will provide a financial analysis and evaluation of Competition Bikes‚ Inc financial statements over a select range of financial years reported by the company. The financial analysis will assist the company in identifying strengths and weaknesses‚ with recommendations in areas of improvement to strengthen its financial position in hopes to induce overall efficiency of operations. Horizontal analysis results The horizontal analysis is a method used to analyze changes in the company’s financial
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Competition Bikes‚ Inc. Task 2 A budget is a plan expressed quantitatively in detail. This detailed plan spells out how the company will acquire resources as well as how the resources will be allocated for a specific time. The budget is used for projecting future income and expenses. The purpose of a budget is the assist the company in providing a methodology in determining what direction to go‚ to improve efficiency‚ delegate responsibility and provide a means of controlling the finances of the
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Financial Analysis JET2 Task 3 A1. Capital Structure Recommendation A sound capital structure needs to be in place for Competition Bikes to maximize its shareholder return and expand. A good capital structure would ensure adequate funding and future business stability. However‚ adequate funding involves capital financing which also has its own risks. If bonds are issued‚ the company would have to pay interest on them but if sales projections aren’t met‚ this could have a huge negative impact
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Financial Statement Analysis FOR Competition Bikes Western Governors University Financial Analysis (NAME) (DATE) A1. This financial analysis is for Competition Bikes that was taken from balance sheets and income statements from years 6‚ 7 & 8. A1a. Horizontal Analysis Strengths Net Sales – totaled $4‚485‚000.00 for year 6‚ and grew +33.3% or $1‚495‚000.00 between years 6 to 7. Cost of Goods Sold – totaled $3‚294
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Running Head: BUDGET SUMMARY REPORT Competition Bikes Inc. Budget Analysis Summary Report In Partial Fulfillment of the Requirements for JET2 Western Governors University Competition Bikes Inc. Budget Analysis Summary Report Budgetary Concerns There are several budget areas in Competitions Bikes year nine budget forecast that are areas for concern. The factory overhead budget for the year was budgeted at $481‚798 less $150‚000 depreciation. Total depreciation over the last three years has
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BREAK EVEN ANALYSIS Break-even is the point at which a product or service stops costing money to produce and sell‚ and starts generating a profit for your business. This means sales have reached sufficient volume to cover the variable and fixed costs of producing and distributing your product. [Type the document subtitle] KOMAL BHILARE ROLL NO: 85 2013 DEFINITION Break Even is: •the sales point at which the Company neither makes profit nor suffers loss‚ or •sales level where fixed
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RUNNING HEAD: COMPETITION BIKE INCS Brent Allen Competition Bike Incs 1-11-13 Financial analysis “COUNTRY BIKE INC” Revenue Horizontal analysis compares a company’s performance from year to year. I will be reviewing Competition Bikes Inc(CBI) balance sheets and income statements. During CBI year 6‚ 7 and 8 I have found their net sales ‚ cost of goods to be fluctuating‚ and few various other items. The net sales from year 6 to 7 increase 33.34 %. The cost of goods from year 6 to 7 was
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A breakeven analysis is used to determine how much sales your business needs to start making a profit. Every business wants and needs to make a profit but the only way you can determine if your product or service is profitable is by conducting a break-even analysis. This is a tool used by companies to understand how many products they have to sell in order for the company to break even. However‚ for you to understand how to come up with the breakeven analysis‚ you first need to understand the process
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Competition Bike Operational Strengths and Weaknesses based on Horizontal Analysis It is important to have a working definition of the term horizontal analysis. The free dictionary defines horizontal analysis as “the process of dividing each expense item of a given year by the same expense item in the base year. It allows assessment of changes in the relative importance of expense items over time and the behavior of expense items as sales change”. The company had an outstanding performance in
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A1. Budgetary items that raise concern in the budget planning Competition Bikes has over budgeted/predicted for 3510 bikes to sell when only about 3400 sold with 4000 sold the year before. Since many of the sponsors have pulled funding from riders and the riders are the actual business and revenue they will have a tough time selling the merchandise they have predicted. The economic hardship will make this budget too high. They will need to lower the expected sales so they do not have a surplus
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