...A New Company Christopher Smith ACC/220 November 30th, 2012 Simone Williams A New Company In being hired into a new company to oversee the accounting department an individual would expect to see various types of financial reports. These various reports allow the individual to identify areas in need of improvement along with many other business decisions. The primary focus will be on the preparation of reports of managers and officers in the company. This will provide tools to assist in making business decisions and evaluating the effectiveness of the decisions being made (Kimmel, Weygandt, & Kieso, 2003). Among the reports in a financial department are the income statement, balance sheet, cost-volume-profit income statement, statement of cash flows, and a retained earnings statement. These types of financial reports are among the essential tools that are necessary in managerial accounting for business decision making. The income statement can be a very useful tool to illustrate the company’s expenses such manufacturing costs. Here, three basic functions are illustrated as direct materials, direct labor, and manufacturing overhead. Beginning work in progress plus total current manufacturing costs gives the manger a distinct view of the total cost of work in progress. In addition to this, the manager can evaluate the cost of manufacturing goods by subtracting the ending work in process from the total work in progress. This and other types of financial statements such...
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...ANTECEDENTES Investigaciones han demostrado que la obesidad es uno de los principales motivos de enfermedades las cuales estadísticamente se encuentran como número uno en causas de muerte, algunas de estas son: ← Hipertensión ← Diabetes ← Afecciones cardiacas ← Problemas respiratorios México se ha convertido en uno de los países con más índices de obesidad causados por varios factores en los que se encuentran: ← Falta de actividad física ← Sedentarismo ← Mala alimentación ← Estilo de vida De las 1,200 millones de personas que tienen problemas de sobrepeso y obesidad en el mundo, 80 millones son mexicanos [pic] Datos de la OCDE colocan a México en segundo lugar de los países con mayor índice de obesidad en su población con el 30%. Superado únicamente por Estados Unidos de América con el 33.8% Los países con menor índice de obesidad son Japón y Corea con el 4% [pic] [pic] • La obesidad infantil es actualmente un problema de salud en México. Hay más de 4 millones de niños que sufren de sobrepeso y obesidad. • 1 de cada 5 niños tiene problemas de sobrepeso. México ocupa el 4to lugar en Obesidad Infantil sólo superado por: Grecia, Italia y Estados Unidos. ¿Sobrepeso u Obesidad? El índice de masa corporal (IMC) es un indicador simple de la relación entre el peso y la talla que se utiliza frecuentemente para identificar el sobrepeso y la obesidad en los adultos. Se calcula dividiendo el peso de una...
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...1.1 1. When the company ties employee compensation to the company’s financial results it helps keep their employee turnover rate low because the employees will be motivated to do their jobs better and less people will be losing their jobs. The Mars Company keeps televisions throughout their faculties to show how the company is doing to the employees, which helps keep them driven because they get a good compensation off the great jobs they do for the company. Employees also get good compensation when they are on time and work together, because of this the employees will stay with the company longer and the company will not have to hire any new people, which would cost the company twice an employee’s salary to find and train a new person for the job. With the employee compensation and the company’s financial results tied together the Mars’s work place is a happy and thriving place that keeps its employees around for many generations, which keeps the employee turnover rate at less the five percent. 2. The Mars Company cam leverage its “Best Company” award to attract new employees and customers because it shows they encourage employee advancement and that customers are high priority. Since little is known about the Mars Company the little information they do give goes along way; like the fact that their quality principle is “the consumer is our boss, quality of our work and value of money is our goal” shows a lot about the company in just that small sentence, that they care...
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...Case 16 New England Seafood Company Prepared for: New England Seafood Company’s Senior Management Prepared by: New England Seafood Company’s Senior Management Adam Jeff Conner Bryan February 6, 2014 Executive Summary New England Seafood Company executives face a potential two-stage plan to move into the freshwater catfish market because of the banned oyster harvesting along much of the Atlantic and Gulf Coasts, and increased competition from foreign producers. These factors have resulted in significantly lower yields for New England Seafood. In order to stay in business, New England Seafood Company needs to look at harvesting and processing something other than seafood. New England Seafood Company looks to potentially harvest and process catfish. They are looking to enter the catfish market in a two-stage plan. They must choose to begin a preliminary stage to test the catfish market. After testing the catfish market in the preliminary stage, New England Seafood Company can then enter into a final stage (stage-two) of development. In order for New England Seafood Company to make the best possible decision, they must address the following issues: Determine an accurate representation of the risk of the two-stage project with the appropriate cost of capital, determine New England Seafood Company’s future net cash flows, and determine the efficient utilization of land across company processing divisions. We have determined that an appropriate...
