Essay on financial analysis task 1 wgu

This four-credit course is for students who major in finance. By the end of this course,

A1. Budget Concerns Competition Bikes budget has several areas of concern that need to be address. 1. Units expected to be sold for year nine is 3510. Competition Bikes is predicting that they will sell 3510 Bikes but they only sold 3400 Bikes in year eight down 15% from year seven 4000 units sold. Competitions Bikes has budget to high because the current economic down turn is showing no signs of relief for the next three years. Many of Competition Bikes customers are sponsored riders and many sponsors have pulled their funding to their rides. Competition Bikes has not presents a plan that would support their projections. Competition Bikes should lower there should lower the expected units sold so not to over order raw materials that will

Since the Competition Bike Company projected overly optimistic sales, there are several areas in the budget that will be affected. The areas affected are Sales Commission, Transportation Out, Advertising, Research and Development, Raw Materials, and Labor.

Upon reviewing the Competition Bikes Inc. (CBI) Budget Schedules and ProFormas for Year 9, there are a few concerns that should be analyzed. The first is the forecasted sales in units. The forecast for year 9 is 3,510 units, which is a 3.2% increase over the 3,400 units sold in year 8. The storyline mentions the economic downturn, which has led to a decrease in bike sales. It can take some time to recover sales lost during an economic downturn, and given that sales were down 15% between year 7 and year 8, to go from a 15% decrease in sales to a 3.2% increase in sales in the span of only two years may be an unrealistic goal. I would want to see a specific plan in place for

Advertising & Research Development. Competition Bikes is expecting an increase in sales in year 9 yet they are not investing in any more in advertising or research and development. In year 7 when sales

The company that I chose to analyze is Tootsie Roll. Throughout my life I have always had somewhat of a sweet tooth and have been very intrigued in the process of business. Now I have the opportunity to look further into such a great company such as Tootsie Roll and really find out how the business is run and what type of work is invested in such a well known business.

Commutronics had not accumulated enough profits and had no sufficient capital reserves. The company’s registered capital was therefore very low. The withholding tax rate of

American retailer Kohl’s has become a prevalent fixture for the purchase of discounted clothing and home goods in the mid-west for over twenty-five years. The history of the company however has roots much more modest than present day market dominance would suggest. Dating back to a Wisconsin supermarket in 1946, founder Max Kohl grew his small business to the most successful chain of supermarkets in the Milwaukee area (12). By 1962 Kohl opened his first department store in Brookfield, Wisconsin where an eclectic selection of merchandise, from sporting goods, motor oil and candy, was sold (11). In 1972, the Kohl’s Company which by then consisted of 50 grocery stores, six department stores, three drug

The FTSE 100 Index is a capital weighted index with 1000 as a base level, which was developed in January 1984, now it comprises the largest 100 blue chip companies, which represent around 85.67% of the total United Kingdom’s market , according to FTSE it is also represent 8.21% of the total equity market in the world. (FTSE All-World Index, 31 March 2010).during the past five years the index hit the bottom in mar 2009 from that date the index is showing

Accounting helps to measure an organizations activities, process data into reports, and translate the results to decision makers. Financial statements and reports help to present the company to the public in financial terms. The information on these data statements can used to evaluate the company through vertical and horizontal analysis. Vertical analysis is the proportional analysis of a financial statement. Normally, vertical analysis is done with a financial statement over a period of time. When using vertical analysis, a line item on a financial statement is listed as a percentage of another item (Harrison, 2015). A horizontal analysis is the comparison of information or ratios over a series of reporting periods. Horizontal analysis helps investors and analysts to control how a company has grown over time. Analysts and investors could use horizontal analysis to compare a company's growth rates in relation to its competitors and industry.

Internationally, the company operates toy stores under the name Toys R Us. It also sells merchandise through its Internet sites and through mail order catalogues. Its products include:

Our choices led to a constant increase in net income over the three years. Short term debt increase by approximately 100% percent but steadily reduced over the next three years. We were happy with the positive growth of the company and the fact that we were able to pay off most of the initial short term funding required by the increase in working capital requirement. Overall the current situation of the company in 2018 is good, although the total value created is less than 20% of that created in phase 1. From this we learned that the value of the firm can be significantly increased more through a reduction in working capital requirement than through increasing the firm’s sales and net income.

Horizontal analysis is also known as trend analysis. It is a financial statement analysis method that demonstrates changes in the amounts of equivalent financial statement items over a period of time. Moreover, it is a useful tool in order to assess the trend situations in an effective and a more comprehensive manner. It involves the statements for two or more periods to evaluate trend situations. This analysis may be conducted for income statement, balance sheet, schedules of current & fixed assets, and statement of retained earnings of an organization (Wainwright, 2012).

Write a two to three page paper discussing what you find interesting about this company, and whether or not you think this company will have a successful future. Get to the company 's web site, into the "investors relations" section and provide some financial highlights of your company for the past year. Indicate which stock exchange the company is listed on and what was the past 12 month rate of return (% gain or loss) to investors who bought shares of this company a year ago and sold the shares yesterday. This rate of return is called the one-year Holding Period Return, or HPR. Also state what is the most recent price of the shares on the company?

I. SITUATION ANALYSIS: Harley Davidson had its centennial celebration of their motorcycle production industry in 2003, meaning it had its start in 1903. Up until the later 1990s, the company primarily focused on producing the heavyweight motorcycles that the majority of aging male baby boomers desired. The company had no issues trying to differentiate their product at the time as no other competitors for this fun kind of transportation existed other automobiles and such. As all companies do, Harley Davidson experienced some tough times. AMF was “a heavy-industrial conglomerate looking to diversify into leisure products,” and acquired Harley Davidson in 1965 (Nolan and Kotha, 3). From there, HD struggled with controlling the quality of their macho motorcycles. At one point, their factory even had cardboard boxes under each of the two-wheelers soaking up the leaking oil. It was not until 1998 that these main quality concerns were taken care of through management changes. Analysts question whether Harley could meet its long-term sales goals, could continue to make annual earnings growth for the mid-teens, and could attract younger riders and women riders.