StudentShare solutions
Triangle menu
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Financial analysis of the Creative Chips - Case Study Example

Extract of sample
Financial analysis of the Creative Chips

rom this, as can be observed in the balance sheet of the company for the year 2002, there are wages which are yet to be paid by the company, which amount to $ 7,350. In addition to this information, it is also worth noting that the total expenditure incurred by the company in relation to payroll amounted to $ 89,850. Among the expenditure incurred in relation to payroll, $ 42,000 ($ 3,500 x 12) refers to salary of Lesay, therefore it is found that the amount which is related to the payment of wages is $ 89,850 - $ 42,000 - $ 12,000, i.e. $ 35,850. However, keeping in mind that there is an amount of wages payable therefore after accounting for the total payment made towards the salaries and wages expenses, there is still an amount of $ 7,500 left to be paid, and it is, therefore, recorded as wages payable in the balance sheet (Drury, 2007; Nikolai, Bazley, & Jones, 2009).
The company Creative Chips is involved in the business of manufacturing and selling chips. The overall financial information presented indicates that the company is performing satisfactorily in financial terms. The fact that company is utilizing its rented space in a way that it does not require additional space for manufacturing and storing its inventory stocks, is indicative of the efficient operations of the company. Apart from this, the gross profit amount as depicted in the income statement of the company is significant and can be regarded as highly favorable for the company. However, the operating expenses of the company are significantly high, which, as a result, have undermined the significance of the gross profit. The liquidity position of the company indicates that there are too much liquid assets held up by the company, which could have been invested for generating income from other sources (Webster, 2003; Nikolai, Bazley, & Jones, 2009).
The company’s operational efficiency can be questioned on the basis of the fact that there is only one employee who runs the manufacturing ...Show more
Cite this document
  • APA
  • MLA
(“Financial analysis of the Creative Chips case Study”, n.d.)
Retrieved from
(Financial Analysis of the Creative Chips Case Study)
“Financial Analysis of the Creative Chips Case Study”, n.d.
  • Cited: 0 times


This means that out of the total remuneration of $ 48,000 given to Nielson, $ 36,000 can be attributed to wages since 3/4 of his time working at…
Financial analysis of the Creative Chips case
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Financial analysis of the Creative Chips case"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Financial analysis case report
Lowe’s must focus on the increasing its product, price, place, promotion and people strategies to increase its revenues. In terms of briefly talking about the question, the research is focused on analyzing the difference between the Dupont performance of Lowe’s and Home Depot retail stores.
4 pages (1000 words) Case Study
Financial Reporting Case analysis
All the issues coming out of the case can be solved to a reasonable level, if not in totality, by principles put into place by international bodies like the International Financial Reporting Standards (IFRS), the Financial Accounting Standards Board (FASB) and the United States’ Securities and Exchange Commission (SEC).
4 pages (1000 words) Case Study
Financial analysis
The company has reported an increase in its annual profits from 2005 to 2007 yet it has had cash flow problems which has made the company to lack sufficient cash to pay for its obligations within the deadline. Investors are usually concerned with the overall strength of a company including the cash flows and profitability before they get to invest in the company and that is why companies should ensure positive cash flows.
5 pages (1250 words) Case Study
Financial analysis Case Study
Further on, changes in profile and profitability ratios are explained with the help of the information found in notes to financial statements, statement of accounting policies, board members' reports, corporate governance issues, and press releases, one by one.
13 pages (3250 words) Case Study
Case Analysis - Mountain Dew:Selecting New Creative
sugar and caffeine, it was successfully marketed through the years to the younger demographic using a combination of high-energy music and extreme sports, as well as celebrity endorsements. The brand did well, particularly with the use of an innovative ad campaign featuring
5 pages (1250 words) Essay
Financial Case Study Analysis and Excel Work
The other factor that leads to the profitability is the good advertising skills. The jokes that are involved in the phone calls are appealing to the customers and that makes them to become brand loyal. The valuation will
5 pages (1250 words) Case Study
Financial Analysis
Miller is in need of information on his likelihood of obtaining a bank loan. Miller does not have any experience in running his own business but has decided to run
5 pages (1250 words) Case Study
Financial analysis
From the forecast on income statement made after the acquisition of Exterran Holdings Inc, the venture can be considered profitable. The estimate of growth in sales in financial year 2014 is 9%. This
2 pages (500 words) Case Study
CASE STUDY - Financial Statement Analysis
This shows that Chem-Med will be able to pay its current liabilities using its current assets and as such would not resort to additional external financing. Additionally, Chem-Med’s current ratio is far above the industry’s 2.4 times in 2010.This show that the
2 pages (500 words) Case Study
These materials include nuts, screws and other fasteners such as hydraulics, power tools and cutting tools. The company also takes part in the
7 pages (1750 words) Case Study
Comments (0)
Click to create a comment
Let us find you another Case Study on topic Financial analysis of the Creative Chips case for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us