Wealth Case Studies Samples For Students

Answer 1

As a legal person, a company can be sued by any person if the directors had entered into a contract with the person and failed to honor the deal, therefore, resulting to financial loss to either party. However, recent case laws have shown that there are instances when directors can be held liable or personally liable for any financial loss to a creditor or any other party. An instance where a company’s director makes statements on behalf of the company that can be considered as lies or misrepresentation of the company can result to the civil suit against both the company and the ...

At 22 years of age, Mr. Polk believed that money would solve all his problems. To CFSB’s Control Management System, such belief would pose a major challenge in the control of Mr. Polk’s behavior while working in the company. One of the main functions of a Control Management System is to motivate employees to make decisions and take actions that are consistent with the organizational objectives. The control system must, therefore, guide the employees to focus all their energy towards accomplishing the organization’s goals despite the fact that they may be tempted to make decisions or take actions ...

Introduction

Most business enterprises are normally creations of ingenious business minds that make difficult financial decisions in order to take the business to the next level. In most occasions, only businesses with spectacular principles and competitive managers have an edge over competitors thereby staying in a market. An important aspect of a business is its mode of financing which can either be equity or debt business financing. This paper gives a comprehensive discussion on the advantages and disadvantages of both equity and debt as business financing strategies. Additionally, the paper gives a recommendation on the decision of AMSC to settle for equity financing.

Discussion

Advantages ...

Corporate Finance

Answer 1)
Compound Annual Growth refers to growth over the years and is calculated by adding each year growth to the original amount. As for the sales of the company, the compounded growth rate for sales over 5 years time horizon is 11.05%. In other words, starting with the year 2000, when the sales of the company were $600000, by the end of 5 years, the sales of the company following 11.05% growth rate had increased to $1013376.
However, the net income of the company grew with annual compound rate of -136.10%. In other words, there was ...

Introduction

Background
Established in 1941 as a small family-owned business, Coach morphed into a fashion brand over time, providing superior quality fashion goods of modern and classic style. It started operating its own exclusive retail stores in 1980 (Coach Inc., 2014). The Coach brand was sold to Sarah Lee in 1985, and since then, the company has undergone a rapid expansion. The product portfolio of Coach included luggage, briefcases and other fashion accessories, apart from its original men’s and women’s leather bags. Until 2000, Coach mainly operated its stores in the USA before starting to expand into international markets like ...

Part A: Classification of items as assets or liabilities

Under this section, we will classify each of the given accounting transactions under appropriate category. Below presented is the snapshot of the excel sheet indicating the correct answers followed by the reasons for their classification under the relevant category:

Reasons for classification of each item:

a) An amount of £40K owed in incorporation tax: Since the company owes an amount, it will be classified under the liabilities section.
b) Stock worth £15K in the stock room: Stock/ Inventories are the current assets of the company and hence will be classified under current assets only.
c) An amount of £20K paid to a supplier for a product yet ...

(Insert Instructor Name)
(Insert Course Name)

- Both Delta Air Lines and Singapore Airlines use straight line method of depreciation. The formula for calculating annual straight line depreciation is

Asset value-Residual valueLife of asset (in years)

In our case we start with the asset value of $ 100 for all cases.
- For Delta Air Lines, we have three cases –
Prior to July 1, 1986, the residual value was 10% of asset value and asset life was 10 years. Hence, annual depreciation was 100 – 1010 = $9.
After April 1, 1993, the residual value was 5% of asset value and asset life was 20 ...

“Issue #20: Is Now the Time for Reparations for African Americans?”

Introduction
The question of reparations to African Americans owing to slavery, lost opportunities, and state-enforced segregation has been long unresolved. The issue keeps emerging into the realms of national debate. The American psyche would not be healed till the time the question of reparations to African Americans is laid to rest, one way or the other.

Arguments for Reparations

Robert Allen, Adjunct Professor for African American Studies at the University of Berkeley, lends his voice in favor of reparations for African Americans. Allen is the editor of the Black Scholar journal and has written eight books covering the odyssey of the ...

