Simon was correct to question whether or not Frosty Co. could capitalize some of the interest on the new loan. After checking with GAAP, it was determined that Frosty Co. cannot capitalize the interest on the new loan as part of the construction project on the new factory. According to GAAP, three conditions must be met in order for the interest to be capitalized: expenditures for the asset must have been made, activities that are needed to get the asset ready for its use are already in progress, and interest costs are being incurred. Unfortunately, Frosty Co. does not meet the second requirement.…
In business, if the company’s current assets compared to current liabilities are a ratio of 2.1 it is expected the company will…
Note: all monetary numbers, unless otherwise stated, are in millions. Looking at GameStop’s balance sheet, from 2013 to 2014, the total assets that GameStop had at its disposal increased a large amount, going from 4091.40 in 2013 to 4246.30 in 2014. The net intangibles and the other long term assets were the main perpetrators of this increase in assets, with the intangibles going from 194.30 in 2013 to 237.80 in 2014, and other long term assets increasing from 56.60 in 2013 to 101.40 in 2014. Alongside this increase in assets, GameStop showed a notable decrease in liabilities from 2013 to 2014, going from 1726.00 to 1639.70, seemingly showing their liabilities-to-assets numbers to be positive, however GameStop’s total liabilities increased,…
Lowe’s has a positive outlook when looking at the balance sheet and income statement. This is due to growing net profits coming from increasing revenue. This could be from increasing the number of stores, and the push to create more value for the customer. The debt to asset ratio has grown due to the expansion that has taken place in the fiscal year.…
If any company has a debt-to-equity ratio of over 40% to 50% it should be carefully looked over to ensure there are no major risks in the financial statements (Long Term Debt 2017). Webster Hospital is just above that percentage, so investors may want to look over any financial statements just to ensure there are no major risks. Since their debt to equity ratio is low, it might be safe to say that Webster Hospital may not be taking advantage of their increased profits from their financial…
If I were in Harry Lewis’s position, I would make the decision to file for bankruptcy for FSI. There are a couple of different reason I would choose bankruptcy, rather than taking the deal from the private investor. Some of those influencing factors include; the current problems the company is facing, investors, ethics, and the union. FSI is facing some big problems starting out the new quarter that affect the future of the company. One of the biggest problems the company was facing was their prior years’ loss of a $141 million from a bad investment in a coal mine.…
The company's management and partners had an estimate of making profits from its operations by the year 2021. However, by the year 2015 it had made a loss of 2.1 billion US Dollars making it impossible to pay its employees in January 2015. It was, however, able to…
Archway & Mother’s Cookie Company was a gourmet cookie company that was one of the top salaries and makers in the United States. It started in 1936 with the Harold and Ruth Swason staring their company in their garage in Battle Creek MI. In 1980 there was new ownership, Thomas Olin and Eugene McKay, Jr. Both. During this time, began the cookie war, could be viewed as the start to the downfall of Archway & Mother’s Cookies Company, which closed in 2009.…
You can see in the summary that the assets and liabilities and equity are about equal to each other at 757.4, which is good and very important because you always want your assets and liabilities to balance. These reports tell us two main things about the assets: the first is that loans are the main focus of the assets, and the second is that the assets seem to be mainly increasing. We can tell that loans are the main focus due to the fact that almost 90% of the total assets are loans, leaving only 10% to other assets. That being said, the increase in assets can potentially be unfavorable because with the increase in loans comes an increase in what you need to pay off. When looking at the liabilities and equity, we can see that the main items include checking and savings, and time accounts.…
The number of individuals and businesses that have fallen into catastrophic debt (the point at which obligation exceeds ability to pay) continues to increase. The truth is, many of those who are in distress are ‘good’ customers, and through no fault of their own, plummet into disastrous debt and default on their payments. They are customers you’ve fought hard to win and, until these unparalleled times, have delivered value to your business. This presents your organization with a challenge: How to make sure its revenue flow is protected, but without compromising long term customer loyalty and relationships.…
Isaac Neal Be Our Guest, Inc. Party Rental Equipment Service Marketing Analysis: Be Our Guest, Inc. is a company that rents out party equipment, such as tables, silverware, and chairs, for events around the Boston area. In 1983, Steve Lizio founded the company and it began as a service that provided wait staff to catering companies, but over time, this idea transformed into a rental company. Be Our Guest is an extremely seasonal company and most of their business comes from the last quarter of the year and their lowest in the first quarter. Be Our Guest , Inc. prices are higher than their competitors, but they believe they provide the best quality of customer service and their inventory.…
1. Executive summary (1 page maximum). (05 marks) This analytical report will detail the case study for Apple in 1997. It will conduct an internal and external environmental scan to show the factors influencing the business position of Apple at that time.…
SUBJECT: CHANGES ON SOME OF THE EMPLOYEES BENEFITS Good day Jensen Chemicals and Hardware Depot Employees: As we all know that three of the four prior years, our company has lost money, it is my responsibility as the CEO of this company to come up with solutions to keep our company running, and profitable again. In relation to this matter, the higher managements had decided to eliminate the tuition-reimbursement program effective next year. Why We Eliminate the Tuition-Reimbursement Program One of the mission of the company is to help their employees achieve their goals in life, and one of these goals is to advance in their career by going back to school. That is why we place the tuition-reimbursement program to help you achieve this goal.…
Total equity and liabilities 12,984,438 14,455,190 15,778,673 20,376,962 Ratios Current ratio 2016: 1.9 Firm has 1.9 times the assets to back up its liabilities 2015: 1.3 Firm has 1.3 times the assets to back up its liabilities 2014: 1.1 Firm has 1.1 times the assets to back up its liabilities 2013: 1.6 Firm has 1.6 times the assets to back up its liabilities Quick ratio 2016: 1.2 The firm’s liabilities are backed up by 1.2 times its liquid assets 2015: 1.55 The firm’s liabilities are backed up by 1.55 times its liquid assets 2014: 1.9 The firm’s liabilities are backed up by 1.9 times its liquid assets 2013: 1.2…
Introduction 1. Zara’s financial statement analysis The financial statement is recognized as an efficient method of communicating the company’s financial status and statistics to its shareholders (CILT, 2014a, p. 17). In addition, it aims is to provide a detailed description of where the company stands from a financial perspective along with its performance in a specified period. Hence, an organization can plan and set their future economic decisions based on their performance reflected in the financial statements (CILT, 2014b, p. 18).…