The Home Improvement industry has shown improvement since the financial crisis of 2008. Two companies are of particular interest: Lowes Companies, Inc. And Home Depot, Inc.
Capital Expenditures. The Capital Expenditures made by a company are used to acquire or upgrade tangible assets such as facilities, equipment, or other property. The general purpose of capital outlay is to maintain the scope of operations or increase operations in some way. Capital expenditures are industry sensitive, with industries in telecom, oil, or utilities operations particularly capital intensive. A capital expenditure that maintains an asset in its current condition is deducted in its entirety in the year of the expense. Alternately, a capital expenditure that is used to purchase a new capital asset or increases the useful life of an existing capital asset is treated as an expense that must be capitalized. That is to say that the cost of the…… [Read More]
Capital Leases, n.d.).
These two have significant impacts on the balance sheet and income statement of the firm. In the balance sheet, the operating lease has no effect while the capital lease shows interest receivable and capital asset with depreciation on the asset side and debt on the liability. In the income statement, both the operating lease and capital lease records an operating expense; the latter also shows interest as revenue. (Operating vs. Capital Leases, n.d.).
Furthermore, capital lease provides more benefits than buying an asset. First, and probably the most important, is cash flow. Capital lease offers a great alternative in preserving the cash flow. It allows the company to have a working asset like equipment by leasing than making an outright purchase. Usually a minimum down payment is required. With a monthly payment of lease, the company has now machinery that can be utilized to increase production and…… [Read More]
esults and acceptability of the item for key stakeholders
Da Vinci is a lucrative product that has immense contributions to the delivery of health services in many health centres globally. The effectiveness of the product lies on its new entry into the modern market. Da Vinci production and use have enlightened the public and hospital fraternities on new approaches of managing surgery operations. The resultant effects that are going to be felt after using the product are more increasing and beneficial than using the old mechanisms. The innate objective of the tool will improve on delivery of surgery services in ways that are more safe, effective, and affordable to the public. Da Vinci was first introduced as a safe way of improving surgery operations in the hospitals. Moreover, the use of the product had not been made public. Now that the machine will be available in many health…… [Read More]
Expenditure Revenue Analysis
NY PA Expenditure
hile governmental entities must strive to serve the public good to the best of their abilities, public administrators must navigate an environment of extreme complexity in which the allocated capital funds are put to their best use. The administration of the capital budgeting process can be extremely time consuming, confusing, and expensive. This research will discuss capital budgeting policies and procedures in the states of New York as well as Pennsylvania for the fiscal years of 2009 and 2010. These governmental entities generate funds through taxes, public debt, inter-governmental transfers and various businesses owned by the government and capital projects represent a significant portion of the state's responsibilities. ith the use of a prepared financial analysis, this paper will describe current practices and examine how debt ratio affects borrowing and investment opportunities for the two governmental entities.
Much of public spending on capital projects…… [Read More]
Capital Budgeting for Guillermo Furniture
Guillermo Navallez, owner of the relatively small yet highly successful furniture manufacturer Guillermo Furniture, is faced with a tough decision. Due to changes in the industry an in his operating atmosphere, Guillermo is unable to continue competitively running his company as he has for the past decades, with a crew of skilled laborers building furniture and with distribution handled essentially by the company itself. He must either automate his manufacturing process with a very high initial cost for equipment but allowing him to continue as a furniture manufacturer, he can shift to distribution for foreign competitors with cheaper products seeking entry into the North American market, or he can begin manufacturing and selling his patented flame retardant instead. Each choice will require an initial outlay of capital and will also have varying returns over the years. Assessing these options from a budgetary standpoint requires the…… [Read More]
The aim of hospitals is to measure and improve the quality of health care service for the patients. Patient satisfaction is the foremost concern. However, to run a hospital, there are a lot of other factors are also involved; e.g. managing cost, budgeting, optimizing operations and increase patient satisfaction level. In order to achieve the desired level of performance, the hospital needs to be up-to-date with the latest technology.
In this era of technological advancements, every company has to maintain all their records on computer because it saves time and needs less effort than manual work. Our hospital has digitalized their data but every department has its own data base. In order to optimize the operations, hospital requires having a central data base system.
As Schuhmann (2009) stated in his article that the recent economic crisis has made it difficult for hospitals finance their capital expenditures. The capital…… [Read More]
But even with no cost savings whatsoever, this project has a positive NPV.
e can see, therefore, that the greatest area of sensitivity is with the terminal value. The terminal value at present is worth $143 million of the NPV. If we break down the variables that go into the terminal value, however, we notice that the cost savings are critical. If SGA expense is not reduced, then the terminal value is reduced to $67 million and the total NPV for the entire project ends up being $98 million. This figure is less sensitive to the change in cost of goods sold.
e should also consider testing combined sensitivity of our shakiest projections. Sales may not live up to expectations and cost savings might not occur. If we assume no net income and no additional cost savings, the project will have an NPV. If we assume that our expectations for…… [Read More]
Capital Projects CSX
Capital Projects: CSX Railroad
CSX Railroad, the nation's third largest rail carrier by revenue (nine billion in 2009) according to Fortune 500 (CNN Money 2010), spends a considerable amount of its revenue (15%) on capital projects to update existing infrastructure, purchase new rail cars, expand intermodal and line access, and meet regulatory standards imposed by the Surface ransportation Board and the Federal Railroad Administration. (Mancini, L.N.D.). In 2009 the company spent 1.4 billion dollars on capital projects designed to "create competitive advantages for customers, grow the business, create jobs and deliver shareholder value" (Progressive Railroading. October 13, 2010). Of particular importance to CSX is the recent announcement of the National Gateway, "a multi-million dollar public-private infrastructure initiative, which will significantly improve the efficiency of the freight network between the Mid-Atlantic ports and the Midwest" (CSX Annual Report 2009).
he development of National Gateway is estimated to cost…… [Read More]
It would be difficult for the company to satisfy its shareholders with differing interests, but there is a solution-Net Present Value.
