Hampton Machine Tool Company‚ a machine tool manufacturer‚ was founded in 1915. Hampton ’s customer base is made up primarily of military aircraft manufactures and automobile manufactures in the St. Louis area. Hampton felt the boom in the 1960s with record setting profits in the mid to late 1960s. Hampton slowed down in the 1970s with the withdrawal from Vietnam War and the oil embargo. Hampton stabilized by the late 1970s and now has a larger market share as other competitors were unable to
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situations in Part II will relate to acceptable audit risk. Classify the information based on the three factors that affect acceptable audit risk. • External users’ reliance on financial statements o There is a large amount of debt for a publically held company‚ and the financial statements will be used rather extensively. o Situation 6: the board of directors has decided to raise significant amount of debt to finance the construction of the new manufacturing plant for the Solar-Electro division. This would
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Original Work please INTEGRATED CASE APPLICATION –PINNACLE MANUFACTURING: PART II 9-37 (Objectives 9-7‚ 9-8) In Part I of the case‚ you performed preliminary analytical procedures for Pinnacle (pp. 245–247). The purpose of Part II is to identify factors influencing risks and the relationship of risks to audit evidence. During the planning phase of the audit‚ you met with Pinnacle’s management team and performed other planning activities. You encounter the following situations that you believe
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Hampton Machine Tool Company 1. Hampton Machine Tool Company was founded in 1915 and was based out of the St. Louis area. It was a manufacturing firm serving the automobile and aircraft industries. Due to the strong automobile market and defense spending for the Vietnam war‚ the company was seeing record production and profits through the 60’s and early 70’s. After that‚ the Arab oil embargo‚ the increase in the price of Gasoline and the then recession was taking its toll on the Company’s financials
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1)Introduction A machine tool is a powered mechanical device‚ typically used to fabricate metal components of machines by machining‚ which is the selective removal of metal. Machine tools can be operated manually‚ or under automatic control. Early machines used flywheels to stabilize their motion and had complex systems of gears and levers to control the machine and the piece being worked on. Soon after World War II‚ the numerical control (NC) machine was developed. NC machines used a series
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Starnes-Brenner Machine Tool Company–To Bribe or Not to Bribe Several questions should be emphasized in the case; the question of ethics‚ the question of self-reference criterion and a more important question of what role should the marketer play; how much should they try to change the system and how much should they try to become a part of the system. A strong point should be made that in a country where bribery is part of the way of doing business‚ there is an identifiable system of how much
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statements: Pinnacle Manufacturing Company is a privately owned‚ however it relays on loans and has a substantial amount of debt. For that reason‚ the financial statements are extremely useful to investors. Pinnacle management is planning to sell their Machine – Tech division if profits don’t increase in the coming years. If Pinnacle sells‚ the financial statements will be extremely important for buyers. The financial statements will be of great importance to investors‚ in case Pinnacle decides
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Case #1 CAINSBORO MACHINE TOOLS CORPORATE Question 1. What risks does the firm face? What is the limit of Exhibit 8 in terms of the risk analysis? From the article‚ there are two major risks the company face. First‚ the company’s financial condition is not very good. From 2003 to 2004‚ the gross profit declined from 314‚522 thousands to 257‚759 thousands. This leads the company suffer from an operating loss in 2004. For the first quarters of 2005‚ the board declared no dividend. This
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MANAGEMENT‚ INDORE Finance 2 Case Analysis Gainesboro Machine Tool Corporation Course Instructor: Prof A Kanagraj Submitted By: Amol Vyawahare Roll Number: 2008PGP021B Gainesboro Machine Tool Corporation Background Reading: Once a company makes a profit‚ they must decide on what to do with those profits. They could continue to retain the profits within the company‚ or they could pay out the profits to the owners of the firm in the form of dividends. Once the company decides on whether to
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Agricultural Tools and Machines The development of machines began in the 1890 ’s when the first steam tractor and combine were made in California (Meij 3). There was a need to make more efficient use of the labor; therefore‚ machines were developed ("Agripedia" 2). By 1914‚ the combine started to spread outside of California to the rest of the United States (Meij 4). Then in 1928 it spread to Great Britain and then to the Netherlands after World War II (Meij 4). The development of these machines was affected
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