Introduction and Background

MedImmune is a corporation in Mountain View, California. The firm is a biotechnology company that has five main products in the market namely RespiGam, Ethyol, Synagis, Cytogam and NueTrexin. The company anticipates producing more products for the market . The firm is contemplating on acquiring Aviron, which is a smaller biotechnology firm in its expansion plan. The process of acquisition of Aviron is hectic and a financial analysis has to be done to ascertain the correct price that the firm should propose to the company. Aviron has a single product that it offers to the market, namely FluMist and has two others in the main ...

Company’s financial statements provide crucial details on different aspects on its operations. That includes information about its performance in terms of profitability, assets utilization and management efficiency, business liquidity as well ability to provide a suitable return for its stockholders. Thus, understanding the statements is crucial in all planning including operations, financial and marketing. In that respect, this analysis seeks to demonstrate how the statements can be used as a guide on marketing planning and general business management. To achieve that objective, the analysis uses the case of Abercrombie & Fitch and analyzes its financial statements for the year 2012 and ...

Executive Summary

This work has to be written consecutively and logically in order to consider and to take into account all features and decisions of the problems and to comprehend the overall situation. I intend to define the main problem of the case, its issues and describe it.
When the problems will be defined, and the description will be finished, I am going to analyze the financial performance of the business using the financial data of the case. This part of the paper is the largest and has a very important meaning for decision-making. Financial and numerical data describes precisely the ...

Results of the analysis of the Cooper Processing Company case (Bowersox et al., 2013).
In order to get the data to calculate the ROA, we need to get all the necessary data. The detailed cost for the retail and foodservice channels.
For the employees cost, the retail have 40 employees and the food service 10. Considering 5.000.000,00 USD the values are:
Employee_Retail: 4.000.000,00 USD Employee_Foodservice: 1.000.000,00 USD

The calculation of the sales promotion cost, we consider that 100% of all the cost are considered in the retail channel:

Promotion_Retail: 8.000.000,00 USD Promotion_Foodservice: 0,00 USD
The cost of the order processing for each channel is proportional to the number of orders of ...

- Contrary to the popular opinion that luxury items may not fulfill the needs in collectivist cultures, luxury cars like BMW can meet the needs of Chinese citizens, their collectivist values notwithstanding. Firstly, the Chinese economy is doing very well, and consequently, this has increased the purchasing power of its citizens. The number of citizens who own vehicles is increasing by the day. Additionally, more and more Chinese are purchasing luxury cars, similar to the one vended by BMW. Secondly, Chinese nationals associate such a car with prestige and social status. Additionally, the sedan models vended by BMW are more ...

MGM Resorts International is a reputable hospitality firm with diverse networks and investment portfolio in major parts of the globe. The gaming industry is one dynamic sector and viable corporate are thus advisable. This fact has been the informative factor for MGM Resorts International has been merger and commercial acquisition of casino and other firms in the industry. This strategy has seen the Resort increase its asset portfolio and assets base in different parts of the globe where the acquisitions lay. As much as MGM Resort International has strived to give the bet in terms of customer services, improving the ...

Profitability ratios carry great significance as it indicates the level of profit margins being earned from its business. These ratios have the capacity to influence the investment decisions of the shareholders. The paper describes the profitability ratios of Starbucks Inc and Jamba Juice over the period of two years, i.e. 2012 and 2013:
i) Gross Profit Margins:

Analysis:

The above data indicates that Gross Profit Margins of Jumba Juice was significantly higher than that of Starbucks Inc, however during 2013, the gross margins of Starbucks Inc increased from 56.29% to 57.14% courtesy decline in percentage of cost of sales to ...

Shareholders, who in principle cannot participate in the day-to-day management of a company, are forced to enter into a relationship with managers who act as their agents in the management of the company. This relationship operates under the assumption that managers will act in the best interests of the shareholder (Shapiro, 1999). However, managers will likely, and naturally, act in self interest and the needs of the shareholders may not be in the forefront of their motivation. This raises the issue of the agency problem; the conflict between a company’s management and the shareholders when managers act to maximize their own ...

