international, run-off reinsurance and other operations, CIGNA is able to compete within nearly every aspect of the healthcare sector. CIGNA also operates retail pharmacies, even further diversifying its business model. However, the majority of CIGNA’s revenues come from its health care plans for companies who self- insure. One major differing aspect of CIGNA, compared to its competitors, is that the majority of its pretax operating income comes from its investment income. Unfortunately, this may make
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Harnischfeger 1.) Effective November 1, 1983 the corporation includes its net sales products purchased from Kobe Steel, Ltd and sold by the corporation transactions with Kobe. During the fiscal year 1984 such sales aggregated $28 million, previously only the gross margin on Kobe originated equipment. In 1984, Harnischfeger changed its accounting policy on depreciation. Previously before the corporation used an accelerated method for its US plants. The new policy employs a straight-line method
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was greater than net income as there are certain transactions in the income statement that do not affect cash balance/ the balance sheet, and vice versa. The transactions that affected the income statement but did not affect cash are the following: revenues recognized from credit sales, depreciation, amortization of prepaid insurance, and accrual of wages and taxes. On the other hand, the transactions that affected cash/ the balance sheet but did not affect net income are the following: availment of
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her 5 year average gross margin of 30.52% compared to Lowes of 27.59%. The gross margin represents the percent of total sales revenue that the companies retain after incurring direct costs with producing the goods and services sold. The averages here shows that Home Depot retains more on each dollar of sales to other cost obligations which performs stronger than Lowes. The operating margin which indicates how much a company makes (before taxes and interest) on sales is a good indicator of the quality
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SWOT STRENGTHS WEAKNESSES Competitive total net income $7,961,000 Lowest in Unit Production Cost $3.89 Competitive Stock Price $2.89 Storage costs Transportation costs OPPORTUNITIES THREATS Expand Market Share Hire industry leading fashion designers R & D produce innovative products Consumer demands Intense competition Government regulation Increasing labor cost Price volatility in petroleum markets Lawsuits Labor strikes ACTION PLAN FOR YEAR 7 AND BEYOND In order to maintain
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Auletta 16 September 2012 Professor Shahid ACC 301 CA 7-1 (Bad-debt Accounting) A. What are the deficiencies of the direct write-off method? The deficiency of the direct write-off method is that it fails to match the costs with the revenues in a specific period. It also does not show the net realizable value of receivables in the balance sheet. The only time that the direct write-off method is appropriate is when the amount that is uncollectible is deemed immaterial. B. What
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separates PepsiCo from the rest of the competition are brand identity, creativity, and excellence in execution. PepsiCo had a profitable 2011, and all indicators point to a successful 2012 leading to increased shareholder wealth. In 2011, PepsiCo net revenue grew 14% on a core basis, along with core division operating profits raising 7% over last year. Core earnings also grew 7% in 2011, with $5.6 billion returned to shareholders. The company will continue to increase sales with by expanding core brands
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Identify all the accounting policy changes and the accounting estimates that Harnischfeger made during 1984. Estimate, as accurately as possible, the effect of these on the company’s 1984 reported profits. a. Changes that affect the Harnischfeger Revenues: • The company start to account Kobe Steel sales in US, previously it only add the gross margin in the financial statement. (this sales represents $28 millions) Following are the accounting policy changes and accounting estimates that Harnischfeger
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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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STRATEGIES NEW PRODUCTS 8 INNOVATION 8-9 ACCOUNTING INCOME STATEMENT ANALYSIS 9 BALANCE SHEET ANALYSIS 9-11 VALUATION DISCOUNTED CASH FLOW (DCF) ANALYSIS 11 CONCLUSION 12 APPENDICES A. NET REVENUE BY OPERATING SEGMENT (2006, 2010) 13 B. HISTORY OF MERGERS, ACQUISITIONS & NAME CHANGES 14 C. NET REVENUE BY CONSUMER SECTOR (2006, 2010) 14-15 D. 11 $1 BILLION KRAFT BRANDS 15 E. 54 KRAFT BRANDS 16 F. KEY COMPETITOR ANALYSIS 17 G. HISTORY OF NEW PRODUCT INTRODUCTION (DOMESTIC) 18 H. SWOT ANALYSIS:
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