AppLIED 3000 word Essay Example | Topics and Well Written Essays - 3000 words

AppLIED 3000 word - Essay Example The report also includes a proposed budget for the year 2010-11 which will help to give an idea about the decisions taken by the management to improve the situation. Hard cash or liquid cash is required by any business organization to survive or to run successfully. Normally, most of the companies keep a lump sum amount of cash at their disposal for the daily expenses of the business. It ensures the smooth running of daily business operations. But, the financials of Cyclermate Ltd gives a shocking picture. There is only 675 pounds of hard cash left in the bank. With such a meager amount as its savings the company cannot even run a single day’s operation. The company is on the verge of close down. Mismanaged budget, uncontrolled cost and lack of proper supervision have lead to such a dismal situation. It is clear from the income statements of the last five years that selling price and total sales of the articles have gone down while total costs have shown a steady rise. The financial ratios also bring out the same poor condition of the company. The company’s Acid Ratio which is the relationship between the current assets (stocks not included) and current liabilities is 0.76:1. The Acid Ratio of 0.76:1 shows that the company will not be able to any financial problems nor needs that may rise in the near future (Netmba, 2010). The relationship between revenues and total assets is known as Asset Turnover Ratio. This company has an Asset Turnover Ratio of 2.06:1. The main reason for this ratio to be so high is the poor profit margin. There is also a possibility that the company is following a faulty a pricing strategy for its products. From the income statement of the past five years the return on capital employed is calculated as low as 0.11. The company is getting only a return of 11% on the capital it is employing which is not at all satisfactory. The debtors to the company generally

Intrinsic Value of Boeing Company Research Paper

Intrinsic Value of Boeing Company - Research Paper Example It is the chief leader in innovation and aerospace products and services. The demands of the customers made the company continue to expand its products and services such as development, design, support, sales and manufacture of commercial jetliners, satellites, military aircraft, missile defense, launch systems and services and human space flight (Intrinsic Value of Boeing Company, 2010). The company expanded to include in their services the creation of new and more proficient commercial airplanes. They included to integrate military platforms and defense systems and create advanced technology resolutions (Boeing in Brief, 2011). The company operates in Chicago with more than 165,000 employees across the United States and other countries (Boeing in Brief, 2011). Most of their employees are college degree holders, with those advanced degrees in technical and business fields thus making the company one of the most diverse in terms of talent and capabilities word wide. Boeing has been categorized into two business units namely, Boeing Commercial Airplanes and Boeing Defense, Space and Security (Boeing in Brief, 2011). Boeing Capital Corporation provides for the financial solutions of the two business units (Boeing in Brief, 2011). ... The direct competitors of Boeing are the following companies: European Aeronautic Defense and Space Company, Lockheed Martin Corporation and Northrop Grumman Corporation. Lockheed Martin Corporation or LMT has a market capital of 24.40B, while Northrop Grumman Corporation has 15.28B (Direct Competitor Comparison, n.d.). Boeing and ABC Activity-Based Costing or ABC is a â€Å"method of attributing costs to products based on first assigning costs of resources to activities and then costs of activities to products† (Activity-Based Costing and Quality Management, n.d., p. 453). This method is one of the foremost developments in product costing. As stated in Chapter 8 of Activity-Based Costing and Quality Management, this method is considered as more accurate but requires more time and expense. A research study was conducted to Boeing Commercial Airplane Group (BCAG) in Wichita Division in 1999 to 2000. Paduano, Harris, and Gershenfeld (2000) believed that the Activity-Based Costin g method is worth the study due to its great interest on Boeing’s lean practices involving cost of production and services. With this study, the researchers wanted to find out the effects of using the ABC method and its benefit to the company bearing in mind that ABC management will lead to a more accurate allocation of company’s charges and improvement on costs. According to Paduano, Harris, and Gershenfeld (2000), motivation for the application of ABC rooted from the fact that the method recognizes the true costs which will help the leaders or managers in decision making such as in manufacturing. This method also helps the managers truly understand that in making their critical choices, they