Alcoa has been reporting an increase in its profits for the past three years like in the year 2010 the revenue announced was $210 billion a 14% increase from the year 2009. This steady increase has continued to be announced up to the year 2012. The company credits this increase to an increased demand for aluminum in worldwide, an increase demand for their products and also an increase in the value of their products.
Alcoa has mainly financed its growth through the sale of its assets though at prices below market. This many analysts believe is the main reason ...

Charles Dickens lived during the Victorian era of Great Britain, which comprised Queen Victoria’s reign (from 1837 to 1901). While this period saw the birth of a great many innovations in social and economic prosperity for the British, there were also rampant problems for people living during the Victorian era. One of the most prevalent issues was poverty – there was a huge problem with wealth inequality in Victorian-era England. The Victorian era saw a dramatic population increase in England – the number of British citizens nearly doubled from beginning to the end of the era, and industrialization led to a great deal of ...

Charles Dickens lived during the Victorian era of Great Britain, which comprised Queen Victoria’s reign (from 1837 to 1901). While this period saw the birth of a great many innovations in social and economic prosperity for the British, there were also rampant problems for people living during the Victorian era. One of the most prevalent issues was poverty – there was a huge problem with wealth inequality in Victorian-era England. The Victorian era saw a dramatic population increase in England – the number of British citizens nearly doubled from beginning to the end of the era, and industrialization led to a great deal of ...

In the United States, Federation of Accounting Standard Bodies sets Generally Accepted Accounting Principles(GAAP) and outside United States,International Accounting Standards Board, sets the International Financial Reporting Standards(IFRS).
The approach carried out in IFRS and GAAP accounting standards is different. There are many accounting treatments for various transaction that differ under both of the accounting standards.

LIFO Inventory accounting is not allowed under IFRS. However, US Firms following GAAP accounting standards are required to dislcose LIFO reserve in the footnotes of financial statements.
LIFO Reserve = COGS LIFO - COGS FIFO

This adjustment enhances the comparability between US GAAP and IFRS firms.

Treatment of Interest and Dividends ...

Describe your department/agency/division budget, and main focus

or purposes of the document (Mission, Vision, and Values)
The Ventura county probation agency is given the mandate to supervise offenders of different ages on probation. It also has the role of preparing sentencing report required by the courts. On the juvenile context, it ensures there is preparing for an equivalent for their facilities operations. The mission of this agency is to safeguard the community security by initiation of a program that graduated sanctions. The sanctions are purposed to bring balance of services between the lawbreaker and the community. Under the jurisdiction of the agency, the young , adult and ...

Part IGenerally Accepted Accounting Principles (US GAAP) GAAP are accounting standards that are used for preparation, presentation and reporting financial statements for public, private, government and nonprofit making organizations. The purpose of these rules is to ensure that the reporting of financial statements is transparent and observes consistency. This is a measure to ensure that those relying on the reporting make prudent economic decisions. Financial statements covered by GAAP include the balance sheet, income statements and the cash flow statements.

International Accounting Standards (IFRS)

International financial reporting standards refer to a setoff accounting rules developed by international accounting standards board. The standards ensure that business ...

Risk in accounting can arise from very small errors in the books. Marsee, an accountant in a Construction Company must maintain all the records in a clear manner so as to minimize the effects of risk. A construction setting is very prone to risks since it involves a lot of variables that must be factored in the books. The risks in her accounting records can arise due to;
First, large amounts of cash at hand to pay petty transactions that might not be in the general budget increase the chances of misappropriations. Liquid cash is very prone to impulse spending and ...

Question One

The financial statements of a company should be prepared in accordance with the accepted accounting principles and guidelines. It is the role of the auditors to make sure that the financial statements prepared reflects the true and the correct financial position of a company. There should be adequate disclosure of all the transactions in the financial statements. Disclosure is made by the use of notes provided after the financial statements have been shown. SEEK Limited is the leading provider of online employment services. It is located in Australia and New Zealand .
The disclosure of the financial statements of SEEK Limited ...

US GAAP permits LIFO in valuing inventory while IFRS does not permit LIFO in valuing inventory. Secondly, US GAAP recommends two-step impairment of assets while IFRS recommends one -step impairment of assets. Lastly, in US GAAP, assets are not allowed be revalued upwards whereas in IFRS upward revaluation is allowed.
An expense in financial accounting is a monetary equivalent of an asset or resource that has already been consumed in a given financial period for the purposes of generating revenues for that entity. Examples include; salaries, rent, financing costs, and repairing and maintenance costs. On the other hand, an asset ...

