Cash Case Studies Samples For Students

Healthcare Providence to every citizen is the prime responsibility of medical care centers and other health departments working simultaneously. It is imperative for health care centers to educate and inform self-pay patients how to deal with insurance procedures. The medical institutes are devising strategies to collect cash from self-pay patients efficiently. Many of health care institutes help out self-pay patients to get insured but still many of self-pay patients do not get proper outlets or platforms to insure themselves. Healthcare centers like Sutter Healthcare are progressing and working on how to provide healthcare services to those who cannot afford ...

When the economic recession of 2009 hit global consumer markets, FMCG companies were forced to relook their supply chain management strategies in order keep their prices below those of competitors. With prices of raw material and power soaring, the company had to review its supply chain management and make several adjustments to remain competitive. Kraft Foods, the second largest food company in the world, has kept a keen eye on future growth requirements, even before the economic recession had set in.

As far back as 2007, the company earmarked an increase of cash flow by $1 billion. Philippe Lambotte, Senior ...

The Cooking Hut Company (CHC), a kiosk retailer, has never budgeted due to its nature as a start-up.  CHC is now reaching the point where operations are predictable enough that a budget would be helpful for planning purposes.    
Using spreadsheet software, prepare 2016 budget schedules & pro forma financials by quarter and in total, unless otherwise noted, based on the assumptions provided in this narrative.
You will submit one Excel workbook (or Google spreadsheet).  There should be only three worksheets in the workbook. Each worksheet is a stand-alone budget scenario: (#1) base case scenario, (#2) modify cash flow scenario, and ( ...

When the economic recession of 2009 hit global consumer markets, FMCG companies were forced to relook their supply chain management strategies in order keep their prices below those of competitors. With prices of raw material and power soaring, the company had to review its supply chain management and make several adjustments to remain competitive. Kraft Foods, the second largest food company in the world, has kept a keen eye on future growth requirements, even before the economic recession had set in.
As far back as 2007, the company earmarked an increase of cash flow by $1 billion. Philippe Lambotte, ...

Question 1: Why Cartwright Lumber Company needs cash

Despite the profitability of Cartwright Lumber Company, it still faces cash flow challenges. The financial statements indicate that the company has a low balance in its cash account. Profitability does not necessarily mean the firm has a stable cash flow. The income statements indicate that Cartwright Lumber has been profitable in each of the years from 2001. The net income has increased from $31,000 in 2001 to $44,000 in 2003. However, its cash balance has declined in each of the years. Large sales and profitability do not automatically translate into cash flows. The company has large balances ...

About the report

The objective of this report is to assist One-World Investment Consortium, who is planning to invest £150 million in Thomas Cook PLC, a British global travel company listed on the London Stock Exchange under the ticker sign of ‘TCG’. We duly understand the impact of our professional recommendation on Consortium’s final decision making related to investment, and therefore, we intend to be comprehensive in the approach our analysis.
As for the structure of this report, it will be a two-part report. In the first section of the report, we will evaluate the past 5 year(2007-2011) financial performance ...

Air threads measure of value can be evaluated by the following methods; discounted cash flow this refers to the existing estimate of Air Thread Company using its future opportunities of investment. Comparable transactions method can also apply in the likelihood of occurrence of an akin transaction that may have occurred in a condition that is similar to an existing one. Multiple methods may also be incorporated to ascertain the value of Air thread in comparison to another firm that may be comparable to it, for example, the American cable communications company itself. The market valuation also applies which refers ...

A decline in the profitability of the business would leave the business with less cash reserves and thus an increase in borrowings. Exhibit 1 shows that at a gross profit margin of 30%, the business would not have any borrowing over the period and would have a reserve of marketable securities of $21,836. Exhibit 2 shows that if the gross margin were to decline from 30% to 27.5% the business would exhaust its reserves in marketable securities in November and would have to borrow $47, 117 in November order to meet its closing cash balance target of $120, ...

