Preview

ghhfd

Satisfactory Essays
Open Document
Open Document
873 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
ghhfd
Quantitative aspects:
1- Sales
From 1st year to 5th year turnover of the company continuously increases with a variable rate without decreasing throughout in 5 years period. In total 5 years 52.7% increase in sale respectively cost of good sold increase 48.78%
Reason
Reason of continuously increase in sale is that company have efficient management and company is switching from manual work to computerized work of its operations and salaries and wages are continuously decreasing from 4th to 5th year wages and salaries cost decrease 9.2% due to switching its operations at modern technology
2- Cost of sale
With the increase in sale our cost of goods sold increase with the sales respectively but in 3 to 4 year our sale was increase just 8.08% but our cost of goods sold was increased 14.41% but later on our sale increase 3.99% and just cost was increase in respective year only 1.33% because in that year our wages cost reduce in 4 year 8.14% and in 5th year cost of wages decrease 1.30%
Reason
We transfer our production process at updated technology and reduce the no of worker that works as a labor in return our cost of goods sold decrease respectively
3- No of shares issue
No of share issue from 1 to 5th year increase 33.33%
Reason
because in total period we was facing burden of long term debt in from of interest and in order to reduce debt burden and to buy updated technology we had insufficient funds .so we have only one resources through which we can fulfill our financing need that was only equity fiancé
4- Interest rate
From 1 to 5th year interest cost is decreasing continuously in that period total interest cost decreases 86.67%
Reason
In 1st and 2nd year our total long term debt is same but later on we start to pay off the amount of total debt in 4th year we pay the major amount of debt that was 70% of total amount of debt paid through raising funds from equity financing and in 4th year amount of debt was 3.5 that reduce to 2.5 in

You May Also Find These Documents Helpful

  • Powerful Essays

    atherley furniture company

    • 2184 Words
    • 9 Pages

    Problem: How to achieve a more assertive sales growth to provide an increase in profitability as well as how to improve management of chair division for better success.…

    • 2184 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    The depreciation is also very less which points out to a key factor that either company is using old equipments or not having sufficient assets to support the operations. This might also be hindering the sales because company will not be able to produce as per the market demand.…

    • 263 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Cost Accounting Cc2 Unit 2

    • 2988 Words
    • 12 Pages

    Sales have increased over the years, but the rate of this increase is not steady. The highest sales point was in 2006. Cost of sales and expenses with the exception of other expenses have increased at a steady rate. Other operating expenses have fluctuated over the years; the lowest point was in the first year with the highest being in 2006. Finance cost seems to have reached a peak in 2006 and the fallen by 2008. Net Profit after Tax follows a similar pattern to sales. CC3 CONSOLIDATED BALANCE SHEET…

    • 2988 Words
    • 12 Pages
    Good Essays
  • Powerful Essays

    Jet Task 5 2

    • 14837 Words
    • 39 Pages

    CSI’s management and financial teams are very cognizant of how their sales will help determining what the profitably of the company is. CSI’s income statement shows a net sale increase of $32,200 increase in sales. The increase in sales is a very slight increase; however, this does show strength of the organization to be able to increase their net sales. “Not only will an increase in sales benefit the company, it…

    • 14837 Words
    • 39 Pages
    Powerful Essays
  • Satisfactory Essays

    Fin 534 Quiz 3

    • 2029 Words
    • 9 Pages

    The periodic rate of interest is 1.5% and the effective rate of interest is greater than 6%.…

    • 2029 Words
    • 9 Pages
    Satisfactory Essays
  • Good Essays

    Rjet Task 1

    • 6987 Words
    • 28 Pages

    Sales commissions also were up 33.3% in year 7 from year 6. This is a positive trend for CB because the sales personnel should be awarded commissions from having such a high year in sales. This will also ensure that the sales department will keep its…

    • 6987 Words
    • 28 Pages
    Good Essays
  • Good Essays

    Berkshire Instruments

    • 746 Words
    • 3 Pages

    The cost of debt is the yield to maturity (YTM) of the bonds. The YTM is the discount rate that will make the present value of interest and principal equal to the price today. The interest amount per year is $93 and the principal amount is $1,000. Using trial and error method of substituting different rates or by using the RATE function in excel, we derive the YTM as 10.65%. This is the before tax cost of debt. Since the interest amount is tax deductible, we use the after tax cost of debt in the WACC calculations. The tax rate is given as 35%. The after tax cost of debt is 10.65% X (1-0.35) = 6.92%…

