Enager Industries

1. Discuss whether the structure of the executive compensation program is consistent with the corporate strategy for each company. At a minimum, consider the mix of compensation (i.e., fixed vs. contingent, short-term vs. long-term, accounting or stock price-based vs. non-financial-based). In your opinion, does the compensation program motivate executives to achieve strategic success?

7. Overall, the increase in net loss was primarily due to the lower-than-expected sales price and the increase in both marketing and fulfillment expenses.

Q1) Assess the product-market strategy and financial strategy Massey pursued through 1976. Where possible, compare Massey’s strategy with those of its leading competitors.

3. What is your evaluation of Iridium 's organizational design? What changes could you have made to increase the probability of Iridium 's success?

f) To evaluate the material misstatement in the accounts, I think both of the consolidated income statement and the three financial statements are useful. We need to use the information properly from all the financial statements. However the consolidated income statement is the most useful one. If there is a significant change in an account balance comparing with preceding two years, the auditor will examine whether there a material misstatement exists. For instance, the bad debt expense as a percent of net sales in 2011, 2010 and 2009 are 0.56%, 0.70% and 0.69%, respectively. There should

Q3. Do you agree with Mr. Clarkson’s estimation of the company loan requirements? How much will he need to finance the expected expansion in sales to $ 5.5 Mil. In 1996 and to take all trade discounts?

In order to find out the factors that caused the less actual quarterly income, we did analysis on variances. Sales variance, production cost variances and overhead variances are calculated as follows:

3. Conduct an analysis of Williams’ sources and uses of funds during the first half of 2002. How do you expect these numbers to evolve over the second half of 2002? What is the problem facing Williams? How did it get into this situation? How has it tried to address the problem it is facing?

B) How well has Berkshire Hathaway performed? In the aggregate? In its investment in Scott & Fetzer? In its investments in earlier purchases of GEICO stock? In its investments in convertible preferred securities?

To make further comment we need to investigate further by looking at industry, competitors and economy. There may be other factors causing this ratio to decrease such as a general decline gross margin profit in retail sector affecting all companies, high inflation causing less demand, increasing competition etc. We should do further investigation to make further comment.

3. What strategies could Adesemi have applied to overcome its operational problems once they occurred? What strategies might the company have applied prior to its investment?

33 8. What strategic issues need to be addressed? 34 9. External environmental analysis 35 10. Internal environment analysis 60 11.

(ST-1) the Calgary company is attempting to establish a current assets policy. Fixed assets are $600,00, and the firm plans to maintain a 50 percent dept-to-assets ration. Calgary has no operating current liabilities. The interest rate is 10% on all dept. three alternative current asset policies are under consideration: 40, 50, and 60% of projected sales. The company expects to earn 15% before interest and taxes on sales of $3 million. Calgary effective federal-plus-state tax rate is 40%. What is the expected return on equity under each alternative?

Because there was a lower point of sales for Home Depot for 2007, there had to be a lower net earnings, taking it lower to the break even point. So, with the lower earning, there had to be a lower margin of level for Home Depot if they did not change their cost structure.

The company has a poor cost structure in some areas, hence a decline in the performance of sales in certain regions.