Financial Accounting

[Student ID]
[Section No.]
[Submission Date]

Computations of the 2014 liquidity ratios for Coca-Cola and PepsiCo

The computations of the 2014 liquidity ratios for Coca-Cola and PepsiCo, including the current ratio, accounts receivable turnover, average collection period, inventory turnover, days in inventory and current cash debt coverage, are provided below.

The 2014 liquidity ratios for Coca-Cola and PepsiCo

According to the above-performed analysis, PepsiCo had better liquidity ratios in 2014 comparing to Coca-Cola’s financial performance in this regard.
Thus, PepsiCo’s liquidity ratios, such as the current ratio, inventory turnover and current cash debt coverage, are significantly larger than Coca-Cola’s similar financial figures.
As a result, PepsiCo’s average collection period, as well as the ...

Profit Wheel Analysis

Cash Wheel
This part of the profit wheel is composed of the operating cash, inventory, accounts receivable, and sales. The main question therefore is whether the company has enough inventories, accounts receivable, operating cash, and sales to switch to a private brand of coffee. The answer to which would be a yes. In terms of cash, the company posted an initial cash of 1.121 Billion ITL at the start of the year; the composition of private coffee sales on total sales is continuously increasing month on month and the same goes for the account receivables as well.

Profit Wheel

Sales, investments ...

Describe the challenges faced by the company. What were the drivers for change to the supply chain?

The strong competition in the home appliance market, alongside customers’ increased demand sophistication, created the premises for Whirlpool to change its supply chain structure and organization. Looking at Porter’s five forces framework, the main forces that impacted Whirlpool’s supply chain redesign were the intensity of the industry rivalry and the bargaining power of consumers (Porter, 1985). As the case study informs, Whirlpool Corporation needed to transform its supply chain so that it could better satisfy its customers through improved quality of its products and services (“Whirlpool Supply Chain”, n.d.).
With this market requirement, the company addressed the ...

Question one

According to the investing activities, FedEx is highly expanding its business. From the information that is provided in the statement of cash flows funds from the investing activities allows FedEx to expand its business. Although the firm get other finances, they are not enough to fund the different investment due to the substantial internal funding that is givento the operating activities. Furthermore, the dividends from the various shareholders of the firm are relatively small. Therefore, most of the funds accrued from the operating activities are reinvested in the company. Reinvesting in the company like the purchase of new aircraft ...

Five Below, Inc. is a retail chain belonging to the specialty retail industry which was incorporated in Pennsylvania, USA in 2002. It offers “dynamic, edited assortment of exciting products, all priced at $5 and below, including select brands and licensed merchandise” ("Overview | Fivebelow"). Five Below’s products range from sports equipments, styling merchandise, small décor items, craft works to candies and party items. It largely targets customers who are teenagers or pre-teens.
Since the company’s inception, it has expanded its business to almost all regions of the United States and has been successful in opening more than ...

Contactless payments such as the use of near field communication (NFL) have been developing over the last few years and have evolved into reliable and secure methods of payment which are gaining acceptance from both buyers and vendors. The contactless mode of payment uses a short range frequency identification chip (RFID) to transfer data embedded electronically in microchips attached to a mobile device such as a mobile phone or a personal digital assistant or a credit or a debit card. The major difference with the contact based mode of payment is that in the case of contactless payment, the user of the technology does not ...

Introduction

Capital budget analysis refers to the process through which the way a firm invests capital in projects that result in cash flows over a period of more than one year. The analysis is built on the assumption that the firm depends on the specific project or projects under analysis in order to operate and consequently, it becomes important to test whether or not the projects being considered would be viable. Notably, capital budget analysis comes with several assumptions including the estimations of cash flows from the specific project as well as the assumption on the state of the economy ...