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...6273-Section 10 October 23, 2014 New Heritage Doll Company Write-up Introduction New Heritage Doll Company is a firm that has ventured into doll production which has sought to extend its brand in order to broaden its market framework and more importantly capitalize on high levels of customer loyalty. The vice president of the Company, Emily Harris, is to forward her project proposal to the Budgeting Committee for evaluation. The Vice-president’s objective for proposing the project was based on potential to strengthen the Company’s division of production and drive future growth. Emily Harris has to produce a compelling project to avoid the committee from declining the proposal. Basis of Assessment There are two projects between which the company can choose from or drop the proposals in their entirety. The methods of project evaluation would be based on discounting cash flows analysis and thereafter determining the Net Present Value (NPV) of each of the proposed project with Internal Rate of Return (IRR), Profitability Index and Payback Period. If the project has a positive NPV, it would suggests the project is generating more cash than is required to service the debt and provide the appropriate returns; thus, the higher NPV, the better it is for the company. The project proposal with the positive and highest NPV, IRR and profitability index along with the shortest payback period would be acceptable for investment. New Heritage Doll Company managed to produce a capital budgeting...
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...New Heritage Doll Company: Capital Budgeting The New Heritage Doll Company’s Vice-President of Production, Emily Harris, had to decide which of two proposals she should approve for the company’s upcoming capital budgeting meetings. The first project involved expanding an existing “Match My Doll Clothing” line, which had a proven record of success in the past. The second project introduced a new initiative called “Design Your Own Doll”, which used a web-based software enabling users to customize a doll’s features to the customers’ specifications. To help Emily reach her decision, I will calculate the Net Present Value (NPV) of both projects to find out which project is more profitable. In the financial analysis of both projects Emily was given the following assumptions: 1. Operating projections were used to develop cash flow forecasts and then to calculate Net Present Value, Internal Rates of Return, payback period and other investment metrics. The cash flows excluded all financing charges and non-cash items (i.e. depreciation), and were calculated on an after-corporate-tax basis. The New Heritage’s corporate tax rate was 40% 2. Discount rate was set at 8.4% - for medium-risk project 3. NPV calculations included a terminal value computed as the value of a perpetuity growing at constant rate. I computed Free Cash Flows (FCF) to find out the actual amount of cash from operations that the company could use in developing its new projects. I calculated the terminal value...
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...New Heritage Doll Company Financial Assessment Executive Summary New Heritage Doll Company’s production division has two serious proposals that will be presented to the capital budget committee. The first proposal, named Match My Doll Clothing Line extension, will add year round seasonal clothing to Heritage’s product line. This proposal’s NPV was $7,326.11. The IRR was 24.10% and the MIRR was 20.68%. The Profitability Index was 3.08 and the payback period was 7.11 years. The value of the tax shield is $647,000. The second proposal, called Design Your Own Doll, is a new product line related to the heirloom line. It is one that will allow customers to customize the looks of the dolls they purchase through the New Heritage Doll Company website by utilizing a new software program. This proposal has an NPV of $8,200.45. The IRR is 17.64% and the MIRR is 16.13%. It has a Profitability Index of 2.13 and a payback period of 10.11 years. The value of the tax shield for this project is $629,000. The screening of these projects was extensive and based on this analysis we recommend the Match My Doll Clothing line extension. Although the Design Your Own Doll Line has a higher NPV, it is not the key factor as to what we should use when picking one project over the other. It is important to factor in the IRR, MIRR, Payback Period, and the PI as well. Furthermore, we included the Value of the Tax Shield into our valuation of which project to choose. The Match My Doll Clothing...
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...The New York Blower Company: Using a Business VoIP Solution for Success Reginald M. Staley IT/242 November 10, 2013 Nadean Aragon The New York Blower Company (NYB) is a manufacturer of industrial fans and blowers for the industrial and OEM marketplace. They are located in Willowbrook, Illinois and provide products and services worldwide. The challenge that the New York Blower Company was facing was that their current phone system was aging and the provider was discontinuing support for the system. According to John Mearns, NYB’s manager of information technology they were leaning toward staying with the provider but they knew that it would lead to another upgrade in three or four years and another full replacement in eight to ten years. (Appiaservices.com, 2009) They also had implemented cell phone use for their floor supervisors in order to have them become more mobile and not be tied to a desk. With these challenges before the company after talking with a business partner Mr. Mearns decided to implement a VoIP system to deal with these challenges. The VoIP system allowed NYB to have all three of its sites to be on one phone system and reduce the cost of equipment used as well as allowing the company to have a common voice mail system and implement four-digit calling between the sites that gave them a single corporate identity and reduced calling cost. The VoIP also allowed the employees to become more productive because they were not tied to a desk or had to...
