...Rachel Johnson Addy JET Task 2 March 29, 2014 JET Task 2 1. A budget is an itemized estimate of expected income as well as estimated expenses over a specified period of time. The reason to design a budget is to regulate spending. There are multiple causes of concern with Competition Bikes budget plan. The main cause for concern is that the sales estimated for year 9 is 3,510 units. This estimate is not supported by past sales data. Due to the current economic status, the amount of units sold from year 7 to 8 decreased 15% according to the horizontal analysis. Rider sponsorships were also reduced and will most likely remain limited in the future (WGU, 2014). There is some misleading and inaccurate information posted within the budget. Under the Selling, General, and Administrative breakdown “utilities” is listed at $150,000 on the vertical analysis for year 8 and year 9. Then there is another listing for “utilities and services” of $54,000. This is misleading because this entry was not listed in the expenses from the previous year. Another cause of concern is that the cash budget is not included in the uncollected receivables. CB makes expensive bikes so there should be room for uncollectable accounts. The uncollectable receivables budget could be used to cover the any uncollected payments. The reduction of sponsorships and the slow economy could possibly cause a rise in uncollectable accounts. There is also some concern because the operating income is incredibly...
Words: 1749 - Pages: 7
...A budget is a comprehensive plan given in a quantitative term that directs where resources will be acquired and spent in a given period. It is a financial document which operates on income and expense basis. This document depends on the balancing of the monthly or yearly income and expenses. In this case, plan is used as the controller of what is going to happen while budget assess the performance of the required project. The meaning of setting a budget is to provide direction, improves efficiency, control finances and assign responsibilities to evaluate the business plans. Budgets are used by managers as s benchmark to measure up to the results of the definite operation. Budgetary areas that raise concern in the budget planning There were budgetary areas that raised an alarm in the budget planning of the Competition Bikes, Inc. one of the leading area was the forecasting of the transaction budget. The year 9 sale projection set at 3510. There a big is the difference in units of year 8 compared to year 7 with a decrease of 15% levels. Keeping in mind the current economic imbalance, the projected sales reading 3510 do not call for any support. This cannot happen because the professional rider’s sponsorship is at decline and is expected to undergo the same situation for another three years. These steps do not make sense at all and continuation of the support without the clear discussions and understanding on the way forward to increase sponsorship will no doubt lead to decline...
Words: 1345 - Pages: 6
...1. There are a few areas of concern with the Budget that Competition Bike, Inc. has displayed within their budget for year 9. The most prominent area of concern in is in the Revenue section of the budget. In the budget for year 9, Competition has included units sold to be 3510. This is a lofty prediction given that year 8 had seen such a big decline in that number. In year 8, Competition sold 3400 units, but the previous year had sold around 4000 units, a 15 % decline. The company is hoping for an upswing, but this may be too positive of an estimation. To go with that, Competition is only allowing for $984 more dollars in advertising for year 9. If they had budgeted maybe $2000-$3000 more to this category to get to where their advertising spending was in year 7 when they sold 4000 units, their budget of increased sales in year 9 would not be as suspect. In the Budgeted Income Statement, Competition Bikes has budgeted $1340038 for Selling, General, and Administrative Expenses. This is a little high as in year 7, when the highest number of units was sold, that category totaled $1322075. Sometimes this number is budgeted high to help show how well the company managed the budget, as they have built in extra that they know that they can beat. This is not in the best interest of the company, however, because the goal is not aggressively set, and there is no real push to beat the budgeted amount. The other concern with this area is that a lot of the key components in...
Words: 1118 - Pages: 5
...A1. Budget planning is in essence the process of forecasting and determining a company’s financial goals for both the long term and short term. Competition Bike, Inc. has come up with a budget schedule for year 9 operations. Based on its previous years and past financial numbers there are several areas of concern. First research and development is a concern because in the years that they invested more money in research and development it seemed sales where at its highest. Research and development is what keeps you ahead of the competition and what helps you keep your place in the market. By always having the latest and greatest in products and technology you will help secure and keep more customers and retain your spot in the niche market. For year 7, $98, 280 was spent on research and development and that is the year when the company made the most in sales. In year 8 the budget dropped by $16,000 to only $82284. This is the year were sales decreased and was stagnant. For year 9 the budget is only $85,232 not too much higher from the year before. This amount in my opinion is too low because if they expect to beat year 8 sales and make up for their losses they need to invest a little more in research and development. This will help in securing new products and new customers. Second Competition Bikes has accounts and notes payable at $229,003 for year 9. Although no one wants a lot of liabilities some are a good sign that business in doing well because there were suppliers to...
