...Analyzing Pro Forma Statements FIN 571 Stacey Pitcher April 20, 2015 Analyzing Pro Forma Statements XYZ Company, Incorporated (“XYZ Company”) was incorporated in October 1st 2013 and started trading in early January 2014. XYZ Company specializes in growing and supplying organic foods in the Cambridge area in Massachusetts and over the last 12 months has had significant success in penetrating the Cambridge market especially as the benefits of organically produced foods gain traction in the New England area and throughout the United States. Overall, demand for organic foods in the US grew by an average of 11% in 2014 and based on a detailed analysis of the Cambridge market, XYZ Company expects demand to closely track this overall growth rate not only in 2015 but over the next five year period. Initiative The initiative that XYZ Company has decided to implement is a corporate expansion to meet the projected increased demand for organic foods in the Cambridge area over the next five year period. Based on a detailed analysis of the Cambridge market, XYZ Company expects demand to grow by 10% annually over the forecast period. To meet this projected demand, XYZ Company intends to expand its business by taking the following specific steps; 1. Increase its total assets including working capital needs to build up the capacity required to meet the expected increased sales; and 2. Source sufficient funding to finance the planned capacity expansion through a mix of affordable...
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...BUSINESS STRUCTURE ADVICE Tyanieka Jackson FIN 571 November 3, 2014 Zhenhu Jin BUSINESS STRUCTURE ADVICE Thanks so much for the opportunity to provide consultation on how to proceed with starting your new business. There are certain advantages and disadvantages to choosing a particular business structure over another. This document will be providing options and feedback on each so that you can make the best decision possible. If you plan on running your business as an individual, there are a couple of options to consider. Running a business as a single owner provides a means of having total control of the decision making, daily operations, and the profits. The other side to this is that all financial burdens fall on the single owner and they have unlimited liability in terms of potential judgments and debts that may arise. There exist the potential for debt collectors to lay claim to an owner’s personal property in order to satisfy a financial judgment. The other option available to a single business owner is the Limited Liability Company (LLC). It has all of the advantages of the sole proprietorship with the added advantage of the owner having limited liability. If you are considering taking on partners with the new business, the structures to consider may be the general partnership, which has basically the same advantages of the sole proprietorship or again the Limited Liability company described above. The LLC allows for both single and multiple owners...
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...Learning Team Reflection Week 6 FIN/571 Learning Team Reflection Week 6 Many Americans are looking for ways to safeguard their investments to generate profits for years to come. People have a better understanding of the importance in researching available options to invest money that will yield a good return. Peggy Parks is just one of many who has decided to take control of her finances and invest in opening a business specializing in alpaca breeding. Capital Improvement Capital improvements are the costs that correlate to improving profit or creating improvements to resources. In Peggy Parks’ video, subsequently being dissatisfied with observing her retirement investments shift down the wrong path, Parks opted to investigate tactics to enhance her cash flow. Parks formulated an outcome to capitalize $56K into a truncated cost conservation alpaca farming enterprise. She grossed proceeds of $15K following a year of breeding. “Capital budgeting decisions are the most important investment decisions made by management” (Parrino, Kidwell, & Bates, 2012, p. ). In order to support Parks’ venture with growth, investors will want to catch a glimpse of a balance sheet that signifies the straightforwardness of the business’s wealth. Additionally, while capitalizing in a small business, most venture capitalists need to put together an assessment of whatever measures to capture in the result of a misfortune. For that reason, to expand...
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...Asignación Semana 2 University of Phoenix FIN/571 22 de febrero de 2011 Prof. José Berrios Lugo Capitulo 5 Pregunta 12 Assume that the Federal Reserve unexpectedly raises interest rates. As a result, bond and stock prices both fall. What explanation can you give for this? Los intereses tienen un efecto inverso sobre los bonos. Al subir los intereses, los bonos existentes se devalúan porque están construidos con intereses más bajos. Lo que hace que se conviertan en bonos de descuento o sea bonos cuyo valor es menor del valor actual en el mercado y pierden atractivo para inversionistas. En este caso un inversionista se arriesga a perder dinero a menos que tenga capital nuevo que pueda invertir en los bonos de mayor valor del momento. A pesar de esto siempre existe el riesgo de perder por las fluctuaciones de los intereses en los mercados ya que los bonos son instrumentos de riesgo. Un ejemplo lo pudimos ver a mediados de la década de los 90. En el 1994 la Reserva Federal subió los intereses para desacelerar lo que consideraban una economía inflacionaria. Esto provocó que los bonos tuvieran uno de los peores años de la historia al sufrir caídas dramáticas. En el 1995 la inflación se controló pero de igual manera la economía se desaceleró. Esto hizo que la Reserva bajara los intereses y los bonos volvieron a recuperarse aumentando sus precios. Capítulo 5 Pregunta 13 Cite and explain three reasons why a P/E may not be a reliable...
