Financial Management Homework

There are a couple of concerns with Competition Bikes Inc., ProForma for year 9. The first concern is the amount of money that is allocated to research and development. For the previous three years, they have been all over the board with their budgets. The sixth year was $71,460, the seventh year was $98,280, and the eight year was $82,284. This is concerning that the budget has fluctuated so much. In the ninth year they have allocated $85,861. This budget line item should be analyzed so there is not so much variance in the budget between year to year.

There are numerous alternative investment options out there, and the one that I am interested in the most is gold. Why gold? Well, before I came to America to study, my first impression on the U.S. is the historical event Gold Rush that happened in 19th century. The discovery of gold nuggets in the Sacramento Valley in early 1848 sparked the Gold Rush, arguably one of the most significant events to shape American history during the first half of the 19th century. As news spread of the discovery, thousands of prospective gold miners traveled by sea or over land to San Francisco and the surrounding area; by the end of 1849, the non-native population of the California territory was some 100,000. A total of $2 billion worth of precious metal was extracted from the area during the Gold Rush, which peaked in 1852. This is the “American Dream”, and everyone who came to the U.S. has an American Dream. Therefore, in this final project, I decide to talk about this alternative investment option: gold.

The risks that need to be put in the spotlight for the CFO are the following:

3) Sheffield Company had the following information taken from its 2006 adjusted trial balance: Sales, $400,000; Sales

John has difficulties with money management because his mother dealt with finances when she was alive, and when he was homeless he only had to manage a few dollars at one time. For John, his values impact his ability save and manage money. When John was homeless he did not value saving his money because he did not have any money to save. Learning how to put money into a savings account, writing checks, paying bills and making a budget will be important when he gets a job.

An analysis was conducted on the financial statements of Custom Snowboards, Inc. for consideration of a 5-year-loan with our institution. Financial statement line items, risk assessments, and ratios were all examined with pertinent items that need to be considered are included in this report, and if granted the loan, can track the progress of the company’s ability to repay the loan.

Tens of thousands of young millennials are aggressively allocating their savings into bullion at the moment (silver most often favored). Many bullion buyers believe physical precious metals are an undervalued asset class which will outperform others in the years to come. Bullion buyers see physical precious metals having a near risk-less downside with tremendous future upside in terms of potential value appreciations ahead.

If there is a reduction in the benefit plan, there is a decrease in the defined benefit obligation. The amount if past service costs is calculated by an actuary, and add or deduct to the beginning balance of the obligation for calculation of interest cost for the year.

In 1999, the CEO of Companhia Cervejaria Brahama (largest brewer in Brazil) was considering the bit for Antarctica (second largest brewer in Brazil). The purpose for this merger was to exploit the potential synergies and avail the economies of scale. The secondary motive was to raise the barriers to entry to the industry

e. Compare and contrast your findings in parts c and d. What recommendations would you give M regard to investing in either of the two assets? Explain to Mary why she is better off using beta rat standard deviation and coefficient of variation to assess the risk of each asset.

According to Buchbinder & Shanks (2012, p. 204), cash budget defined as “the necessary step that allows the organization to determine how to optimize the value of the cash being generated by its operations. More interestingly, this also defined as a forecast of cash inflows, cash outflows and net lending and borrowing needs for the months ahead”. From the point of what I understand the discussed definition of a cash budget, it looks like similar to operating budget however, there is a certain difference. A cash budget is simply a forecast of the operating budget. It looks both cash inflows and outflows as well as lending and borrowing needs in an organization.

The article, Why is the gold price falling and where is it going next? discusses the decrease of the gold price in the world market due to several factors including, the US federal reserve increase in interest rates, increase in the US dollar currency, Greek crisis and the China market slowdown. The US Federal Reserve plans to raise interest rates this year due to the improving American Economy. This means investors have other sources to generate higher income rather than investing their money into gold. The US economy is rapidly improving leading to the increase of the US currency. Prices of commodities such as gold will drop as the US currency increases, due to gold being traded in the international markets with prices quoted in the US currency. As the US dollar rises, consumers have less buying power and commodities become more expensive, muting demand and driving commodity prices lower. On the other side, investors in the Greek crisis are holding riskier investments with more profit due to the government bonds issued by Spain, Portugal and Italy earning higher rates causing the gold market to suffer. Furthermore, the slowdown in the Chinese market is a big blow to the gold market as China is the world 's largest consumer of commodities. The gold price slumped by more than 4% to $1086 an ounce overnight forcing the traders to sell 57 tons of gold in the Shanghai market. The sell off passed the $1100 barrier for the first time in five years causing the

Interests in stocks, gold and oil contracts are dependably thought to be the best wellspring of interest in developing economies. Speculators of Pakistan are differentiating their speculation into gold, on the grounds that such speculations regularly have had a converse association with stock exchange developments. Investment in the gold is considered as the most secure investment today. There are numerous reasons behind that but since of old customs and traditions gold is vital in this part of the world. Gold is vital thing in any marriage work particularly in South Asia.

|US |UK |US |UK |US |UK |US |UK | |Wheat (bushels/man-hour) |4 |1 |4 |1 |4 |1 |4 |2 | |Cloth (yards/man-hour |1 |2 |3 |2 |2 |2 |2 |1 | |

The economic interest theory of regulation assumes that regulation is created to benefit the private interests of particular groups but at the expense of the general public. The economic assumption is that people will seek to advance their own self-interest above any others and will do so rationally (Deegan 2006). For example, Levine (2006) states that airline regulation has often been used as a good example of economic interest theory. The airline industry was a competitive industry which was subjected to price and entry regulation