Accounting Case Import Distributor

Gabe's Auto produces and sells an auto part for $30.00 per unit. In 2010, 100,000 parts were

• Net profit margin has been negative and no major patterns over the 9 year period on net profit since the trend of the industry is based mostly on economic factors, and whether or not they secure contracts. Due to high percentage of COGS they are only left with a net profit of $980 or

Gross margins for 1994, 1995, 1996 and 1997 were 53.9%, 49%, 52.63% and 55.5%, respectively. Be Our Guest, Inc. is doing a solid job of keeping the Costs of Revenue in line with the Sales Revenue. It is a positive sign to see this growth, because we can be assured that the company is staying competitive, while not completely giving in to the pricing crunch. Annual Sales Revenue has a strong CAGR, but it is important and concerning to note that the CAGR of total Operating Expenses is higher. It is about 5% higher and this is very important, because Be Our Guest needs to stay in control of its expenses.

One of the most important parts of a business is the financial management. Each and every other company always strives to have the best management when it comes to its finances. Most organizations have come up with plans and marketing strategies. This is due to the fact tat when companies finances are poorly managed then definitely the whole company is likely to be in trouble or even come down. The financial techniques and principles in most cases comprise of quite a number of aspect for instance those that we intend to look at in this paper-the financial reporting. This will basically comprise of the quality of data and information that the company produced to some of the various stakeholders. Other than that, the paper will also analyze the financial position and performance of the organization using accounting ratios. Another important aspect of financial principles is costing. This basically entails the cost of producing goods and services in the company and how it generally affects the overall performance of the company. The paper will also delve into how important costs in the pricing strategy of the business are. It will further come up with a costing and pricing system that can help the company improve. Last but not least, we focus on the company's budgets and budgetary control. Here there are very important areas that have to be looked into, for

One of the key issues faced by McGraw is that there is a large gap between his projections for next year, and what the manager’s are promising him . His goal is to obtain a 15% increase in the operating income from his division (OM, LR and NP). The managers are projecting a decrease of 5.2% from the current year. In absolute terms there is a gap of $27 MM in the projected divisions operating income.

The company’s financial statements appear to be quite clear and strong as compared to the industry. Still the operating costs are high but average as compared with the industry. The reasons behind the prices might be the high cost of commodities,

By using the consolidated income statements, balance sheet and cash flow statement, we can assess the company’s financial position. On the income statement, the company’s operation revenue increased by 4.5% ($393.4 million) from year 2006 while its operating income decreased by $65.1 million in the same period. Without considering the net-cash settlement feature expense recorded in 2007, operating income increased $103.6 million. Even though including the net-cash settlement feature

An in depth analysis of the current costing methods used by the beverage distribution company, Johnson Beverage Inc.

After reviewing our income statement for the ended month of September, our revenues were greater than our expenses. For our revenues, our rent revenue totaled $2600; utilities revenue $36; miscellaneous revenue $3,498; and our gain on sale was $515. For our expenses, our rent expense was $1802; utilities expense $80; miscellaneous expense $880; depreciation expense $74.25; other expense $62; property tax expense $258; luxury tax expense $300; and federal income tax expense

One must also remember the many acts that were set up to require companies to let the Secretary of Treasury know their financial condition, such as The Budget and Accounting Procedures Act of 1950. The Chief Financial Officers Act of 1990 made companies prepare annual audited financial statements for certain funds (The Chief Financial Officers Council and The Council of the Inspectors General on Integrity and Efficiency, 2011). Later, this act made all agencies covered under the CFO Act in the Government Management Reform Act of 1994 and to all executive agencies in the Accountability of Tax Dollars in 2002. The CFO also requires the directors of the Office of Management and Budget to supply annual financial reports and a five-year

Riordan had a gross profit margin of 17% in 2005 and 19% in 2004 meaning that the company has a net income of 17 cents for every dollar compared to 19 cents in 2004. Looking at the earnings of a company does not tell the whole story and the decrease from 19% to 17% should grab the attention

Working Capital is again in the red zone, dropping more than 75% from FY09 to FY10. However, the historic trend for the company is not very impressive, with working capital dropping as low as -$3 billion. The Operating Cash Flow Ratio is somewhat more reassuring, standing at 18.13 in FY10 from 14.67 a year earlier. This implies that for every dollar of current liability, the operations are providing $18 of revenue to cover the expense. However, operations are not primarily meant to cover just short term obligations, but also long term costs. Thus it cannot be justified that operations are very adequate to meet ST obligations.

with a number of strategic issues facing a capital-intensive, mature industry. Their product costing system was

With this system each customer’s order cost the same amount to complete causing orders with high profit limits to subsidized orders with low profit limits making it difficult for Super Bakery to know the true cost for an order. The company changed to the activity-based costing (ABC) system allowing the managers the ability to recognize the cost and profit margins for each sale. The ABC system associates the costs with the activities allowing managers the opportunity to access a system that allocates overhead costs that uses multiple bases. Costs can be traced back to each individual’s account regardless of the product provider letting managers know which products are profitable and which ones are not. The traditional costing system allocates cost to departments or jobs instead of overhead cost pools. The traditional costing system makes it difficult to know which activity or product is making a profit.

The goal of traditional accounting practices is to achieve the lowest possible cost per unit by maximizing employee and equipment productivity. However, the goal of the plant’s