Using Net Present Value (NPV) as criteria to select projects assumes proficient capital markets. In other words, in order to work the company has to have access to whatever budget is needed to continue the positive Net Present Value projects. Sometimes there may also be capital ration and the concept of capital budgeting process becomes more and more complex.
Alternative Rules for Capital Budgeting
While NPV is the rule which maximizes value of shareholders, some companies use other strategies for their capital budgeting decisions. Common alternative strategies include:
Internal Rate of Return (IPR)
Return on Book Value
Investment decisions made from the Profitability index and Internal Rate of Return methods agree with those of Net Present Value. Decisions made using the return on book value…… [Read More]
.governments are created by law and are continuously regulated by legal provisions found in constitutions, statutes, charters, ordinances, administrative regulations, legislative resolutions and judicial interpretation… the accounting system must produce data and information which indicate the extent to which the financial operations carried out by all agencies of the government pursuant to their designated objectives comply with applicable laws and legal requirements. The existence of a vast network of legal provisions and the diverse nature of governmental operations make necessary the utilization of fund account." (Snodgrass, 1993)
The fund accounting system is ostensibly the full gamut of accounting services and compliance protocol. "The general ledger, financial statements, accounts payable, purchase order processing with encumbrances, payroll including payroll projections and encumbrances, grants management and reporting, grants receivable, human resources, fixed assets management, central stores/inventory." (eis, 1996)
The city therefore should increase its capacity to more properly manage the financial and managerial…… [Read More]
capital purchase, costing $5,000, company benefit . Examples include a X-ray machine, MI processor, software filing patient records, a research library, large item company . o Identify management goals expenditure support
The health care field is becoming presented with more and more pressures in today's society. There are numerous changes in the social and economic environments, which become combined to generate new pressures for the health care providers. The life expectancy of the population increases, generating increased needs for medical care for several years. Then, the Baby Boomers are retiring, causing a demanding generation, used to financial resources and access to services, to turn to the medical care sector for more services. The policies regulating the field also change as do the demands and expectations of patients.
In such a context, the health care institutions find themselves in a position in which they have to be better managed…… [Read More]
Caterpillar Capital Budgeting
There are a number of qualitative factor that go into a capital budgeting decision. The first is that the company needs to think about how the purchase fits with its overall strategy. Caterpillar has an overall strategy, and its resources should be directed towards that. It has to think if a new computer network system -- which will have more costs than just 10% of last year's profits because there is a learning curve with new computer systems -- is going to be a good use of resources. Opportunity costs are a major issue in capital budgeting decisions because that money could be deployed elsewhere (CFA Institute, 2014).
There are other qualitative factors as well. For example, activities must be within the ethical framework of the company. They must also have a positive effect on some element of the company's objectives, like customer service. Ideally,…… [Read More]
Capital Budget for iver County
In the current dynamic business environment, finance managers are continually faced with decisions on the best type on assets to invest in. County governments, for instance, have to analyze various investment decisions on behalf of the residents, and to estimate costs and benefits that are related to these decisions. According to Peterson and Fabozzi (2002), firms, as well as counties, should continually invest funds in assets in order to produce incomes and cash flows that will promote growth. In particular, capital assets like equipment, machinery and vehicles, which have a long estimated life, require thorough planning to ensure they give good returns on investment. Baker and English (2011) also state that it is imperative for finance managers to project the cost of capital expenditures to establish whether there is enough cash for asset acquisition and if not, consider alternative methods, such as leasing or renting.…… [Read More]
In a firm, most of the capital source comes from accumulation. This concept of capital accumulation defines how wealth is generated for the company by adding up amount in cash or other forms of asset into the capital account. Capital accumulation is solely for increasing the profits on the possession of the firm and no other aims are attached with it other than bolstering the revenue holdings of the company. Capital accumulation is not connected with increment in labor input or output. It is dependent upon the existing company profits that the firm uses to maximize the existing capital. Assets that are in possession of the firm can be used to increase the capital by appreciating in their value or acquire assets that can be used to create further wealth. Other ways firms bring accumulation of capital into process is through acquiring shares or mutual funds. Capital accumulation…… [Read More]
Capital Gains Tax in Australia
Capital gains tax refers to a type of tax levied on capital gains incurred by organizations or individuals. The capital gains refer to the profits that an organization or individual selling a capital asset obtains through selling an asset at a price higher than the original price. In many countries, the amount of capital gains tax takes into consideration the type of investment and the holding period of the asset. Australian capital gains tax takes a proportion of all achieved capital gains. Capital gains are not separate tax but part of the income tax on individuals and corporations upon disposing of capital assets. Australian capital gains tax exempts personal properties such as home, car, and furniture. Australian residents in any part of the world are subject to capital gains tax.
Issue 1. Moodly's Conversion of her main residence.