Words: 2148 - Pages: 9
...beginnings, was ridiculed by fellow students who saw the ragged clothes and unrefined “country” manners as ill-suited for middle-class African-American society (Wilson II, 2010). John Harold Johnson was snubbed by advertisers when he founded Johnson Publishing Company, Inc. (JPC) in 1942 with a dream and a $500 loan on his mother's furniture which is the largest African-American owned and operated publishing company (Murrill, 2007). His magazines would include positive presentations and examples of African American life in the United States, leaving negative representations to others. JPC is headquartered in Chicago but has a global reach with offices in New York, DC, London and Paris. It is the home of Ebony founded in November 1945 and Jet magazines November 1951, as well as Fashion Fair Cosmetics founded in 1973, Ebony Fashion Fair founded in 1958, and the Johnson Publishing Company Book Division. Linda Johnson Rice, daughter of founder John H. Johnson, operates as president and CEO of the company (Miller, 2009). John H. Johnson is a leader and a manager. Leadership is the process of developing ideas and a vision, living by values that support those ideas and that vision, influencing others to embrace them in their own behaviors, and making hard decisions about human and other resources (Hellriegel & Slocum, 20011). No company on the be 100s has demonstrated more consistent performance than Johnson Publishing Co. (JPC), which is celebrating its 60th year as the world's No...
Words: 549 - Pages: 3
...Emmett Louis Till was to African Americans what the Japanese attack on Pearl Harbor was to Americans in December 1941, or the attack of 9/11 to Americans of our own day. We therefore take refuge in telling you what happened only because why it happened is too difficult to handle, so irrational as to be incomprehensible. Emmett Louis Till was a fourteen-year-old African American born July 25, 1941 on the south side of Chicago, Ill. He was murdered by Roy Bryant and his half brother, John W. Milam, in Money, Mississippi on August 28, 1955 for "Wolf Whistling" at Carolyn Bryant, wife of Roy Bryant. Against the advice of A.A. Rayner, Emmett's mother insisted on an open casket funeral. More than 50 thousand people passed the open coffin. When Jet Magazine published a picture of the disfigured corpse of Emmett Till, millions across the world read about the lynching of the fourteen-year-old Emmett Till. Newspapers across the world carried the story. Roy Bryant and J.W. Milam were acquitted for the murder of Emmett Till. An all white-male jury took less than an hour to find the two men not guilty. Had they not taken a soda break, their deliberations would not have taken an hour, said one of the jurors. In spite of the fact that the two admitted taking Emmett Till from his great-uncle's cabin, the two men were later acquitted of kidnapping charges. The highlights of the...
Words: 352 - Pages: 2
...Horizontal analysis results Horizontal analysis compares the company’s finances over several years, with a base years for comparison. Competition Bikes uses year 6 as the base year, and a comparison of changes from year 6 to 7 and then with years 7 and 8. The strengths are mostly for year 6 to year 7. Net sales were $4,485,000 for year 6 and increased by $1,495,000 to $5,980,000 in year 7. Then from year 7 to 8 there is a decline in sales by $897,000 this decrease was the major weakness. The cost of goods in year 6 equaled $3,294,000 then increased in year 7 by 32.8% to $4,342,000. The Gross profits were up 37.5% in year 7 compared to year 6 for a growth of $447,000. The operating expenses increased due to the increase in sales from year 6 to 7. This is always a strength when you a company spend more because they are making more money. Advertising could have played a role in the increased sales. They spent the greatest amount of money on year 7, which was $32,760. There was a decreased in advertising expenses in year 8, by 16.3%. The company had fixed percent that they spent in sales commissions, distributions, network support, and transportation out, which all increased 33% from the 6th to 7th year and decreased 15% from the 7th to the 8th. The overall selling expenses were $299,220 in year 6 and increased to $397,960 (+33%) year 7 and then decreased to $338,748 (14.9%) year 8. Competition Bikes selling expenses were high for the 6th to the 7th year, but they managed to regain...