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...Business Structures Brian McMorris FIN/571 April 27, 2015 Junius Jaubert Working capital management is the toughest task for the business growth. It is very important that, we go for funding requisite amount in form working capital as per the needs of the business in appropriate time. Hence it is pretty encouraging that, every entrepreneur looks for an appropriate working capital (Investorword’s.Com. 2013) for the business. Phase – 1 Sales – The sales are increasing each year and it may be accepted as SNC started its business in the year 2013 and would be thinking of improving the business slowly. The additional sale would be added by the company over the next three years of time frame and the sales trend analysis (Rosella, 2013) is little encouraging. It may be believed that, the new addition of this corporate client would give a message to the other new potential customers and would help for the future business as well. EBIT – It is understood that the earnings before interest and tax would be remain more less flat for the next three years, but at this stage , it is highly important for the company to go ahead with the deal. The earnings of $ 0.26Million is very helpful to the company in this stage. Better Earnings before Interest & Taxes (Investopedia.Com, 2013) is a good indicator for the firm. Net Income – The net income for the company in the past has gone under drastic change and under this phase it does not show any improvement .Instead...
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...Analyzing Pro Forma Statements Andre' D. Singleton FIN/571 March 17, 2016 Gregory Willis XYZ Company The selected company is a Bread and Pastry store which goal is to increase the company’s market share by implementing technology through telephones, text-orders, and emails. These processes will help in increasing interactivity. The financial performance of the company for the past years is as follows: Financial Performance With 100 employees manufacturing 6000 output units 5 day a week each month, earning $70 a day the company's output price is $32 with $2000 as variable input costs. Balance Sheet | 2013 | 2014 | 2015 | 2016 | 2017 | | Excess Cash: Plug Figure | | | | | | | Current Assets | 7,304 | 8034.4 | 8837.84 | 9721.62 | 10693.8 | | Net Property Plant & Equipment | 11,418 | 11,418 | 11,418 | 11,418 | 11,418 | | Other Long Term Assets | 768 | 768 | 768 | 768 | 768 | | Total Assets | 19,490 | 20,220 | 21,024 | 21,908 | 22,880 | | | | | | | | | Current Liabilities | 6,301 | 6,301 | 6,301 | 6,301 | 6,301 | | Short Term Borrowing: Plug Figure | | | | | | | Long Term Debt | 5,634 | 6028.38 | 6450.37 | 6901.89 | 7385.02 | | Other Liabilities & Preferred | 1,036 | 1,036 | 1,036 | 1,036 | 1,036 | | | Shareholder's Equity | 977 | 1006.31 | 1036.5 | 1067.59 | 1099.62 | | Retained Earnings | 5,542 | 5,849 | 6,200 | 6,601 | 7,058 | | Total Liab. & Shareholder's Equity | 19,490 | 20,220 | 21,024 | 21,908 |...
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...In advising , what type of business structure to partake on, one has many options to consider when deciding to start a new business venture. The business structures that has to be identified and determined which is suitable for the individual or individuals are the Sole Proprietorship, Partnership and the Corporate structure and also the Sub Chapter S Corp and the Limited Liability business structure. Each of these structures have particular advantages and disadvantages that are associated with them, that needs to be addressed and identified. The Sole Proprietorship structure is a individually owned and managed. This business structure is the least regulated out of the different structures and the costly to form. The owner of this business structure bhas complete control and have a simplified tax structure to adhere to. A major disadvantage of the Sole proprietorship business structure is that income is reported as individual income .Also another disadvantage with Sole proprietorship business structures are that the owners amount of personal liability for the business, and that banks are more reluctant in providing loans for this type of business structure because of a perception that the business will have the ability to repay the loan if the business fails. Because of the inability of this business structure to issue or sale stock, investors are often hesitant to invest in this business form (U.S. Small Business Administratio ,2013). The Partnership business...