- The stockholders’ equity section of the balance sheet gives an analysis of the several classes of shares held by shareholders and the company as at the end of that financial period, December 31, 2007. It gives details of the number of the various types of stock that are held and further goes on to give an analysis of the shares that have been issued and those that are outstanding. The statement of stockholders’ equity (exhibit 4) is almost similar to the stockholders’ equity section of the balance sheet, the only difference being that it is more detailed. It ...

Question 1: Examine the following ratios below, and conduct a three-year ratio analysis. Start think about the general trend of the ratios in each category for the 3-year period.Profitability Ratios

Liquidity and Solvency Ratios

Question 2: Interpret the ratios in each category and try to link them together to provide a coherent summarized viewpoint of the company financial situation. Be creative and analytical.
Let’s first look at the profitability ratios of the company. The company always has a very healthy Gross profit margin so the manufacturing/outsourcing capability of the company was always its stronghold. However the massive drop of margin from Gross Margin to ...

1.0. Background of London woods Limited
This is a private limited liability company that specializes in the production of furniture for sale to wholesale, retail and private use. It has been in business for the past five years and currently it employs 50 personnel that work within the company. It operates in the domestic market. The company was founded by three young men that were carpenters, Billi Kid, Bengazy and Lee Jones. These young men were energetic and they had appointed Operations Director aged 25 years. The operation's director's name was Mathew Do It. He is an innovator who ...

Asset allocation refers to an investment strategy whose objective is to strike a balance between risk and return through the apportioning of asset portfolio in relations to individual objectives, risk levels and investment horizon. The main asset classes in regards to investment include; equities, cash and fixed incomes, there is no precise asset allocation method which leads to right asset allocation for each an every individual, this leads to the various asset allocation methods (Zimmermann, 2003).
Strategic asset allocation method entails balancing the portfolio to achieve its long term goals of asset allocation, it involves combinations of assets based ...

Ch. 13: Case 13-4 Application of SFAC No. 13
a. What is the theoretical basis for the accounting standard that requires certain long-term leases to be capitalized by the lessee? Do not discuss the specific criteria for classifying a specific lease as a capital lease.
The transfer of a lease from the lesser to the lessee automatically shifts all the benefits and risks into the ownership of the lessee, it therefore should be capitalized by the lessee, and the economic effect is like that of installment purchase in many aspects. In both cases the lessee or the buyer enjoys most ...

It makes use of data mirroring. This is achieved by combining two physical drives and then striping data across them. In this arrangement, the first stripe is the original data while the second is the mirror data, which is a copy of the original data but is written in RAID –level 1. This level provides 100% data redundancy but have diminished data storage space.
Relative value of an asset is the likeability of an asset when compared to another one. One factor that needs to be put into consideration when determining this is the ease with which the asset ...

The themes of the two articles focused on the two Central Banks’ (the Federal Reserve and the European Central Bank) attempts to stimulate their respective economies through the use of ‘unconventional’ monetary tool (i.e., open-ended bond purchases to drive down the interest rates also known as quantitative easing). Though the Fed and the ECB have used the same monetary tool to affect economic activity, the goals were different: the Fed aims to boost the economy’s output while the ECB aims to save the euro.
I am interested in exploring how monetary policy affects the economic activity of a ...

FX or Foreign Exchange Translation Adjustments are increasingly important in today’s corporate accounting world. It is no longer a problem of comparing “apples to oranges,” and applying a relatively stable exchange rate between countries at a relatively slow pace. If produce is used as a metaphor, it is more of a “fruit salad” where one bad piece could spoil all of the economies that touch it. On the other hand, great profits can be realized by companies that succeffully balance prudence with taking advantage of shifts in their Foreign Exchange Translation Adjustments.
Foreign Exchange Translation Adjustments are judged as two types, Transaction ...

