CASE 12 HOME DEPOT Analysis What do the financial ratios in case Exhibit 7 tell you about the operating performance of Home Depot? What additional information do the different ratios provide? Complete and compare a similar analysis for Lowe’s. a. Growth ratios are going down, loosing sales. Profitability ratios are declining after 1999 so that is not a good sign. Turnover rates seem to stay constant which means that they are selling the products at a constant rate. b. If their…
Case 12: Banned If You Do, Banned If You Don’t 1. The firm obviously needs to make a decision on the matter but at the same time they must try to appease both parties. As such, the firm should first take into effect both parties reasons and facts before going any further. After management has decided which party offers a stronger argument they should then try to make a decision that not only favors the stronger party but also takes into consideration the weaker party’s arguments and makes accommodations…
Hoang Thi Thanh Ha - 13200154 Case 12-2 To Recognize or Not to Recognize, That Is the Question Shakespeare Inc., a private publishing company issued its F/S on March 20, 2012. There were several accruals and events that the management of Shakespeare is considering to determine if they should be recognized or disclosed in Dec 31, 2011 F/S. In my opinion, the important things to focus on subsequent events are the period they effect and if their influence is material or not, so that in conclusion…
Organizational Behaviour Case Study PART A BACKGROUND INFORMATION COMPANY STRUCTURE HISTORY The XYZ Company began its operations in 1988. Soon after its formation it entered the field of Information Technology and Telecommunications by developing and distributing IT and telecom equipments. It became the market leader in 2000 representing the most important companies in these sectors such as Microsoft, Hewlett Packard, Compaq, IBM, Lucent Technologies (AT&T), Oracle, Wipro and Novell.…
strategy implemented by its famed Skunk Works operation that handled top-secret classified projects. - See more at: http://businessthinker.com/lockheed-tri-star-redux-a-play-to-win-strategy-v2/#sthash.td10My9L.dpuf A synopsis of the facts of the case is as follows: The L1011 Tri-Star is a wide-body commercial aircraft with a capacity of up to 400 passengers. Lockheed was late to enter the market due to jet engine production delays by Rolls Royce (sole supplier for the Tri-Star). In the early 1970s…
Question: Consider the question from the body of the chapter, “Does Ethics Mean Good Business?” Would Milton Friedman and John Mackey agree with what the text has to say on the matter? How would each of them answer the question? Answer: Both Friedman and Mackey don’t agree with what the text had to say, each has his own opinion on how working under ethics can make a company profitable. In Friedman’s article “The Social Responsibility of a Business is to Increase its Profits”, he stated that for…
Case 12-04 Hemo-Tech Inc. Part I Hemo-Tech Inc. (“Hemo”) manufactures and sells specialized medical equipment and services to physicians and hospitals. The equipment is used to extract and store blood samples from patients. Hemo is currently marketing its latest equipment model, BIO-07, which includes Hemo’s new patented technology that significantly improves sample collection efficiency and reduces contamination risk to a low level. Hemo is the only company in the United States that sells this type…
Case 12-02 To Recognize or Not to Recognize, That Is the Question Shakespeare Inc. (“Shakespeare” or the “Company”) is a privately held book printing and publishing company with a December 31 year-end. The summary balance sheet as of December 31, 2010, included: Current assets Noncurrent assets Total assets Current liabilities Noncurrent liabilities Total liabilities Total shareholder equity $ 6,500,000 28,250,000 $34,750,000 $ 4,500,000 13,750,000 $18,250,000 $16,500,000 The summary results of…
Case 12-03 - Contingencies Scenario 1 Energy should recognize a provision as of December 31, 2011, in reporting to its U.K. parent under IFRSs and in reporting to its U.S.-based lender in accordance with U.S. GAAP. IFRS and GAAP follow three steps in order to determine if a provision should be recognized. They are: a) the entity has an obligation…
Case 12-7 Facts: Rossi Inc.: Asbestos Litigation Liability: The cost of settlement and defensed costs relating to currently pending claims and future claims for losses incurred to date. Liabilities recorded per/as at Dec 31. 2009 2008 2007 Rossi Inc. $962m $1,055m $469m Thompson (External Specialist) $1124m $1,055m Internal Actuarial Specialist $907m, $1,184m, and $1,514m The 2007 claim estimate is projected through 2011. The 2008 and 2009 estimate are projected through 2017…