Moodly being a childcare worker, wishes to…… [Read More]
The simulation mannequin is an important part of nursing training, so is a valuable asset to a nursing college. The cost of the mannequin is $10,000. This is just one of many pieces of equipment that are required for the running of a high quality nursing college. There is a considerable body of research that supports the use of high quality simulation mannequins in medical training. One study showed that 85% of students and educators viewed sessions with simulation mannequins favorable to the overall education experience and 80% of respondents in the same survey said that they would recommend such mannequins "for all medical students" (Gordon et al., 2001). Other studies have achieved even higher levels of success, and students indicated that mannequins allowed them to learn better than if they had just learned from a text alone (Fernandez, et al., 2007). There is further evidence to suggest…… [Read More]
To solve these emerging needs of the company to satisfy the demand in the market, it is necessary to invest into expanding of the services offered and shifting the existing concept of the club. Firstly, it is necessary to expand the space occupied by renting out additional premises and organizing Spa procedures there. This will require also investment into necessary human resources, such as hiring Spa administrative and consultants specialists offering services for both women and men, and for both facials and body treatment to maximize the services mix. Costs for occupying this space, purchasing necessary equipment and hiring adequate staff so can exceed the current costs by ?450,000, so this is the incremental expense from proceeding with this services expansion programs. Cost to organize the fitness and Spa cafe, which is proposed to call at EnerGi Box, will amount to another ?100,000 annually. The final improvement step is investment…… [Read More]
The recapitalization of the fleet is however in need to be changed in the meaning of adding new sources of income to ensure the adequate functioning of the fleet. In this order of ideas, the following are noteworthy for consideration:
a) Attracting more sponsorships
The targets of these actions would be large corporations or other significantly wealthy institutions. On the one side, these contributors would benefit in image and reputation from the support they offered to the fire department. The improved image would materialize in increased trust from the part of community and even higher sales levels. On the other hand however, the corporations would receive tax incentives for the sponsorships meaning as such that they would once again be remunerated for their financial support. Given these two benefits, it would be rather efficient to approach corporations for sponsorships and the success rates estimated for this endeavor are high.
b)…… [Read More]
Although advertising costs can be substantial, it is essential that companies place significant amounts of funding into advertising. Such funding is necessary because it provides companies with a competitive advantage. According to Doraszelski & Markovich, (2007)
"Practitioners know very well the value of advertising to achieving their long-term market share and profitability goals. A survey of senior executives in 1999 reveals that 82.9% somewhat or strongly agree that good advertising can provide their company with an edge over the competition in the marketplace. Furthermore, 86.8% somewhat or strongly agree that advertising is a long-term investment that contributes to the financial growth and stability of their company (American Advertising Federation, 1999; Doraszelski & Markovich, 2007)."
The authors also explain that firms believe that advertising has the capacity to give them a sustainable competitive advantage over other firms (Doraszelski & Markovich, 2007). Nevertheless, dynamic models of advertising competition, assert that the opposite…… [Read More]
There are five strategic projects that are available for Superior Health System. The system lost money last year, but it does have a contingency fund. Whether it is worth dipping into that fund, or other avenues of financing, depends on the strength of these projects. So it is important to analyze the projects.
Partner with a major supplier who will guarantee price, delivery, and product quality
Expand the ENT, Plastic, Gynecology, and Orthopedics surgical programs
Develop a cost-reduction program.
Spend $3,000,000 to expand primary care physician membership in Corinth Health Systems, SHS's PHO
The rational for this order is as follows. Financially, the first two options are positive. Partnering with a major supplier, if it costs nothing up front and delivers that sort of value, should have been done yesterday. Expanding the ENT, gynecology and orthopedics departments has the highest up front cost, and while that might be…… [Read More]
Keynesian Aggregate Expenditure Model
Company profits grew strongly in the June quarter putting another question mark over the extent of the predicted economic slowdown..."
However the central bank acknowledged that the weaker data for capital spending intentions are at this point the only clear evidence of an impending slowdown"
These two quotations regarding the same economic scenario seem to pose the question to consumers and economists alike -- why a predicted economic slowdown, if company profits are growing strongly? hy place so much fear in the data regarding capital spending intentions on the part of consumers? hy turn to the tools macroeconomics has long focused on, that of monetary policy, which the central bank controls, and fiscal policy, which the federal government controls, to shift the current state of economic equilibrium, as described above? (Schenk, 1997, "Synthesis")
The answer lies in the Keynesian aggregate expenditure model. This model…… [Read More]
Would you recommend that ExxonMobil use a single company- wide cost of capital for analyzing capital expenditures in all its business units? Why or why not?
To start with, a single company-wide cost of capital implies that the firm uses one general cost of capital as the discounting rate for all of the capital expenditures within its business operations irrespective of whether they come from different departments. The recommendation for Exxon Mobil is that it should not make use of a single company-wide cost of capital when analyzing capital expenditures for all of its business units. Instead, the company should make use divisional cost of capital for each business unit independently when undertaking an analysis for capital expenditures (California State University, n.d).
This follows from the consideration of aspect of difference in the levels of risks involved, in the different business units. For Exxon Mobil, as every business…… [Read More]
River County's Capital Budget
River County Capital Budget
Here at River County we have put together a capital budget because we are planning to make several principal achievements for the next year of business in 2012 because we believe that after further evaluation of the investments we have made in 2010 has helped us determine which items are beneficial to the company and the consumer. What we must ask ourselves at River County is "If we continue to purchase these types of items in the future, will the profit to our corporation be larger that the expenditure of the asset?" We realize that these items do vary; however, we are able to see the positives and negatives of these smaller and larger units by not only calculating the different costs and expected years of the product or asset, but to look at the company's averages, as well.
