Scandi Home Furnishings Case Kaj Rasmussen founded Scandi Home Furnishings as a corporation during mid-2007. Sales during the first full year (2008) of operation reached $1.3 million. Sales increased by 15 percent in 2009 and another 20 percent in 2010. However, profits after increasing in 2009 over 2008 fell sharply in 2010 causing Kaj to wonder what was happening to his “pride and joy” business venture. After all, Kaj has continued to work as close as possible to a 24/7 pace beginning with the startup of Scandi and through the first three full years of operation. Scandi Home Furnishings, located in eastern North Carolina, designs, manufactures, and sells Scandinavian-designed furniture and accessories to home furnishings …show more content…
Balance Sheets 2008 2009 2010 Cash $50,000 $40,000 $10,000 Accounts Receivables 200,000 260,000 360,000 Inventories 450,000 500,000 600,000 Total Current Assets 700,000 800,000 970,000 Fixed Assets, Net 300,000 400,000 500,000 Total Assets $1,000,000 $1,200,000 $1,470,000 Accounts Payable $130,000 $170,000 $180,000 Accruals 50,000 70,000 80,000 Bank Loan 90,000 90,000 184,000 Total Current Liabilities 270,000 330,000 444,000 Long-Term Debt 300,000 400,000 550,000 Common Stock ($10 par)* 300,000 300,000 300,000 Capital Surplus 50,000 50,000 50,000 Retained Earnings
Swan-Davis, Inc. (SDI) manufactures equipment for sale to large contractors. The company was founded in 1976 by Tom Stone, the current chairman, and it went public in 1980 at $1 per share. The stock currently sells for $15, Stone owns 14 percent of the shares, and other officers and directors control another 13 percent. The industry is cyclical, and competition is strong, so profits are some-what unstable. Tables 1, 2, and 3 provide historical balance sheets, income statements, and ratios for the company for the period 1994–1996, Table 4 provides industry average data for 1994-1996, and Table 5 provides one security analyst’s forecasted data for the company based on assumptions
Inflation erodes the purchasing power of a bond 's future cash flows. A rise in inflation will cause investors to demand higher yields to compensate for inflation rate risk. Also, prices will tend to drop because the bond will be paying interest with less purchasing power.
Retailing building supply stores have become a popular retail industry sector due to increased public awareness and the need of many homeowners for the home improvement products. Back in the 1970s, long before warehouse stores ruled home improvement land, do-it-yourselfers shopped at “home centers.” These 30,000 square foot stores offered cheaper prices and wider selection of products, about 25,000 more than local hardware stores and eliminated the extra trip to the lumberyard. The dependence of many of these retailers upon the homebuilding industry for much of their business has also been reduced and the warehouse superstores, such as Home Depot, have become more important. The smaller companies in the
Kirkland’s Inc. and Pier 1 Imports are among the major players represented in the retail home décor industry, where there is a constant demand to provide the right merchandising mix and marketing program for consumer attraction. However, in recent years there has been a decline in the retail home décor industry. Consumers have cut spending in anticipation of the continuing rise in gas prices, unemployment rates, interest rates, consumer debt and taxation. In the midst of a sluggish, unstable economy, both companies struggle to be profitable. In addition, the increased consumer spending in the fourth quarter for both companies does not
This assignment had to be written for the class of Management and Organizations at Stenden University, course IBMS, first year. We had a group of 6 and had to work it out together. We were enjoying getting into the world of IKEA, the world’s most furniture store on the market.
Despite being well-established, over the last three years, sales at Atherley Furniture Company have remained the same while profits have declined by almost 24%. Their chair division produces three different types of chairs, the Atherley, the Caledonia and the Parkdale. Each model has its own production plan and production costs. The increasing production costs, alongside the intense competition the company faces, have become a great cause of concern for John Atherley.
Please provide an articulate, concise, and theoretically sound answer. Answers need to be supported with examples from the texts and Exhibits. This may require some due diligence on your part. Please retype the question and your response.
The first would be that instead of capitalizing the $210,000 to set up displays to promote the line, these displays could have been recorded as an Advertising Expense. One of the IFRS criteria for something to be considered an asset is that the benefit must be reasonably measurable. When it comes to anything done for the purpose of advertisement or promotion, it is hard to measure the benefit and that is why this cost could have been expensed rather than capitalized. However, by recording this event as an expense this would mean that Athina’s net income would have been overstated by $210,000 and that is an undesirable outcome for the national chain.
Question 1: Describe the key aspects of Manufactured Homes’ business. Does the company have a viable business?
Question 1: Describe the key aspects of Manufactured Homes’ business. Does the company have a viable business?
The company that I have chosen for this assignment and project is Lowe 's Companies, Inc. Lowes strongly focuses on the mission statement “helping the customers to improve their homes”. The company started in 1921 as a small store in North Carolina. Great success and high demand of Lowe’s products led to an increase in the number of stores. By 1955, there were five more functional stores. Rapid growth took place around 1960s. Carl Buchan was one of the founders of Lowe’s, who died in year 1960. Exactly a year later in 1961, the company went public. This was the time when Lowe’s was given its name. Initially it was called North Wilkesboro Hardware Company. By 1979, Lowe’s established more than 50 stores in the United
The first company that will be analyzed is Home Depot. Home Depot's total assets increased to $40,518 million from $40,125, an increase of 0.9%. These figures, however, are lower than the value of total assets on the books for HD for the prior three years. The 2008 fiscal year was the point where Home Depot had the highest asset levels at $44.324 billion. The recession has been the biggest culprit for the decline in the size of Home Depot. All of the firms in the building supplies industry have a strong relationship between their sales and the strength of the housing market, as home purchases are a major impetus for home renovation projects. Home Depot's size declined with the onset of slowness in the housing market, and it is expected that its size will not begin to increase until the housing market recovers. Home Depot management has noted that there are signs of life in the US housing market, and that this should be taken as an encouraging sign for the company (Isidore, 2012). Indeed, the company's balance sheet has grown in size throughout the 2013 fiscal year, so that the latest Q3 total
In today’s operational management arena, there are certain expectations from a managerial aspect that must be met in order to be successful. A comprehensive look at the Space Age Furniture Company will show exactly what the Materials Requirement Planning (MRP) calculations are for this company at present time and then take the information given in order to properly suggest ways to improve the sub-assemblies. In addition, there will be an analysis on the trade-offs between the overtime and inventory costs. A calculation will be made on the new MRP that will improve the base MRP. This paper will also compare and contrast the types of production processing to include the job shop, batch, repetitive, or continuous, and determine which
Skandinavia Contemporary Interiors is a modern furniture store that is located in Austin, Texas. This furniture store was established in 1971. Skandinavia Contemporary Interiors sells living room, dining room, bedroom, and office furnishings. They also offer custom wall art and area rugs, lighting and accent pieces to complete the home. Their collections include American Leather, BDI USA, Copeland Furniture, and Stressless Furniture. Skandinavia Contemporary provides clearance sale
Ikea, the world’s largest home furniture retailing company, was founded by Ingvar Kamprad. He built his business empire through developing a distinct corporate culture. The Ikean