Custom Snowboards Inc. Managing Capital & Financial Assets 04/19/2014 WGU JET2 Financial Analysis Task 5‚ Part I - PASSED To: Vice President for Chief Financial Officer (CFO) The following is a summary report is an analysis of the current financial statements of Custom Snowboards Inc. The company wishes to be considered for an extended long term loan for a European expansion. We have arrived at a selection of key financial statement line items‚ conducted a risk assessment‚ and ratios
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Custom Snowboards Inc. Managing Capital & Financial Assets 05/10/2014 WGU JET2 Financial Analysis Task 5‚ Part II - PASSED To: Chief Executive Officer (CEO) of Custom Snowboards Inc. Subject: Report of historical data and recommendation on how to proceed with expansion plans to Europe. European Expansion Historical Analysis To make a decision about expansion to Europe‚ we must first analyze past performance as an indicator about future performance. A historical analysis was completed
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Competition Bikes Inc. Storyline Managing Capital & Financial Assets 04/12/2014 WGU JET2 Financial Analysis Task 4 - PASSED To: Vice President The following is a summary report to recommend whether Competition Bikes should change its traditional costing method to activity based costing‚ and an analysis of the breakeven point with regards to sales units and dollars for both CarbonLite and Titanium bikes. It also discusses the impacts to the breakeven point. The cost-volume-profit evaluation
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JET Task 5 A1. Key Points Banks are concerned with Custom Snowboards liabilities and assets. They are interested in assets as this is what Customer Snowboards will use to generate funds to repay the loan. Banks are interested in liabilities as this is what Custom Snowboards currently owes other creditors. Custom Snowboard‚ Inc. showed a small decrease of 3.40% in net sales from Year 13 to Year 14. This slight reduction can be attributed to the decline in the current economic situation
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Competition Bikes Finical Analysis Dan Petersen WGU – JET2 Finical Analysis Task 4 A. 1. To: Vice President This report has been prepared to argue the case that the company’s current costing method should be changed to the activity based costing method. This report will review; the difference between traditional based costing and activity based costing; traditional split and allocations with activity based costing; and discusses the breakeven point for Competition bikes Inc. with
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determine how to maximize shareholder return while minimizing the cost of capital. We currently know Canadian Biking’s moderate sales forecast of EBIT figures for the next 5 years (Year 9 – 13)‚ therefore we can apply the EBIT – EPS approach to choose an optimal capital structure. The total of capital sources in each of the 5 years is $600‚000. We will use EBIT – EPS to determine which assortment of bonds*‚ preferred stock‚ and common stock is the best option to increase Canadian Biking’s EPS.
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To: Vice President It would be in Competition Bikes‚ Inc.’s best interest to change from a traditional costing system to an activity-based costing system. In this summary you will find information as to why this change is important as it will highlight the differences between traditional based costing and activity based costing systems. This summary will also give you further findings on Competition Bikes‚ Inc. breakeven point when evaluating the sales units and the sales dollars and also the
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FAQs - JET2 Task 3 Here’s Some Task 3 Advice “Here is the method I used for successfully doing task 3 in 3 days and passing it on the first submission” “**ATTEND THE WEBINAR” A1 “I gave an introduction discussing what capital structure is and how it relates to debt vs. equity financing and what maximizes shareholder return and what the goal of the company is in choosing a capital structure approach. I then made my recommendation discussing all approaches for all years using a table with earnings
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Task 2 – Budgeting A1 - Prepare a summary report in which you do the following: 1. Discuss specific budgetary items raise concern in the budget planning (Spreadsheet Tab: Task 2_Budgets_and_Proformas). Competition Bikes has prepared a budget for year nine of operations. In reviewing the budget presented several technical areas of concern have been noted. For ease of review‚ budgetary issues that raise concerns are presented in a bullet format. · The first issue of concern is in the direct
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A1. During the evaluation of Competition Bike’s budget schedule a few areas of concerns were identified within the budgeting and proformas. The first area of concern within budget was advertising. The advertising was budgeted for $28‚412; they may want to consider increasing their marketing to reach a wider audience to boost sales. In year 6 the advertising was $23‚820‚ then increased year 7 $32‚760‚ and year in 8 decreased to $27‚428. They need to increase their exposure within the bike market
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