Swot Analysis : Eye Laser Machines Sold By Tecquirk
1409 Words6 Pages
TecQuirk, a publicly held organization, manufactures medical equipment for hospitals, retail outlets, and for online sales. Eye laser machines sold by TecQuirk are produced by a subsidiary purchased three years prior for $1 billion dollars. A one year warranty is provided on every item manufactured and sold by the company. Additionally, the organization provides a benefit pension plan for employees. As the organization prepares estimates for certain expenditures related to manufacturing, sales, and operations, said accounts must be analyzed for preparation of financial statements.
Estimating Balances TecQuirk makes estimates of expenditures in certain accounts when preparing financial statements. Said accounts include pension obligations, allowance for uncollectible accounts, allowance for returned goods, warranty liability and related expenses, litigation and other contingencies, and goodwill valuation. Each account’s estimate can be significantly affected by certain factors. As such, said factors must be considered in calculating the estimates of the accounts.
Pension Obligations Pension obligations face several critical factors in computations of estimates; interest rates, vesting requirements, life expectancies, work-force projections, and company reorganizations. As TecQuirk administers a defined pension plan, estimates must be calculated for future pension payments, which are dependent upon contributions and the effectiveness of reserves management (Volkov,