Golf Challenge Corporation In the second year of business at Golf Challenge Corporation the company is struggling. The cost of their inventory is rising, and they are in grave danger of losing their bank loan (their prime source of financing) due to not meeting the required financial ratios agreed and set forth by the bank at the time the loan was given. The owner comes up with a solution, and figures that instead of using Last in-First out (LIFO) the company can use First in-First Out inventory cost system (FIFO) and meet their required financial ratios set forth by the bank. Ultimately, Golf Challenge Corporation should not submit documents to the bank using FIFO as opposed to their previous system LIFO in order to meet the bank requirements …show more content…
It is easy to see how it affects the corporation, a misguidance on their balance sheet will eventually catch up to them. If prices of their goods began to fall, they cannot keep changing their inventory system. The company will eventually have to show the higher priced goods as sold. Beyond the corporation it will affect the bank that gives the company the loan. The bank is being misled to believe that the company is grossing a higher net profit, thus the bank is expecting to be repaid the debt, even though the company may not be able to afford it. The stock holders of the corporation would be greatly affected if these numbers were to be published. From an investor standpoint, the company would look like a rapidly growing entity. They would have a decent gross profit, ultimately misleading any investors. The workers at Golf Challenge Corporation are affected. Their jobs and livelihoods are at stake. In the financial statements released while using FIFO the company looks like they can pay their employees, but this may not be the case. Furthermore, the owner is directly affected. It is the owner’s company that is in stake, but beyond that it is the owner who directly sent the financial statements to the bank. The ethical issue in this case lies on his …show more content…
This is an agreement that needs to be worked out between the owner and the loan officer. Simply manipulating the books is not going to help the company in the long run. Beyond this it is truly dishonest. The owner may need to look at the option of layoffs, an increase in prices, or a change of suppliers to compensate for the constantly rising costs. The owner needs to speak with the loan officer and show him that he has a reasonable plan to better his financial statements. Even if this plan involves laying off workers it is ethically more correct than not being able to pay the workers. Raising price should be considered also as the cost is rising, the price the consumer pays need to be raised. The bank may oversee not meeting the required financial ratios if they understand that the ratios are only bad because of the given inventory
As a retailer and a supplier, Sobeys has an extremely large balance in their inventory account. During 2015, the inventories are more than 50% of the total current assets, and 13% of the total assets. We will compare the inventory accounts of 100 randomly chosen locations out of the 258 locations, as well as the 3 Cash & Carry stores. The company’s main portion of the total inventories would be food related, and they have certain shelf lives. If the unsold inventories are sitting in the warehouse for too long, then the inventory will be unable to sell, and this brings risk to future revenues. So the company should monitor the entire food related inventory, and strictly follow the FIFO rule. We need to compare the average inventory on hand ratio to other competitors in the same industry to find out if the inventory control has serious issues. Also, inquire inventory evaluation at the warehouses and possibly observe a test count done by
You are hired as an assistant brand manager for a popular consumer product. One day in an emergency meeting, the brand manager informs the group that there is a problem with one of the suppliers and that he has decided to send you over to the manufacturing facilities to investigate the problem. When you arrive at the plant, you learn that a key supplier has become increasingly unreliable in terms of quality and delivery. You ask the plant manager why the plant doesn’t switch suppliers, because it is becoming a major problem for your brand. He informs you that the troubled supplier is his cousin, whose wife has been very ill, and he just can’t switch right now. What course of action should you take and why?
Target must compete vigorously and fairly in the marketplace using our independent judgment to make the best decisions for the Company.
The case study, `Will GM 's Strategic Plan Lead to Success,` is about how the company General Motors Co. Plans to overcome financial deficits, ensure growth within the company, and remain competitive in the automotive industry. To help with overcoming financial deficits, GM was apart of the bailout, which assisted GM in relieving themselves of almost $40 billion dollars of debt. This restructuring gave GM an advantage over other automakers. Most other automotive businesses, that did not participate in the bailout, still have billions of dollars of debt they must repay in addition to competing with its adversaries.(Kinicki & Williams, 2013). GM made many cutbacks to ensure growth within the company. The reduced the amount models that are in production. They have recognized that some changes need to be implemented with global production in order to remain ahead.
