a) Discuss how the budgeting process employed by Peters Corporation contributes to the failure to achieve the president’s sales and profit targets. The first problem would be that the president established targets for the total dollar sales and net income before taxes for the next year. Then the president gave the sales target to the marketing department. By starting at the top and working its way down the chain of command causes problems because not all of the departments are involves in
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CHAPTER 5: ACCOUNTING FOR GENERAL CAPITAL ASSETS AND CAPITAL PROJECTS OUTLINE Number Topic Type/Task Status (re: 13/e) Questions: 5-1 Distinguishing general capital assets from fund capital assets Describe New 5-2 Capital asset disclosures Explain New 5-3 Modified approach for infrastructure Describe New 5-4 Capital lease accounting Describe 5-8 revised 5-5 Asset impairment Explain New 5-6 Use of capital projects funds Explain 5-4 revised 5-7 Encumbrances Explain Same 5-8 Construction
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2-40 Strategic positioning The emphasis in the case info on the product quality and craftsmanship‚ is the best described as differentiation on the quality of the product. In contrast‚ the company is more likely to succeed if it can continue to appeal to those customers looking for up-scale‚ higher quality table lamps and lighting fixtures. When using differentiation as the Company’s strategy‚ it becomes clear that maintaining the Classic line is critical to the company’s success. Thus‚ elimination
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Development of A General Accounting Theory – A Scientific Approach? Accounting Theory Development can be defined as ‘a piecemeal process of trial and error in response to changing social and economic forces’. (Underdown and Taylor‚ 1985‚ p2). Therefore‚ it is clear that a general frame of reference is needed‚ however not one that would upset the ‘accounting system’. Accounting theory cannot be narrowed to a certain approach‚ which is the definitive article. In fact‚ accountancy is one
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100 Paid freight for Abilene. 5 Accounts Receivable—Lux 4‚200 Sales 4‚200 Sold goods on credit. 5 Cost of Goods Sold 3‚000 Merchandise Inventory 3‚000 To record the cost of August 5 sale. 8 Merchandise Inventory 5‚540 Accounts Payable—Welch 5‚540 Purchased goods on credit. 9 Delivery Expense 120 Cash 120 Paid shipping charges on August 5 sale. 10 Sales Returns and Allowances
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to pay the expenses such as administration‚ materials‚ lease or income taxes. A company cannot stay continue to operate if there are more expenses than there is revenue. By acquiring outside financing‚ the company "buys" itself time to better its financial standing and gives them the cash to pay the expenses that are needed to keep the business afloat. C. What is the minimum line of credit that CBM will need? Based on our findings‚ it appears that the company will need to borrow a total of $220
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Interest Expense / (Total Debt) Avg tax rate for 2008 per Exhibit 9B Short Term + Long Term Debt Total Equity per from Exhibit 7 Total Market Value from Exhibit 7 Source : ustreasury.gov Avg Annualized market Return S&P 500 From Yahoo Finance Financial Ratios GMCR Performance Measure Return on Capital (ROC) Return on Assets (ROA) Efficiency Measures Asset Turnover 1.399049 Operating Profit Margin 5.23% Leverage Measures Long Term Debt to Equity ratio 0.885305 Debt ratio (Total Long Term Debt /
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Accounting 1B - Post Exam 2 Project 1. Jensen Company purchased a new machine on September 1‚ 2012‚ at a cost of $128‚000. The company estimated that the machine has a salvage value of $8‚000. The machine is expected to be used for 80‚000 working hours during its 8-year life. Instructions: Compute depreciation using the following methods in the year indicated. (a) Straight-line for 2012 and 2013‚ assuming a December 31 year-end. (b) Declining-balance using double the straight-line rate for
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factors that affect a business or organisations overall financial health. The flow of the monetary holdings is measured by the entirely of a company’s financial assets and not just the amount that is earned on profits. At one time or another‚ almost every business will experience some sort of financial situations. Cash Flow Data for Josh When doing a cash flow forecast‚ if you have more outflows then inflows then you have a serious financial problem in your hands. If this happens‚ the company has
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Module 5 CASE Renato E. Ngo Critical Info. Tech. Decisions for Business Executives ITM 508 Professor: Dr. Mary Lind April 25‚ 2013 "Agree or disagree: An IT strategy focused on maintaining a cutting-edge technology position is the most effective way to support any kind of overall business strategy ". IT strategy focused on maintaining a cutting-edge technology position seems like a good idea to support any kind of business strategy‚ but I would disagree to that statement. Acquiring
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