Ch 14 Bridge to the Profession

It is unknown when the game of golf originated, but it is believed that people began playing in Europe during the middle ages. In the United States, golf was a sport primarily played by the wealthy individuals until tournaments began being televised. Since then, golf has grown to be a very lucrative industry with over 27 million golfers nationwide by the end of the 1990’s. “Competition in the Golf Equipment Industry,” a case study written by John E. Gamble of the University of South Alabama, is an overview of the problems currently facing major companies in the golf equipment industry: technological limitations (due to golf’s governing organizations), a decline in the number of golfers,

The fixed cost is assumed that Larry has discovered the other fixed cost incurred. The total investment is $800,000. The worst case scenario assumes that Larry got a total line of credit from the bank in the amount of $400,000 and invested $400,000 from other source. The Notes payable – short term and the long-term debt is (11.8 + 3.7) = 15.5 % from Table F in the handout. The Loan interest and payment per year is ($400,000 * 0.155)= $62,000. The Income data from Table F indicates that there is a 0.4% of all other expenses net out of the total sales which equals to $109,908 (5,700,666 gallons * $4.82 *0.4%) .

Looking at the market we can see that Golf Companies have suffered after the 2008 recession. However, in 2012 golf ball market was $483 million in retail sales from 17.6 million units which was 4.1% growth from 2011, showing that there has been improvement in the market performance from companies that had lower prices for golf equipment as people were willing to spend on their product. However Altius could not regain

Shakespeare’s management uses $10 m from the modified line of credit to acquire Hamlet, a competitor publishing company. Management’s best estimate of the allocation of the $10 million purchase is as follows: $2 million of current assets and $8 million noncurrent assets (comprising $5 million of identifiable noncurrent assets, $2 million of intangible assets, and $1 million of goodwill). Hamlet’s prior-year

The company’s CEO and founder Ely Callaway was a golf champion himself during his twenties and was a powerful motivator defining the company’s culture

Callaway Golf Company is considered a leader of the golf equipment industry through its development of technologically advanced golf clubs that compensated for the most amateur players with poor swings and helping them achieve a better golf game with the introduction of Big Bertha in 1990 and launched Callaway Golf Company forward at great speed into notoriety of the golfing community (Gamble, 2000). This analysis will thoroughly dive into the many parts of the case of the Callaway Golf Company.

Natalie estimates that all of her baking equipment will have a useful life of 5 years or 60 months and no salvage value. (Assume Natalie decides to record a full month’s worth of depreciation, regardless of when the equipment was obtained by the business.)

Estimated machinery life: 3 years (after which there will be zero value for the equipment and no further cost savings)

ML had developed a policy of selling manual machines and renting automatic machines. Manual machines did not cost much, did not require service, and could be modified to attach different fasteners inexpensively. Automatic machines were rented on an annual basis because they would have been more expensive to sell and it provided annual income to ML. However, about 700 of the rented machines were returned each year. During the time that machines were in inventory, ML would modify the machines to attach different fasteners. This was expensive with an average cost per modification of $2000. If all 700 machines were modified during a given year this would have cost $1.4 million per year. It was also industry practice to provide preventative maintenance and

Eddie Carbone is an American-Sicilian man working in Brooklyn. He works as a longshoreman: carrying crates and goods from the ships. He is quite a large man. His job requires him to be strong and a good worker. In other words he is very masculine. He is an ordinary man. He lives with his wife and niece, whom he treats like a daughter, and like all good men should do, he works every day to provide them with enough money to survive on. Eddie is a man’s man. He lives within a close-knit community of Sicilians and is a well respected member of society. Eddie sees himself as a prime example of how a man should act and look.

According to the Merriam Webster dictionary professionalism is “the conduct, aims, or qualities that characterize or mark a profession or a professional person”. It encompasses various values and behaviors which include ethics, reliability, dependability, the ability to work with others, and a commitment to lifelong learning.

Under Armour is exposed to numerous risks entering the golf equipment industry. Despite, the organization already having a footprint in the sport as they are in the apparel market, they are still susceptible to the risks that plagued Nike. Under Armour can be exposed to manufacturing, assembling, distribution, and marketing deficiencies that without proper planning could become detrimental to their product launch. “The biggest problem we’ve encountered is lack of preparation: Companies are so focused on designing and manufacturing new products that they postpone the hard work of getting ready to market them until too late in the game” (Schneider & Hall, 2011). It is critical that when Under Armour is read to launch into the golf equipment industry that the equipment is top notch, there is a plan for marketing, and Under Armour is ready to follow through on their claims and delivery of golf equipment.

iii. The cash amount to be paid for these leases in 2004 will be $44.

Generally, there are two approaches in determining the value of a company’s assets and liabilities (Laux & Leux, 2009). One, the company can use the historical cost approach. Under this method, the purchase cost is used as the basis of determining other factors such as the asset’s loss of value that occurs over time. Therefore, a building acquired five decades ago would be presented in the financial statements either at the cost at which it was built or the cost of land plus construction. Depreciation is then deducted from this cost over its lifetime. The historical cost method has some obvious drawbacks. The historical cost method disregards the occurrence of events that have the impact of reducing the asset’s value (Hitz, 2007). For example, it is possible that the cost of land will have appreciated immensely over the