Q1 (a) Cash Flow Statement for the period 1 Jan 2015 to 31 December 2015

The missing/modified figures (as shown in yellow in the cash flow statement) are calculated as follows:
Employment income,
Keaton,
Given,
Gross Salary and Bonus= $120,000.00

Alyssa,

Given total salary and bonus=$64,800

Half paid in Aus and half in Singapore,

Thus her Salary and bonus paid in Singapore=$32,400

Employer’s CPF contribution,

Keaton- 37 % of 120,000=$44400
Alyssa- 20% of $32,400=$6480

Dividend and rental income

Dividend – Keaton-No dividend in 2015
Alyssa, $689 in 2015
Rental income
Keaton and Alyssa combined rental income for property in Singapore registered under joint tenancy agreement is $3,050 per month or $36600 for the year.

The portion of CPF and cash used for the housing installment is as mentioned below.

Total housing installment =$4099

Keaton:

Total monthly income=$10, ...

INVESTMENT APPRAISSAL

The project would generate total profits of $4,431
The project would generate a positive NPV of $2,569. A key difference between the profits and cash flows is that depreciation is deducted in arriving at profits while it is ignored in calculating cash flows. The incremental working capital is the relevant cash flows associated with working capital. Increases in working capital represent a cash outflows and decreases in the working capital represents a cash inflow. The working capital cash flows are calculated as follows:
The internal rate of return (IRR) is the discount rate that would equate the ...

out from the fitted line. Now, tliers that spreads out from the fitted line. Now, in R&D with the symbol s

Executive Summary
SunEdison is a renewable energy company. Its revenue comes from semiconductor wafer manufacturing, solar energy business and TerraForm Power (wind power and global business). The company has recently filed for bankruptcy due to poor operational performance and its inability to serve its $11 billion debt. Luckily for the company, first and second lien holders have provided the required capital to continue operation. Overall, the renewable energy market is growing at a very high rate. However, due ...

Introduction

The main issues with Parmalat include the ineffective audit planning process and risk management. The company was involved in the fraud and misrepresentation of the financial statements. In addition, due to ineffective audits the company had to face severe consequences at the end. There is a need to implement effective audit strategies and risk management process.

It is important for the auditors to confirm cash balances with the financial institutions that are used in the cash reconciliation of the company like Parmalat. By using standard from confirmation, the auditor requests financial institutions to confirm by examining their records about ...

Background

ConsoE has recently acquired Expeer, an electrical company based in Austin, Texas with 15,000 employees. Expeer’s benefits package for its employees has traditionally been extensive and comprehensive when compared to what ConsoE offers. A tactical plan to communicate the change in benefits structure for the incoming former Expeer employees is crucial to help them understand and adjust to the new order.

Issue Identification and Root-Cause Analysis

The employees of Expeer get very high benefits that are significantly different from what is offered by the Consolidated Electronics. The benefits include a fully paid ten different health insurance plans, a 401k plus 3% match ...

Question 1

Sources of the problem facing Wight
Despite Wright comprehend and being clear on his mandate as the Clearwater Seafood’s Chief Financial Officer (CFO) he had faced several challenges. As CFO, he was required to determine the best way to incorporate company’s foreign exchange risk management program into the overall growth strategy of the firm. The company has been benefiting from a weak Canadian dollar. However, strengthening of the Canadian dollar has become a source of the problem that Wight is facing. According to the article, as the Canadian dollar falls, the company’s foreign exchange risk management ...

Torrington is a perfect strategic fit for Timken because it would make the combined company to be the third largest ball bearing producing company in the world. In addition, the company would experience purchasing synergies that would yield the combined company annual savings of $80 million and the rationalization of the workforce would yield savings of $80 million.
Using Timken cost of debt of 7.23%, to discount the free cash flows of Torrington between 1999 and 2007 would result in an estimated value of Torrington to be $598.59 million. The free cash flows add the depreciation expense because it ...