In reference to…… [Read More]
Capital Campaign in Higher Education
A capital campaign is defined as a targeted fundraising effort that normally takes place over a defined or set out period of time (Lysakowski, 2013). This is normally an intense effort on the part of the higher education institution to raise significant money for a given purpose and within the specified timeframe. Before a capital campaign can begin the purpose for the funds should be clearly outlined and the targets of the campaign determined. This will ensure that everyone is on board and they understand the role they have to play. Capital campaigns are normally initiated to fund extraordinary expenditures that an institution is not able to fund under normal circumstances. These might include the purchase of new equipment, renovating a building, building a new educational block, or expanding an existing facility. There should be an endowment portion added to the capital campaign goal. Institutions…… [Read More]
orking capital is the current assets less the current liabilities (Kennon, 2012). The working capital is an important metric because it can have a significant effect on the company's short- and long-term decision making. The working capital is affected by the cash position, the inventories and the receivables, along with the short-term liabilities. The current ratio is simply the working capital in ratio format, the current assets divided by the current liabilities (Loth, 2012). If a company has insufficient working capital, this can represent a constraint on operations. The company may need to plow all capital it earns into servicing the liabilities, leaving little for capital projects. Additionally, working capital and current ratio are measures that creditors use to evaluate how much credit to give a company. Often, these measures are also used in the company's restrictive covenants in loans as well.
Aside from the current ratio, there…… [Read More]
It also appeals to conservatives who are interested in charity-based social supports, and wish to see individuals and communities, rather than the state, providing solutions to persistent problems such as poverty or social exclusion. It also holds appeal for neo-liberal states that seek to bolster social engagement without addressing structural issues such as changes in employment forms and decreases in social service expenditure (Bezanson,2006)."
On the other hand, the versatility of the theory has been criticized. Some have asserted that the theory may become "all things to all people" and as such it will become a theory that is not viable in any format (Bezanson,2006). With all these factors taken into consideration it is also apparent that, the theory of social capital does single out the importance of informal caring relationships to the quality of life afforded to individuals and groups (Bezanson,2006).
Each of the three aforementioned types of social…… [Read More]
Lending Institutions, Health Care, And Human Capital
Human Capital, its use and Gender Disparity
Gender plays crucial roles in decision-making and resource allocations ideal for economic growth. Mothers' human capital improves child education and health, determining the well-being of the next generations (Finlay, 2007). Women Empowerment tends to allow for allocation of resources to more productive means, serving as relevant measure for improving economic outturn in the long run (Baldacci, 2004). Despite of the rather concrete understanding and appreciation gender disparity in human capital and its uses, it remains a key policy issue in both developing and developed economies.
The ole Health Plays in Developing Economies
Finlay (2007) elucidates that health does play a role in economic development. He showed that health influences economic growth through education incentive effects. Finlay went further to say that, a healthy individual tend to live longer, and has the impetus to undertake investment in…… [Read More]
Private-label securitization has basically ended, and Fannie and Freddie were positioned into conservatorship by their controller subsequent to working in a dangerous and unsteady way. The job currently is to figure out how best to restore a connection between homebuyers and capital markets in a manner that deals with the problems of the old arrangement (Bernanke, 2008).
One alternative that has been talked about is that of privatizing the GSE's and letting them contend in the marketplace as private mortgage insurers and securitizers. In order to get rid of the assumption of government backing and to arouse competition, some suggestions supporting privatization call for collapsing the corporation into less significant components prior to privatizing them. Privatization would resolve a number of troubles connected with the present GSE model. It would get rid of the disagreement amid private shareholders and public policy and probably reduce the total dangers as well (Bernanke,…… [Read More]
These experts or chartered surveyors use the following five main methods for capital valuation & #8230;
The Investment Method:
This is the first and most common method of capital valuation that is applied in commercial property valuation. The method incorporates translating a property's income flow or rent into a suitable capital sum. In this case, the capital value of the commercial property is directly linked to its producing power of income. Therefore, Value = ent * Years Purchase with the year purchase being the multiplier that translates rental income to capital sum.
For example, if rent is $200,000 and Years Purchase is 10, therefore
Value = ent * YP (200,000*10) = 2,000,000.
The Comparison Method:
Being a method that applies to capital values, the comparison method that is also known as the comparative method of valuation is primarily used for residential property. The method is used for properties that are…… [Read More]
To counter this dependence, Lawrence Sports should create a three to six-month grace period before the price changes go into effect and increase marketing efforts to other retailers during this period. This will give the Lawrence Sports advance notice of any problems that might arise in implementing this plan as well as reducing its exposure to the Mayo Stores retail outlets, allowing for greater latitude in capital management.
In order to determine whether the new working capital management plan is working for the company, certain performance measures will be put into place. A dedicated individual in the accounts receivable department can track the changes in revenue that are created by the plan will be able to determine how the incoming cash flow compares to that which existed prior to the implementation of the working capital management plan, forming an effective means of measuring the success of this plan (Gass 2005).…… [Read More]
The purpose of our profit sharing bonus is to encourage employees to understand how their work affects the company's performance and to improve the company's profitability. ut it does not end there. Our incentive program also paves the way for employees to exceed their current status of "just another hired employee." This continues to be a useful tool to make our business work and our employees happy. Here are some of the benefits of our employee incentive program.
