The following data relate to the operations of Proctor Corporation, a wholesale distributor of consumer goods:…
3. Assessing TFC’s current accounting system, John Malone determined that the system was inadequate because customers which appeared to be similar actually required very different needs in terms of time, storage and delivery. To develop a new accounting system, the managers began to gather information from warehouse managers to understand what happens at the distribution centers and broke it down into five primary value-added activities: storage, requisition handling, basic warehouse stock selection, “pick-pack” activity and desk top delivery. The managers gathered additional information, allowing them to assign costs to those activities. From there, the managers determined the expenses associated with financing, labor and shipping. Once the information was used to…
Operations analysis: Haefren Baum is a retailer that obtains its products from Wiegandt GmbH Cologne. Being a retail company, they are not asset intensive and this is apparent in their decrease in fixed asset turnover from 6.98 in 1993 to 5.39 in 1995. They have cash flow issues rising from their high inventory and accounts receivable needs and their account payable extensions. They have generated negative operating cash flows, which is caused by net…
Jennifer works in the Sales Department by day and part-time as the evening accounts payable clerk with credit memo privileges to correct customer orders. Jennifer is a valuable asset for the organization. Since she joined the accounts payable department, the late payment rate has dropped by 20 percent while the warehouse-shipping rate increased by 10 percent, and the overall profit has increased by a modest amount of 0.005 percent for the first reporting period.…
3. Review the Financial Statements: Balance Sheet from Section 9, Lesson 2 of this course. Use the…
Numerous amounts of information can be found in an Annual Financial Report. Team A is again utilizing Wal-Mart’s Annual Financial Report to answer the questions for the week five assignment. The questions for week five dig a little deeper into the financial report than the questions for week four. We will analyze the annual financial report and realize the information it has to offer. This paper will address the following subjects-- assets listed in proper order, how the assets are classified, what the cash equivalents are, and the company’s total current liabilities at certain periods. Team A will answer these questions in summary form below and by analyzing the financial report will make us better understand the concepts of reading financial reports. It will also make us more knowledgeable in this area of accounting, being able to read and decipher the financial statements, so that we may apply this knowledge for possible future investment endeavors.…
The total inventory for retails and catalog $656M equaled the costs of goods sold ($697M), meaning the stock rotation around 12 months (table2) which is extremely high when compared to A&F with 1.3 months and Gap with 2.4 months…
4. One Store consists of many customers and( many customers will be accessible to one store)…
MIAMI (AP) — A pair of lawsuits filed Monday claim that Deloitte & Touche LLP, one of the nation's largest accounting firms, should pay $7.6 billion in damages for failing through years of audits to detect massive fraud at a now-defunct Florida mortgage company. "They certainly did not do their job," said attorney Steven Thomas, who represents those suing Deloitte. "This is one of those cases where the red flags are staring you in the face, and you've got to do a lot, and they did not." Deloitte spokesman Jonathan Gandal responded that the company rejects the claims, calling them "utterly without merit." The lawsuits were filed in Miami-Dade Circuit Court on behalf of the bankruptcy trustee for the fraudulent mortgage firm, Taylor Bean & Whitaker, and by Ocala Funding LLC, a company that purchased hundreds of millions of dollars' worth of mortgages from Taylor Bean. The bankruptcy trustee is attempting to recover money for Taylor Bean creditors. The fraud began in 2002 and took multiple forms until Taylor Bean collapsed two years ago. The Ocala-based company shut down after federal agents raided its headquarters in August 2009, which led to the failure of Alabama-based Colonial Bank — the sixth-largest bank failure in U.S. history. At its peak, Taylor Bean had about 2,500 employees and had originated some $30 billion in loans as of 2009. Seven Taylor Bean executives were convicted of federal criminal charges, including former chairman Lee B. Farkas, who was sentenced in June to 30 years in federal prison. Federal prosecutors called the criminal case one of the most significant to arise out of the nation's financial meltdown. Gandal said the blame for the fraud and losses should rest squarely on Taylor Bean, Ocala Funding and Farkas. "The bizarre notion that his engines of theft are entitled to complain of injury from their own crimes and to sue the outside…
Jean Fanuchi manager of a moderately large department store was worried. Shrinkage in the costume jewelry department had continued to rise for the third consecutive month. In fact this time it had nearly wiped out the department’s net profit in sales. Worse it couldn’t be attributed to damage or improper handling of markdowns or even to shoplifting. The only possibility was in-house theft.…
One hundred customers at the Mall of Elbonia (MoE) were given a brief interview as they concluded their shopping trips. Examine the resulting data in the Mall of Elbonia Interview Results file. For each customer (by row), the spreadsheet contains data on:…
Although different industries have their own characteristic, we can see some common features in certain industries. Thus we divide them into 4 kinds: Service, retail trade, manufacturer and online seller. List as below:…
l For the period from 1980 to 1984: all data of sales, depreciation and manufacturing and other costs are given in the case (Exhibit 8)…
Although they all seem reasonable, I do have doubt about the cost saving on warehouse. Based on my calculation, referring to Exhibit 3 – second bottom line, the change of working capital is not that considerable due to the increase of sales volume. Thus, the estimation on cost saving on warehouse might be a little bit aggressive in my point of view. Since I have no inside information, I would accept all the estimations and assumptions provided by the case.…
Section 3 (1) (i) of the Companies Act, 1956 defines a company as “a company…