Abstract

This paper aims at discussing and evaluating the strategic management of Four Seasons Hotel and Resort’s current situation and future position and development. This research report identifies the sources of competitive advantage for Four Seasons and strategic challenges faced by the company on its expansion plans. The paper adopts some management models to help better understand the current situation. PESTLID and Porter’s five forces help to understand the current challenges facing the company from the perspective of the hospitality industry.

Introduction

As the world’s leading operator of luxury hotels and resorts, the goal of Four Seasons is ...

1).
Underwriter model exists where a company contracts another financial institution to offer its securities for sale to interested investors the risk associated with this is the company issuing its securities will have to pay the financial institution some commission which might end up reducing the expected amount by the issuing company and is more riskier if the two parties don’t agree on a eat stock status which might see the issuing company get back it unsold securities. The investment model is where by the issuing company decides to sell its securities directly to the investors the risk with ...

1. Valuation Technique Used

Two valuation approaches are utilized for analysis,

a. Base Case “As-Is” valuation of ATC’s cashflows and
b. After acquisition valuation of the ATC’s cashflows
This provides a before and after picture of ATC thus making the crafting of ATC’s valuation easier. These valuation techniques is recommended by EF Moody (2012) for conducting investment appraisals, specifically the procedure of comparing the value of a company’s operations with the value of the company after enjoying the benefits and improvements due to a merger or acquisition. The discounted cash flow approach leading to the calculation of the company’s net present value ...

Analysis of the negotiation

Following between the co – owners of the Hackerstar Company, I was appointed the chief attorney representing one of the owners by the name Alan Hacker. This negotiation is taking place so that the two can come to an agreement that will see Litigation ruled out, Hackerstar receive royalties that Star is claiming and Hacker gets to move on with his innovations with another group of investors.

The peripheral elements that may have an impact on the negotiation include sharing of HackerStar’s assets, possibility that Star may have a personal grudge with Hacker. Star may be out to sue Hacker ...

Introduction

AES Telasi is a power distributing company situated in Tbilisi, Georgia. The firm prides itself in being responsible for the modernization and restoration of Tsibili’s electrical grid. Despite the political dark image that dented the management of the company in 2004, the company still remains afloat with quite valuable assets. Indeed, by the time it exchanged hands in 2003, its net worth was 34 million US Dollars. The company however still faces a couple of country and project risks.

The first and most threatening of the risks is the economic risk. This factor has dented on the company’s image a ...

In the analysis carried out on the MAD mining business, there were assumptions made.

The growth projected during the 2012-2013 year is assumed to take a more or less non variation trend over the period over of study. Hence the growth of variables under consideration changes at the same rate.

There has been a general assumption that there were no credit lines at the start of the 2012-2013 periods. This means that all the financing arrangements are made for assets that require heavy financial cost.

There has been a general assumption that MAD mining picks up from mixed fortunes by ensuring $million ...

The taxation of the capital gains made during the disposal of the property by James will be considered under the Income Tax Assessment Act of 1997, section 104-105 which deals with capital gains for individuals. This is wholly embedded in the Goods and services Tax act of 1999 (div 9-11). Using this act, considerations will be made on each tax event under the capital gains tax and analysis made on how each will be treated under the act. In the disposal of the property, either a capital gain or a capital loss is made, and such a gain or loss will have to ...

Each company has its own marketing strategies to ensure that its products and services are purchased by a wide variety of customers. A company has to come up with a good marketing mix in order to generate a high amount of revenue. This means that the marketing department of that company has to search for adequate information regarding the factors that affect its services. One of the variables that may affect the marketing mix may include physical evidence and the people. In addition to this, the service process is also important in determining the marketing mix of a company (Martin 2011).

There are a ...

Q.1. The main issue is that Cotton Limited., which owns the majority of Satin Co. Limited's shares is trying to buy-back the minority shares held by Silk and the rest of other investors. However, the minority shareholders are against the idea particularly Silk. Since Cotton Limited could not get Silk to agree with the buy-back option. The majority shareholders resorted into passing a resolution to change Satin's constitution, giving power to the majority shareholders to compulsorily acquire the minority shares. The problem is that Silk is not convinced to sell her shares and seeking legal action to stop the proposed ...

1. Finally, using any logical method you can, calculate a valuation for Riley.
For Riley’s Supply, Asset Valuation method could be used for calculating the value for the business as limited information is available.