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...The New Heritage Doll Company’s Vice-President of Production, Emily Harris, had to decide which of two proposals she should approve for the company’s upcoming capital budgeting meetings. The first project involved expanding an existing “Match My Doll Clothing” line, which had a proven record of success in the past. The second project introduced a new initiative called “Design Your Own Doll”, which used a web-based software enabling users to customize a doll’s features to the customers’ specifications. To help Emily reach her decision, I will calculate the Net Present Value (NPV) of both projects to find out which project is more profitable. In the financial analysis of both projects Emily was given the following assumptions: 1. Operating projections were used to develop cash flow forecasts and then to calculate Net Present Value, Internal Rates of Return, payback period and other investment metrics. The cash flows excluded all financing charges and non-cash items (i.e. depreciation), and were calculated on an after-corporate-tax basis. The New Heritage’s corporate tax rate was 40% 2. Discount rate was set at 8.4% - for medium-risk project 3. NPV calculations included a terminal value computed as the value of a perpetuity growing at constant rate. I computed Free Cash Flows (FCF) to find out the actual amount of cash from operations that the company could use in developing its new projects. I calculated the terminal value for 2020 as projected FCF in the first year...
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...New York Life Insurance Company began in 1845 when, after the foundation was laid for a new enterprise that would come to be known as the New York Life Insurance Company, Elected Secretary Lewis Benton purchased the first policy for $5,000. So began a legacy of security and a commitment to keeping promises reflected still today in our core values. That passion and commitment to protection has continued unabated for nearly two centuries — seeing the nation evolve and events take place affecting the lives of Americans: from the Civil War, to the Johnstown floods in 1889, to the 1929 stock market crash, to Hurricane Katrina in 2005, 9/11, and of course, the recent recession. New York Life Insurance Company is one of the largest mutual life insurance companies in United States, and one of the largest life insurers in the world, with about $287 billion in total assets under management. The company ranks No.71 on the 2011 Fortune 100 list, making it the highest privately held insurance company on that list. In 2007, NYLIC achieved the best possible ratings by the four independent rating companies (Standard & Poor's, AM Best, Moody's and Fitch). In June 2009, the same four rating companies reaffirmed New York Life's "superior" financial strength, which became a selling point in national TV ad campaigns that same year. The company is now one of only three life insurers to hold the highest ratings currently awarded to any life insurer by all four rating agencies (Moody's: Aaa...
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...Liacouras Walk Philadelphia, PA 19122 New Heritage Doll Company: Capital Budgeting Production Division Proposal Recommendation October 25, 2011 Prepared For: Jonathan Scott, President Emily Harris, Vice President Prepared By: Dylan Baird Brittany Brantley David Hamme Executive summary: Given the assumptions available to New Heritage for the forecast of their Match My Doll Clothing line (MMDC) and their Design Your Doll(DYOD) product line, we suggest New Heritage to proceed with MMDC. Despite less potential for exponential growth, MMDC is a much safer, yet more profitable, investment and does require the company to spend as much upfront. By constructing a forecast for the next ten years, we found that the MMDC expansion would have a higher NPV and IRR than the DYOD project. Furthermore, since MMDC requires a less amount for its initial investment than DYOD, it yields a higher profitability index, while having a smaller payback period. MMDC is less risky because it has less of a chance to incur a loss and will pay back the initial investment faster. If the discount rate is raised on the project, the NPV of the DYOD line decreases at a much faster rate than that of MMDC. Additionally, if the projected revenue is less than the forecast, DYOD will also suffer losses at a much faster rate than MMDC. Profitability: In analyzing the forecast for MMDC and DYOD we found that MMDC is a more profitable investment for New Heritage. The projections showed that both...