Linear technology

1. Linear Technologies Payout Policy
Linear Technologies is a technology company that designs and manufactures integrated circuits since 1981 to the computers market. The company took the approach of the Personal Computer development in the 1980's assuring a constant growth in all those years, having participation in computers, automotive and communications. The company starts listing on the NASDAQ stock exchange in 1986 when the company was available to the public investors to trade its common stocks. The company, thanks to the high availability of cash in its balance sheets, the company decided to start paying dividends to its shareholders, ...

Introduction

The report presents discussion and analysis of compensation strategies of Nucor Corporation. The organizational structure significantly impacts the compensation system of an organization that affects its ability to attain strategic goals. If the compensation to executives is not aligned with the organizational culture then it may lead to adverse impact on the firm’s performance and lead to other consequences. Several studies indicate that the organizational culture has a significant impact on compensation as well as the firm’s performance. The firms offer different types of compensation to their executives that may affect the compensation structure. However, they are ...

Introduction

A leveraged buyout (LBO) is the process through which a company is acquired by another one that gets a significant amount of capital from borrowed money. This act is a process that involves the buyer putting up the assets or expected profits of the newly acquired company as collateral to the financial institution that is giving out the loan (Haddad, Loualiche, Plosser, & National Bureau of Economic Research, 2016). This type of purchase carries significant risk for the buyer since the ratio of borrowed money to the invested money is usually 9: 1. The borrowed money accounts for eighty to ...

Final Case Study Project

Introduction
In this paper, we will describe and discuss the application of statistics and probability theory to a real-world problem. Our task is to study the impacts of a variety of factors influencing house prices in Prescott, Arizona. As it was mentioned in the previous studies, there are five lakes in the Prescott metropolitan area that provide a number of benefits to those who live or spent their holidays in this area. These benefits include scenic beauty, recreational opportunity, clear water, fresh air and so on and so forth. It is assumed that the property prices should depend on ...

Question one

In following the LBO, the assets of Seagate’s will be $128.1 million shares of the stock of Veritas. The management believed that Seagate’s value should be ascribed to its operating assets value. Because the market was attributing high value to the stake of Veritas, the market made it appear as if Seagate was asset holding firm (Andrade et al., 2001 p. 13). Going concern model may be used in evaluating the operating expenses of a company. This model assumes that the business will continue operating for an undefined amount of time (Pignataro, 2013 p. 73). Another model ...

Introduction

Amazon is an organization that started in 1994, as the earth’s biggest bookstore. The company in 1997, via IPO, raised $50 million. In 1999, the business explored new business models, marketplaces, and auctions. In 2000, after the fall in GP, the business shifted towards traditional retailers.
The objective of this paper is to analyze the case “Amazon.Com the Brink of Bankruptcy” presented by Lynda M. Applegate in 2013.
For the attainment of the purpose, the paper has been divided into seven segments. Each segment presents worthwhile information.

Financial statement analysis refers to the evaluation of the profitability, stability, ...

International Finance

1
a. Discuss the corporate control of your business. Explain why your business in Mexico is exposed to agency problems.
b. How would you attempt to monitor the ongoing operations of the business?
c. Explain how you might be able to use a compensation plan that limits the potential agency problems?
d. Assume that you have been approached by a competitor in Mexico to engage in a joint venture. The competitor would offer the classroom facilities (so that you would not need to rent classroom facilities), while your employees would provide the teaching. You would split the profits with ...

Description of Business

“Magical Healthy Goodies” is a home-based business, selling low-calorie healthy cookies, cakes, and pastries. Business objectives, which are specific clearly defined targets, are the following: starting from December 2010, to increase sales twice by the end of February 2011, and achieve sales of $15 000 in the following 6 months. In order to do this, sole proprietor of the business Ms. Fatmah Hemdan will hire one personal assistant Ms. Alyaa Mohamed, who will be helping with orders, deliveries, and overall management. The business will use social media marketing, namely Facebook group, to promote their products. Social media activities will include ...

