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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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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Jet2 Task 4 Competition Bikes management decide to retool and now manufacturing both Titanium and CarbonLite Frames bikes. Competition Bikes was using the Traditional based Costing (TBC) method‚ however the Activity Based Costing (ABC) may give more insight to management and helpful in analyzing the per unit costing of the different types of frames and pinpoint the area of improvement. Also the management wants to know the Breakeven point caused by the potential increase of fixed cost by $5‚000 and
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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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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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Competition Bikes Inc. Storyline Managing Capital & Financial Assets 04/12/2014 WGU JET2 Financial Analysis Task 4 - PASSED To: Vice President The following is a summary report to recommend whether Competition Bikes should change its traditional costing method to activity based costing‚ and an analysis of the breakeven point with regards to sales units and dollars for both CarbonLite and Titanium bikes. It also discusses the impacts to the breakeven point. The cost-volume-profit evaluation
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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 health
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Jason White Financial Analysis JET2 Task 1 February 18‚ 2015 For this task I preformed an analysis of the financials of Competition Bikes‚ Inc. In the following pages I will discuss my findings in detail. I will find weaknesses and strengths as well as indicators of how the company’s financial health is. Also included will be some potential ways to make adjustments to correct the weaknesses. Some of the operational strengths and weaknesses were identified by reviewing the horizontal‚ vertical‚
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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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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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