Salem Telephone Company Is A Regulated Utility Company

the characteristics of a few. Space costs were all paid to Salem Telephone. Salem Data Services rented

Cash Flows and Financial Statements at Sunset Boards, Inc. Income Statement 2013 2014 Net Sales $333,426 $406,427 COGS ($169,969) ($214,607) Gross Profit $163,457 $191,820 Expenses $33,425 $43,626 Depreciation ($47,980) ($54,230) EBIT $82,052 $93,964 Interest Paid ($10,442) ($11,954) Earnings Before Taxes $71,610 $82,010 Income Tax 20% ($14,322) ($16,402) NET INCOME $57,288 $65,608 Balance Sheet 2013 2014 Current Assets Cash $24,524 $26,056 Accounts receivable $17,378 $22,542 Inventory $36,570 $50,185 Total Current Assets $78,472 $98,783 Fixed Assets Net Fixed Assets $211,680 $264,021 Total Assets $290,152 $362,804 Current Liabilities Accounts Payable $43,344 $48,090 Note Payable $19,757 $21,571 Total Current Liabilities $63,101 $69,661

The company’s net profit has been growing over the past 3 years; it seems to have a stable, increasing trend. This could be a result of technological advancements within the cellular phone, television, and Internet industries; the endeavors of their competitors; Bell’s charitable efforts; as well as their expanding business.

Computer Business Consulting is a new company in formation that will provide a complete service the consultancy in computer information system and projects managements. The company functions will be services tutoring, training and documentation of systems and/or processes design, installation and maintenance of e-commerce functions for small business market. Computer Business Consulting also intends to evaluate the accomplishment of each customer and follow up to make changes to improve the

Customers must use the internet to fill out an online form to address their complaints or service needs. These forms are processed by employees in your department. Currently the turnaround time on any given form is between four to eight hours. This creates a number of other customer complaints. Project Call Center is designed to reduce this turnaround time by 75% by creating and staffing a call center in Tampa. Building acquisition, building renovations, building fit out, IT system upgrades, and hiring and training of staff are estimated to cost $8.5 million dollars. This $8.5 million dollars can be paid evenly in any two quarters in the next year. In addition, seven new employees will need to be hired at $40,000 burdened labor costs per year to staff the call center. Management of this project could easily be done with the current in-house staff. Most of the work of this project would be outsourced and will have minimal impact on day-to-operations.

You have been hired by a medium size (approximately 200 employees) widget manufacturing company to do a complete evaluation of their computer needs and make recommendations to them about an information system to support their business. Currently several of their support departments are using manual processes and they wish to automate their accounting and human resources business processes. They also want to harness the power of the Internet in their business.

3. Create a contribution margin income statement for Salem Data Services. Assume that inter-company usage is 205 hours. Assume commercial usage is at the March level.

Chaz Napoli, president, and Marvin Lader, CEO, of Datavantage are at a crossroads with their company: should they purchase XBR, a loss prevention software company, and expand their current niche of retail point of sales software, or should they stay focused on redefining the current software and expand on their current area of expertise. The amount of capital that will be needed for the acquisition will leave them vulnerable if the loss prevention software market does not develop as hoped. Knowing shrinkage is one of the leading areas of loss for retailers, with the largest portion being employee theft, the partners decided it was in the best interest for the company to move forward with the purchase.

Comcast is one of the largest video, broadband Internet, telephone, and cable service providers in the United States. The company is a member of the fortune 500 company as the largest and profitable companies. Comcast ranking number is 66 in the fortune 500 company and is in third place as the largest telecommunication company. In 2011, Comcast has grossed 37 million with a 9.6 profit increase compared to 2010. Before the company can decide to invest, it needs to develop a business analysis. The business analysis includes

Explains the impact of extraordinary important transactions on the company’s performance and positions for example BellSouth’s acquisition.

The business case presented focuses on insatiable demand amongst a growing population for a service built on dilapidated, poorly maintained infrastructure, against a backdrop of government deregulation in the telecoms sector. As of 1992, there were a mere 78k telephone lines for the 27m people living in 4.7m households (a population set to double over the coming 24 years), with users suffering success rates of just 25%. Demand was forecast to grow to 500k subscribers by 1996. The recent deregulation of the telecoms sector (via the break-up of TPTC into TPC and TTCL) and the formation of a regulator (TCC) had

To assist Prestige Telephone Company on making the decision of continue its subsidiary or not, this report provides an analysis of Prestige Data Service (the subsidiary) on the status quo revenues and costs, a prediction on its break even situation, as well as possible options to increase profit.

Salem Data Services was established after an agreement was reached between Salem Telephone Company and the state Public Service Commission. Salem Data Service is a computer data service, which performs data processing for Salem Telephone Company. They also sell computer services to other companies and organizations. Since Salem Telephone company was a regulated utility it drove the need for Salem Data Services to be a separate entity since it was an unregulated utility. Even though Salem Data Services had its pros the separate entity was a drain on Salem Telephone Company since it had not produced a profit from 2001 to the current year during the case study of 2004.

Appraise the results of operations of Prestige Data Service. Is the subsidiary really a problem to Prestige Telephone Company? Consider carefully the differences between reported costs and cost relevant for decisions that Daniel Rowe is considering.

In October 1988, Paula Perry, a research analyst for the brokerage firm Alexander and Ferris, was tasked to analyse the financial condition and performance of MiniScribe Corporation. The latter was a manufacturer of disk-drives for personal computers, and was rumoured to be experiencing cash flow and inventory problems. The objective of Paula’s analysis is to