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...Glassdoor : Rating of 4/5 with . “ Great place to work”. Where 50% of candidate received the interview offer by applying online and rest half by recruitment event on campus. New Era Cap has a employee driven corporate culture. Company has a casual work environment that fosters creativity and it was voted as one of the best place to work at by the employees in Glassdoor website, with a rating of four stars. New Era Cap is committed to employee development and has Individual Development program tailored to needs of an individual. Health and safety of employee is a prime concern for New Era Cap and hence actively involves employees in health and safety committees and decision-making processes that positively influenced their work environment. They are re-accredited in 2010 for Fair Labor Association (FLA), which represents the highest the highest level of commitment to the standards for workplace code of conduct implementation, monitoring and remediation. Questions http://www.glassdoor.com/Overview/Working-at-New-Era-Cap-EI_IE27773.11,22.htm * believes culture of innovation that champions creative and critical thinking. * Committed to invest in the employee development with Indviudal development program * HEALTH & WELLNESS * • Blue Cross Medical Insurance Plan * • 24/7 Health Advocate Service * • Met Life Dental Plan * • VSP Vision Plan * • Flexible Spending Accounts * • Health Savings Accounts ...
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...NEW HERITAGE DOLL COMPANY FINA 6278 Case 1 I. Executive Summary New Heritage Doll Company is a U.S based children toy manufacturer with a well-known national brand: the New Heritage. With its existing three divisions, New Heritage proposed two potential investment projects in order to expand its business while the doll industry was facing a relatively low growth rate. The first proposal is the Match My Doll Clothing line expansion, which is to expand a new clothing product line aimed at matching doll and child clothing and accessories covering all four seasons. While it has potential benefits with the current fashion trend of dressing the same between dolls and children, the New Heritage is facing a challenge of entering a new field and the doubt of being continuable project or not even with a success of the first sale of the cloth collection. The second proposal is a high-end product line which is called Design Your Own Doll that targets at the firm’s existing loyal customers who already held several heritage dolls. Such a project is appropriate with the company’s core business. However, it requires large amount of investment and longtime payback period. Considering the benefits and disadvantages of both the projects, the second proposal seems more compelling due to its match of firm’s core business, longer-term focus, and possibility to enhance customer loyalty. However, the question to expand customer pool was not answered yet. As a result, the second...
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...2014,00 2010,00 Revenue Revenue Growth Production Costs Fixed Production Expense (excl depreciation) Variable Production Costs Depreciation Total Production Costs Selling, General & Administrative Total Operating Expenses 0,00 1250,00 1250,00 575,00 2035,00 152,20 2762,20 1155,00 3917,20 575,00 3403,80 152,20 4131,00 1735,00 5866,00 586,50 4290,60 152,20 5029,30 2102,20 7131,50 598,20 4669,00 152,20 5419,40 2270,30 7689,70 610,10 5078,40 164,40 5852,90 2452,00 8304,90 622,30 5521,30 177,50 6321,10 2648,10 8969,20 634,80 6000,30 191,70 6826,80 2860,00 9686,80 647,50 6518,50 207,10 7373,10 3088,80 10461,90 660,40 7078,80 223,60 7962,80 3335,90 11298,70 673,70 7684,70 241,50 8599,90 3602,80 12202,70 Operating Profit Operating Profit Operating Profit/Sales SG&A/Sales -1250,00 582,80 0,13 0,26 994,00 0,14 0,25 1277,30 0,15 0,25 1391,80 0,15 0,25 1503,10 0,15 0,25 1623,46 0,15 0,25 1753,27 0,15 0,25 1893,30 0,15 0,25 2045,00 0,15 0,25 2208,50 0,15 0,25 Working Capital Assumptions: Working Capital Assumptions: Minimum Cash Balance as % of Sales Days Sales Outstanding Inventory Turnover (prod. cost/ending inv.) Days Payable Outstanding (based on tot. op. exp.) NA NA NA 0,00 0,03 59,17 7,68 30,76 0,03 59,17 8,26 30,90 0,03 59,17 12,70 31,01 0,03 59,17 12,70 31,01 0,03 59,17 12,70 31,01 0,03 59,17 12,70 31,01 0,03 59,17 12,70 31,01 0,03 59,17 12,70 31,01 0,03 59,17 12,70 31,01 0,03 59,17 12,70 31,01 Minimum Cash Balance as % of Sales Days Sales Outstanding Inventory Turnover (prod. cost/ending...
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...FINA6278 Financial Theory And Research Case Study on New Heritage Doll Company: Capital Budgeting Niweina Song Xin Gu Yao-‐Hsuan Yeh Huiyang Zhou Table of Contents Executive Summary ...................................................................................................................... 2 Evaluation Logic ............................................................................................................................ 2 Conclusion Analysis ...................................................................................................................... 3 Pros and Cons of the Recommended Action .................................................................................. 4 Analysis of the Match My Doll Clothing Line ................................................................................. 5 Analysis of the Design Your Own Doll Line ..........
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