FI504 Midterm Exam Study Guide 1. Know what information is desired by external users of financial statements. INTERNAL USERS Decision Making Human Resources Affordability in regards to pay raise Management Most profitable products Finance Seeing if funds are efficient to pay stockholders Marketing Determining prices that can possibly maximize income EXTERNAL USERS Taxing Authorities Financial charge or other levy Labor Unions Collective bargaining Customers Client, buyer,
Once the approval list goes out the teachers will be notified the stages of implementation and the tentative training schedule. Where all new things eventually work out for the best there will be pitfalls in the road to overcome. A few of these include time constraints, funding, and resistance. The most problematic being resistance from educators not
In order to transfer information to become automatic, one must ask the essential question, “Which processes need to become automatic?” From there, we can evaluate the information we decide to practice. The problem lies within how to do this – do we go with rote practice, or do we explore other methods? In
In this case, all the costs related to buying and selling that product would be included. The selling price of the product, the cost of buying from the vendor, the carrying cost of that particular stock item, and the cost of marketing that item in the catalogue are the relevant costs to be included. In the second scenario, excessive stock is kept and at the end of
There are two approaches for presenting the operating activities direst method and indirect method. Direct method reports the components of cash flow from operating activities as gross receipts and gross payments. The indirect method starts with the net income from the income statement and then eliminates noncash items to arrive at net cash inflow and outflow from operating activities. Investing activities include (a) purchasing and disposing of investments and productive long-lived assets using cash, (b) lending money, and collecting the loans. Cash flow from investing activities is cash inflows and outflows related to the purchase and disposal of long-lived productive assets and investments in the securities of other companies.
Caladonia Products Integrative Problem A company’s success depends on countless aspects that management must consider thoroughly before making any decisions. Each decision has the possibility to generate a profit or unfortunately, a loss. For instance, Caladonia Products has a decision to make; it has to choose between two mutually exclusive projects. There are several questions that Caladonia’s financial personnel should ask themselves prior to making any decisions. More specifically, Caladonia’s financial personnel should determine the payback period of each project, the internal rate of return (IRR), the new present value (NPV), if any ranking conflict exists, and then decide which project should be accepted and why.
L.L. Bean, Inc. Item Forecasting and Inventory Management Question 1: How does L.L. Bean use past demand data and a specific item forecast to decide how many units of that item to stock? When there is an established item, L.L Beans uses the trends based on past demand to forecast future sales ; these trends being mostly seasonal and therefore generates enough information to know how much stock is needed when.
It helps for forecasting on making certain financial decisions. The three groups that use these ratios are managers, potential investors or lenders, and stockholders. The reason the managers use these ratios, is to have a closer look and be able to identify situations that need their instant attention with in the firm. Potential investors are lenders used a ratio to determine if they should invest in the company or not. As for stockholders they mainly use this information for forecasting dividends, earnings on the free cash flow.
The two are used in a way that balances these costs and revenues. To obtain the contribution margin, L.L. Bean computes: item retail price if demanded – item cost To obtain the
1. What is the importance of conducting the requirements discovery process? It is necessary in order to effectively design, construct, and ultimately implement a system to meet the user’s needs. 2. What are the possible consequences if you fail to identify system requirements correctly and completely?