...eyeball view of its financial performance? Companies need to constantly monitor their performance in terms of finances. Some companies use boards to assist in monitoring the financial activities of their organization. Monitoring corporate performance is a critical function of every board. An effective board monitors the overall performance of an organization, including its operational, strategic, and financial objectives. A key aspect of the board’s oversight role is to actively monitor management’s execution of approved plans, as well as the organization’s progress toward meeting its objectives. It is essential for the board to prioritize and enumerate the organization’s objectives in monitoring its performance. Boards should establish a consistent method for receiving, reviewing, and utilizing the data received. Boards use many data points to monitor company performance, including financial and non-financial metrics, and industry and peer information, which can come from board reports, trend analyses, surveys, financial statements, industry benchmarks, and audit opinions. Knowing which metrics are most effective in understanding performance and indicating potential issues can be challenging, yet beneficial to the organization. Organization’s financial plan typically links to the annual operating plan that has been established. The annual operating plan provides details on the organization’s objectives and how they will be achieved, while the financial plan identifies the...
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...Memo To: Chief Executive Officer From: Nicholas Petrovich cc: Controller Date: February 12, 2013 Re: Income Taxes After reviewing Deloitte (D) guidance and the requirements of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740, Income Taxes, we addressed (1.) What are the four possible sources of taxable income according to ASC 740? (2.) How much of the reversing taxable temporary differences may be considered in estimating taxable income? (3a.) In evaluating the income LOL is projecting related to future operations, is LOL in a cumulative loss position? (3b.) May LOL exclude the impact of the impairment of the non deductible goodwill when estimating future taxable income? (3c.) May LOL exclude the expense from writing off the accounts receivable from the customer who declared bankruptcy when evaluating the projections of future income? (3d.) Does the evidence of historic losses affect our ability to accept the company’s estimate of future growth? (3e.) In evaluating the income that LOL is projecting related to future operations, what evidence might you ask for to support the company’s projections? (4.) Would the tax- planning strategy to sell and lease back manufacturing equipment be a tax- planning strategy that is considered prudent and feasible? (5.) Would the tax-planning strategy to sell but not lease back the primary manufacturing facility be a tax-planning strategy that is prudent and feasible? We first looked to...
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...Strategic Plan FY12 V. Economic Logic: Economic outlook: Overall economic indicators forecast the following trends in projected growth relating to Sol Casino’s market share: 2012 – For 2012 we are projecting that base revenues will remain flat but we will see revenue growth driven through the addition of the current Hotel Expansion Project. The hotel will be utilized to drive increased visitation and play from our existing players as well as attract new customers through FIT, OTA and Group Sales channels. According to the April Goldman Sachs study, “The Outlook for the US Economy”, it may be possible to see signs of recovery in 2012. They expect GDP growth to accelerate to 4% growth for the remainder of the calendar year. If that occurs the unemployment rate could decline to as low as roughly 8% (nation-wide). They also expect inflation to be relatively low at 1%. The price of oil, however, could negate this gain and potentially trigger a deeper recession. At the time of this study oil prices were 20% higher than the same time the prior year. If that trend continues it would shave off half to 1% of the projected GDP growth. If a bigger price shock occurred, for example oil rising to $140 per barrel, we would be left with much slower GDP growth, potential unemployment increases and even the possibility of a double-dip recession. As a result of the uncertainty in the economy the casinos base revenues have been projected to remain flat. Growth will be realized...
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...and Presentation: *Financial Statement Analysis of companies has to be carried out using the tools/ methods discussed in the class (e.g.: using financial ratios, trend analysis, comparing ratios in the last five years, comparison with competitors in the industry, etc). *All members of the group must participate in the presentation. *Each group will be given 15-20 minutes for the presentation followed by question -answer session. *Each group is required to prepare a report and submit a hard copy of it on the date of their respective presentation (the length of the report should not be more than 25-30 pages; Font : 12, times new roman). No reports will be accepted later. *There will be no change in the schedule of presentations. Smita IC, FMA How to write a Financial Analysis Report 1. Start the report with an “Executive Summary” of important findings from the financial analysis. Also state the time period focused by the study in addition to identifying the firm requesting the report. 2. Set up an introduction emphasizing the objectives of the report. Also define financial terms necessary for understanding those objectives. 3. Move on to a section with “Resources” title. Give a general description of the analyzed data and where...
