Got a tricky question? Receive an answer from students like you! Try us!

Elite Running Inc. - Case Study Example

Only on StudentShare
Author : kking

Summary

Elite Running Inc. Identification of changes in company’s business and industry: using procedures The changes in the business of Elite Running Inc. could be identified by comparing the balance sheets of the company for the year of 2002 and 2003. The significant changes or developments in the business have been explained as follows…

Extract of sample
Elite Running Inc.

The inventory of Elite rose by 39% in 2003 as compared to 2002. The rise in the level of inventory was preplanned by the management in order to be prepared to grab the offers from the suppliers when they offer favorable prices for the company. The changes also indicate that while the sales have declined for the company by 24%, the gross profits have declined by 53.8%. This fall in gross profits was mainly due to the changes in the product prices due to the change in competitive market scenario with the appearance of a new entrant named, Stampy. The other significant changes include fall of retained earnings of the company by 11.2% and the fall of equity by 8.4%. Explanation for tick-marks b, e & k The explanation for the tick-marks has been explained as follows. Tick-mark b The fall in the accounts receivable of Elite Running Inc. in 2003 as compared to the value of 2003 could be explained by the fall of sales figures of the company. Due to the fall in the level of sales volume of the company, the credit offered for sales also reduced. Thus the accounts receivable also declined in 2003 as compared to 2002. Tick-mark e The inventory of the company increased by 17 million dollars which is a rise of 39% in inventory level of 2003 as compared to that of 2002. ...
Download paper

Related Essays

Nike inc
Equity shares of Nike Inc. are publicly traded in the New York Stock Exchange with the ticker symbol. Financial ratio analysis of Nike Inc. can prove to an important tool to measure the financial condition and health of Nike Inc. As of May 31, 1994 and 1995, the current ratios of Nike Inc. were 3.15 and 1.85 respectively. It meant Nike Inc. had a drastic reduction in the current ratio in the financial year 1994-95. This implied for every dollar of current liabilities Nike Inc. had only $1.85 available as current assets. Hence, it was a big question ahead of Nike Inc. to prove their liquidity…
3 pages (753 words)
Running head: business plan for asado cafeteria
With a target sale of 1,200,000-2,000,000 AED, Asado is focused at making our guests experience first class services as well as extensive entertainment 7 days a week. With its main operations located in Sheikh Said Road, keys to success for Asado includes creation of a friendly atmosphere, excellent services, controlling operating costs, motivated workers and effective marketing strategies. To ensure positive perception from the existing and new guests, Asado will renovate its guest rooms, modernize its kitchen and provide manual and clear menu that depicts the variety food and their…
10 pages (2510 words)
Financial Anaysis: NIKE Inc.
Currently, the company has over 700 Nike retail shops on a global scale and in the US alone, there are about 24,000 retail accounts. Apart from this, the company has licensees and independent distributors in various countries around the world. Nike employs over 38,000 people currently and with 321 executives, the company has made tremendous steps in the market segment (Smith 56). Financial Performance NIKE Inc. has continued to perform notably well in the market segment. Reports for the FY2012 first quarter that were released on 22nd September 2011 illustrate the proficient financial…
The Oriole Furniture Inc. (Case Study)
The sales and production activities of all the three lines are managed by Mr. Mente. Each division’s vice president prepares an annual profit plan, in which the result of estimation for the year has been a profit of $22.7m and the sales volume is $77m. Mr. Menson, the company’s president, has not been satisfied with the submitted profit plan. He wants a profit of $23.9m on a sales volume of $81m. When the actual performance of the division is compared with the budget, Mr. Mente finds that sales remain at 11% below plan and profit is 18% below plan. The challenge before the company is that…
4 pages (1004 words)
accounting:Dell Inc.
Dell distributed catalogs to customers to advertise its products. The company also let the customers customized their computers. The firm is the largest e-commerce website for commercial technology products in the world (Dell, 2013). Dell has a cero tolerance for unethical behavior. The workforce of the company is composed of a diverse group of people. “At Dell, we’re committed to building a diverse environment that is reflective of a diverse global marketplace and an inclusive culture where everyone is engaged” (Dell (b), 2013). In 2008 the company purchased over $2.4 billion from women…
3 pages (753 words)
Financial Analysis: Apple Inc.
A number of different standards are available and in use throughout the globe but the central contention remains the same. This report will look into the financial instruments used by Apple Inc. through the use of its reported 10 – K form for the fiscal year 2012 and how various journal entries tend to affect the earning per share (EPS) and the net income. Various journal entries will be administered to the 10 – K based financial instruments and their effects will be discussed. Journal Entries The financial statement of Apple Inc. for the year 2012 in the form of a 10 – K form is being…
5 pages (1255 words)
Karges Coffee Inc
Assuming no changes to the Home Brewer or Office Deluxe unit sales and unit selling prices, and variable costs will remain same for each model with total fixed costs remaining unchanged. The Office Basic sales units if doubled will result in increase in the overall sales volume, contribution margin and profit of the company. Here we see that by just doubling the sales volume units we see a jump in sales value and contribution margin by more than 150% and the profit has grown by more than 200%. These drastic changes in the sales figure and profit is just because of the extra volumes of the…
3 pages (753 words)