Annual Incremental Income After Taxes……………………….. $ 4,480 c. Yes, I believe that Collins should liberalize credit if a 15 percent after-tax return on investment was required because the above calculations show a 28% return on investments (profit). d. The total incremental investment in accounts receivable and inventory to support an $80,000 increase in sales would be: $80,000 / 4 = $20,000. So the answer would be $20,000. e. Let’s add the $16,000 from a/r to the $20,000 in inventory
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The similarities mentioned between the leaders all had common characteristics. Those included: • Humility • Energy • Intuition • Vision • Perspective • Passion • Conviction • Learning The leaders who were interviewed were from different industries, and countries around the world. They outlined how they themselves had been tested at times in their professional careers, and also personal times within their careers. They also talked about what leadership quality they had learned from their
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b) What is accounting profit in 2010? The income statement shows the profit listed as $177,000. c) What is the economic profit in 2010? Economic profit would be accounting profit minus implicit costs. That would be: $177,000 minus $190,000. d) In reviewing the decision to leave his job and start Sound Devices the recent numbers will show a profit or a loss. A positive economic profit which means that he made the right decision. A negative economic profit would mean that he made the
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* Diversified as better margin derived from the product brought in retailers in the form of club stores and other stores. Competitive Position: * Global Consumer Product Giant with over $13 billion in worldwide sales and $7 billion in gross profits for 2009 since its entry into the market in 1962 * Respected brand in non-disposable razor market. * 23.3% market share by volume of overall non-disposable razor unit and market leader in moderate non-disposable razor unit both by volume and
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through efficiency The efficiency improvement strategy carries no costs and should yield 10 per cent on the bottom line, or about an additional $12,100 profit. The calculations are: $550,000 annual revenue x 2% margin = $11,000 net profits $11,000 net profit x 10% efficiency improvement = $1,100 $11,000 + 1,100 = $12,100 increase in net profits 2) Add adventure diving The adventure diving resort strategy will require about $15,000 to get started. It should yield about $95,680 additional
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CHAPTER 3 21、Profit Margin (1)Evaluate the grocery chain’s claim： 以“小孩子的一次跑腿都比公司赚得多”的对比回应对于公司定价过高的抱怨。 (2)Basis for the statement Grocery chain’PE===3% Child’“PE”(as the statement’logic)==6% 所以小孩赚的是杂货商的两倍。 (3)Is this claim misleading? Three perspectives: Ⅰ：小孩跑腿买50美元的东西赚了3美元与该公司的PE为3%没有任何可比性，这之间有概念混淆。小孩跑腿赚的3美元与50元的东西没有任何逻辑联系，两者相除没有任何意义，更谈不上与该公司PE做比较。 Ⅱ：3%的PE是否意味着公司赚得较少，而足够回应“东西买的太贵”的质疑？在财务中，我们一般用更全面的指标ROE和ROA来衡量公司的回报，即公司的盈利能力。 ROE===16.07% 并没有想象中那么小。 Ⅲ：不管是用PE还是ROE来衡量盈利能力，我们判断的出发点是会
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Best Stock to Invest under 1000 Cr Market-Cap (Nilkamal Ltd) Nilkamal Ltd is principally engaged in manufacturing of injection moulded plastic products, currently it operates with three segments namely plastics, lifestyle furniture, furnishings accessories and storage system others. The plastics segment engaged in manufacturing of injection moulded plastic articles, polymers and others. The lifestyle furniture, furnishings accessories is engaged in manufacturing of home furniture, home
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Communication and the Audience BCOM 230 October 15, 2012 Hank Parisi Mary Anderson Michael Wolper Sara Slevin Suzanne Beal Cynthia Gernertt ACCOUNTANT-PEER E-MAIL TO ACCOUNTING DEPARTMENT From: Beth Riordan Manufacturing <beth@riordanmfg.com> To: Accounting Department Cc: John Subject: Status of Due Diligence Investigation All Concerned - Just an update on the DD report, everything went out as planned, the return data request included a checklist that covered
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Unit One: Case Study (MIP) Kaplan University – GB519 Measurement and Decision Making March 2010 What is the ROI for MIP based on original estimates? • Operating assets ( development costs were $140 million • Sales ( annual operating income was expected to be approximately $25 million ROI for MIP = 25 million / 140 million = .18% What is the ROI if Richard Lawrence’s new revenue projects are used? • likely generate operating income of just $17.5 million
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to "perfect competition", which to all of the profits of the business was driven to normal profit. They consist of those forces close to the company that affect the ability to service and make the profit. A change in any of the forces normally requires a business unit to reassess the marketplace given the overall change in industry information. The company is able to apply their own core competitiveness, business model or network to achieve a profit above the industry average. Bargaining power
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