Words: 4327 - Pages: 18
...Financial Analysis Summary Report Task 1 Competition Bikes Incorporated Lisa A Castro, MSW Western Governors University Horizontal Analysis (A. 1. a) A horizontal analysis can be defined as “the study of percentage changes in comparative statements” (Charles T. Horngren, 2008, p. 746). It is useful in determining a company’s financial stability. This section will analyze Competition Bikes Incorporated’s (CBI) percentage changes from years 6 to 7 and then 7 to 8. The report will include an analysis of CBI’s comparative income statement and balance sheet. Between years 6 and 7 CBI’s Net Sales increased by 33.3% for a change of $1,495,000. The increase of 33% indicates strength for the company because it means that the company has become more profitable. This also indicates that demand for CBI’s product has increased and that their marketing strategies have been more successful. It is good news for the shareholders because more profits means more revenue. Between years 6 and 7 CBI’s Cost of Goods Sold increased by 31.8% for a change of $1,048,000. Even though the Cost of Good Sold increased significantly it is still less than the Net Sales increase of 33.3%. This resulted in a Gross Profit of 37.5% or $447,000. This indicates strength for CBI, as the management was able to control their costs to turn a profit on the increased sales. This is also a positive for the shareholders because increased profits mean more revenue for the shareholders. Between...
Words: 6540 - Pages: 27
...Competition Bikes Inc. Summary Report 2014 Here is the Horizontal Analysis for years 6 and 7 for Competition Bikes Inc. Income Statement Sales Revenue: Net sales for Competition Bikes Inc. increase from $4,485,000 to $5,980,000, which was an increase of 33.3% for the year. This is a strength for the company since it shows that the demand for Competitions Bike’s product has increase over the year. This figure should also make stockholders very happy since the money the company makes helps determine the stock price. In this case it was a positive increase so it’s stock price should reflect a positive increase as well. Cost of Goods Sold: Cost of Goods Sold (COGS) increased from $3,294,000 to $4,342,000, which was an increase of 31.8% for the year. The increase in COGS is not necessarily a bad thing (strength) for Competition bikes. The COGS should be in tandem with sales revenue since more products sold mean more goods to be produced. In this case the increase of COGS was slightly below the 33.3% increase in sales revenue which shows that some efficiency’s were made in the company. Gross Profits: Gross Profits showed an increase of $447,000 ($1,638,000 - $1,191,000) which is to be expected since net sales increased for the year. With an increase in efficiency (as mentioned in COGS) this figure should be increase as well. Having a increase in Gross Profit also states that Competitions Bike's product is selling very well and/or they have limited availability...
Words: 8250 - Pages: 33
...How Jet Engines Work and Produce Thrust Table of Contents 1.0 Introduction 3 2.0 Basic Components of a Jet Engine 4 2.2 Compressor 4 2.3 Combustor 5 2.4 Turbine 5 2.5 Exhaust Duct/Nozzle 5 4.0 Creation of Thrust in a Turbojet Engine 7 5.0 Conclusion 9 6.0 References 10 1.0 Introduction According to Hunecke (1997), jet engines, also known as gas turbine engines, are the most widespread and most efficient method used for airplane propulsion currently. The Jet engine uses basic principles and concepts of motion but applying it using a combination of complex mechanical systems to achieve thrust. There are many types of jet engines; however, this paper will concentrate on the Turbojet Engine to explain the workings of the jet engine to achieve thrust and propulsion. 1.1 How the turbojet Engine Works Turbojet Engines apply Newton’s Third Law of Motion that states, “For every motion there is an equal and opposite reaction” (Hünecke, 1997, p. 4). Simply, when a burnt mixture is ejected backwards from an engine, a forward force is generated on the engine and thus on the aircraft. The bigger the backward force the bigger the forward force (reaction force). Thrust is created when the burnt mixture pushed out the back is ejected at higher velocity than that of the air being sucked in. (Hünecke, 1997, p. 4) The engine’s fans suck air in at the front. A compressor, made up of fans with many blades and attached to the shaft, elevates the pressure of the air...
Words: 1759 - Pages: 8
...Equity Research June 16, 2016 BSE Sensex: 26726 INDIA Aviation Flying high amid good times Reason for Report: Sector thematic and initiating coverage InterGlobe Aviation (Rs1,011 – BUY) Target price Rs1,268 SpiceJet (Rs66 – HOLD) Target price Rs64 Jet Airways (Rs561 – ADD) Target price Rs621 Research Analysts: Ansuman Deb ansuman.deb@icicisecurities.com +91 22 6637 7312 India’s aviation sector is set to undergo a strong growth period, which should benefit all the incumbent players, particularly on a benign crude price outlook. Our supply-demand model for domestic air traffic implies 14% growth in passengers as evidenced from firm aircraft orders and latest delivery schedules. With yield management becoming the singular strategy lever for Indian Low-Cost Carriers (LCCs), cost structures assume high importance and structural asymmetries will decide the competitive edge for the airlines. However, much of these asymmetries in cost structure are inherited from the fleet strategy adopted by various airlines, hence normally have a long-lasting impact on their balance sheets. High operating leverage proves fatal in a cyclical downturn where balance sheet strength is vital. At the comfort of hindsight, bulk orders have benefitted IndiGo with valuable incentives, which have given it the structural advantage of lower rentals, while single fleet focus and strong balance sheet have lent IndiGo asymmetrical advantages on maintenance costs, redelivery expenses and supplementary rentals...
