Maynard Company Case Analysis

853 Words2 Pages

Overall, assets increased at the end of the month compared to the beginning by $43,350. This

results in purchasing more assets, making sales or by simply making payments or purchasing on credit.

1. Cash: There is an increase of cash as of June 30 by $31,677. This could be the result of the company making sales for cash or making purchases on credit which would explain the increase in accounts payable. Also, payments of insurance were credited from prepaid insurance resulting in no cash being removed from the account.

2. Accounts Receivable: There is an increase in accounts receivable as of June 30 by $4,707. This could

be the result of the company making sales on credit.

3. Supplies on hand: There is an increase in supplies on hand as of June 30 by $1,071. This could be the

result of the company having purchased more supplies during the month.

4. Merchandise Inventory: There is a decrease in merchandise inventory as of June 30 by $3,315.The

reason of the decrease would be that the company has made sales during the

month.

5. Prepaid Insurance: There is a decrease in prepaid insurance as of June 30 by $324 because at the end

of the month, a payment of insurance was due resulting in decreasing the prepaid

Show More
Related

  • Loblaws Inc: Sales And Collection Cycle

    627 Words  | 2 Pages

    Accounts receivable ending balance= Beginning balance +sales on Account - cash receipts -sales returns and allowances- charge of uncollectible account

    Read More

  • Balance Sheet Analysis Applebees International 2004

    1803 Words  | 4 Pages

    As of December 26, 2004, our liquid assets totaled $10,924,000. These assets consisted of cash and cash equivalents in the amount of $10,642,000 and short-term investments in the amount of $282,000. The working capital deficit increased slightly from $50,359,000 as of December 28, 2003 to $51,041,000 as of December 26, 2004. This increase was due primarily to increases in the loss reserve and unearned premiums related to the captive insurance subsidiary and accounts payable and was partially offset by increases in inventories and receivables.

    Read More

  • Opossumtown Case Analysis

    732 Words  | 2 Pages

    By lowering selling prices across the board, Opossumtown, Inc. reduced its inventory turnover ratio, cutting the number of days to sell inventory from 174 days to 104 days; that is a 40% improvement. Opossumtown, Inc. also cut the number of days it takes to collect its credit accounts from 68 to 44 days, again that is 35% better than the previous year. The company is able to do this while cutting its debt ratio by 10% and increasing its current ratio by 25%, making it appear more favorable in terms of liquidity. As promising as this may look, this is not the whole picture. Opossumtown, Inc. shows an 11% decline in gross profit as well as operating income ratios, and a 3% decrease on the profit margin ratio. The decline of these ratios is a result of the company’s new strategy of decreasing the selling price and increasing its marketing and selling expenses. Opossumtown, Inc. made some noteworthy advancements with the implementation of its new plan for 2014. However, based on the assessment of the balance sheet, income statement and the ratios, the corporation did not achieve its goal to increase operating income by 6% and net income by 4%. Opossumtown, Inc. was only able to grow its operating income by a little more than half of one percent and net income by

    Read More

  • Caterpillar Case Analysis

    2184 Words  | 5 Pages

    • Looking further down the Income Statement, Caterpillar has experienced a 110% increase in other operating expenses between 2013 to 2015. Going from 2013 to 2014, there was a 66.5% increase, and then between 2014 and 2015, there was another large increase, this time of 26.3%.

    Read More

  • Gg Toys Case Study

    1986 Words  | 4 Pages

    Toys had a favorable price variance even though they sold less units then they had forecasted. While the price variance is considered favorable as G.G. Toys received a higher than anticipated price, it can also be considered unfavorable. Charging a higher price for the dolls may likely result in less sales which could be one reason for the difference in quantity. It is also possible that a larger quantity of the higher priced dolls were sold which would result in higher sales dollars but a smaller quantity of dolls. It would be beneficial for G.G. Toys to research the quantity of each doll type sold and their price point to determine if this is

    Read More

  • Du Pont de Nemours and Company Case Analysis

    1186 Words  | 3 Pages

    In assessing Du Pont’s capital structure after the Conoco merger that significantly increased the company’s debt to equity ratio, an analyst must look at all benefits and drawbacks of a high debt ratio. The main reason why Du Pont ended up with a high debt to equity ratio after acquiring Conoco was due to the timing and price at which they bought Conoco. Du Pont ended up buying the firm at its peak, just before coal and oil prices started to fall and at a time when economic recession hurt the chemical industry of Du Pont. The additional response from analysts and Du Pont stockholders also forced Du Pont to think twice about their new expansion. The thought of bringing the debt ratio back to 25% was brought on by the fact that the company saw that high levels of capital spending were vital to the success of the firm and that high debt levels may put them at higher risk for defaulting.