Motivates employees. Giving our employees a thing to look forward to is most of the time, the only requirement to motivate them. A good incentive program gives reason for them to work extra hard. It may be because of the price at stake or it may be because of the recognition they will receive. ut it doesn't matter. What matters is that we are able to motivate our employees to…… [Read More]
The author of this report is asked to answer to several questions and specifications surrounding a business venture and how exactly it would and should be pulled off in an effective and well-performing manner. The form and function and "how" the business would be established is the first thing while the next is the funding sources that would be undertaken to get things going. The form or forms of intellectual property that would have to be enforced and protected as next and then the overall way in which the business will be created or acquired. How the sources and need for capital would change after five years of operation is the last thing to be discussed. While getting a business up and running requires a mass infusion of cash and/or borrowed money to get going, the business will eventually be lucrative.
As for how to establish…… [Read More]
Lending Institutions, Health Care and Human Capital
Explore whether or not funding from international lending institutions like the World Bank and the IMF are helping or hindering the social, economic, or political development of the country that you have selected. Support your response with examples.
For a long time now, developing nations have been reliant on the aid provided by foreign entities and global lending institutions to foster the growth and development of their economies and improve the standard of living of their citizens. International lending institutions, for instance World Bank and International Monetary Fund (IMF) play significant roles in the economic, social, and political development of developing nations through the provision of monetary help and support. Furthermore, these institutions provide essential support to developing nations, such as India, for their general development. India is one of the fast developing nations in the world and these lending institutions have played…… [Read More]
Income Inequality and Education
A Human Capital Inequality and the Composition of Education Expenditure
Hwang, Jinyoung. (2011). A cross-country analysis of human capital inequality and the composition of education expenditure. European Journal of Social Sciences, 24 (1):
According to Hwang (2011), it has been observed in previous literature that substantially inequitable societies in terms of income distribution tend to spend more on tertiary education (university-level education) than lower-level education. "Wealth distribution is a plausible explanation for the distributional bias of government expenditure on education, as long as the distribution of wealth determines the existence and number of organized group[s] in an economy" (Hwang 2011: 97). This discrepancy could be explained by the fact that the rich tend to send their children to private schools not subsidized by the state for lower-level education, or to better-funded, locally funded secondary institutions and thus only need substantial federal support for education at the…… [Read More]
Opening an Outpatient Wound Clinic
Categories in udget (Fixed and Variable Expenses)
udgeting for the outpatient wound clinic includes both fixed and variable expenses. Fixed costs are reported in the work of Swansburg (1997) to be unrelated to volume and to remain constant, as there are increases and decreases in volume over a time-period. Fixed costs are reported to include such as:
(1) Depreciation of equipment and buildings;
(3) Fringe benefits;
Interest on loans or bonds; and (6) Taxes. (Swansburg, 1997)
Variable costs do however "relate to volume and census. They include such items as meals and linen." (Swansburg, 1997) it is reported that supplies are usually volume responsive, meaning that total costs increase or decrease according to use." (Swansburg, 1997)
Direct and Indirect Costs
Direct and indirect costs of making the provision of service of product and are costs that are not "directly related to…… [Read More]
What is the relationship between productivity, capital expenditures, and new machinery at Michelin? Would you think that this would be the case for most manufacturing operations? If so, why or why not?
Productivity expenditures are necessary in any performing body in the market. The expenditure conditions in Michelin Company are crucial to the general productivity and growth of the company in the global market. There is more protection a reduction to the influences of positive and competitive changes in the market when production expenditures are relayed and managed well within an institution. Productivity requires the company to incur a number of costs. These costs arise from the purchase of new materials and production facilities. Moreover, it accommodates all the materials and matter related to humanitarian activities of productivity in the market. In order to foster equitable management of productivity in the market, the company assumes the…… [Read More]
Even though Bedrock's capitalization policy may have been in alignment in prior years, the policy does create a material unadjusted error in the third quarter that would require adjustment. By simply following the Bedrock capitalization policy simply means the quantifying effects of an unadjusted material error would occur, more especially with continuing capital expenditures due to the expansion of the additional quarry and rock finishing plant. The quantifying effects of capital expenses with the expansion alone would result in a material error for the current year, including the third quarter.
The evaluation of materiality must be based on all relative quantitative and qualitative factors. The process begins with quantifying potential misstatements, including prior year misstatements that were not corrected. This also adds the question of whether the capitalization policy has really been in alignment with ASC 250-10 (SAB 108) in prior years. Depending on the capital expenditures in…… [Read More]
This is because it can provide and de-provide its resources dynamically, lead to a reduction of the unused capacity as well as maximize the available resources for improved efficiency.
Efficient: The SaaS EP system makes businesses to benefit from the shared hardware, familiar technologies as well as automated processes. This means that that system is able to effectively increase its peak-load capacity, provide access to organizational resources from almost everywhere via PC or any other internet enabled-devices. The system also leads to a reduction in the energy usage as well as the level of physical footprint.
Flexible: The SaaS EP system can adapt to the changing business needs.This means that it can easily adapt to the ever dynamic nature of a distributed workforce.