Words: 62927 - Pages: 252
...DEAR WIKIPEDIA READERS: You’re probably busy, so we’ll get right to it. This week we ask our readers to help us. To protect our independence, we'll never run ads. We survive on donations averaging about $15. Now is the time we ask. If everyone reading this right now gave $3, our fundraiser would be done within an hour. Yep, that’s about the price of buying a programmer a coffee. We’re a small non-profit with costs of a top website: servers, staff and programs. Wikipedia is something special. It is like a library or a public park, a temple for the mind where we can all go to think and learn. When we founded Wikipedia, we could have made it a for-profit company with advertising banners, but we decided to do something different. Commerce is fine. Advertising is not evil. But it doesn’t belong here. If Wikipedia is useful to you, take one minute to keep it online and ad-free another year. Thank you. If we all gave $3, the fundraiser would be over within an hour. One-time Monthly* $3 $5 $10 $20 $30 $50 $100 Other $ Credit Card PayPal Amazon Problems donating? | Other ways to give | Frequently asked questions | By donating, you are agreeing to our donor privacy policy. The Wikimedia Foundation is a nonprofit, tax-exempt organization. *Recurring payments will be debited by the Wikimedia Foundation until you notify us to stop. We'll send you an email receipt for each payment, which will include...
Words: 2577 - Pages: 11
...as a harbinger of speed without propellers a motor or turbine would not be able to function. The propeller is applicable to many different vehicles be it a plane or helicopter even a ship, the propeller applies to it. So what does the Propeller do? According to Newton’s Third Law of Action and Reaction the propeller takes into account this force by using the turbine or motor applicable in the vehicle. As the motor starts to roll causing a force the propeller uses it to create an equal and opposite force, this provides subsequent power in order for the vehicle to move forward. In basic the propeller consists of 2 parts the blades and the hub or the center. The hub is the center of the propeller also the device...
Words: 796 - Pages: 4
...1 Hughie E. Butler COMM/105 September 24, 2012 2 On December 17, 1903 Orville Wright took the first sustained flight of a machine. This feat started the race what is todays Aviation world. In todays world of Aviation, Unmanned Aerial Vehicles (UAV), Stealth Fighters and massive cargo and airline jets are a thing of the norm. Being a part of the Aviation world, I have seen many variations of all the above. From single seat T-38 Trainer Jets to the Airbus 480, they come in all sizes in shapes with one thing in common, powered flight. Thrust is the essential component for the air vehicle to leave the hold of gravity closest to the Earth. Gravity is equal to 9.8 meters/second. This means that the center of an object in relativity to the center of the Earth has a force equal to 9.8 meters of force. As you move further away from Earths center or, Gravitational Pull, the force becomes lesser. For instance, at 1000KM above the surface you force becomes 7.33 m/s and at 5000KM force is 5.68 m/s. A jet engines thrust is what forces the mass or Air Vehicle away from the earths surface causing the effect of “lift off”. Thats just the tip of the iceberg. Flight characteristics is what keeps an air vehicle in “sustained flight”. Lift, pitch, yaw, and roll are the key factors within these characteristics. Newtons third law states that forces always come in equal and opposite pairs. When the...
Words: 653 - Pages: 3
...also the civil aviation traffic is expected to grow at the same pace despite current slowdown due to global recession. But airport infrastructure has not kept pace with the growth of the civil aviation traffic. This has resulted in congestion and inefficient services in major airports, limited landing slots, inadequate parking bays and congestion during peak hours for airlines. Development of quality infrastructure will have an impact on international competitiveness and economic growth. This requires faster development of civil aviation infrastructure on public private partnership mode. In tune with the requirement many initiatives have already been started in the 10th five year plan and they are expected to continue in the 11th plan also. 2. Of a total number of 454 airports and airstrips in India, 16 are designated as international airports. The Airports Authority of India (AAI) owns and operates 97 airports. A recent report by Centre for Asia Pacific Aviation (CAPA) states that over the next 12 years, India's Civil Aviation Ministry aims at 500 operational airports. The Government aims to attract private investment in aviation infrastructure. India has been witnessing a very strong phase of development in the past few years. Many domestic as well as international players are showing interest in the growth and development of the aviation sector with immense focus on the development of the...
Words: 8691 - Pages: 35
