Imagine that for the second quarter in a row profits are

Assignment Help Corporate Finance

Reference no: EM13381267

Imagine that for the second quarter in a row, profits are down at Waterfall division. Division Management budgeted $250,000 in profits for the 2nd quarter but actual results were only $197,000 in profits. The division management insists that the budgets were developed realistically but admits sales were down. The division has been under pressure to improve profitability. Corporate Management has asked you to identify the primary cause of the shortfall - revenue or costs?

Address the following as you develop your answer to Corporate.

How will you approach your analysis of the situation?
What variance analysis and / or trends would be helpful to evaluate?
What are three possible situations that could be the cause for the shortfall in profits?
What actions would you recommend for these three possible situations?
What recommendations would you make to management to improve the budget process for next year?

Reference no: EM13381267

Questions Cloud

Capital budgeting for a new machine a few months have now : capital budgeting for a new machine a few months have now passed and airjet best parts inc. is considering the purchase

International financenbspcritics of the field of : international financenbspcritics of the field of international finance charge that the field is simply corporate

Question from gapenskis fundamentals of health care : question from gapenskis fundamentals of health care finance.assume that the managers of fort winston hospital are

Personal financial managementparta1describe the major : personal financial managementparta1.describe the major components of a personal financial plan.2.why are there

Imagine that for the second quarter in a row profits are : imagine that for the second quarter in a row profits are down at waterfall division. division management budgeted

Sailcloth amp more currently produces boat sails and is : sailcloth amp more currently produces boat sails and is considering expanding its operations to include awnings for

Imagine you are the cfo of ibm you have been successful : imagine you are the cfo of ibm. you have been successful over the years but are now concerned about how many sources of

1prepare cash flow statements for 2007 - 2009 explain : 1prepare cash flow statements for 2007 - 2009. explain balance sheet changes and assess the companys generation and use

Suppose that microsoft is considering changing its capital : suppose that microsoft is considering changing its capital structure in light of the tough business environment.

User Account

All Pages