INTRODUCTION Mountanarious Sporting Co. a well-reputed store owned by a sole-owner Steve Donne that has been a high-end specialty seller of branded, exclusive sporting goods and merchandise for the past 11 years. Steven Donnie had always been a fanatic in the field of sports. Donnie as an owner is well-versed in customer-service and product knowledge, expertise in setting his store according to the latest needs and had a great personality. The MSC has always been a popular store at Barron, Ontario and also with the local sports community and organizations, local gyms coaches and running clubs by promoting the merchandise available in the store by Donnie. With the emergence of new stores like big-box retailers, specialty/boutique and online …show more content…
Here we are making a business report which evaluates the performance of Mountainarious Sporting Co. to take loan from Canadian Commercial Bank. With the given basic financial reports by the company we have used few methods of analysis which includes horizontal, vertical and trend analysis as well as ratios such as Debt, Current, Acid Test and Asset Turnover ratios. We also used other ratios such as Return of Total Assets, Return on Equity , net profit margin and so forth. All the calculations of the above are found in the appendices. Horizontal and vertical analysis The Financial Statement analyses how sales are increasing and whether the sales are reasonable for the …show more content…
The gross profit continuously increased with the introduction of soft goods in the store although the merchandise found in the store next door affected his sales considerably. Company’s gross profit was 28.73% of net-sales in 2003 and it increased by 3.12% of net sales in 2007. (Sales and Gross Profit Diagram) The company’s total operating expenses continuously raised from 2003-2007 with a considerable fall of 16.33% in 2005 the reason being theas the loans payable rapid growth of Internet-Sales as the company had their own website for online ordering which reduced the company’s wages, amortization, vehicle and miscellaneous expenses. In 2003 the cost of Total Operating expenses was 32.50% of the net-sales which was decreased by 5.24% in 2007 net-sales. The company’s Net Income faced a loss in the year 2003 and 2004 due to the fire accident and the re-establishment of his store in the new location. The profit in Net Income increased in 2005 and 2006 as he introduced soft goods and also with promotion of his store with the local gyms and running clubs. There was a loss again in 2007 Net Income as the company required a new strategy to develop the sales of soft goods as there were strong competitors. The company net-sales faced Net Loss of 0.81% in 2003 and Net income of 2.60% in
Zimbalist, Andrew S. May the Best Team Win: Baseball Economics and Public Policy. Washington, D.C.: Brookings Institution, 2003. Print. In Zimbalist’s book, he addresses the major problems and inefficiencies in the baseball industry and how these issues are intertwined to the MLB as a monopoly.
One of the most recent economic developments that has surfaced is the contraversy of Fan Duel Sports Betting and Illegal Gambling. FanDuel started in 2009 and it is a way for Sports and Non Sports fans all over the world to assemble and wager money on professional sports teams. The winner of these betting pools receives some sort of cash reward. People put money in and most of the time take the loss because it is very difficult to win. It started off small in 2009 and then it began to rise quickly.
In 1993 The Sporting News named Nike founder Phil Knight “the most powerful man in sports”. In just over 30 years Phil Knight had gone from needing $500 dollars from his father to help import cheap Adidas imitations from Japan, to controlling a dominant multinational earning $3.9 billion annually in revenue. Phil Knight became the living embodiment of success in an ever competitive global marketplace. How did he do it?
Heroin vs. Daily Fantasy Sports John Oliver spent almost 20 minutes of one of his Last Week Tonight episodes in November making a mockery of the recent phenomenon of daily fantasy sports (DFS) betting. Oliver lambasts the daily fantasy sports industry, namely FanDuel and DraftKings (the two daily fantasy sports leagues with the biggest name-recognition), for their dubious claims of legality and refusal to acknowledge the striking parallels between daily fantasy and gambling. One of Oliver’s jokes poked fun at the idea that DFS is similar to season-long fantasy: “it’s the same as season-long fantasy the way a nice mug of tea is the same as a nice baggie of heroin. Both give you a lovely warm feeling. One’s a little more intense.”
