Running head: JET2 TASK 2 1 JET2 Task 2 Budgeting Bonnie Wilson Western Governors University JET2 TASK 2 A.1. Operational Strengths and Weaknesses A.1. Budget Concerns 2 Revenue from sales is budgeted too high. In year 8 Competition Bikes experienced a 15% decline in sales revenue, and yet for year 9, they have budgeted for a 3.2% increase. This is likely to be an overly optimistic projection and relies heavily on economic factors outside of the company’s control. Inaccuracy in this
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JET2 Financial Analysis Task 1 Western Governors University Kim Laudig, RN, BSN, MSN 11/01/2014 JET2 Financial Analysis Task 1 A1a Horizontal Analysis Results The Horizontal Analysis Results are taken from Competition Bikes’ Income Statements and their Balance Sheets. A Horizontal Analysis looks at data from one year to the next, usually over a three year span. This company’s Horizontal Analysis is comparing year six to year seven and year seven to year eight. While evaluating the
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Financial Statement Analysis JET2 Task 1 Evaluate the company’s operational strengths and weaknesses: A-1a Horizontal Analysis is defined as the following: A procedure in fundamental analysis in which an analyst compares ratios or line items in a company's financial statements over a certain period of time (Investopedia). Vertical Analysis is defined as the following: “is a popular method of financial statement analysis that shows each item on a statement as a percentage of a base figure
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| Competition Bikes: Task 1 | | Jamila Mitchell | | Competition Bikes: Task 1 | | Jamila Mitchell | Western Governors University JET2 Financial Analysis Western Governors University JET2 Financial Analysis Competition Bikes: Task 1 Jamila Mitchell Operational Strengths and Weaknesses Horizontal Analysis To evaluate changes in financial statements, a horizontal analysis is necessary so the company can determine whether there is positive or negative growth over time
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JET2 Task 1 Horizontal Analysis Results Horizontal Analysis is defined as “a procedure in fundamental analysis in which an analyst compares ratios or line items in a company’s financial statements over a certain period of time. The analyst will use his or her discretion when choosing a particular timeline; however, the decision is often based on the investing time horizon under consideration.” (investopedia.com). This data is calculated in both dollars and percentages using data
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JET2-Task1 A.1.a Horizontal analysis Horizontal analysis is essentially an analysis on the trend of the financials of the company. It shows changes in the amounts of the amounts over a period of time. In the financial statement provided, the horizontal analysis is between years six and seven, and years seven and eight; respectively. When analyzing the income statement provided with the task, several strengths and weaknesses are very apparent. They will be broken down individually and analyzed
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JET2 TASK 1 Introduction Competition Bikes, Inc. is a large company who during recent years has been affected by the changing population and recession. With this have come changes to the financial status of the company. Analyzing the company’s strengths and weaknesses in multiple aspects with regards to financial stats including working capital, internal controls, risks, and compliance with regulations will allow the company to increase revenue and make a plan for future growth and development
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at cost. Each line item before depreciation remains static, while the accumulated depreciation continues to increase. The total assets for year 6 were valued at $4,199,303. Year 7 saw a 2% increase at $4,293,044 with year 8 having a slight dip of .1% at $4,285,831. With the significant decrease in net sales between year 7 and year 8, one might expect to see the assets also drop off at a higher rate. This indicates that CBI manages its assets well. The area that is of some concern, however, is
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Financial Statement Analysis and Controls A1. Based on a cursory examination of the horizontal analysis in the financial data provided, Competition Bikes, Inc.’s financial position improved from years six to seven and declined between seven and eight. The sales forecast in the scenario indicates an economic downturn as the reason for 15% decline in Net Sales. The specific analysis follows. A1a. The Comparative Income Statements for Competition Bikes, Inc. shows a 33.3% increase in
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Running head: Financial Analysis Report 1 Competition Bikes, Inc. Financial Analysis Report Western Governors University Financial Analysis Report 2 Competition Bikes, Inc. Financial Analysis Report Analysis must be completed to determine a company’s performance and future viability. The review of income statements, balance sheets, past and present performance will be utilized to predict future company performance. Management of Competition Bikes, Inc. will then use this information to help
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