    • 746 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Ganong Bros

    • 504 Words
    • 3 Pages

    First we must get rid underperforming sales people to save cost. The saved cost will allow Gangong to explore enhance brand awareness in areas that are profitable for us such as Ontario. Next our sales force must also change the way they sell. We must take our highest achieving sales people and focus them on selling private label contracts. By implementing the above options we can expect an improvement in the firm’s profitability through increase sales and lower cost (exhibit 2). Lastly our accounts receivables are much higher then the industry medians and our inventory cost are increasing every while our finished goods are increasing (exhibit 4). This issue can attributed to the fact that the process to purchase them is flawed (bad forecasting, frozen preferences). We must hire people in our staff that can do a more effective job of collecting money (exhibit 4). Next we must improve our forecasting methods (exhibit 4). Once this is accomplished we will certainly see an improvement in the profitability of the…

    • 504 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Gift Shop Red Flags

    • 731 Words
    • 3 Pages

    Although the revenue on snack food decreases every year, the cost of goods sold increases every year. The cost of snacks sold every years decreases and the cost of goods increases because the vendors in which you are purchasing the snacks from prices are increasing while yours are staying the same. The price on the snacks that are sold needs to be raised – Or you could find another vendor to purchase them from cheaper. You should raise the price enough to cover the cost to buy them and if not too much also to make a profit.…

    • 731 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Financial Analysis

    • 787 Words
    • 4 Pages

    It can be noted that expenditures have decreased by 3.6%. In the short term, sales are dropping faster than the expenditures, which must be corrected if the company is to remain profitable. The company appears to have a substantial amount of fixed costs. With sales decreasing losses will soon increase at a faster rate leading to a company that is no longer profitable. The advertising budget has not been increased, which can be a direct nexus to the low sales. The decrease in commissions is directly related to the low sales. An increase in the advertising budget should increase potential sales, which would also increase the commissions being provided.…

    • 787 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    harvey norman and JB hi fi

    • 1863 Words
    • 8 Pages

    The main sources of revenue of the Harvey Norman Holdings company Pty ltd. (HVN) is sales revenue from the sales of goods, where other major revenue are from franchise, rent from the third party, interest received which is in increasing trend during 2010 to 2011 to 2012.Revenues come from the sale of products and services. The main expenses are marketing expenses, Administrative expenses, occupancy expenses, distribution expenses, ordinary activities expenses and interest expenses. All the expenses are in increasing trend but there is an excessive amount of expenses in Administrative expenses. In 2011 the profit of HVN was increased of 8% compared to 2010, whereas a steep declined was seen in profit of Harvey Norman Holding during 2011 to 2012 of 37%.The primary reason for the decrease in profit was due to the increase of operating cost and decrease in sales revenue during the year. The company must cut down the operating expenses to increase the profit. Revenues increased a 12% from 2010 to 2011 primarily because of the recovery in the economy. In 2011 to 2012, there was a drop in revenue of 6%. The company health was critical because increase of competitors in the market. The cost of goods sold has been increased of 30% in 2010 to 2011 whereas there was a drop of cost of goods sold in 2011 to 2012 of 5%.This is because of increase and decrease in sales during the two fiscal year. There was no loss in sales of assets in 2012 and 2010 but the HVN bear the gain 2.9 million in 2011. This increase in amortization of intangible assets and other cost is due to the increase in intangible assets from the Perot Systems in Fiscal 2010. Also, the company had a migration to contract manufacturers and closures of certain manufacturing facilities that caused an increase in severance and facility action costs. Next, there was a decrease trend of dividend on common stock in 2011 to 2012 .The Multi step income statement is accurate for HVN to differentiate company generated…

    • 1863 Words
    • 8 Pages
    Satisfactory Essays
  • Good Essays

    ids cheat sheet

    • 988 Words
    • 3 Pages

    An operation increases its production level and observes that the cost of producing each unit decreases.…

    • 988 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Dorothee Mitrani, one of the employer in the news, said, “We can raise our prices. But you can’t charge $25 for a sandwich.” Dorothee thought that if they have to increase the minimum wage for employees, it means the operating cost are increased also. And if operating cost are increased, the benefit will be decreased automatically. For solving this problem, the only way they can do is to charge more money per product to customer. However, the problem is that increasing price will decrease the quantity of demand. In other words,…

    • 672 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    engineering

    • 2022 Words
    • 9 Pages

    due to the rise in imports of cheaper stock as a result of a reduction in sales tax. The company is…

    • 2022 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    Eco 550 Exercise Ch9 Ch10

    • 728 Words
    • 3 Pages

    In order for this firm to loss from break-even point is increased, total revinue has to be increased by selling more products.…

    • 728 Words
    • 3 Pages
    Satisfactory Essays