Case Study : Capilano Forest Company

As Mr. Clarkson's financial advisor, we would caution him on expanding his business given the current financial trends and ratios of the company. The investment in inventory and receivables is too high. As a result, Clarkson Lumber's return on assets, return on equity and invested capital are lower when compared to other high profit outlets as shown in exhibit C. Additionally, a significant increase in debt, such as a $750,000 loan, will further reduce the current ratio of the company. Clarkson Lumber could benefit from some changes in its collection policies for

Plum Creek further reasons that reporting standing timber at fair values does not improve comparability. To support this argument, they again bring up the extensive and numerous assumptions required in estimating the fair value of standing timber. They argue those estimates are not likely to be consistent among companies and companies will not all revise estimates in the same reporting period. However, in my opinion, this concern can be addressed by FASB’s regulation. The legislator will establish a detailed document listing standards of timberland value estimation and force the industry to implement it before a certain point of time. So, Plum Creek’s this argument is unreasonable. In addition, the company believes the cost to compute the fair value of standing timber far outweighs any benefit. There will be extensive documentation and auditing requirements for the company in order to shift to fair value accounting method. Plum Creek estimates that an annual appraisal of their standing timber could be twice as high as they are currently paying for the annual audit of financial statements. Indeed, the nature where timber grows varies and the annual appraisal must be extensive and costly. I find this argument compelling and I believe to avoid more cost is the real reason

In accounting there is much to be learned, about the financial aspects of a business. In the past five weeks I have learned the importance of financial reports and how they relate to the success of an establishment. These reports may include balance sheets and income statements, which help accountants and the public grasp the overall financial condition of a company. The information in these reports is really significant to, managers, owners, employees, and investors. Managers of a business can take and deduce financial

Fraser, L. M., & Ormiston, A. (201). Understanding financial statements (9th ed.). Upper Saddle River, NJ: Prentice Hall.

DO YOU AGREE WITH MR. WILSON 'S ESTIMATE OF THE COMPANY 'S LOAN REQUIREMENTS? HOW MUCH WILL HE NEED TO FINANCE THE EXPECTED EXPANSION IN SALES TO $ 5.5 MILLION IN 2006 AND TO TAKE ALL TRADE DISCOUNTS?

Because they have faced cash shortage trouble. Their profitability has grown for 1993 ~ 1995 period, as we can see from their I/S (e.g. Sales and Net Income, etc.). However, as its business size grows, their A/R increased, which means that it is getting difficult to collect cash. On the other hand, A/P decreased for the same period, which means that the company paid cash for A/P, resulting in critical cash shortage. Furthermore, the A/P payment period is shorter than A/R collection periods, the company’s cash problem happens to be accelerated.

As the financial consultants of Catawba Industrial Company our aim is to determine the best course of action to pursue with respect to the introduction of the new proposed light weight compressor. This course of action must remain within the production capacity restrictions the company faces.

Financial reporting in the recent years through the SEC mandates has become one of the most important aspects to corporate management. Stamford International's problem is inherent in the discrepancy in reporting system and accounting irregularities from the various aspects of the business. Not only has this but Stamford, due to rapid growth not been able to accommodate for the expansionary activities like acquisitions of units and international transactions. The result has been the experience of loss in earnings-per-share. In the following analysis, the researcher thus will outline some of the problems that Stamford should address and resolve accordingly to be able to post a positive quarterly report and remain compliant with the

Arbor Pros ATS Tree Service is a tree service company that is located in Sioux Falls, South Dakota. Arbor Pros ATS Tree Service was founded in 2004. Arbor Pros ATS Tree Service is serving both the residential and commercial customers alike. Their services include tree trimming, tree removal, stump removal, storm damage, and snow removal. Arbor Pros ATS Tree Service has satisfaction guaranteed. Arbor Pros ATS Tree Service is a fully licensed and insured tree business. They are the service everybody can count on. Arbor Pros ATS Tree Service renders same day, free estimate or evaluation. Their qualified, licensed arborist is the one who conducts all the estimates and evaluations. Arbor Pros ATS Tree Service is a Better Business Bureau accredited

This case analysis commences by explaining the type of accounting officer needed to execute the job functions for the client, Big Spenders Inc. The next objective will be to examine the income statements of the two prospective business entities that the client intends to choose from concerning investment – in order to diversify its portfolio. The strategies that will be explored in terms of the analysis of the income statements includes the computation of (i) operation profit margin, (ii) gross margin, (iii) net profit margin, and (iv) return on equity – for both companies of interest. The results of examinations will put the accountant in a position to make sounds recommendation to his superior at BUSI 1043 LLP, so that Big Spenders Inc. can be properly guided.

1. How strong are the competitive forces confronting Deere in the global market for agricultural and construction equipment?

The chief executive of the company was closely working with the vendors whose confirmations were vital in the auditing work and hence they could have submitted false confirmations. The auditing firm established a national risk management program for its clients and so national reviews were done to identify the high risk items in the financial statement. The vendor allowances were particularly high but they were not documented. As such, the auditors were supposed to demand for the documentations and compare them with the real figures. It is however noted that most of the documentations received were non-standard and this could have led to a different audit report given that vendor allowances were earlier identified as a high risk area. Inventory management was found to be poor especially in the allowances for inventory reserves. The audit firm was therefore obliged to carry out a thorough evaluation of the inventory reserves and determine whether it was reasonable. The valuation was also supposed to include all classes of inventory but for the case of the company, the evaluation excluded instances where no sales had been made. Hence, this evaluation could not accurately represent the position of the inventory reserve in the company. (Waters,2003)

This is a case study analysis on Nissan Canada Inc. (NCI) and its plan to move from a “make to stock” to a “make to order” process and the implementation of NCI’s Integrated Customer Ordering Network (ICON). Involved in the implementation of ICON, NCI is faced with several challenges in the conversion of its outdated ordering process to Manugistics, an Enterprise Resource Planning (ERP) system. (Hunter, 2007)

fire that took place at one of the Burger Ranch restaurants in Canoga Hills, Gould. Our firm’s focus was to review the financial data provided by Mr. Washington on the issue of liability for damages of lost profits.

The DWSD waste water plant at 9300 W Jefferson Ave has some hazardous waste that needs to be disposed. Per DWSD one is a Niton lead paint analyzer and the other is two (2) glow in the dark “Exit” signs containing hazardous material. The Department of Homeland Security is asking that we properly dispose of these items ASAP. DWSD is asking if US Ecology, Inc., is NRC complaint, and can provide the services for disposal.