Reference no: EM1378460
Rather than start from scratch, however, you and your partners decide to look at two existing establishments, Better Brew and Perfect Blend. The two are for sale at the same price, and they are located in equally attractive areas. You manage to get enough financial data to compare the year-end condition of the two companies, as shown below. Study the numbers carefully; your livelihood depends on choosing wisely between the two establishments.
BETTER BREW PERFECT BLEND
Assets
CASH $10,000 $25,000
ACCOUNTS RECEIVABLE 2,000 4,000
COFFEE EQUIPMENT 50,000 80,000
SUPPLIES 11,000 18,000
OTHER ASSETS 22,000 34,000
TOTAL ASSETS $95,000 $161,000
Liabilities and Owners' Equity
ACCOUNTS PAYABLE $21,000 $38,000
BANK LOANS PAYABLE 49,000 68,000
OWNER'S EQUITY 25,000 55,000
TOTAL LIABILITIES & OWNERS' EQUITY $95,000 $161,000
OTHER DATA
Personal withdrawals from cash during 2003 $40,000 $38,000
Owners' investments in business during 2003 16,000 32,000
Capital balances for each business on
January 1, 2003 30,000 12,000
December 31, 2003, year end balance sheets
1. What factors should you consider before deciding which company to buy? What additional data might be helpful to you? (NOTE THAT NET INCOME IS IMPLIED)
2. What questions should you ask about the method used to record revenues and expenses?
3. On the basis of the data provided, which company would you purchase? Detail the process you used to make your decision.
|
Preparation of the business plan
: In six months you are to present a finish business plan for Able Company to the strategic officers Steering Committee (SOS-C). Able company is a United States producing firm located in Tennessee that builds power tools,
|
|
Financial module supplementary questions
: Determine the total amount of interest earned by Investment Option C over the five-year period - Find the new amount deposited at the end of each month for the remaining three years.
|
|
Compute process costing
: Suppose only conversion costs are being considered in this condition. On July 1, the finishing department had Work in Process inventory of 6,600 units which were fifty percent complete and had a value of $82,472.
|
|
Aligning the interests of managers and stockholders
: Determine which of the following is NOT a goverance mechanism used to align the interests of managers and stockholders?
|
|
Better brew and perfect blend
: Rather than start from scratch, however, you and your partners decide to look at two existing establishments, Better Brew and Perfect Blend.
|
|
Illustrate what are different expectations of paradigms
: illustrate what are different expectations of these two paradigms. Explain how could these different expectations be tested against archaeological record of Mound builder sites.
|
|
Explain ingredients of a successful business presentation
: Successes, challenges and ingredients of business presentations and the rhetorical triangle can you please elaborate on the following?
|
|
Techniques and principles for managing change
: The Given two principles are the most important to follow when managing change, Thought procedure and relationship dynamics are fundamental if change is to be successful.
|
|
Discuss why we think and what is thinking
: Discuss why we think and what is thinking? Brainstorm the questions and give definitions of thinking with example and relate them to your own experience.
|