Secure: The system is also secure due to the multi-level data security system which it employs
The business would therefore need to engage on a total overhaul…… [Read More]
Existing Funding Infrastructure
Education financing in Florida is at a crisis point. The current system for K-12 financing in Florida features a combination of state and local funds. Approximately $7.75 billion is contributed by the state. This comes from general revenues, which puts this financing at risk should there be significant changes to state revenue levels. There have been stories in the news media in the past year where different bodies of expressed concern about the sustainability of Florida's ability to finance its K-12 system (Times-Union, 2012). The education system has seen its funding cut several times in recent years. As a result, the performance of Florida's schoolchildren has been poor.
At the state level, the Florida Education Finance Program (FEFP) is "the primary mechanism for funding the operating costs of Florida school districts (FLDOE, 2012). The formula on which Florida state financing is organized is based on…… [Read More]
Introduction & Recent History
Ryanair is a leading discount airline based in Dublin. The company is known for its cost leadership strategy that has included some attention-getting publicity stunt ideas, and some that the company has actually implemented. The company is profitable, earning €544 million in the first half of fiscal 2012 and €400 million in fiscal 2011. The company flies low-cost scheduled flights around Europe and to nearby destinations in the Mediterranean regions. Ryanair was first mover in its industry, but now faces competition from a number of other budget carriers.
In its reports, the company outlines some of the factors that have an impact on the financial statements. One of its major hubs is in Dublin, and that airport has increased fees substantially of late, making that airport less viable for all airlines. Fuel costs have risen 37pc in the past six months, squeezing the company's margins.…… [Read More]
Financial Plan Explanation
Grady's budgeting is done on an incremental basis. What this means is that the budget for next year will be based on the budget for last year, with adjustments for inflation, for changes in the payer mix, for strategic changes relating to the service offering mix, and for new facilities in the system, as well as new capital expenses.
Grady uses a cost-benefit analysis, which takes the form of net present value, as part of its decision-making criteria for capital expenditures. Grady is in the midst of a capacity expansion. Karkaria (2013) notes that Grady has a $74 million expansion plan for downtown Atlanta which will enhance its system capacity with respect emergency care, in anticipation of a spike in demand relating to the ACA, and to meet existing demand in the market that is yet unfulfilled.
Grady has sought financing for this project, including…… [Read More]
Professional Plans and Career Objectives
Goal Statement for Insert Name
My career mission is to work in a dynamic team-oriented company performing financial analysis and helping to guide key decisions related financial projections that direct capital expenditures. I enjoy the mechanics of small details and insuring compliance to specific budgets, report types and the impact that this type of granularity has on recommendations for major decisions within a company.
My pre-college work experience taught me the differences between customer service, labor, and accounting and finance. The hands-on work I performed in a service industry provided me with an appreciation for customers and the need to efficiently do a good job but this type of career left me without a sense of challenge. Eventually I felt drawn to the back office as I learned that the payments and processing and efficient entry of data surrounding transactions was the lifeblood of the…… [Read More]
Police Systems and Practices Question Set
Discuss how temperament can impair communication?
The ability control one's temperament at all times while working as a police officer is crucial to the performance of daily duties, because there are many instances when law enforcement personnel may be provoked to reaction in a purposeful manner. If an officer is unable to refrain from responding to insults in kind, or begins to yell or otherwise express anger, the course of an investigation or civilian interaction will become irrevocably altered. Simply put, ordinary people are less willing to cooperate with police officers and other authority figures who are openly frustrated, angry, spiteful, impatient, or otherwise perturbed -- so it is imperative that maintaining an even-keeled temperament become both a departmental and personal priority.
Discuss how failure of supervisors to act can impede future communication from subordinates.
A police officer's locker room is like any other…… [Read More]
Prenegotiation Memorandum (pm)
Re: Tamarack, MN and Twin Lakes Mining Company
Twin Lakes Mining Company
The Twin Lakes Mining Company (hereafter known as 'company') makes significant contribution to Tamarack, Minnesota - employing 21% of the residents, providing 33% of the total real estate tax base - and is considered an integral entity to the town's longevity. The city needs Twin Lakes to maintain the current standard of living the residents enjoy.
The City of Tamarack
The city operates on a zero deficit per annum decree. Twin Lakes Mining Company has directly caused some of the need for improvements concerning water quality, air quality, and effluvia and pollution management. The city also relies upon the heavy property taxation to provide economic, culture, and recreation services to the community. Twin Lakes Mining Company does not need the City of Tamarack (hereafter known as 'city') to continue operations in…… [Read More]
Table of Contents (optional)
Louise is aged 50 and single. Since 1994 she has carried on a retail business as a sole trader. Her trading profits as adjusted for tax purposes and after capital allowances, for the year ended 30th April 2009 were $150,000.
The business is carried out from a number of valuable retail outlets, all of which are owned by Louise personally. These units have been acquired over a number of years since 1994 and their market values have increased considerably in recent years.
Apart from her single personal allowance tax credit, Louise is entitled to income tax relief in respect of $10,000, which she pays annually to a evenue approved pension scheme.
Louise's personal living expenses and other financial commitments total $50,000 per annum (including the contribution of $10,000 to the evenue approved pension scheme referred to above).
Louise is considering transferring her business to…… [Read More]
Disclosure & Financial Accounting
Environmental and Financial Factors in the Petroleum Industry
The petroleum industry has a unique responsibility in the initiative to practice environmental safeguarding while producing the petroleum products in such great demand. The financial manager must be decide what weight to apply to costs in terms of new processes and methods that are efficient as well as environmentally friendly and complaint.