1.
The calculation of the true value of the Tri Star program is developed using the Net Present Value concept which depends on of the future net cash flows of a project or company. The Tri-Star Program started in 1967 with the pre-production phase until 1971. After 1971 until 1977 is the production phase of the L-1011 Tri-Star program (HARRINGTON-CRESSMAN, 2015).
The true value of the program is the net present value that includes all the net cash flows in all the periods of the program, project or enterprise. Assuming a plan of 210 aircraft for the production phase, ...

Butler Lumber Co.

Reason for borrowing fund for the profitable business
Even though the company is profitable, Butler is looking for the funds from the market to meet the capital needs. The company operation is increasing and the company needs to support its operating activities. In addition to this, the company must hold sufficient cash to provide flexibility in the company as well as for the consolidation of the outstanding debt; Butler is seeking for the funds from the market. The careful evaluation of business shows that the company is expanding its business and there is the need of funds to meet ...

How has Aurora Textile performed over the past four years? Be prepared to provide financial ratios that present a clear picture of Aurora’s financial condition
On the basis of financial statement overlook and the outcome of the financial ratios, we found that over the period of 1999-2002, the company’s financial performance was bearish. Moreover, just like the other companies in the industry, even the company had not considered the possible impact and consequently lost its financial standing.
Beginning with the revenue figures, the amount has been decreasing consistently and plummeted from $245.90 million to $147.503 million by ...

Stock Analysis: Macy’s

About the report
The report comprehensively discusses the discounted cash flow model and related assumptions used for calculating the intrinsic value of Macy’s stock. Since the objective of this report is to frame a prudent investment recommendation, we will also discuss the industry reports to forecast the future potential of the stock.

About the company

Founded in the year 1830, Macy’s is the largest department stores in the United States. The company has relied on multiple acquisitions over the years and has now united a conglomerate of regional brands under its flagship brands of Macy’s and Bloomingdale. Being one ...

Executive Summary

Financial planning is both a science and an art. To properly determine the viable asset allocation for each individual, their time horizon and life goals are given prime consideration. In this case, the near retirement couple would be suitable for investments that provide a fixed return. Since they expect to derive income from their retirement fund, it should likewise be able to create a positive fixed income stream. Meanwhile, the risk level of their fund should be at the low end. The couple does not have the chance to recover losses if any, as compared to when they were ...

Summary measures of the key ratios for the companies operating in the oil and gas industry, 2013

Source: Wharton Research Data Services. North America – Annual updates. Fundamentals annual. Web.
Results of the research are shown in the Table 1. Analysis of this data gives an opportunity to determine the general tendencies across the industry and see whether performance of a company is better or worse than average. It also allows to determine the weaknesses that the company should take care of. It is necessary that the ratios are compared across the industry to obtain relevant result, as there might be specific features of the industry that can lead to deviations from common normal value of a ...

Strengths:

■ The cash flow of the family is positive; the total income is 122,782 USD per year, and the total outcome is 116,024. The net cash flow per year is 6,758 USD.
■ Both Chris and Grace are economically productive. Both are professionals and invest in the education of their sons. That will guarantee a good economic performance in the present and future.
■ The family is the owner of business. Although they are employees, the business gives to the family an increasing positive cash flow.

Weakness:

■ They don't have almost any asset that generates positive cash flow except ...

Answer.The case statement is focused on the unpredictability of Tesla’s future as a successful car manufacturer in coming scenarios due to decreasing revenues and declining stockholder expectations. The case statement is derived from the problematic fact owing to an entire lot of issues like rising expenses, lawsuits against the direct consumer approach based business model, and unsupportive response from the local markets and trade analysts because of deliberate inflation of financial performance.
Given the importance of economies of scale in the auto manufacturing and technology industries, what is your long-term forecast for Tesla?
Answer.The auto manufacturers and technology ...