Before conducting the audit of all stores, the auditors told in advance to the management that which store will be audited. The losses are in millions of dollars and all the losses were divided among 310 stores and recorded as an expense on the balance sheet of each store. By using the inflating inventory idea, the management boosted the assets account. Through this strategy, the management balanced their expenses. In order to save money, the auditors only checked four stores of the company through the consolidated general ledger.
Jonathan Huang Mrs Cleary Period 6/7 12 October 2015 About Ken Block Ken Block is a professional rally driver and co founder of DC Shoes as well as Hoonigan Racing Division. He has participated in many events where he has shown his skill in driving. Ken was born on November 21st 1967 in Rancho Sante Fe, California. His rallying career began with the Vermont SportsCar team in 2005 and has since dragged in a large fanbase.
Company Q is having few grocery stores in a metropolitan city. Out of all the stores, two stores were not making any profits, so Company Q has recently closed those two stores. As per economical responsibility, business should make some profit and provide a return on investment to their investors. If business is running in loss then it is better to close that business. Company Q has taken correct decision closing those two unprofitable
Free enterprise is an economic state where people can start up private businesses without government control. Success or failure is decided by competition and the demand for a product. The people ultimately decide what they want to purchase or not. Kevin Plank, the founder of Under Armour, entered his business into a market towards the end of the growth period and with a lot of hard work, became a success. The free enterprise system enabled Kevin Plank to create a powerful and revolutionary company in a mature market.
Answer B: If planning an audit for Verizon Communications Inc., it is more appropriate to allocate planning materiality to the balance sheet instead of the income statement accounts because Verizon utilize a double-booking accounting system for which most of their income statement misstatements will have an equal effect on the balance sheet. Therefore, a reasonable material threshold is determinable as a percentage of total assets, total liabilities, and total equity. Additionally, since the financial statement users are concerned with the growth of the company and its ability to generate revenue, operating income before taxes is the appropriate account to populate a materiality threshold. Total Assets: The appropriate preliminary judgement
Steve Madden is a popular shoe company founded in 1990 with only $1,100. The company started when entrepreneur Steve Madden began to sell shoes out of the trunk of his car. An entrepreneur is a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so. Steve Madden then bought a factory in Queens, New York and then began to build his brand. The company now boosts a net worth of $1.4 billion and currently owns Steve Madden, Betsey Johnson, and many other brands.
Item 1 reveals a lot of interesting information about their business strategies. Financial statement analysis will reveal the extent to which the strategies are working. In fact, one of the objectives of financial statement analysis is to assess how the managers of a company are performing given the stated objectives of the corporation. We will see below how the differences in strategy are reflected in profitability, operating efficiency, and financial
1. Explain Generally accepted accounting principles (GAAP)? Generally accepted accounting principles (GAAP) are the standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as accounting standards or standard accounting practice. The following is a list of the ten main accounting principles and guidelines together with a highly condensed explanation of each.
Introduction: Companies strive to improve and maximize profits in various ways. Some are successful while others are not very successful. The strategy that initially works for some companies, if not properly and effectively managed becomes their undoing. In this paper, we explain the difference between implicit and explicit costs and provided two examples of when an explicit cost is different from an implicit cost. Furthermore, this paper explores the difference between accounting and economic profit while giving two examples of when they differ.
Introduction Keeping record of activities and expenditures is crucial in personal finance planning and could really help in managing personal finances. This paper identify what is accounting and how does it help to manage personal finance, describes products of accounting and bookkeeping procedures that are useful in personal financial planning and how personal financial software could assist in personal financial decisions. What is accounting and how does it help you manage your personal finances?
Scope of Financial statements analysis: International Financial statement analysis Robinson, Greuning, Henry, Broihahn 2009, According to Framework for the Preparations and presentation of financial statements (international Accounting Standards Committtee, 1989)The role of financial reporting by companies is to provide information about their performance, financial position, and changes in financial position that is useful to a wide range of users in making economic decisions. The purpose of financial statement analysis is to evaluate the past, current, and future performance and financial position of the company for the purpose of making investment, credit, and other economic decisions. Financial statements are the end results of an accounting record-keeping process that records the economic activities of a company.