Peyton Approved was formed a little over a year ago in the kitchen of the owner of a wonderful Airedale named Peyton. Peyton has severe allergies and cannot eat dog treats from the store. Peyton Approved sells homemade dog treats that are all natural and hypoallergenic. The company’s president (also Peyton’s owner) started selling these treats out of her home to other dog owners who wanted all natural dog treats for their dogs. Due to more demand of the all natural, hypoallergenic dog treats, Peyton Approved needs more room to make the treats and reach more dog owners. Peyton approved feels moving into a storefront will reach more dog owners who want their dogs to have all natural dog treats. Financing will provide Peyton Approved the …show more content…
Operations is separate from the accounting department. The employees in operations handle promoting the products. Also, Operations is in charge of making the products. The company’s accounting system is handled in-house by the cashier and the bookkeeper and by the accounting firm hired to handle the businesses’ financial reporting. The cashier handles all sales through the register. The register is balanced against the drawer each night by the bookkeeper and a deposit made the same day. The bookkeeper gives the accountant the drawer receipts and bank receipts for journal entries and later reports. The accountant checks all cash received and payments made against bank statements and collected paperwork. There is not a single person assigned to do all duties.
Results of Operations and Strengths and Weaknesses of the Company
If you compare bakery sales in July to bakery sales in September, it shows a 66% increase in sales in just two months. Peyton Approved uses its equity to finance the business than taking out loans. It has a .36% Debt to Equity ratio. The best ratio for the business is the profit margin. In three months the profit margin for Peyton Approved is 53.4%. The company just added a product line of hypoallergenic shampoos. It has been selling these products for one month and the company only turned the product over once during that month. At this time it does not look like adding these products to sales is
It follows a strong internal control system for cash. A separate person is appointed to approve all purchases, payroll and any disbursement of cash. At the end of each month company prepares bank reconciliation statement to reconcile cash book balance and bank statement balance. Company keeps proper inventory record system. All these prevent frauds and ensure smooth functioning of the business.
My dog Peyton has severe allergies , which affected him to not use any store – bought dog treats. Peyton allergic reation to dog treats had inspire me to start my own business to make all natural and hypoallergenic dog treats for any dogs who suffer from severe allergies . “ Peyton Approve “ company was established in 2005 and has been around 10 years with booming sales . To expand my doggy treat business to be moresuccessful, it would be best to open up a dog treat bakery . The only problem that’s holding me back from opening up the bakery is not having enough money . This memo will discuss the importants of why my business is ready to receive it’s own bakery by analyzing the accountant reports to show in numbers of how well my store can handle paying expenses , debts , while operating a business .
• Net profit margin has been negative and no major patterns over the 9 year period on net profit since the trend of the industry is based mostly on economic factors, and whether or not they secure contracts. Due to high percentage of COGS they are only left with a net profit of $980 or
Founded in a kitchen at home, Peyton Approved comes from humble roots with only your pet’s needs in mind. Although an up-and-comer to the dog food industry, Peyton Approved has begun looking at ways to grow and diversify. The demand is increasing and in order to keep all markets satisfied, Peyton Approved wants to look a different variety of treats. The purpose of this memo is to request a loan so that the company can expand and continue growing. The accounting system used by Peyton Approved will be detailed in order to show the effectiveness when managing their finances. Furthermore, the memo will address any strengths and weaknesses and what opportunities may be available in order to continue growing.
The company started off producing 20,000 units of mountain bikes. We did not change the production quantity. Last year our forecast sales were 24,000 when we only sold 19,866; therefore we thought it would be best to leave production at 20,000 bikes. Having excess inventory, we concluded that 20,000 units should be enough considering our quality has not changed and our advertising will not increase the sales dramatically. Although we had the choice to produce as much as 30,000 units, we felt as though we did not have sufficient money to increase production. We were interested in allocating the money towards marketing as opposed to production. We realized that without awareness, no matter how many units we make, sales would be inefficient.