Strategic Analysis Alacer Gold Corp and Gold and Mining Industry

Introduction
Gold is a precious metal with high ductility and malleability, and it finds application as jewelry and investment. It is considered to be one of the safest bet for investment, especially during economic instabilities. Consequently, rapid political instabilities in the Middle East and financial crisis led to rapid increase in the price of gold worldwide. Technological innovation is also a major factor that affects the gold and mining industry. Therefore, the strategic analysis narrows on the gold industry, with a specific focus on Alacer Gold Corporation. It looks at the trends in the industry and how Alacer Gold ...

Prada: To IPO or Not to IPO

In the current scenario, Prada is facing a debt repayment problem which is expected to be due in the next twelve months. To resolve this issue, the management and the financial expert are considering an IPO to raise funds to repay the long term debts and to invest in the Asian markets. However, before making any decision the management must consider few financial signals to resolve the issue effectively and efficiently.
One of the main information given in the consolidated statement of financial position is that the overall long term debt of the Prada group is 303.4 million Euros ...

Question 1: Uses the correct term for chronically recurring seizures.

Answer: Epilepsy
Question 2: Determines if the patient in the scenario has epilepsy.
Answer: J.G. does not have epilepsy. She has only had three previous cases of seizures prior to which she had not experienced any seizures. The current cases were triggered by the cesarean section thus too early to refer to the condition as epilepsy (Ko, 2016).

Question 3: Identifies possible conditions, besides brain injury, that contributes to the lowered seizure threshold for the patient in the scenario.

Answer: Apart from brain injury, lowered seizure threshold can occur as a result of infectious illnesses such as AIDS, meningitis as well as developmental disorders such as neurofibromatosis and autism (Ko, 2016).

Question 4: Describes the pathophysiology of a seizure.

The brain and the nervous systems functions within a ...

As Chief of Staff, my assignment is to create a response for you on the topic Medicare Crisis. I understand that you have been requested to take an interest in a board dialog and give a reaction concerning the Medicare financing crisis. The board examination will concentrate on the proposition of diminishing Medicare uses by enlisting members in HMO's. The National medical coverage framework for Americans started back with President Teddy Roosevelt, his stage when he kept running for president in 1912 included health care coverage. Roosevelt's thought for a national health arrangement was put on hold until U.S. ...

1. Prerequisites. In order to conduct a complete BCG-analysis we need the market growth rate and market share of each SBU as well as market shares of their main competitors to calculate relative market share. Since in the assignment we have only market shares of the business units and the rates of growth, we still need the respective market shares of competitors to present a relevant BCG-matrix. Failing such information, we base our portfolio analysis on assumptions and provide several options for different situations.
2. BCG-analysis. Before making any conclusions regarding the company portfolio and strategy, it is necessary ...

About the case:

Rodney Chu, the managing director of Sierra Capital Partners is interested in purchasing 60% equity interest in Arcadian Microarray Technologies, a biotechnology firm founded in the year 2003. At present, Sierra Capital Partners have offered $40 million to Arcadian for selling their equity interest. This amount will be used for expansion of the firm. While Arcadian management have forecasted an optimistic projection for their firm’s performance over the period of 11 years, however, Sierra’s projections reveal a conservative outlook. Therefore, Mr. Chu is interested in ascertaining the terminal value and discounting the cash flows and the terminal ...

Internal analysis of Hudson’s Bay Company

Introduction
The internal analysis of a firm enables the understanding of the internal factors that has contributed to the position that the firm is currently in. It involves the analysis of the resources of the firm and the attributes such as inbound logistics, operations, marketing, human resources management, development of technology that adds value to the organisation. The core competency analysis enables the understanding of the expertise, skills and abilities it has to maintain a competitive position in the industry. Internal analysis also enables the finding of the key success factors that are contributing to the competitive advantage of ...

