Rich and Ruby - Case Study Example

Extract of sample
Rich and Ruby

The trust is designed to remain in place for the benefit of Harriet and be distributed equally between Rich and Rebecca when Harriet dies. According to the financial statements, Rich and Ruby have a net worth of $22,000,000 at their disposal which comprises various assets and cash and cash equivalents. Rich is involved actively in the family business and is concerned fully about the welfare of his children and their children. Rich also plans to pay for Katie’s remaining education balance for two years to finish her doctorate degree in bio-gastric anthropology and strongly believes that the world is not yet fully exploited by people with opportunities. Rich also plans to support Caryn, Katie’s life partner even though Ruby his wife and Alvin his son do not approve of the relationship. Rich is in a good financial position with the company’s net annual income of $750,000 and a salary of $200,000 annually. The fact also that the company is worth $8,000,000 and is expected to grow at an annual rate of 10% for the next 6 to 8 years makes it advantageous for Rich to use the finances at his disposal and allocate them effectively and efficiently. Rich also owns the building in which the Macadam company operates valued at $3,000,000 and is leased for $250,000. ...
Download paper

Summary

Name: Instructor: Course: Date: Rich and Ruby Case study According to the case study Rich and Ruby are happily married couples blessed with two children Alvin and Katie. Rich’s parents Henry and Harriet have been married for 55years and have two children Rich and Rebecca whom they intend to give their share of the inheritance once they have passed away…
Author : hgraham
Download 1

Related Essays

Case Study on Operations
Entrepreneurship generally entails the process where individuals with high aptitude undertake to pioneer change thus producing, improving, and increasing wealth. Such individuals are usually discouraged and held back by the uncertainties and risks that are involved with pioneering change. In this case, insurance companies come in handy to bear the risks involved with pioneering change at a reasonable premium and thus influencing entrepreneurial attitude, innovation, and investment. Establishment of businesses with new ideas is risky to businesses, since it involves pioneering investments into...
5 pages (1255 words) Research Paper
Worplestrop Case Study
Akin to all other business entities, the Worplestrop Partnership wants to develop an efficient costing and information systems for the management of their organization. This would necessitate the development of budgets, accomplishing responsibilities to achieve the goals, incessant evaluation of real performance with expected standard performance, taking counteractive actions if required in addition to revising the budgets. Assessment of the various product cost and budgetary control methodologies and systems The most commonly employed cost budgeting techniques and tools comprise of...
8 pages (2008 words) Essay
Case study: Investemnt management
New clients and contracts were made to Beta Management which meant more money from existing clients as well as the incoming clients. One of her strategies was to expand the business by the end of 1991 from the new profits that she made from the new clients and the extra money she was getting from her existing and loyal clients. In order to succeed with that thought, she inquired from the small business around her and hoped that the idea would bring in more assets and less loses. The strategy was a good move as it allowed her to have more clients as well as giving back to the society /community...
5 pages (1255 words) Essay
Case Study 1, Case Study 2
were never taken care of. Now it has been heard that Sweetco Inc is being sold off by its holding company to its senior management and a leading firm. Apart from this, another fact was also revealed that Sweetco received money from its holding company for its operational functions on the basis of loans. This is the reason why the CFO has asked for an extension in the credit terms to 60 days. The objective is now to analyze the financial credibility of Sweetco at present and make a future projection so that we can decide whether to maintain the business relationship or not. Actions to Take The...
5 pages (1255 words) Case Study
Case study Gary hart
12,000 incurred the first week Analysis of revenues Revenue per day: 75%*60*24=?1,080 Payment in cash per day: 50%*1,080=?540 Revenue per month: 1,080*24=?25,920 Revenue per quarter: 25,920*3=?77,760 50% of daily sales are credit sales payable four weeks later Assumptions 1. Gary purchases ingredients once every month. 2. Waiting staff salaries and social security costs are payable every month. a. Gary’s Restaurant Trading cash budget For the year ended December 31, XXXX Quarter total 1 2 3 4 ? ? ? ? ? Cash b/f 48,484 126,364 213,248 Add receipts Cash sales 38,880 38,880 38,880 38,880...
9 pages (2259 words) Assignment
case study
However, profit and loss account does not provide information about future. (1.b) Profit and Loss Account Review: When looking at the profit and loss account of the Modern Furniture of both years, there are some items that are worth considering for decision making. The gross profit has declined by 10.75% from 2011. The major reason is the increase in the inventory cost. The other important thing to notice is that, there is a sharp decline of 5.8% in the net profit from last year which clearly indicates that there are no effective controls over the cost. Specially, salaries, maintenance and...
4 pages (1004 words) Assignment
Case study
o 600,000 sterling pounds, adding this amount to the working capital of 180,000 pounds amounts to an initial cost of 780,000 pounds. The overheads have been adjusted from the previous 47,000 pounds to 30,000 pounds in a year. Question One b i) Pay back Year Cash flow ? (?000) Cum. CF ? (?000) 0 (600) (600) 1 147,000 (453) 2 157,000 (296) 3 157,000 (139) 4 187,000 48 5 187,000 23 3 years and (139/ 187) x 12 3 years and 8.9 months ii) Net Present Value Year Cash flow ? DF 12% PV ? 0 -600,000 1.000 -600,000 1 147,000 0.893 131,271 2 157,000 0.797 125,129 3 157,000 0.712 111,784 4 187,000 0.636...
8 pages (2008 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!