    Read More

  • Microsoft Corporation (MSFT) Finance Paper

    1244 Words  | 3 Pages

    Total Asset Turnover – Dropped from .64 in 2001 to .58 in 2002 to .55 in 2003. The reason is big increase in Total Assets.

    Read More

  • Fastenal Company Case Analysis

    1122 Words  | 3 Pages

    Behind every product manufactured there are parts, fasteners, gloves, welds, holes that are drilled, and maybe a headache or two. These are all products that are sold and manufactured by the companies W.W. Grainger and Fastenal Company. Both of these companies are in the top ten in revenue for the industrial supply industry and I just so happen to work at one of them, that being Fastenal Co.

    Read More

  • Case Analysis Of John Deere

    1054 Words  | 3 Pages

    In recent years many manufacturing companies have exceeded the technology for residential, agriculture, construction, landscaping, forestry and engines, yet John Deere is still one of the best products that people use everyday. Questions come up whether the company’s products are proven, simple, more efficient, and integrated machines that are capable of developing engines. Some of the merchandises are strong-featured to survive the extreme vibration, temperatures, and duty cycles found in off-highway conditions. This paper will demonstrate Economic Environment, Socio-cultural Environment, Global Environment, Competitive Environment, Governmental Environment, and Technological Environment of John Deere Corporation (Leslie, 2014).

    Read More

  • John Hopkins Hospital Case Study

    1035 Words  | 3 Pages

    Liabilities are debts owed that are grouped into two different categories, current and noncurrent. Current liabilities are to be paid within the business cycle such as accounts payable, while long-term liabilities have more time to be paid off that surpasses the twelve-month cycle. These accounts are most often paid after current assets have liquidated to cash to pay outstanding liabilities that are coming due. The balance sheet for Johns Hopkins Hospital does balance since both assets and liabilities total

    Read More

  • Holt Renfrew Essay

    1005 Words  | 3 Pages

    The inventory issue also ties in with transportation problems where accurate lead and delivery times are non-existent. The inventory turnover is not at its full potential because if the DC has merchandise yet the stores are stocked out, the inventory is frozen and will become obsolete.

    Read More

  • The Importance Of Partners In Health

    1233 Words  | 3 Pages

    After analyzing our most recent annual report from 2012. We noticed that our operational cost is approximately $20,000 over our revenue. Looking at our data from previous years, the $20,000 over-budget has occurred in the past. In 2010, Partners in Health had approximately $90,000 in unused funds which carry over at the end of ...

    Read More

  • Business Case Study: The Fitzgerald Machine Company

    1900 Words  | 4 Pages

    Don Bradish was recently hired to fix scheduling issues with the new company in which he works, The Fitzgerald Machine Company. There are a few relevant facts that were given in this case study. The first and foremost fact is Mr. Bradish was hired because the company is having issue with their scheduling. This is important because he comes in with a relevant degree and years of experience with a reputable company. He is going to be looked for to find a solution to the issue outlined in the case study. The second relevant fact in the case study is that the company that The Fitzgerald Machine Company is working with is having labor issues. This is considerable because the $300,000 order is a considerably large

    Read More

  • Mcdonalds Case Analysis

    1425 Words  | 3 Pages

    OPPORTUNITIES: McDonalds has many opportunities to change its look, menu, and customer service. McDonald’s started building newer building incorporating the arch, along with more modern furnishings. The menu has changed by adding more breakfast items and introducing the McCafe in certain areas.

    Read More

  • Accounting Scandals: The ENRON Scandal in 2001

    1233 Words  | 3 Pages

    ... inventory turnover was found to be very low. The low inventory turnover ratio was an indicator of inadequacy, since inventory usually has a rate of return of zero (Inventory Turnover Ratio Interpretation, 2009). It also implied either poor sales or excess inventory. A low turnover rate indicated poor liquidity, convincible overstocking, and obsolescence, but it would have also reflected a planned inventory build-up in the case of material shortages or in anticipation of rapidly rising prices. (Inventory Turnover Ratio Interpretation, 2009) And a rapid and unexplained rise in the number of sales per day in receivables in addition to growing inventories to cover the shortage was noted. The interviewee (Public Accountant) could smell something suspicious which led him for more detailed procedures and proactive investigation at the end of which a fraud was detected.

    Read More

More about Maynard Company Case Analysis

Open Document