FMV/FA +OB+I=MV

468 +86 + 2718 = $3272

2. In ONE PARAGRAPH, identify/comment on the source of Riley’s cash flow problem using historical data as well as the new pro-forma data.
There could be quite a few sources of Riley’s cash flow problems. Over Investment in fixed assets could be one as it is a supply business and it might not need as much ...

Description of the study

Soccer players in English premier League are some of the wealthiest sportsmen in the world. However, the wealth of individual soccer players in the English premier League differs with some players having a higher net worth than others. An article by Sunday Time listed David Beckham as the wealthiest soccer player with a net worth of 249 million dollars. The list was based on identifiable wealth, property, land and other assets excluding bank account balances. It stated that the wealth of soccer players could be determined by their physical performance, annual income and education level. To this end, this study seeks ...

Microsoft Office Software

One of the most widely used office software suites is the Microsoft office, attributed to its primary advantages, which encompass; an appealing interface, and a total cost which is lower than buying the programs individually. In line with this, Microsoft office access is one of the programs found in the Microsoft office (Viescas & Conrad, 2009). The program contains a plethora of templates-assets, contacts, events, faculty, issues, projects and tasks-, which are widely used in tracking data and creation of essential database (Viescas & Conrad, 2009). Inn Business, asset and contacts templates are some of the most commonly used templates provided by Microsoft ...

Wage expenses and miscellaneous expenditure: The wage expense for the year X0 is arrived at by deducting the depreciation and miscellaneous expenses from the total operating expenditure. The Wage expenses for the 5 years, X1 through X5 are calculated by adding up a certain assumed percentage to the wage expense of the year X0. Similarly, the miscellaneous expenditures for the 5 years, X1 through X5 are calculated by adding up a certain assumed percentage to the wage expense of the year X0. This assumed percentage remains constant throughout 5 years. The percentage assumed to calculate the wage expenses and miscellaneous expenditure ...

A diversifiable risk refers to risk that an investor can eliminate if he held an efficient portfolio while a non-diversifiable risk refers to risk that still present in all adequately diversified portfolios. The investor, therefore, seeks to eliminate the diversifiable risk by adding more assets to the portfolio.

a) A substantial, unexpected increase in inflation is a non-diversifiable risk. This is because a substantial, unexpected increase in inflation will affect all assets that an investor can invest in. Therefore, the risk cannot be eliminated by adding more assets to the portfolio.
b) A major recession in the U.S is a non-diversifiable risk. This is ...

Cost of Equity Capital

Cost of equity can defined as the opportunity cost of raising finances through equity. Equity comprises of ordinary share capital and retained earnings of a company. The rate of return expected by investors is the same as the cost of equity. Cost of equity is therefore important in valuation of shares. However, unlike debt securities, which have fixed interest, dividend paid on equity securities fluctuate over time. It is in the discretion of the management of any company discretion to determine how much dividend to pay in case they decide to pay dividend. This makes it hard to estimate the ...

Introduction

United Bank for Africa Plc (UBA) is one of the leading financial service institutions in Nigeria and West Africa, listed on the Nigerian Stock exchange, UBA is rapidly evolving into Pan African Service institution. Several ratios were applied on the financial data of the company and there were areas where the company performed well while in other areas there are valid concerns.

Financial Analysis

There are various ratios that showed that the company had improved in terms of profit in the period 2007 to 2008. The following ratios showed positive growth.
Net Profit Ratio: Net profit ratio increased from a figure ...

Andrew Fastow, Enron’s Chief Financial Officer (CFO), devised two limited partnerships in 1999 – the LJM Cayman, LP (LJM1) and LJM Co-Investment LP (LJM2). The underlying purpose for this scheme was to buy back the stocks and stakes of Enron that were performing badly and in this way improve the appearance of the company’s financial statements. These partnerships were formulated exclusively to operate as independent equity investors intended for the special purpose entities that were being exploited by Enron (Bratton 31). Special purpose entities (SPEs) were utilized by Enron to finance and deal with risks related with particular ...

