Note, Bank 247, Inc Case Study

SUMMARY OF STUDY OBJECTIVES 1Identify the sections of a classified balance sheet. In a classified balance sheet, companies classify assets as current assets; long-term investments; property, plant, and equipment; and intangibles. They classify liabilities as either current or long-term. A stockholders' equity section shows common stock and retained earnings. 2Identify and compute ratios for analyzing a company's profitability. Profitability ratios, such as earnings per share (EPS), measure aspects of the operating success of a company for a given period of time. 3Explain the relationship between a retained earnings statement

Account W/P Common Common # Title Ref. Balance Size Balance Size Amount Percentage REVENUE 40000 Sales 246,172,918.44 102.33% 245,213,452.88 106.40% -959,465.56 -0.39% 41000 Sales Returns 4,497,583.20 1.87% 13,600,220.89 5.90% 9,102,637.69 202.39% 42000 Warranty Exp 1,100,281.48 0.46% 1,158,128.47 0.50% 57,846.99 5.26% Net Sales 240,575,053.76 100.00% 230,455,103.52 100.00% (10,119,950.24) -4.21% EXPENSES 50000 COGS 141,569,221.61 58.85% 130,246,645.26 56.52% (11,322,576.35) -8.00% Gross Margin 99,005,832.15 41.15% 100,208,458.26 43.48% 1,202,626.11 1.21% GA-7.4

BALANCE SHEET |Dec 1990 |Jan |Feb |Mar |Apr |May |June |July |Aug |Sept |Oct |Nov |Dec | |Cash |175 |556 |724 |175 |175 |175 |175 |175 |175 |175 |175 |175 |175 | |Accts receivable |2,628 |958 |234 |271 |270 |250 |250 |270 |1,603 |3,113 |3,580 |3,982 |3.063 | |Inventory |530 |948 |1,355 |1,749 |2,157 |2,564 |2,971 |3,365 |2,904 |2.314 |1,549 |697 |530 | |Net P/E |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 | |Total Assets |4,403 |3,533 |3,383 |3,265 |3,672 |4,059 |4,466

| |Net Operating Income |$6,600,000 |$12,600,000 |$15,000,000 |$7,800,000 |$3,000,000 | | | | | | | | |Taxes |($2,244,000) |($4,284,000) |($5,100,000) |($2,652,000) |($1,020,000) | |Net Operating Profit After Taxes |$4,356,000 |$8,316,000 |$9,900,000 |$5,148,000 |$1,980,000 | | | | | | | | |Net Income |$4,356,000 |$8,316,000 |$9,900,000 |$5,148,000 |$1,980,000 | |Year |Units Sold | |Price Per Unit Year 1 - 4 | |1 |70,000 | |$300 | |2 |120,000 | | | | | |3 |140,000 | |Price Per Unit Year Five | |4 |80,000

Complete an income statement, balance sheet and statement of cash flows for 2011 assuming that sales projects were 20% lower

A. Compared to similarly weighted portfolios Javier’s bond portfolio is lower, but he could get rid of a few higher expense bonds and reinvest into bonds with lower expenses. Javier’s lower overall expense level is due to his large stake in Fidelity Strategic Income with 28% of his portfolio invested. His investment in Pacific Advisors Government secs A and Federated Municipal High Yield hold high and above average expense ratios. Cutting these two out of his portfolio could further decrease his total expenses if his money is reinvested properly somewhere else. Either reinvesting into different bonds or into stocks could result in his desired outcome of lowering the total

Determine which expenses are mixed and, by use of the high-low method, separate each mixed expense into its variable and

During 2012 sales on account were $145,000 and collections on account were $86,000. Also, during 2012 the company wrote off $8,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $54,000. The change in the cash realizable value from the balance at 12/31/11 to 12/31/12 was (Points : 2)