• Lapses in disclosure controls and procedures or internal control over financial reporting could materially and adversely affect the Firm’s operations, profitability or reputation.
“Golf is the fastest growing competitive sport in the United States today” (Fossum 87). This game is rapidly growing In the United States, but is also a very expensive game to play. Today, it is a $25 billion business in the United States. (Dobrian). Golf is a game of dedication and patience that has a very interesting history. There are three main parts when it comes to the history of golf and how it can about. The creator of golf along with its origin, the advancement in equipment over the years, and the first golfers and courses are all major things in the history of the game.
The title refers to what John anticipates and initially thinks about the world outside the savage reservation. When Bernard invites him to go to London, he says, “O brave new world that has such people in it. Let’s start at once” (139). He soon realizes that the society is corrupt and unjust, the opposite of his dreams and hopes.
Amateur golfers across America all go to the golf course to seek relaxation and enjoyment of the sport, but don’t always think about the hard work that it takes to keep their favorite golf course up and running. So who is in charge of the entire golf club? Golf course superintendents are basically in charge of operating and maintaining everything related to the club, including directing employees. To be a successful superintendent, you need to be a good communicator, along with having a high range of knowledge in science and business. A golf club would fall apart without a superintendent because there would be no sense of leadership or direction within the club.
In this assignment, both control in the workplace and work satisfaction dimensions will be analysed at length. Relating them both to the case study of the Sports Direct Company and other relevant organisational theories; such as scientific management. Sports Direct was founded in 1982 by Michael Ashley in Maidenhead. In 18 years, ‘Mike’ Ashley expanded internationally opening stores in Belgium, and just seven years later listed his company on the London stock exchange. It was that listing that really kick-started Sports Directs’ exponential growth. 2 years later in 2009, Sports Direct established market leadership after their sales exceeded £1.0bn (Sports Direct, no date given). This information presents Mike Ashley as an entrepreneurial genius,
As requested, the following is a progress report of the tennis court resurfacing at Tascosa Golf Club, a project of Kerrington Powell in Amarillo, TX. The project is focused on the repair and resurfacing of the unplayable court conditions for increase in membership and income, as well as overall club improvement. All of the advancement that has been made in the past three weeks, as well as the projected plans for the coming weeks are discussed below.
Today I watched the European Open 2013 Disc golf tournament on Youtube. This tournament took place on August 13, 2013 in Europe. The competitors were Paul McBeth, Will Schusterick, Dave Feldberg, and Jeremy Koling. In the beginning of the tournament Paul threw a 302 and got very close to the birdie. Both Dave and Jeremy hit trees on their first throws and Dave gets near the birdie on his throw. On his third throw Dave is the first person to land his disk in the birdie and Jeremy gets the birdie on his fourth throw. The announcers state that Jeremy is one of the best forehand throwers in the world and that out of the four contestants he is the only one that prefers to throw forehand. The announcers
...ncreasing the capital So ( Falsely ) the books looked very good the business is ending up making money and again the trial balance and the account equation are correct
The game of golf is a time-consuming game. One round of golf consists of 18 holes and approximately four hours. But more significantly a good round of golf requires robust course management. I began playing golf at the age of five. In the beginning, I do not recall any course management when I played golf. But as I matured, I realized how important course management was to the game of golf.
In “Bank Debt” alternative, a sum of $3.5 million will be injected to the company through bank loans. However, the company will have to pay an additional amount of $33,750 in interest and a principal payment of $300,000 to the bank annually over the course of 7 years. Net income will come to $489,187.50 and EPS will be 0.49.
Ethics is a topic that is highly considered and viewed as a vital part of every decision making process for all companies, organizations and individuals. Ethics can be defined as a system of moral principles and a branch of philosophy which defines what is good for individuals and society (Ethics Guide, N.D.). If a company were to decide to show support for a controversial topic such as gay rights or not show support for women employment then they would increase their chance for public boycotting and rage towards their decisions not including how individual employees would feel. Furthermore, if a retail chain hired a vast higher percentage of one ethnicity then society could view this as a racism and further damage the