Introduction

Pehr Weisengraf could not interpret the financial ratios of his business after he was presented with a document of the calculated ratios by the banker following a failure to secure a loan for his business from the bank. The ratios are calculated to predict and ascertain the performance of the business by credit issuing institutions. The comparison of the ratios from the previous and current year did not match the required industry average that could have consequently determined what amount of loan could be awarded to his business. In this regard, it is essential that Weisengraf learns what the ratios mean and ...

The estate plan is intended to reduce the amount of both federal and state tax payable on the gross estate of the clients. The estate plan seeks to develop efficient gifting plans by the clients to specific beneficiaries and effectively reduce the amount of tax that is payable from the gifting plans to the minimum. The estate plan should enable Rich distribute his estate to all his beneficiaries without any conflict of interest arising from the remarriage of his wife after his death.
The estate plan seeks to revise the client’s will to be more effective and ...

Calculate & analyze current ratios and acid test

Financial ratios are an integral part of any business, which help to quantify various aspects of company’s operations and performance. When making a decision on the loan, creditors usually consider liquidity ratios in their analysis. Such ratios help to understand whether the company is able to repay its debt by converting its short-term non-cash assets into cash. The higher liquidity ratios are, the safer it is to give loans to this company. Current ratio and acid-test ratio are among the most commonly used ratios for liquidity analysis. Current ratio can be calculated as a ratio of current assets to current ...

Introduction

The case study by Rebecca Henderson and Cate Reavis, entitled What’s Driving Porsche? Is an investigation into the current realities for the Porsche car company (Henderson and Reavis, 2009). Porsche has made some significant changes in recent years, ceding control and gaining control within certain parts of the automotive industry; the purpose of this report is to give a thorough discussion of the changes that are occurring in the automotive industry, particularly the luxury automotive industry, and examine how these events have affected Porsche as a company and as a brand. The transitory nature of the automotive industry branding tactics have ...

The responsibility of the external auditor is to provide reasonable assurance on the financial statements and to make sure that the material areas of the business are following the accounting standards such as IFRS, IAS or GAAP. In the current scenario of AMC Company, the amount or valuation of the plant assets is 60% of the overall assets of the organization. Therefore, the plant assets are the material area of the business and the external auditor must increase the sampling size of plant asset account’s transactions at the planning stage of the audit. (Stuart, 2012)
The treatment of ...

Being one of the most recognized luxury brands in the world requires a constant wobbly balance to be kept. The customer should be always understood and heard, while the external factors should be adapted to within the shortest time. From the day of its foundation in 1941 Coach’s product itself did not change much. It used to be all about being simple in style and resistant to wear and tear; the difference is concealed in additional value added to the customer.

Question 1

For Coach the competition in the luxury goods industry is estimated as fairly strong, due to the ...

Introduction

Financial performance analysis is crucial for various stakeholders given the varying needs for performance information on various business aspects. In that respect, effective analysis entails evaluating performance over a period or comparing a company’s performance with industry peers. It also entails evaluating various performance areas using varying tools including financial ratios. In that view, the following is a report on Wyndham Worldwide Co. financial performance identifying the performance trend for the period beginning 2012 to 2014 and comparing its 2014 performance with that of the industry peers.

Analysis

Company Overview
Organization and history
Wyndham Worldwide Co. is a brand offering hospitality ...

GOODWILL CASE

Despite the fact that, a business venture may claim to own numerous intangible assets, not all of its intangible assets qualify to appear on the balance sheet. Intangible assets will only appear on the balance sheet based on the following criteria of restrictions; intangible assets will qualify to appear on the balance sheet only if; the business venture acquired the assets i.e. if the intangible assets are not developed within the business enterprise. Also intangible assets can only appear on the balance sheet if they can be identified in terms of value and have a useful timeline and therefore ...

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, ...

Key Strategies Employed by Coach, Inc.

The first strategy employed by Coach is that of expanding in emerging markets. It is strengthening its sales in China, and has begun to expand as well in India, which it considers to be an emerging market and a potential source of growth in terms of sales. It also would like to increase its presence in Europe, South America and the rest of Asia. It also desires to increase its presence in the United States and in the rest of North America. It plans to do this by increasing both the number of full price stores and factory outlets. ...