Mgmt 640 Financial Decision Making for Managers Midterm Exam

The focus of EEC’s investment of the purchasing of the supplier is to cut down on

Variable Costs. Overall the company had favorable variances in variable costs, excluding the efficiency variance. As expected, since Competition Bikes sold less than predicted, their related costs: direct materials, direct labor, manufacturing overhead and variable expenses were less than budgeted amounts showing a favorable variance. The labor and overhead revenue and spending variances however, showed unfavorable due to actual output despite the changes to the flexible budget. With the prediction of decreases costs based on sales, these costs should have also decreased. There is no further information on why these rates were high, Competition Bikes will need to look into those expenses.

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.

Prepare an 8- to 10-page fundamental financial analysis (excluding appendices, title page, abstract, and references page) that will cover each of the following broad areas based on your chosen company’s financial statements:

4) The purpose of the committee is to find the best possible solution to tackle the financial crises faced by the university. However, it is not something that is guaranteed to be accepted by the President. The president will consider the report of the committee as the solution to the financial crises but the president does have the power to override, make suggestions or modify the solution as he see fits. It was wise to appoint her assistants as the vice provosts, to the task force to ensure that the president had easy access to information and minutes of the meetings. While the intent is to lower the cost of fringe benefits, the president does not want to

There are two exams in this course: a midterm and a final. The midterm will cover material from Modules 1–4 and the final will cover material from Modules 5–8. Both exams are closed-book/closed-notes and must be completed 1 hour and 30 minutes of uninterrupted time.

It is working efficiently within its resources and does not require any additional funds from outside resources for its operations. Its plan to pay off its debt by applying the company’s profits to repay long term debt is a good plan for the company to lessen incidental expenses that relates to it. The company should regularly review its performance and match it against the industry mark in order to ensure that it is functioning at an optimum and effective level which is beneficial to its

For Question 5, fully address management’s concerns as part of your written analysis using the new or the previous calculations to support your recommendation/explanation. As part of your written analysis, include how management might use these calculations to make decisions. The written analysis should be supported by at least 2 scholarly sources, excluding the textbook.

3. What are each of the financial statements commonly called in for-profit health care organizations and in not for-profit care organizations?

The exam is an individual effort and should not be discussed with others. Send your completed exam to your assignment folder by the last day of class. The purpose of the exam is to demonstrate your understanding of both written and discussion materials presented in this course. If you have any questions concerning this exam, please send me an e-mail. I will remove your name and post the question and response in the main news group.

• Net income for the year totaled $2.6 billion, or $6.72 per share, inclusive of $2.1 billion, or $5.36 per share, resulting from a deferred tax asset reversal, compared with 2013 earnings of $206 million, or $0.54 per share;

Some of the significant changes I found on the income sheet were revenue which decreased by 8 million dollars in 2015 compared to 2014. SG&A expenses increased by .9% for the year. How-ever gross profit decreased by .3% in 2015. Also net income for the year decreased by -2.5% per-cent.

I will select five of the following questions for the mid-term exam. You should be able to answer all of them. You may work together in study groups and analyze and answer the questions. Obviously, the exam will be an individual effort.

Complete Chapter 12 Closing Case at the end of the chapter and submit answers to your instructor.

Which of the following is NOT normally regarded as being a barrier to hostile takeovers? (Points : 5)