On November 6, 1987, the Zinn-Palmieri Group gained control of the company. Thirteen days later, after conducting stock take of all the physical inventory in all the Crazy Eddie warehouses’ the new management announced that Crazy Eddie had overstated its inventory by some $45 million. (Furman, 2009)
This was reported to the Commission and this warranted a full investigation.
Analysis of the Financial Statements
The fraud team performed analysis on the company’s audited financial statements that were available internally as attachments to their filed 10-K annual returns forms.
Statement of Operations
With the focus on sales, we note that there was a steady growth of 20% in the years prior to the company’s Initial Public Offering. After
National Fabricators Inc. is a company that specializes in the manufacturing of lockers, school furniture, toilet partitions, steel shelving, and is now currently owned by Tom Kruger after buying out $75,000 of shares from shareholders in 1992. The industry is very competitive as costs are rising and prices being cut while the economy declines at the same time. As the president of National Fabricators, Tom Kruger needs to bring the company back on its feet in order to generate profits and reduce its losses of $480,315 and outstanding bank loans of $784,000. Tom Kruger also predicts that sales would fall as much as 10% during the 1994 fiscal year due to government cutbacks on medical and educational spending as
With continuous improvement , the business is increasing at a steady rate. The firm’s goal was
This $490 million came from the netting manipulation when they offset their expenses with unrelated gains on the sale of assets. The geography manipulation allowed them to move millions of dollars to different sections of the income statement to “make the financials look the way we want to show them” said James Koenig, one of the primary forces behind the scandal. However, none of the fraudulent activities would have gone unknown for so long without the aid of the auditors, Arthur Anderson LLP, involved with Waste Management.
Leary was able to lead her branch toward impressive results and success; business increased by 30% in the first year due to her aggressive sales
15. How has the company’s stock been performing in the last 5 years? Steadily rising since 1/2009. Declining from 2007 – 2009 as expected due to the recession and the change in demand for construction.
From 1976 to 1982 the compound annual growth in net sales was 18.5% and the compound annual growth of after tax profit was 25.9%. Therefore, a 10% net sales growth shown in the proforma financial data seems reasonable.
Constantly growing firm with increasing revenue (15.5% in 2005), net profit, total assets and high returns on equity (5.1% in 2005)
For sales from 2001 to 2002, we are projecting a 13% increase because we want to base the same revenue growth as the previous fiscal year. It will take some time for the company to do better like
1. In the last five years the growth in sales for the company has been around 10% per annum, except for the 1997, the growth was 18.78%. In the case, nothing is mentioned that company has made any drastic changes in its strategy to grow faster. In such a scenario, projected a consistent growth of 20% per annum for the next 5 years is too optimistic.
During this time, sales increased from: $7.11 billion in 2010 to $7.99 billion in 2012. Earnings improved from $2.84 to $3.57. While the total amount of dividends rose from $1.00 to $1.72. These figures are showing how the company has been continually increasing sales, earnings and dividends over the last three years. In the future, the management predicts that their current strategy will increase returns. As, executives believe that their focus on building the brand and accounting for costs will lead to net earnings of $5.20 to $7.19 annually by
In 2009, Anna Amphlett, a recruiting financial analyst at Southern Cross Investments LLC, was asked to prepare a report on Lennar’s joint ventures and an exact way on how they accounted for the investments due to a release that stated the Lennar Corporation had been practicing fraud (Pearce and Robinson, 2016). In January, the Fraud Discovery Institute had questions in regards to Lennar’s off-balance-sheet debt and a personal loan that was very large and taken out by a top company executive. Amphlett, wanted to make
years, sales had increased at a 7% compound rate, while earnings, benefiting from substantial cost
section). This shows that the company’s overall performance has improved over the course of 12
In recent years, the company experienced a rapid growth and expects a substantial increase in sales in the spring of