East Coast Yachts Company Case Study Group 4 Julie Ciarlante Mary Kathryn LoConte Ivy Perez David Zhu East Coast Yachts Background • ECY started in 2002 as a Limited Liability Company (LLC) with the mission of creating custom‚ high performance yachts for the pleasure sailor. • A commitment to safety‚ reliability and customer satisfaction helped the company grow steadily for the first seven years in business. • In 2009‚ the economic downturn and credit crunch hit the boat industry
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Mini Case : Ratios And Financial Planning At East Coast Yachts 1. Calculate all of the ratios listed in the industry table for East Cost Yachts. Ratios Calculation 2009 a) Current Ratio 0.75 b) Quick Ratio 0.44 c) Total Asset Turnover 1.54 d) Inventory Turnover 19.22 e) Receivables Turnover 30.57 f) Debt Ratio 0.49 g) Debt to Equity Ratio
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Assignment 1-6 Worksheet 1. Read the closing case “Ratios and Financial Planning at East Coast Yachts” in chapter 3 of your textbook. 2. Based on the information provided‚ answer the questions below: Part I: A. Calculate the following ratios for East Coast Yachts and compare them to those for the industry: Liquidity or Short-Term Solvency Ratios Calculate and compare to industry ratios: East Coast Yachts Lower Quartile Median Upper Quartile Positive‚ Negative‚ or Neutral Relative
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How Would You Describe Yourself? I am punctual‚ dependable and can be counted upon to finish what I start. I get a great deal of satisfaction from knowing that I have done something well and on time. For example‚ at my present job‚ I was given different work orders every day. It was my responsibility to finish the orders and make sure they all met quality and safety standards within a specific deadline. On occasion‚ I had to familiarize myself with the product and the production process. I was
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does the cash flow statement provide that you cannot see in the other financial statements (income statement‚ balance sheet‚ owner’s equity)? What elements of the cash flow statement do you think are most important for company management to monitor and why? Is this different for investors? The cash flow statement reports a company’s inflow and outflow of cash. While an income statement provides the information about whether or not a company made a profit‚ a cash flow statement can tell you whether
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Cash Flow OMM 622: Financial Decision-Making Instructor: Felix Lao September 30‚ 2013 The first thing any accountant looks for with a company financial is the bottom line. It is operating in the positive or negative and how much work will need to be done if it is not positive. Cash flow reflects how much cash is generated from the products and services sold by a company. Cash flow calculations involve making adjustments to net income by adding and subtracting the
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Statement of Cash Flows Preview of Chapter Usefulness and Format Usefulness of the Statement of Cash Flows Provides information to help assess: 1. Entity’s ability to generate future cash flows. 2. Entity’s ability to pay dividends and obligations. 3. Reasons for difference between net income and net cash provided (used) by operating activities. 4. Cash investing and financing transactions during the period. SO 1 Indicate the usefulness of the statement of cash flows. Usefulness
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Cash Flows Aleshia Wisch ACC206: Principles of Accounting II Prof. Eric Sumners August 11‚ 2014 ACC 206 Week Assignment 1. Critical Thinking Question: Answer the following questions: Why are noncash transactions‚ such as the exchange of common stock for a building for example‚ included on a statement of cash flows? How are these noncash transactions disclosed? It is important for a company to show what assets they have on hand that can convert to cash. Non cash transactions are disclosed
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I. INTRODUCTION Statement of Cash Flow (Cash Flow Statement) describes the changes in the cash position of a company during specific period of time. In business as in personal finance‚ cash flows are essential to solvency. Solvency can be described as the degree to which the current assets of an individual or entity exceed the current liabilities of that individual or entity. Cash flow is crucial to an entity’s survival. Having ample cash on hand will ensure that creditors‚ employees and others
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Statement of Cash Flows Learning Objectives 1. Identify the purposes of the statement of cash flows 2. Classify activities affecting cash as operating‚ investing‚ or financing activities 3. Compute and interpret cash flows from financing activities 4. Compute and interpret cash flows from investing activities 5. Use the direct method to calculate cash flows from operations 6. Use the indirect method to explain the difference between net income and net cash provided
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