CASE 3: CONGOLEUM We believe Congoleum is a good LBO candidate for several reasons: 1. Low debt levels: a. Leverage Ratio = 4.61% (LT Debt/Total Assets) b. Interest Coverage = 40x (EBIT/Interest Expense) 2. Excess cash on hand: $95.1 million 3. Good stability of business operations resulting in stable earnings and cashflows going forward, further enforced by patents. 4. No major capital requirements to continue business operations. 5. Sound asset base that can
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COMPANY Statement of Cash Flows For the Year Ended January 31, 2008 Cash flows from operating activities Net loss $ (30,000 )* Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense $ 55,000 Gain from sale of investment (5,000 ) 50,000 Net cash provided by operating activities 20,000 Cash flows from investing activities Sale of investment 80,000 Purchase of investment (75,000 ) Purchase
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1 Cassandra Pawlowski 6 June 2016 Summer 2016 MANGT 421 Chwen Sheu 2 1. Do you feel that the Bearington plant has the right equipment and technology to do the job? Why? I personally feel as if they do, I just don’t believe they are operating together and effectively. In the beginning of the book
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8. If we assume that the company continues to utilize its allowance for doubtful accounts at 9.1% of its gross accounts receivable at the end of 1984, its bad debt expense in 1984 would be $2.6 million more than expenses reported on the incomes statement. Because of the complexity of the components that affects the bad debt expense, it is possible that the management team could manipulate the balance. Then, in 1984, Harnischfeger began to sell products purchased from Kobe Steel in the market.
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12,754.65 9,747.31 7,785.87 7,932.58 Selling and Admin Expenses 12,141.19 7,898.23 5,122.06 4,165.94 3,251.14 Depreciation 990.50 932.66 763.14 679.98 602.39 Miscellaneous Expenses 12,479.30 7,888.00 8,810.75 7,058.75 7,173.55 Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00 Operating Expenses 31,430.88 24,941.01 18,123.66 14,609.55 13,251.78 Provisions & Contingencies 8,660.28 4,532.53 6,319.60 5,080.99 5,707.88 Total Expenses 88,959.12 76,796.02 67,358.55 51,619.62 42,396.48 Mar
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on December 31. 20X-journal-09 In addition to the salaries recorded above, the company has incurred additional expenses pertaining to the salaried payroll for this semi-monthly period of December 16-31. These expenses must be included in the December financial statements, as shown in the next journal entry: Salaried Payroll Entry #2: To record additional payroll-related expense for salaried employees for the work period of December 16-31. 20X-journal-10 On payday, December 31, the checks
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trimmed and still give them the compensations that they should receive as per their job title The reviewal of compensation packages is also necessary. Employees who travel for the company and have expense accounts must be reviewed as to the proper use of these funds. The use of these travel expenses should be watched carefully; it may be that not all of the travel out of state or out of country is really necessary and it may be done by video conference instead. The employees
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Anticic have only been in operations for 6 months; however, they are planning an expansion of their business and are seeking funding to support this endeavor. They have projected a need for $43,000 worth of fixed assets, as well as various increases in expenses due to their expansion. The External Environment Kismet faces many threats from the external environment. These factors surrounding the organization influence its activities and choices, and determine its threats and opportunities. Political and
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strives to maintain a stable base of business customers, while actively competing for an increased market share of retail customers. Recent income statements (Exhibit A) reveal a decline in the bank's profits. The bank's primary (noninterest) expense consists of salaries and employee benefits. Most full-time employees' first priority is providing services to customers; these employees conduct their administrative responsibilities during slack times. The Bank schedules additional part-time employees
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