10,861.31 Salaries and Wages 12 7,736 7,736 7,736 7,736 7,736 7,736 7,736 7,736 7,736 7,736 7,736 7,736 Employee Related Expenses 15% 1,160.35 1,160.35 1,160.35 1,160.35 1,160.35 1,160.35 1,160.35 1,160.35 1,160.35 1,160.35 1,160.35 1,160.35 Direct Operatings Expesnes 3.60% 903 966 1,029 1,092 1,218 1,280 1,406 1,531 1,531 1,280 1,154 1,029 Utilities & Telephone 3.40% 853 913 972 1,031 1,151 1,209 1,327 1,446 1,446 1,209 1,090 972 Property Insurance 1.50% 376 403 429 455 508 533 586 638 638 533 481 429 Admin Expenses 1.70% 427 456 486 516 575 604 664 723 723 604 545 486 Repairs & Maint 1.00% 251 268 286 303 338 356 390 425 425 356 321 286 Advertising & Promotion 2.00% 502 537 572 607 677 711 781 851 851 711 641 572 Property & Related Taxes 2.20% 1,924 1,771 2,194 2,730 Inventory 532.20 44 44 44 44 44 44 44 44 44 44 44 44 Loan Pymt $1,836.20 1,836 1,836 1,836 1,836 1,836 1,836 1,836 1,836 1,836 1,836 1,836 1,836 Total Outflows: 25,550 24,518 25,411 28,075 28,106 28,981 32,961 32,552 32,552 31,712 27,196 25,411 Beginning Cash Balance 47,828 47,374 49,695 52,866 55,117 60,858 67,432

After all closing entries have been posted, the revenue account will have a balance of

Working Capital is again in the red zone, dropping more than 75% from FY09 to FY10. However, the historic trend for the company is not very impressive, with working capital dropping as low as -$3 billion. The Operating Cash Flow Ratio is somewhat more reassuring, standing at 18.13 in FY10 from 14.67 a year earlier. This implies that for every dollar of current liability, the operations are providing $18 of revenue to cover the expense. However, operations are not primarily meant to cover just short term obligations, but also long term costs. Thus it cannot be justified that operations are very adequate to meet ST obligations.

To find the cash flow to creditors, we first need to find the net new borrowing. The net new borrowing is the difference between the ending long-term debt and the beginning long-term debt, so:

Opening: " TD Bank, America's most convenient bank" everyone has heard of that slogan before. TD bank stands for Toronto- Dominion Bank. The TD banks are not an international company; they are located in the United States and in Canada. TD Bank is one of the largest banks in the United States and provides their customers with a full range of retail, small business/ commercial banking products and services at thousands of convenient locations. Social reasonability is something very crucial in a company, without social responsibility your company would not have the success it does nor would it be looked at in the same light it is now. What is social responsibility? "The idea that companies should embrace its social responsibilities and not be solely focused on maximizing profits. Social responsibility entails developing businesses with a positive relationship to the society which they operate in." For example somebody who has an objection to drinking alcohol wouldn't want to invest in a liquor store.

The additional assessments of short, medium, and long term outcomes provide the bank with a way to align outcome measures with talent management strategies and to determine which practices and processes are reinforcing the strategy. The identification of these assumptions also helped to shape the vision for the future integration of talent management. The assumption of internal coordination and integration had always been an explicit goal. (Goldsmith and Carter, 2010). Stating it as a necessary precondition to achieve the organization strategy increased the awareness of some of the difficult challenges, such as tricky coordination, gaps, redundancies, unstated or unclear requirements and other common problem areas. As a result, the logic map became the foundation of a business case to improve the overall talent management process and key practice areas. For example, one of the metrics in the health of the bench index relates to the quantity of external talent flowing into the bank. This metric is presented in the context of potential causes and the impact on other strategic metrics, such as the ability to build innovative products. (Goldsmith and Carter, 2010).

Computed: PPE = $6876M / $21,695M = 31.7% Intangible assets = $4041M / $21,695M = 22% Computed: $3,374M / $4,841 = 70% Computed: Accounts payable = $4461M / $13,021M = 34.2% Long-term debt = $2651M / $13,021M = 20.4% Computed: Long-term investments = $8214M / $22,417M = 36.6% Current assets = $7171M / $22,417M = 32%