Weighing Costs in Failure-to-Disclose
Environmental and Financial Factors in the Petroleum Industry
Findings elated to Cost Factor of Compliance
BP, Conoco, and Phillips
Summary & Conclusion
Weighing Costs in Failure-to-Disclose
Environmental and Financial Factors in the Petroleum Industry
The objective of this work is the research the Petroleum Fuel industry and to render an accounting of what results from either complying with or non-compliance to environmental regulations as set down by governing and ruling bodies.…… [Read More]
Continuing with the Customer Perspective, the second goal is to position Norwalk as the industry leader in ethical drug manufacturing, a goal which can be most accurately measured through market share analysis. In a fractured industry like pharmaceuticals, market share is an invaluable asset, and this long-term strategic objective is best assessed through the Balanced Scorecard. The third goal of the Customer Perspective is to actively seek the input of customers and distributors who often have viable ideas for the adaptation of existing compounds for alternative applications. This goal is measured by tallying the total number of new compound applications suggested by customers and/or distributors. Shifting to the Financial Perspective, the first goal is to expand Norwalk's internal capabilities in terms of compound research and development (R&D), a goal which is measured by tracking the percentage of divisional expenditures allocated to the R&D department. Increasing the R&D infrastructure used by…… [Read More]
Cash budget and target cash balance
The target cash balance is defined as the ideal cash amount a company intends to hold in its reserve at a given time. This figure seeks to strike a balance between the balance sheet costs of extremely little and too much cash. While a company with surplus cash at hand may misuse on investment opportunities, a company with poor cash will often be forced to make undesirable transactions to create more operating capital (Besley & Brigham, 2011). Individual investors are advised to set their target balance too. They may estimate at least the percentage of their holdings in cash to avoid such pitfalls.
Cash budget refers to the operating budgets and capital expenditures. It begins with the initial cash balances then cash inflows are added to the available cash. Cash outflows will then be subtracted to obtain the cash balance. If the cash balance…… [Read More]
he intersection determines the amount of investment in education / productivity factors by all individuals and institutions.
he major criticisms to the Neoclassical model come from the assumption competition holds, namely that individuals act to maximize profit in all scenarios; factor mobility is unlimited; marginal returns to labor don't increase with wage rates, and other simplifications which rarely hold true in the workforce. Nor are all workers the same to the firm (discrimination), and workers' productivity and labor supply decisions change at different wage levels. hen we have to consider frictional unemployment; information asymmetry; product substitution; any number of real constraints that complicate the pure "Marginal Demand for Labor" theory (Kaufman & Hotchkiss, 2000, p. 31).
he main counter to the Neoclassicals arose in the early-mid-20th century Institutional school after Veblen, Commons and Mitchell, ironically at the University of Wisconsin 1920-30. Institutionalist focus on real evidence counters the Neoclassical theory…… [Read More]
"Studies of the relationship between managed care penetration in the health care market and expenditures for Medicare fee-for-service enrollees have demonstrated the existence of these types of spill over effects" (Bundorf et al., 2004).
Managed care organizations generate these types of spillover effects by increasing competition in the health care market, altering the arrangement of the health care delivery system, and altering physician practice patterns. Studies have found that higher levels of managed care infiltration are linked with lower rates of hospital cost inflation and lower physician fees are consistent with competitive effects. "Other studies demonstrate the impact of managed care on delivery system structure including hospital capacity, hospital admission patterns, the size and composition of the physician workforce and the adoption and use of medical equipment and technologies. More recent evidence has linked market-level managed care activity to the process, but not the outcomes of care" (Bundorf et al.,…… [Read More]
This implies that there should be a movement towards measurements that have a more balanced scorecard and dashboard which will be healthy though there is a risk of developing an internal evaluation bureaucracy and lose of credibility if not updated and focused on parameters that are critical to the company.
The other aspect that is also crucial to the introduction of information technology is the amount of usage, when information technology introduced in a company is not used or is underutilized then it ends up wasting the company's money. In order to extract value from information technology investment that a company makes, it needs to involve people. In most cases when a company does not give an opportunity for nor funds organizational learning and adjustment that is necessary then the information technology will not be used optimally thus being a disappointment. There is a tendency for companies to concentrate on…… [Read More]
Duchin, Ozbas & Sensoy (2010) is to study "how shocks to the supply of external capital affect the real economy" (p. 419), using archival data from the 2007-08 recession. They use conventional models to study change within firms over time before and after the initial onset of the financial crisis, in a "differences-in-differences approach" (Duchin, Ozbas & Sensoy, 2010, p. 419) that compares firms' investment before and after the crisis sorted for particular factors, and then compares that difference between a large sample of firms. Firms are compared based on measures of "internal financial resources (cash reserves and net debt), external financing constraints, and dependence on external finance" (Duchin, Ozbas & Sensoy, 2010, p. 419) after controlling for cash flow and a variable that models investment opportunity, "Q." The goal is to rule out differences between firms based on whether they are dependent on and have access to external finance,…… [Read More]
Food Capital Budgeting
Strategy for Price Elasticity
Major effects of government policies on production and employment
Government egulations for fairness in the low-calorie, frozen microwavable food industry
Major Complexities in Expansion via Capital Projects & Key Actions
Convergence between the Interests of Stockholders and Managers
Strategy for Price Elasticity