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...Federal Investigations Notice No tice No. 06-07 Date: August 29, 2006 Subject: Coverage Changes for Access National Agency Check with Inquiries (ANACI) and National Agency Check with Law and Credit (NACLC) Investigations for FY 2007 The Federal Investigative Services Division (FISD) has been working with a stakeholders group, representing many of the agencies that use OPM investigations, to create more uniform and efficient investigative products and services. As a result, the coverage requirements for ANACI and NACLC investigations have been enhanced to support a common content baseline for all agencies. Note that these enhancements apply only to those ANACI and NACLC cases submitted on an SF 86. The purpose of this FIN is to provide you with information concerning what case coverage changes have been made. The case price adjustments necessary to support these changes will be reflected in the FY 2007 case prices. ANACIINACLC Cases Currently, listed and developed issues which are identified in ANACI and NACLC cases (for non-DoD customers) are not pursued beyond the normal scope of the investigation. These cases are returned to the requesting agency so that the agency may decide whether to adjudicate the case based upon the information in hand, conduct additional follow-up themselves, or request a Reimbursable Suitability Investigation (RSI) from FISD to cover the additional issues. Beginning with FY 2007, expansion of these issues will become a standard part of both the ANACI...
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...One of the initial steps to take when beginning a business consist of choosing the structure of the company. There are numerous business structures existing to new business owners, from functioning as a partnership to creating a corporation. Each of the business structures has its individual legal and tax consequences. Your business objectives will have great influence on determining the most appropriate business structure to use. Sole Proprietorship Sole proprietors have limited formalities to follow and very little guidelines to adhere to from, local, state and federal administration. Since there is only one owner, no profits have to be divided which lets a sole proprietor use company assets in any manner. One immense advantage of a sole proprietorship is the unlimited level of autonomy the owner has to maneuver his business. However, a key disadvantage of a sole proprietorship is the absence of liability protection for the owner of the business. This means a sole proprietor has a personal obligation to pay every business debt and commitment. Partnership A partnership of two or more entities has the ability to work together as partners. Partners can share the accountability of running the corporation and share ideas with other partners. Also, partners are not obligated to file income taxes as a corporate entity, so each partner has to report their share of business profits and losses on their personal income tax return. The downfall is, a partnership...
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...University of phoenix | Interpreting Financial Results | MGMT-571 FINANCE | | Mario Medina | 3/11/2014 | | Financial ratios play a key role in determining how a company is doing financially either for the good or the bad. Financial Ratios can be used internally or externally to determine how financially stable a company is. For this assignment we will use three common ratios to determine how financially stable and how Under Armour is over the last three years. Current Ratio “To calculate the current ratio, we divide current assets by current liabilities. More liquidity is better because it means that the firm has a greater ability, at least in the short term, to make payments” (Parrino, Kidwell, & Bates, 2012). Below is a breakout of UA’s three year current ratio. Current Ratio=Current Assets/Current Liabilities * 2011:689,663/183,607=3.76 * 2012:903,598/252,228=3.58 * 2013:1,128,811/426,630=2.65 For any company no matter the industry no one wants a current ratio less than one because this suggests that the company has more liabilities than assets meaning that in the short run they will be more likely not able to pay their debts. UA from 2011 to 2012 had a pretty steady ratio on average around 3.7 meaning that they have 3.7 times more assets that liabilities means that in the short run they will be able to meet any debt they should have. From 2012 to 2013 there current ratio did decrease to 2.65 because they did add more current liabilities...
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...Question 27 Question 27 1. The real interest rate adjusts the nominal interest rate for: Answer exchange rate movements. income growth. inflation. government controls. none of the above 1 points Question 28 Question 28 1. The phrase “the dollar was mixed in trading” means that: Answer the dollar was strong in some periods and weak in other periods over the last month. the volume of trading was very high in some periods and low in other periods. the dollar was involved in some currency transactions, but not others. the dollar strengthened against some currencies and weakened against others. 1 points Question 29 Question 29 1. Which of the following is not mentioned in the text as a factor affecting exchange rates? Answer relative interest rates. relative inflation rates. government controls. expectations. 1 points Question 30 Question 30 1. Forecasting a currency’s future value is difficult, because it is difficult to identify how the factors affecting the currency value will change, and how they will interact to impact the currency’s value. Answer True False 1 points Question 31 Question 31 1. Kalons, Inc. is a U.S.-based MNC that frequently imports raw materials from Canada. Kalons is typically invoiced for these goods in Canadian dollars and is concerned that the Canadian dollar...