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...to get there, it is natural to next ask where it is going. The answer will depend on numerous factors including the economic environment, competition, customer tastes, and both strategic and tactical choices. It is the job of the pro forma financial statements to translate these operational forces into numerical estimates of expected financial performance. There are several reasons for projecting future financial performance. First, pro forma statements are very useful when evaluating alternative business strategies. It is one thing to discuss strategy at the conceptual level, but much more valuable to be able to identify the profit and funding effects of alternative strategies. Second, evaluating alternative future events permits explicit measurement of risk. Financial projections do not eliminate the sources of risk. However, they do help the decision‐maker find which risks are important and how realizations of those risks will affect the company. Finally, pro forma statements identify the amount of funds needed and assist in deciding on the appropriate structure for the funding. It is simply not possible to develop an adequate funding plan without relying on pro forma statements. Pro forma statements provide financial estimates of the impact of a business plan. As such, pro formas incorporate the following information: • A marketing plan indicating what will be sold, how it will be sold, and how the products will be priced; • A production plan outlining...
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...have changed quite drastically. There are now 20 Financial Planning Companies and with about 281 individual licensed as Financial Adviser as Financial Adviser Representative (FAR) as approved by Bank Negara Malaysia (BNM) and more licensed as Financial Planner as Capital Market Services Representative License (CMSRL) as approved by Securities Commissions Malaysia. There is presumably that money-related arranging administrations would turn out to be progressively critical as budgetary and capital markets become greater and turned out to be further developed and advanced. The financial planning process is to analyze the investment and financing choices open to the firm, projecting the future consequences of current...
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...Applications of Operations Research planning, routing, scheduling, forecasting, process analysis and decision analysis. OR is also contributing greatly to healthcare services such as surgical and bed scheduling, portering operations, emergency transport, accident trend analysis and treatment optimization. In the service sector, OR techniques have been found especially helpful when dealing with variability in service delivery such as call centres, queues for service and medical wait times. A sampler of typical OR applications includes: • • • • • • • • • • • • Optimization of LTL trucking (Yellow Freight) Optimal package designs (Domtar Packaging, Ltd) Manpower planning models (Treasury Board Secretariat) Aircraft operations (Delta Airlines) Surgical bed optimization (Fraser Health Authority) Pre-board passenger screening (Vancouver International Airport ) Switching network studies (Bell-Northern Research, Ltd) Maintenance Strategies for the US Coast Guard Revenue Management (American Airlines) Resource allocation in a mental health hospital (Douglas Hospital) Routing of Waste Trucks (Waste Management Inc.) Rail Car Optimization (CP Rail) Successful OR applications can be found in a broad array of industries dealing with challenges such as OR has been applied in many industry sectors including the following: Transport and Travel. OR techniques are used by airlines and rail companies to offer varying fares and make higher revenues by filling more seats at different prices - an...
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...Section A1. UTAH SYMPHONY FINANCIAL STRENGTHS 1. Performance Revenues: The USO is projecting an increase in performance revenues in the amount of $679,795. 00. By bringing in more money from ticket sales, the USO will help mitigate some of the damage done by the weakened economy. To reach this increase the USO increased their concert schedule and will likely need to modestly raise ticket prices. 2. Contributions: Fundraising was very strong for the USO. An increase of $619,772 in contributions is projected for the upcoming year. Giving the symphony much needed funds with the loss of some government grants. 3. Box Office Fees and Rentals: Projected to be a huge boon in 2002, the symphony will likely go from $3,829 to an astounding $243,000 dollars. By expanding the fees on ticket sales for the symphony, the organization will be able to tap into a resource that is almost brand new for the group. UTAH SYMPHONY FINANCIAL WEAKNESSES 1. Government Grants: The symphony depends on government grants for the arts like many other institutions around the United States. But after the terrorist attacks on New York City and Washington D.C. on September 11, 2001, the bubble bursting in the internet boom and other factors, the government was forced to make cutbacks on funding for the arts. The symphony is projecting a loss of $220,687. That is a big hit to the budget that needed to be made up for the group to function and pay their expenses. 2. Orchestra Salaries: Related...
