Apollo Shoes Case Study

There are several reasons why AGI should consider Mercury Athletic as an appropriate target for acquisition. First, acquiring Mercury could improve both companies financially. Acquiring Mercury would double AGI’s revenue. Although Mercury’s financial performance has been disappointing, they experienced top line growth of 20% in 2006. Unfortunately, their profitability has been disappointing due to price concessions to big box retailers and an unsuccessful women’s line. Mercury’s (and ultimately AGI’s) profitability could be improved by the synergies of the two companies merging. Synergies within supply chain, operations, research and development, and advertising should all improve Mercury’s EBITDA.

West Coast Fashions, Inc has decided to sell one of their segments, Mercury Athletic in the context of a broader reorganization. The head of the business development for Active Gear, Inc(AGI), John Liedtke, views this event as a good

Sportsman Shoes has been a leader in the shoe industry for more than thirty years. Sportsman manufactures and sells athletic shoes for all types of sports. The company has pursued a low-cost strategy in order to sustain their success. They sell a limited number of shoe designs and have held costs low through manufacturing efficiency and standardized operations. However, the past five years have been a struggle at Sportsman. The shoe market has seen a rise in the availability of low-cost imported shoes that has threatened Sportsman’s competitive position. As a result, company executives have decided it is time for a strategy shift.

For their accounts receivable confirmation as of December 31, 2017, Mall-Warts stated that they had entered into involuntary bankruptcy on November 3, 2017. After having adjusted their balance due for shoes that were wrongly shipped to them in the amount of $5,765,081.85, Mall-Wart had a balance due of $14,784,144.03. Due to the unlikeliness that this amount is to be collected, we have proposed that this amount be written off in full to bad debt expense. However, Larry Lancaster has decided not to record this entry in hopes that Apollo Shoes will still be able to pay the amount in full. When ignoring the adjustment for the wrongful sales, in which Larry believes Mall-Wart will pay, Mall-Wart accounts for 40% of the company receivables. The fact that Mall-Wart has declared bankruptcy is too material to ignore, and we are unable to give an unqualified opinion. We disagree with Larry’s analysis of the situation, and therefore have given the 2016 financial statements a qualified opinion.

Anderson, Olds, and Watershed rely on Apollo Shoes management for the financial statements. In addition, Apollo Shoes management is responsible for internal control over financial reports, ensuring the company complies with applicable laws and regulations, providing all financial records and other related financial information to the firm, and providing a representation letter at the conclusion of the audit confirming management’s

We have audited the accompanying balance sheets of Apollo Shoes, Inc. as of December 31, 2008, and the related statements of income, comprehensive income, shareholders’ equity, and cash flows for the year ended, and related notes to the financial statements. We have also audited management’s assessment, included in the accompanying Management’s Report on Internal Control Over Financial Reporting, that Apollo Shoes, Inc. maintained effective internal control over financial reporting as of December 31, 2006, based on criteria established in

Customers make purchasing decisions based on the information they have among products and the values of goods a company offers. For that reason, companies have to promote their products to increase products awareness. In order to achieve organizational goals, companies must understand the market’s needs to ensure the success of their businesses. Such information can be gained through research. The industry that will form the basis of this paper is Western Canadian Shoe Association. The three brands under study are Reebok, Adidas, and Nike.

We designed the Apollo Shoes audit case to introduce students to the entire audit process, from planning the engagement to drafting the final report. Students are asked to assume the role of a veteran of two-to-three “busy” seasons, “in-charging” for the first time. Communication between the students and client personnel and other firm members takes the form of e-mail messages from the engagement partner (Arnold Anderson), the engagement manager (Darlene Wardlaw), an intern (Bradley

The U.S. Trade Embargo Regulations clearly prohibit U.S. firms and their foreign subsidiaries from entering into transactions with countries with which the U.S. government maintains a trade embargo, as well as with entities that are owned or controlled by those countries. Since Day-O-Shoes involved in overseas operations, it was expected to maintain an awareness of, and comply with, the requirements of these regulations. The company shut down its operations even before the date set for embargo.

* Continued investing in TQM quality control to reduce manufacturing costs of Extreme Kicks’ footwear.

This paper commences by defining the problems that were faced by Lululemon Athletica Inc in 2013. After, the author explores the causes of the issues that the company was experiencing and the effects that they had on Lululemon Athletica Inc. The next step is to look at ways in which the issues could have been addressed both for the short-term and long-term. When all is said and done, the audience will fully appreciate why “Lululemon Athletica Inc should revert to its fundamentals – that is, to concentrate on the needs of the consumer”.

This manager’s report provides a financial performance review of the business operations for athletic footwear industry’s Elite Feet for production Years 11 through 18. Included in the report are trends in company’s annual total revenues, earnings per share (EPS), return on equity (ROE), credit rating, stock price and image rating. Additionally reported are the strategic vision for the company, performance targets for the aforementioned production years plus the next two years, the company’s competitive strategy as well as production strategy, finance strategy and dividend policy. Also discussed is a look at the company’s closest competitors and the actions that could be

2. Estimation the value of Mercury based on discounted cash flows and Liedtke’s base case projections.

Clearly, Nike has the responsibility to hold suppliers to those conditions that prevail only in the supplying

Nike has seldom manufactured products own premises, except their air bladders. The shoes are manufactured through outsourcing and alliances with other companies. A successful company like Nike formed its organization on the customer values that have the MOST impact on the consumers mind – Design/R&D, Marketing and Distribution. Even though manufacturing is a vital function to perform, Nike realized that there were other ways to go about this function and thereby save both cost and maintain its focus on the critical customer value areas.