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...A++PAPER;http://www.homeworkproviders.com/shop/fin-571-week-2/ FIN 571 WEEK 2 Fin 571 Week 2 Practice Quiz 100/100 Week 2: Business Structures FYI: Below is an email received from one of our customers. Please use the information contained within the email as the guide for updating the week one repository. Write an 850 to 1,000 word response to the following e-mail: I am currently starting a business and developing my business plan. I’m in need of some advice on how to start forming my business. I am not sure exactly how it will be financed and whether or not I want to take on partners. I am interested and willing to learn the intricacies of my options to determine how to best proceed with my plan. Please advise on what my options are, the advantages and disadvantages of each, and possible tax consequences for each scenario? Respectfully, Q. Customer Citation Requirements Include only peer-reviewed scholarly references from the UOP Library. Additional valid references include course assigned textbooks, simulation materials, or materials from the researched companies. Do not reference information from non-course related web resources, or from textbooks not assigned to the course. Request permission to use non-course related references from the instructor to avoid citation-based penalties. The expectation for assignments is that the student increases their application-based understanding of course materials. Understanding, in this case, means...
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...FIN 571 WEEK 2 A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=fin-571-week-2 Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION FIN 571 Week 2 Business Structure Advice Mr. J. Q. Customer, it is a pleasure doing business with you. I have researched your concerns and found several options that are viable for you and the startup of your company. I hope you will find the following information helpful in making your decision regarding the structure of your business. We will be next to you all the time from creating a plan to advise your company how to form a business, the crucial financial choices, and finalize legal actions. Deciding which business structure is the best for organization can be difficult if you are unsure of what the type and which best is suited for your business purpose. Each of them has different legal and tax implications. The following are the business structures that you should consider. As always I am available to discuss any of these options and am looking forward to further discussions with you. Sole Proprietorship The first option is that of sole proprietorship. This option is the simplest business structure available. It is the least regulated form of business and with the lowest income taxes than most of the corporations (Parrino, Kidwell, & Bates, 2012). The business will be operated by yourself so that you will be in charge of the business from business liabilities, debts, and losses...
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...Tasks Read the WileyPLUS Student Support Review the Week 1 Study Guide. Familiarize yourself with the textbook used in this course. Visit the Student Finance Lab Learning Community. Objectives/Competencies Foundations of Finance 1.1Differentiate between financial statements. 1.2Differentiate between legal and tax structures for businesses. 1.3Identify the axioms of finance. Learning Activities Required Reading WileyPLUS Assignment: Fundamentals of Corporate Finance, Ch. 1 48 Reading WileyPLUS Assignment: Fundamentals of Corporate Finance, Ch. 2 25 Reading WileyPLUS Assignment: Fundamentals of Corporate Finance, Ch. 3 27 Website WileyPLUS Gradebook: Week 1 Gradebook ERR Week 1 Electronic Reserve Videos Recommended Reading Fundamentals of Corporate Finance, 2e Interactive/Tutorial WileyPLUS Assignment: Week 1 Vocabulary Activity 14 Interactive/Tutorial WileyPLUS Assignment: Week 1 Interactive Tutorials Activity Interactive/Tutorial WileyPLUS Read, Study & Practice: Week 1 Practice Interactive/Tutorial WileyPLUS Assignment: Week 1 Excel Resources Activity Video WileyPLUS Assignment: Week 1 Videos Activity 21 Assignments ASSIGNMENT STATUS FRIENDLY NAME TITLE DUE DATE POINTS UNREAD COMMENTS Participation Week 1 Participation Quiz WileyPLUS Assignment: Week 1 Practice Quiz Paper Business Structures Week2. Financial Statement Analysis. Jan 20 - Jan 26Week2 Financial Statement Analysis Jan 20 - Jan 26 12...
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...A++PAPER;http://www.homeworkproviders.com/shop/fin-571-week-6/ FIN 571 WEEK 6 Week 6: Managing Financial Growth Resources: Harvard Business Publishing: Working Capital Simulation: Managing Growth Assignment Ch. 1 – 21 of Fundamentals of Corporate Finance WileyPLUS Assignments All additional resources from each week Review the following scenario: Acting as the CEO of a small company, you will apply the principles of capital budgeting to invest in growth and cash flow improvement opportunities in three phases over 10 simulated years. Each opportunity has a unique financial profile and you must analyze the effects on working capital. Examples of opportunities include taking on new customers, capitalizing on supplier discounts, and reducing inventory. You must understand how the income statement, balance sheet, and statement of cash flows are interconnected and be able to analyze forecasted financial information to consider possible effects of each opportunity on the firm’s financial position. The company operates on thin margins with a constrained cash position and limited available credit. You must optimize use of internal and external credit as you balance the desire for growth with the need for maintaining liquidity. Sign-in to the simulation and review each of the following: Welcome Statement How to Play Terminology Primer More Details (this includes information to help you understand how to play the simulation) Write a paper of no...
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