Rah Industries Case

Based on the income statement and balance sheet, we can get the cash flow statement for year 2002, 2003 and the first quarter of 2004. From the cash flow, it is obviously see that the main use of fund is for operations, materials purchasing, wages payment, interest payment etc. While the source of fund is from financing, bank loan and trade notes payables.

➢ Has to do what: To decide to either confront Gilman and change what she perceives as sexist and/or racist practices or to leave the company

4. Did the cash flow from operations cover both the capital expenditures and the firm’s dividend payments, if any?

In this task I’m going to analyse the figures on cash flow that I created in P3 and justify why you think the business might have problems also provide range of solutions.

Date: Name: ID: Answer the following Questions: 1. Tower Inc. owns 30% of Yale Co. and applies the equity method. During the current year, Tower bought inventory costing $66,000 and then sold it to Yale for $120,000. At year-end, only $24,000 of merchandise was still being held by Yale. What amount of inter-company inventory profit must be deferred by Tower? A. $6,480 B. $3,240 C. $10,800 D. $16,200 E. $6,610 2. All of the following statements regarding the investment account using the equity method are true except A. The investment is recorded at cost B. Dividends received are reported as revenue C. Net income of investee increases the investment account D. Dividends received reduce the investment account E.

A company had a beginning balance in retained earnings of $44,500. It had net income of $7,500 and paid out cash dividends of $6,000 in the current period. The ending balance in retained earnings equals:

The statement of cash flows answers the following questions about cash: (a) Where did the cash come from during the period? (b) What

The cash flow statement consists of three parts: cash flows provided by operating activities of $13,831, cash flows provided by investing activities, and cash flows provided by financing activities effect of exchange rate changes on cash and cash equivalents of ($204)

When Fabletics' inexpensive, yet high quality, workout clothing appeared in 2013, no one really expected the athleisure brand co-founded by Kate Hudson and JustFab to have a $150 million year by 2015. Leggings sold by subscription is certainly a unique business model, but one that any woman who prefers wearing comfortable, flattering clothing as often as possible would say the concept is fabulous. Obviously, Kate Hudson knew exactly what women want; enough leggings to wear them everyday at still look put together. Now, Fabletics sells swimsuits and dresses that are stylish enough to wear out on the town. Made of the same fabric as Fabletics' leggings, the dresses tuck everything in, therefore, no spanx needed.

CEO John McDonough decided on making acquisition of Calphalon and Rubbermaid, which influent shareholders’ confidence.

2. The single most important assessment in Cash Flows in the “cash flow from financial operations” because it provides an overlook on management’s operating decisions. In this case, we can see that Reebok had reported positive cash flows from operations, for example in 1990 reported $39.2M while LA Gear reported a negative (40M) the same year. Looking closely, we can see that LA Gear was retaining huge quantities of inventory while at the same time, not collecting enough money from customers (A/R). Hence we can conclude that for Reebok, operations was a source of cash but on the other hand, LA Gear was quite the opposite: operations was a use (or drain) of cash. Turning our attention to “cash flows from financing activities” we can see that more differences. Reebok is borrowing little money, instead it is paying loans. LA Gear is borrowing huge quantities of money, for example in 1990 it borrowed $56M. As a result of this, we can see where the money to finance

If A/P increases from one year to the next, that means that the difference between the two amounts is cash that was available for current use. That is, instead of paying cash, whatever was purchased was put on an account. On the other hand, A/R is considered a use of cash because for every dollar that should be coming in to the company from those who owe the company money, that cash has been delayed for a collection time period. Therefore, the company does not have the money to use for its own operations.

2. At the end of its first year of operations, Matlocke Company has total assets of $2,000,000 and total liabilities of $1,200,000. The owner originally invested $200,000 in the business, but has not made any further investments or taken any withdrawals. What is the first year 's net income for Matlocke Company?

I would let a day pass and then request another meeting with Dinah indicating a sincere desire to work through the matter and the need to come to an understanding and agreement of how to work together and with the team moving forward. At that meeting, I would start off and thank Dinah for bringing the Partco matter to my attention. I would communicate with Dinah that I respect her strong feelings and beliefs behind her actions regarding the Partco matter but indicate that if she felt that strongly about the action step I planned to take, that she should have spoken again with me or another manager within our company instead of contacting the customer direct. She should know that by going directly to the

Term/Jargon that I am unfamiliar with  Billing Terms to retailers (pg. 2, middle of paragraph 2)     My guess of what it means  Conditions attached to a sale?    