The Price Elasticity is a tool that is used by economists and business to measure exactly the quantity response that is needed to adjust to a change in price. This gives a very good idea of the quantity that is supplied or demanded changes due to a change in the price. This is also defined by the degree of reaction of a demand or supply curve with respect to any change in price. The essentiality of a product often decides the price elasticity of the product and thus varies across a product range. The products that are considered to be necessities…… [Read More]
Guillermo Furniture Store Analysis
Guillermo's furniture manufacturing company is located in Sonora, Mexico which was formerly a quiet vacation spot but has undergone a significant amount of development including an international airport. The organization is the largest furniture manufacturing company in this area and has been manufacturing furniture for some time now. Although the company was profitable until the late 1990's, the industry began to change. The competition was composed of firms that implemented the latest automation technology available. This allowed them reduce expenses in manufacturing which also allowed them to come in with lower prices to the customers. Guillermo has realized that their current strategy is no longer competitive and the company must consider a new direction for the company. They can decide to upgrade and try to compete with the new competition or continue operations as they are with some or no modifications to their…… [Read More]
PetCo Workforce Planning
Workforce planning at Pet-Co
The Importance of Workforce Planning
Linking the Needs of Staffing With Workforce Planning
The Importance of Workforce Planning At Pet-Co
General information about Pet-Co
The Business Model Analysis of Pet-Co
The Pet-Co strategy
Company Profile in a Nutshell
The Workforce Planning Model
Setting the Strategic Direction
Conducting a Workforce Analysis
The Demand Side of WorkForce Planning
The supply side of workforce planning
Workforce Demand Forecast
Workforce Supple Forecast
Conducting Gap Analysis
Monitoring, Evaluation and evision
Functional Considerations of Workforce Planning
The Application of Workforce Planning Model at Pet-Co
Organizations today are formed on an on-going assumption, which emphasizes that a particular organization is formed with an aim to operate forever. Hence the organizations are well versed with the tactics and strategies that will facilitate their way to function profitably in the long run. In…… [Read More]
The global economy overall is mending from the 2008 crisis. Many key metrics over the past 5 years have improved materially relative to the crisis years. The S&P 500, for instance, after reaching its low in 2009 has recovered more than 150%. The financial markets are now more stable through the enactment of various legislation including Dodd-Frank and Basel III. Even unemployment has rebounded steadily as consumers are more confident of their future prospects. These trends bode very well for the furniture retailing industry which was devastated by the financial crisis. As such, I believe many companies within this sector are poised for a strong and sustained recovery. Of the many companies and competitors within the sector, Ethan Allen Interiors, Inc. is best positioned for sustainable long-term growth (Gray, 1977).
To begin, the company is fortunate enough to have a strong economic tailwind behind it. The housing sector, which…… [Read More]
Budget Management Analysis
The main purpose of this report is to establish the necessities as well as the costs of iPatientCare HE software to the already existent record keeping system of Home Health Care Agency. Home Health Care Agency is an organization that offers health care to patients in their homes in its targeted region. The agency provides both medical and non-medical services for adult patients in their places of residence. The agency is attributed to provide specified home care and private nursing. The health care services which are provided by the agency are split into two broad classifications which are skilled nursing and therapeutic services. This particular report will reveal the finance costs and also the deemed benefits of the capital expenditure item.
The issue at hand is that in the past number of years, Home Health Care Agency has had a healthy financial performance but the organization has…… [Read More]
Budget Plan for $10 Million Fund Allocation
Positive economic development in any city in the United tates relies on the provision of effective, efficient, and strong infrastructures that will attract investment to generate job opportunities in the city. A central goal of any city is also to improve health outcomes for the residents to improve their health outcomes. City public officials should also provide safety and securities, and improve students achievements to enhance quality of human developments . However, a city officials are required to keep proper accounts of all income and expenditures to deliver high quality financial resources.
As a newly elected public official of the city of between 50,000 and 250,000 population, our goal is to attract investment opportunities in the city through effective use of budgetary control to meet the economic and health needs of the residents in order to enjoy 100% federal funds. Our goal is…… [Read More]
The FCF-based valuation model is based on the following formula:
EBIT (1-Tax Rate) + Depreciation & Amortization - Change in Net orking Capital - Capital Expenditure
is the free cash flow each year, C0 is the original cash outlay, and r is the discount rate. The free cash flows in this type of calculation are only those cash flows that are incremental to the investment decision. Thus, they do not include such non-cash items as depreciation or amortization expense, and they do not include either sunk costs or non-incremental flows like overhead allocations. The r is the discount rate, and the firm can select its discount rate from a number of different options. The most common, and arguably logical, is the firm's weighted average cost of capital. This reflects the firm's cost of equity, its cost of debt and its capital structure, with allowances for preferred shares…… [Read More]
Identify the relevant cash flows to evaluate production of the new security light
In order to assess capital expenditure alternatives, it is imperative for the firm to determine the relevant cash flows. These include the incremental cash outflow, also perceived as the investment, and ensuing accruals (Bierman Jr. and Smidt, 2012). It is imperative to note that the incremental cash flows signify the extra cash flows, which might be inflows or outflows, anticipated to come about from the projected capital expenditure. The cash flows of this particular projected have the normal pattern, which encompasses three elements, and these are the initial investment, the operating cash inflows and the terminal cash flow (Bierman Jr. and Smidt, 2012).
The term 'initial investment' encompasses the relevant cash outflows, considered when assessing a prospective capital expenditure, which in this case is new machinery. In particular, the initial investment takes place…… [Read More]