Investment analysis

In order to choose which option is the best, there is a need to calculate at first Net Present Value and pick the one with the biggest value:
Option 1: to add a new window: NPV (1) = 44,0001,15 + 44,0001,15 x 1.15 + 44,0001,15 x 1,15 x 1,15 – 75,000 = 38,260 + 33,270 + 28,930 – 75,000 = 25,460 $.

Option 3: to build a new stand: NPV (3) = 70,0001,15 + 70,0001,15 x 1.15 + 70,0001,15 x 1,15 x 1,15 – 125,000 = 60,869 + 52,930 + 46, ...

Lenovo Group Limited is a multinational computer technology corporation that develops personal computers, servers and IT software. Amid the global dotcom bubble in the 2000s, Lenovo began to pump resources into sectors such as mobile phones, internet-related business and information technology services. The technology joy ride was short-lived as competition at home grew ferociously with the mainland's entry into the World Trade Organization, eating into Lenovo’s bottom line. After this ill-fated strategy of diversification and a focus on the domestic market between 2001 and 2003, Lenovo chairman Yang Yuanqing said in an interview with the South China Morning ...

Q: Determine the annual effective financing percentage cost of the yen-denominated notes issued in each of the three scenarios in the Blades case for the future value of the yen.

Scenario 1: No change in value of yen
Scenario 2: 2% appreciation in the value of yen relative to Baht
Scenario 3: 3% appreciation in the value of yen relative to Baht
Q: Determine the probability that the financing cost of issuing yen-denominated notes is higher than the cost of issuing baht-denominated notes
As we may note from the above spreadsheet table, under all the three scenarios, the annual ...

Information System Workshop Analysis

Question 1
For this workshop, the following IT roles can be identified:
System analyst intern; this is the opportunity to be filled, report to the IT director.
IT director; this person is in charge of the overall system operations and the organization's functionality. Mike McGee is the one in charge here.
System analyst; reports to the IT development manager, this role has two individuals involved. They include Lauren and Cathy.

IT development manager; in charge of management of the IT development sector, Felesia is the one in charge here.

IT operations manager; in charge of operational management reports, this sector is headed by Joe Tuner.
Database Administrator; in charge of database administration and report development, Dawn Rauntee is ...

Business Process

“Chemito Free” is the manufacturing company that produces the cleaning products free of toxic chemicals and insights. The mission of the company is to protect the environment from the toxic substances and facilitate the society with environmentally-friendly products. The products include household cleaners, vehicle cleaners, hand washes, sanitizers, baby cleaners, fresheners, bathroom cleaners and controllers. The company is going to offer its products in the local as well as in the international market. Being a manufacturing business, it is very required and important for the company to maintain its business processes to make its products outreach to the customers ...

When the gift card is resolved the company receives revenue which is yet to be earned since the customer paid money but did not take any merchandise. As a result, the transaction creates a liability for the company in the form of gift cards outstanding. The transactions that will accompany the sale of the gift card are, therefore, the debit of the asset account Cash, in recognition of the cash received by Imel West and the crediting of a liability account Gift Card Outstanding in recognition of the liability created (Nikolai, Bazley, and Jones). This is a liability that ...

Assumptions

The depreciation rate as used in the table is provided by the American house of Congress.
Tax rate incurred on a new project as per IRS rates is 50% as of 2017
If the company owns assets that could otherwise be sold in case the project is rejected, these will appear in the table as opportunity cost

No sinking fund incurred as no expenditure has taken place of yet

In case cash flow reduces in one of the departments in the company, it will reflect as cannibalization in the table

The straight line depreciation uses a steady value of 25%

Analysis of DCF
Since the net present value is greater than zero, the project should be accepted. If the value of ...

Vernon Rudolph established Krispy Kreme Dougnuts (KKD) in 1937 in North Carolina as a single doughnut shop. By the turn of the millennium, KKD had grown in leaps and bounds. As of April 2000, the company shares were trading at 62 times earnings. As of April 2000, KKD had charmed Wall Street analysts with 80% of them recommending a buy. However, as of 2004, the glamour story of KKD started to fall apart.