Managerial accounting underlines on future choices and it is not an obligatory practice. It gives data to the association's insiders in connection with performance assessment, inspiration, course and control. The opportuneness of report is a noteworthy prerequisite and accentuation are set on the significance of things in choice making (Needles, Powers and Crosson, 2010). Administrative bookkeeping gives a report on clients, items, workers and divisions. Also, it is not an absolute necessity for administrative bookkeeping to take the proper accounting rules.
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
Nutracuticals is an online direct-to-consumer supplier of dietary supplements for women. The company based in Miami, FL offers vitamin supplements from over 50 brand names/suppliers. This firm is currently breaking even, and the decisions made over the next three phases of the business, each three years spanning from 2013-2021, will dictate the firm’s profitability. The decisions will be based on financing options and resources (cash) available to the firm in each phase. Decision-making will be based on the impact to the business metrics involved including: sales, EBIT, net income (profit), free cash flow (FCF), and the total firm value. For the purpose managing inventories, growth, and adding value to the firm, as CEO I have chose to exercise theses three phase options, to follow.
Through Honest Tea’s three years of business, their business shows some positive signs of a promising company. Since Honest Tea is a start-up company, it is understandable that their net income is in the negatives since their expenses will outweigh their sales, but as the three years have gone on, their net income has improved, and even increased by 74% from 1999 to 2000 from -$882,359 to -$228,879, which shows a positive sign of growth. Honest Tea is also very capable to pay back their short term liabilities since their current ratio is a high 5.92. Their profit margin has also increased over the three year period from -71.7% to -36.3% showing positive
Define the Issues Chef’s Toolkit has exhausted all of their financial resources trying to develop their product. The owner, Peter Jeffery, is seeking external investment to fund the launch of his product, and the potential investor, Dale Reid, has asked for projected financial statements for the company’s pessimistic, expected, and optimistic projected sales for the first year of operation ending July 30, 1995. Analyzing the Case Data Fragmented information was given in the case, along with a balance sheet and a production schedule for the expected sales of 10,000 units. There was no statement of cash flows, income statement or any information about their cash account or their accounts payable
Once this process is finished it is then up to the store manager to maintain general control. They must then oversee stock when it arrives, handle communications with headquarters and they must use a paper and clipboard system to track employee contact information, cash deposit logs and the arrival of goods.
This firm is encountering diminished interest of about all the agricultural products, yet the Universal Harvester reel deals were down more than 70% when contrasted with the earlier year. Our combined gross benefit expanded as a rate of net deals from 24.1% in 2014 to 25.0% of net deals in 2015. This expansion is to a great extent because of cost-cutting measures and effective utilization of stock, basically in our agricultural products segment. AWM, Inc. merged working costs expanded by 4.6%, from $7,060,00 in 2014 to $7,388,000 in 2015. In order for a tremendously in 2016, the operating income will have to change first. For instance, AWM’s has in operating income of $-403,663, so how does they change this negative into a positive? The answer to this question is that they can increase the number of units that’s sold, which will change the contribution margin. Within this change, this will bring up a decision on whether or not to advertising will increase or decrease the sale. Similarly to operating income, the variable cost can be change as well.
Analyzed, examined, and interpreted account records, compiled financial information, and reconciled reports and financial data
Responsibilities – Receiving and paying accounts, analysing reports and balance sheets, prepare financial statements, computing taxes and calculating income, developing budgets and financial goals and projections, collecting and entering data, payroll, etc.
In a business, there are many important tasks a manager and his/her employee’s need to uphold too. One of the most important processes while running a business is its operations management. Operations management is the fundamentals of managing and delivering the production process of all goods and services with in the business. This refers to all the activities, responsibilities, processes, functions and activities that are dedicated to the operation functions of the facility. The sole owner of the business must ensure that all goods and services are properly accounted for. One of the most fundamental ways a manager can monitor their goods and services properly is through operations management.