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...currently no other sports program like this one anywhere in the Thayer or West Plains. This plan will be used to define the scope of our services, as well as a means of gaining the necessary funds to operate our mission. It will also be used on a continual basis in the evaluation of The RAC Sports mission, goals, and objectives. The keys to success for RAC Sports are our ability to market effectively, creating an unmatched "family" atmosphere where people will like to be, and hiring qualified/certified and knowledgeable referees to aid in the running of our programs and leagues. The sports industry is a booming business that produced over $10.6 billion last year and is projected to continue its current trend according to Sports Illustrated. RAC Sports is conservatively projecting a strong net profit in its 2nd full year of operation with this number increasing significantly by the end of year three. Company Summary RAC Sports is a Non Profit organization that will provide both customers and casual users an opportunity to participate in a variety of sports and leisure programs and activities with Christian and family values. Company Ownership RAC Sports is a non profit incorporation that is operated by Refuge Apostolic Church and Mike Davis Partnership all proceeds go do the RAC Charities for children, and 10% will go to scholarship funds for local high school students. Start-up Summary Our start-up requirements costs are the gym rental, referee, trophies, equipment, and start-up...
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...Assignment Title Student Name Course Name Instructor Name Date Executive Summary Share valuation plays an important role and analyzing the value of a company before making an investment decision is essential for an investor. There are cases where a stock may be overvalued or undervalued. It is not worthwhile to buy and hold an overvalued stock as they will not generate any positive return to the investor and vice versa in case of an undervalued stock. It is essential to estimate the value of a company based on their future growth and earning potential. As a shareholder, it is essential to know the return that an equity investor will generate by investing in a company. Free Cash Flow to Equity (FCFE) provides the actual return that equity shareholder can expect from the company. Six-year projection of income statement, balance sheet and cash flow statement are being made to determine the FCFE. Future FCFE is used for the determining the value of the firm. It indicates about the intrinsic value of the company based on which an investor can determine whether a stock is undervalued or overvalued. In this case, McDonald’s performance is expected to fall during 2015 and 2016. There is an expectation of slow revamps from 2017 in a stable phase. The determined value clearly indicates that the stock is currently overvalued, and it will not be a worthy decision to invest in this stock. Key Details of the Valuation Model It is essential to make an...
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...I aspire to be a Senior Financial Analyst within the next 5 years. My goal for the survey is to see if I can meet the requirement to become a Senior Financial Analyst. Becoming a Senior Financial Analyst make me happy? I sent an email survey to 17 senior financial analysts within my current company. The data collected will confirm if I should continue seeking the position of a Senior Financial Analyst. Seventeen Senior Financial Analysts were given an e-mailed survey to complete which will show what is required for a Senior Financial Analyst position. The questions that were asked are as follows: 1. What is the highest educational requirement needed for a Senior Financial Analyst? A) Bachelors; B) Masters, C) Doctorate, or D) Certificate/License 2. How many years of experience are needed to become a Senior Financial Analyst? A) Less than 5 years; B) 5 years; or C) more than 5 years 3. How many hours do you work each week as a Senior Financial Analyst? A) Less than 40 hours per week, B) 40 hours per week; or C) More than 40 hours per week. 4. Due to the level of responsibilities for a Senior Financial Analyst, are you happy with your annual compensation? A) Yes or B) No 5. Are you satisfied being a Senior Financial Analyst? A) Yes, o B) No Out of the 17 emailed surveys, I received responses from 13. The results to the questions are below in Table 1: Table 1 Highest Level of Edu Bachelor Masters Doctorate Certificate/License 3 8 2 0 Years of Experience...