Historical Financial performance

Exhibit 1 shows that KKD top line grew by 202.2% from $220,243,000 in 2000 to $665,592,000 in 2004. Net income grew by ...

A)
In the article titled Corporate Policies of Republican Managers the authors tested the effect of personal political preferences of corporate managers on corporate policies. The authors specifically focused on the Republican managers who had 73% likelihood of identifying themselves as conservative, 24% chance of identifying as moderate, and only 3% chance of being liberal (Hutton, Danling and Kumar 1279). The study found that majority of the managers identifying themselves as politically more inclined towards the Republican also adopted conservative corporate policies. Consequently, the organizations that they led were characterized by low debt levels, low capital, low investment in ...

Introduction

TiVo Company is renowned for the pioneering of Digital Video Recorders (DVRs) technology and the TV category back in 2007. Despite its innovative reputation and loyal customers, TiVo faces financial hurdles in its profits. TiVo did not have any competition in the market a couple of years after its inception in 2000. However, the company’s customer base has drastically dropped after entry of various firms in the industry.

Chicken-and-egg problem discussed in this case

The chicken-and-egg problem with the TiVo is that interactive television (ITV) raised concerns regarding the production, development and its adoption. There is inadequate compelling content in the Set-Top Box (STB) ...

Identification of opportunity cost and sunk cost

Sunk Cost refers to the cost that was incurred in past and cannot be altered through new decisions . It can also be called as irrelevant cost for decision making purpose since it has been incurred and it does not make any difference if the proposal is accepted or rejected. In the case of Tom, the sunk cost relates to the house purchase. During 2004, he has purchased the house in $500,000 which at present has worth $375000. The sunk cost here will be $125000 ($500,000-$375000).
Opportunity cost refers to the benefits forgone due to the selection ...

Background

Enron case study dwells upon one of the most known scandals in business ethics and financial world. Founded in 1985 as a result of the merger between Houston Natural Gas and Internorth, Enron Corporation starts trading natural gas commodities in 1989. Throughout the 90s,the company was considered one of the most innovative and attractive for investment companies in the country. Renown for its unique business model and trading businesses, the company benefitted from a positive image, shareholder trust and external financing (Li, 2010). With a number of changes in leadership from Jeffrey Skilling to Kenneth Lay, who occupied ...

Leading PPF Response

As Stephen Oswald and his team assume the presidency of PPF Corporation, there are various key challenges facing him. One of the key challenges facing Oswald and his team is stopping the decline that is being witnessed at PPF in terms of sales, cash flow, and earnings. Considering that this decline in sales, cash flow, and earnings has been mainly caused by factors that are beyond the control of the organization, it is very challenging for Oswald. This decline has been fuelled by the September 11, 2001 incident, a downturn in the overall business cycle, and market share challenges ...

Summary of the Decision Situation

Just like any other company venturing into a new business, Uber is facing both marketing and pricing challenges. Uber has placed various services into use to ensure that it beats its competitors in providing ride-sharing services in the United States and other parts of the world, such as Europe, Asia, and Africa. Lyft is the main competitor Uber is facing in most of the United States cities. In the international platform, Uber faces a bigger competitive challenge more so in the Chinese market from companies such as Didi Kuaidi. Some of Uber’s services include charging their customers based ...

In the early years of the auction it is found to have been rapidly gaining momentum, turning out the ordinary "flea market" into serious "B2C" portal, where customers have both legal and natural persona. Its main advantage was that this auction did not charge commissions while their contemporary competitors i.e. auctions charged 30% of the transaction value.
After AuctionWeb had become the most popular auction in the US, Pierre Omidyar realized that this business strategy has reached its conclusion. After the business maintenance costs began to grow, he decided to introduce a fee of 6% of the value of ...