of sales and $70, respectively. 1. Assuming no competitive response and that the price cut resulted in a market share increase to 50%,
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* Bailey has had a long-standing policy of emphasizing new-mower sales as the principal business of the dealership * Good reputation and close attention to customer relations generated a substantial amount of repeat business, and increased company’s sales * Bailey (nearing retirement) wanted to make organizational changes to relinquish his control over the company, and withdrawal from day-to-day managerial responsibilities * He divided up business into three departments and named trusted
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marketing vice president of a manufacturing bicycle company (Baldwin Bicycle Company), is considering the offer of a buyer from Hi-Valu stores, Inc. who wants BBC to produce bikes for them. This offer represents an opportunity for that “mid-market” bicycle manufacturer, but is also represent costs. Before taking a decision, Suzanne Leister has to think about all the financial, strategic and marketing aspects. Question 1: What is the relevant cost per unit of manufacturing a Challenger bike?
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Econ Notes 6. Define: Economic Rent – Price minus Opportunity cost. Any excess payment above the minimum you would accept for a good, service or property. Ex. If you would accept $45,000 for a job, but they offer you $60,000, your economic rent is $15,000. Internal Labor Market – A company looking inside itself to find a suitable person to fulfill the role of the vacant senior job instead of hiring outside of the company. Entry level jobs are usually the only source of External Labor Market
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statement. Perform ratio analysis, and discuss change in financial position and operating results. Compute ratios; comment on overall liquidity and profitability. Compute selected ratios, and compare liquidity, profitability, and solvency for two companies. Prepare vertical analysis and comment on profitability. Compute ratios from balance sheet and income statement. Perform ratio analysis, and discuss change in financial position and operating results. Compute ratios; comment on overall liquidity
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( Instructor’s Resources Overview This chapter introduces the student to the financial planning process, with the emphasis on short-term (operating) financial planning and its two key components: cash planning and profit planning. Cash planning requires preparation of the cash budget, while profit planning involves preparation of a pro forma income statement and balance sheet. The text illustrates through example how these budgets and statements are developed. The weaknesses of the simplified approaches
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chain, Apple has the power to make and break the fortunes of many of its suppliers. A key finding for policymakers is that there is little value in electronics assembly. Bringing high-volume electronics assembly back to the U.S. is not the path to “good jobs” or economic growth. Capturing Value in Global Networks: Apple’s iPad and iPhone In an earlier article in Communications of the ACM [7], we conducted a micro-level economic analysis of Apple’s iPod as a way of better understanding who captures
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contributed by Lady Gaga and therefore may be a better indicator of their relative values than their absolute values. In reflecting on their venture, the partners agree that it is a rather risky affair in respect to anticipated profits. Hopefully, however, they will be able to build good customer relations over the long run and establish a permanent business with an attractive long-run rate of return. Under the most appropriate method, given the circumstances, the entry to record the formation of the
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