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...Taking A Closer Look at Google Students today have a much more convenient and timesaving methods of research. Thanks to Internet Information Providers, you have all the libraries you need located on the World Wide Web. By typing in a question or a few key words in a search engine, you have hundreds of thousands of search results with all the answers you need. Engines like Google, Yahoo, and Bing are now enveloped into people’s everyday lives. Here are a few numbers to show us how important this industry has become (2010): * Google: 34,000 searches per second (2 million per minute; 121 million per hour; 3 billion per day; 88 billion per month) * Yahoo: 3,200 searches per second (194,000 per minute; 12 million per hour; 280 million per day; 8.4 billion per month) * Bing: 927 searches per second (56,000 per minute; 3 million per hour; 80 million per day; 2.4 billion per month) (Mcgee, 2010). According to Yahoo Finance, on June 17, 2011 the market capitalization of the industry is $558 billion, Price/Earnings is 22.4, Price/Book is 4.6, Net Profit Margin is 23.1%, Return on Equity is 17.5%, Total Debt/Equity is 26.3, and the dividend yield is 1.2% (Yahoo! Inc., 2011). One of the biggest leaders of this industry is Google Inc. Google Stands Strong In 1998, Google was launched with about 25 million pages. Today Google index is billions and billions of pages, which is roughly around 100 million gigabytes (Google, Inc, 2011). Google not only provides a top search...
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...Track the Tanishq campaign since 1995 till date. The campaign for the Tanishq brand over the years have undergone a lot of experimentation and changes, both dramatic as well as subtle changes to create the current image of that of India’s only truly national jeweler that sold gold and gem-studded jewelry in boutiques across the country. Tanishq as a brand emerged from the Titan Industries, which was instrumental in bringing a paradigm change in the Indian Watch Industry by being the first Indian Company to introduce the Quartz Watches. It had entirely changed the market scenario over a period of ten years subsequent to its entry. By the year 1995, Titan Industries was keen to launch a new design watch targeted at the very high end consumer market segment. This gave the birth of Tanishq- as the Jewelry Watch Brand. This was a brand pegged as an ego satisfier, above the mundane and utilitarian. However the Jewelry Watch Brand concept did not click with the consumer as it was perceived to be clunky in design and highly overpriced. In 1996, brand Tanishq was therefore used to offer an entirely new product range to the consumer. This was Precious studded Jewelry. Underlying logic was the possibility of capitalizing on the high pricing of studded jewelry compared to plain gold jewelry, where the gold as a commodity mindset, of the consumer did not allow too many pricing options. However selling studded jewelry required a paradigm shift of the consumer mindset because...
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...Q1.1: Assessment of the situation BVSx was a small independent division of a big pharmaceutical company located in Luxembourg. It is a technological leader and company number 2 in the vaccine market today. During last years BVSx’s profits raised and its share in the group revenue increased from 5 to 20%. According to analyst report by Banque de Genève, two latest cancer treatment products create a new market up to $ 2 bln. Implementation of “Augmentor®” technologies gives VxC1 (cancer treatment vaccine) several advantages over similar competitor’s product. The only problem associated with this particular case is that low efficiency of Purchasing Department and poor communications with R&D specialists led to further problems over the supply chain that as a result impacts performance of the whole project. Q1.2: SWOT analysis * Strengths * Strong presence in the vaccine market (22% market share) * Competitive advantage of VxC1 and VxR1 vaccines: “Augmentor®” technology * Great potential for BVSx growth within vaccine market by 2020 * Strong finance support for R&D * Weaknesses * Low efficiency of Purchasing Department and Customer Relationship services * Weak in the US market * BVSx is relying on individual strengths / expertise rather than exercising advantages of a market leader in vaccine market * Relying too much on scientists without questioning them for their product needs. * Lack of developing alternate sources / near-specs...
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...Conducting a SWOT Analysis BUS 475 May 5,2014 Conducting a SWOT Analysis When beginning a new business, there are several factors need to be taken in account however, one of the most important factors is conducting a SWOT analysis. SWOT is an acronym that stands Strengths, Weaknesses, Opportunities and Threats. “A SWOT analysis is an organized list of your business’s strengths, weaknesses, opportunities and threats. (Berry, 2014) Strengths and weaknesses represent the internal factors of the company while opportunities and threats represent the external factors. In the following a SWOT analysis will be conducted on a new proposed messenger company Metro Express. The analysis will be a part of initial planning process and determine what is unique about the company in addition to what is needed to sustain the business and meet mission and vision statements. Introduction Metro Express is messenger company that focuses on small and mid-sized businesses that need errands ran for them and we would provide the service. Metro Express will provide a different number of services that range from picking and delivering packages, relocating offices and removal office equipment. Our customers that experience the everyday stress of running a business will experience that our services will give them one less task to worry about. Requirements for Starting the Company In order for Metro Express to get started, there are some requirements that must be met. The first thing...
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