Essay about Leslie Fay Case

Nonetheless, as we all know the recession and economic changes affecting the women’s apparel industry during late 1980s and early 1990s. As a consequence, it is an indicator that Leslie Fay suspected to overstate its inventory in order to overstate its current asset. According to Account Receivable and Inventories two accounts, there is 10.8% increase in Leslie Fay’s current asset from 1987 (60.9%) to 1990 (71.7%). As far as I can see, Account Receivable and Inventories are the two main accounts which caused an unusual and inconsistent gain in total current asset in four years. Thirdly, there is unusual gain in PP&E account from 1990 (6.8%) to 1991 (9.9%). However, other accounts under Current Asset such as Inventories and Accounts Receivable started to decrease in 1990 and PP&E is the only account that increased 3.1% in one year. Also, I cannot find any equipment and estate purchased by Leslie Fay from 1990 to 1991. As a result, I suspect it might have fraud happened in Leslie Fay. Additionally, there is an unusual decrease in Long-term Debt account from 1990 to 1991. More specifically, the Long-term Debt decreased less than 10% from 1987 (38.2%) to 1990 (29.6%). While, it decreased 8.3% from 1990 (29.6%) to 1991 (21.3%) in one year. As far as I can see, this is an unusual and inconsistent decrease of Long-term Debt and it indicated Leslie Fay suspect to understate its

The company’s increase in inventory (illustrated on the statement of cash flows) rose after 1970 and culminated by a drastic increase in 1973. This increase in inventory (especially in 1973) appears to be heavily financed by short-term and long-term borrowing rather than the typical accounts payable. This is a bit unusual and in 1973 (when they acquired the greatest amount of debt equity, their accounts payable decreased. Their sales were not sufficient to offset the large outflows of inventory related costs. Furthermore, Grant’s decentralization was also a cause of their financial woes because rather than corporately controlling credit extension and credit terms, they allowed each store manager to set their own policies (and manipulate them as they desired). This disastrous policy imploded in 1975 when the company had to make a $155.7 million provision for bad debt expense. So not only did the company have substantial debt and bad debt to equity ratios, they were forced to write off about 8.8% of their total sales from 1975.

Prepare common-sized financial statements for Leslie Fay for the period 1987–1991. For that same period, compute for Leslie Fay the ratios shown in Exhibit 2. Given these data, which financial statement items do you believe should have been of particular interest to BDO Seidman during that firm’s 1991 audit of Leslie Fay? Explain.

In order to evaluate the NPV of the first-generation phone (project) ignoring the possibility of investing in the second-generation phone (project), we projected the free cash flows (FCF) of the first-generation phone through 2001 to 2006. The total FCF was calculated as EBIT plus deprecation and subtract any capital expenditures along with change in net working capital. With risk-free rate of 10%, comparable firms’ beta of 1.2, and market premium of 4%, the appropriate discount rate for the project was 14.8% using CAPM. Sum

This course focuses on ways in which financial statements reflect business operations and emphasizes use of financial statements in the decision-making process. The course encompasses all business forms and various sectors such as merchandising, manufacturing and service. Students make extensive use of spreadsheet applications to analyze accounting records and financial statements. Prerequisites: COMP100 and MATH114 / 4-4

Arthur Andersen (AA) contributed to the Enron disaster when it has failed to the management by failing to have Enron establish and enforce its own internal control. There has been flaws to AA‘s internal control. There has been assumption that AA partners were too motivated by revenue recognition thus, overlooking several criteria when providing their services to Enron. Additionally, AA also recognised the retention of audit clients as vital and a loss of any clients would be disadvantaged to an auditor’s career. In AA internal control, the person who is able to make most of the decisions is the person who is most concerned about the revenue or losses of the client’s company.

Lillian McConnell lies in a family cemetery plot at Sunnyside. Next to her are her parents, Carl Hetzel McConnell (11/3/1888-8/23/1970) and Lillian Whanita McConnell (9/15/1895-10/13/1981) and her two young brothers both named Carl, one dying in 1922 the other in 1929. What a tragedy for the parents to lose three children at such a young age. Two year old Lillian, known as Ellen, lost her life when a car driven by Reverend C. M. Kilgore, a Baptist minister attending a Baptist convention in Long Beach ran his engine in reverse. When he started backwards he knocked young Ellen down as she was waiting with her mother at the foot of Pine Avenue.

1. Please conduct a financial ratio analysis using the data in Exhibit 2. How do the results reflect different strategies pursued by the 4 firms?

When I was young, I got up early in the Sunday morning every weeks, because every Sunday morning were very special time to me and my sisters. That time, a little girl always appeared on TV with straw hat on red hair, freckle face and beautiful life of nature. Although I knew that her name is Anne, I didn’t know who is writer. Generally, writer’s name was not important to me, because Anne’s beautiful lsland life and her freedom were impact of my childhood. But now, I realized that Anne and Montgomery must be same person. Lucy Maud Montgomery hadn’t difficultly writing Anne’s story, because Anne is Montgomery herself in terms of hardships of childhood, girls dream, and heroine in the world.

This case explores the problems managers face when assembling a team. David Fletcher, is an overworked portfolio manager of the Emerging Growth Fund at Jenkins, Fletcher Partners (JFP), an investment management firm in New York. As an individual, his superior performance throughout his career has earned him an outstanding reputation. Starting out as a clerk, he rose through the ranks of Wall Street to eventually manage the two most aggressive mutual funds at a major investment firm. Success at this firm only added to his reputation and lead to his current role at JFP, a smaller firm with an informal culture. At JFP, Fletcher is challenged with the new responsibility of managing a team, in addition to managing his portfolio.

The company’s debt ratios are 54.5% in 1988, 58.69% in 1989, 62.7% in 1990, and 67.37% in 1991. What this means is that the company is increasing its financial risk by taking on more leverage. The company has been taking an extensive amount of purchasing over the past couple of years, which could be the reason as to why net income has not grown much beyond several thousands of dollars. One could argue that the company is trying to expand its inventory to help accumulate future sales. But another problem is that the company’s

Also, according to its leverage ratios, the company’s debts are not only very high, but are also increasing. Its decreasing TIE ratio indicates that its capability to pay interests is decreasing. The company’s efficiency ratios indicate that despite the fact that its fixed assets are increasingly being utilized to generate sales during the years 1990-1991 as indicated by its increasing fixed asset turnover ratio, the decreasing total assets turnover indicate that overall the company’s total assets are not efficiently being put to use. Thus, as a whole its asset management is becoming less efficient. Last but not the least, based on its profitability ratios, the company’s ability to make profit is decreasing.

Victoria Company is a large, successful retail merchandising company located in Australia. Jill Perry, one of your classmates, has an interview with the company for a position in the company’s finance group. In preparing for her interview, Jill has spoken with several MBS alumni who work at Victoria Company. Each told her that one item the person who conducts the interviews likes to assess is whether the applicant has a strong grasp of financial statements. Three of the items that the interviewer bases this assessment on are the applicant’s ability to: (1) locate specific information in the company’s financial statements, (2) explain in everyday language what a particular line item in the

This paper will seek to analyze the financial statements of the O.M Scott & Sons Company during the years 1957-1961, in order to provide readers with a thorough understanding of the various factors that may influence the future success of this business. Additionally, recommendations based on an analysis of their financial

"At 17 Leslie Hornby took hold of the world. At 21 she let it go, she was the original waif, a 60’s phenomenon a superstar. She was Twiggy" (Vogue). Leslie Hornby was the revolutionary woman who changed the idea of beauty in the eyes of the fashion industry and the entire world.