Essays on Stockholder

Cardillo Travel Systems

The Cardillo Travel Systems case shows the way the management cooked up the books only to be caught later. This essay will attempt to answer some questions on this case. False Representation to External Auditors: The executives at Cardillo Travel Systems were aware it needed to maintain a minimum of $3 million of stockholder’s equity threshold established by the court outstanding against the organization. (Ritterburg, 2012). This was the reason that shaped their intent to falsify the organization’s books to misrepresent facts before investors and creditors. The issue started with the accountants at Cardillo making an improper ...

INVESTING IN THE FUTURE

Question 1: Discuss the role of investing in personal financial planning. It has been gathered from the case that Sam Johnson is a hard working guy and he has defined some financial goals for himself. He is about forty years of age, enjoys a great job and ensures that he pays his bill on time. He plans to retire at the age of sixty and he wishes to have enough savings so that he could send his young kids to college when they grow up. In order to ensure that he has ample amount in his savings before retirement, ...

Wealth Maximization

Wealth maximization is a modern business concept where the organizations evaluate their capabilities, shortcomings, and best possible outcomes to maximize their stockholder wealth component. This is usually considered as the goal of modern businesses (Roe, 2001). But wealth maximization is not essentially synonymous with profit maximization where the short term benefits becomes the primary target than long term achievements. Clearly, unlike profit maximization, wealth maximization is not a continuous process, especially in the case of a single business. It is possible that the company may run into a saturation level beyond which its expansion might become extremely difficult. For ...

Performance Measurement

Asset Utilization Revenue generation by each employee is perceived to be better for Boeing at $595,501.86, which may be due to a better employee retention policy. This was concurred by Boeing’s annual report where it revealed that the management has good relations with its employees since 38% are represented by unions (Boeing, 2016, p.20) with Lockheed at 18% (Lockheed, 2016, p.18). Due to the better employee retention, Boeing was able to generate a higher amount of sales based on its investor’s capital or equity at 15.02 but Lockheed was not lagging far behind at 14.90. The ...

JONES &TREVOR MARKETING INC. V. JONATHAN L. LOWRY, ET. AL. In Jones & Trevor Marketing, Inc. v. Jonathan L., Lowry, et. al., 2012 UT 39; 284 P.3d 630 (2012), Jones & Trevor Marketing entered into a contract with Jonathan Lowery and Nathan Kinsella. The contractual relationship did not flourish and Lowery and Kinsella sought to cancel the contract. In response. Jones & Trevor Marketing filed suit. During the pending lawsuit, the defendants dissolved the company and Jones & Trevor sought instead to hold Lowery and Kinsella personally liable by piercing the corporate veil under the alter ego theory. Jones & Trevor Marketing alleged that ...

Stock exchange entails an exchange in which the stock traders and brokers buy and sell securities. As described in a video by Kurzgesagt studio, securities are essentially the rights to assets. Bonds and shares/stocks are some of the examples of securities traded in the stock exchange markets. A stockholder or shareholder is a person or an institution that owns bonds, shares/stocks, or other securities in a company, thus, owning such a company. As the partial owners of a company, the stockholders are entitled to certain rights. The present paper describes these rights and what an ethical lapse entails. One ...

The four types of corporate responsibility, which include ethical, economic, legal, and philanthropic responsibilities, are typically aligned to either the stockholder theory or stakeholder theory (Beal, 2013). The main theories dominating discussions about corporate social responsibility (CSR) are the stakeholder theory and stockholder theory. Essentially, the stockholder theory suggests that the profits generated for stockholders serve as a corporation’s main social responsibility. The stakeholder theory holds that groups other than the stockholders of a company are interested in the management of a corporation. In most instances, the community can represent the stakeholders. According to Bolton (2011), the stakeholder ...

Enron was the sixth world largest energy corporation. It claimed a lot of annual revenues and a sizeable workforce and became the biggest company in America representing a new business breed. The story of Enron’s company gives insight into the corrupt business, a culture that is faced by unethical practices. When talking of Enron, one undoubtedly thinks of its ensuing scandal and collapse. The downfall of the company was as a result of several wrong decisions and accounting practices at almost every level of management. The film shows how top leaders such as the chairman and founder Kenneth ...

Question 1

According to the article by Joseph Johnston, he argues that stakeholders’ interests are worth in a social aspect, but they prove to be hard in imposing them. In this case, Joseph explains the objective of starting a business enterprise and compares with the social responsibilities a company is obliged to fulfill. Additionally, the social responsibilities of a company usually conflict with the main objectives of starting a business enterprise. Generally, managers are owed the responsibility of social welfare and benefit for the community at large. Therefore, a business enterprise is expected to function in favor of both shareholders’ interests and stakeholders’ interests. In practice, stakeholders ...

- Discuss in detail the concept of Utilitarianism and its impact on society.

Utilitarianism holds that a proper course of action is one that maximizes utility by reducing suffering and maximizing happiness. The concept of utilitarianism adds that the moral worth appended t an action is solely determined by its resulting outcome. Theorists add that the greatest measure of right or wrong is the happiness of the greatest number of people. The influence of utilitarianism is widespread and permeates politics, law and economics. In law, the concept of utilitarianism justifies the punishment intended to preempt further crimes by protecting the community from the offender or rehabilitating him. In politics, utilitarianism supports democracy as a ...

Halloran metals company. This company was among the largest two independent regional service centers in the northeast US having seven locations in deferent states like New England, New York, and Pennsylvania. It is believed that in the period of 36 years of it foundation, the company had grown to sales of $170 million and an operating profit of $6 million. This company was privately owned with a network of metal service centers across the northern United States through buying metals like primary steel and aluminum in plenty or bulky form. This company has its president known as Warren Hansen ...

Abstract:

Venture firms utilize investments from private and public investors for preparing their allocations to budget. The firm decides on revenue or profit being shared among investors as a percentage of capital in shares or revenue. For Kudler foods the venture start up firm the operating pro forma is prepared for next 12 months with financial statement and investment scenario from venture investments. Kudler foods is a small start up business in the suburban area for creek manor, a small town in the outskirts. The firm uses venture financing to include capital requirements as well as ongoing operational aspects. The firm is expecting ...

GAAP and IFRS have some inherent differences in their approach towards valuation. One of the differences is seen in the valuation of intangible assets (Porter & Norton, 2011). Under the GAAP, intangible assets are valued at fair value. Unlike the GAAP, the IFRS recognizes the assets which will have future economic benefits as well as measured reliability. The other difference is seen in the valuation of inventory costs (Porter & Norton, 2011). The IFRS does not allow the Last-in, First-out (LIFO) approach towards the account of the costs associated with inventory. The GAAP allows the use of the First-in, First-out (FIFO) ...

NIKE

The success of Nike lies in its pledge to a detailed analysis of future opportunities in meeting the requirements of the customer wants in accordance with the current trends. In addition, tapping in new segments is also a significant endeavor of Nike. The primary focus of any business has to be the customer; marketing management has to take the lead in researching the customer and the markets, in order to promote strategies and Nike has been leading in all the mentioned fronts with aplomb. It is imperative to delve into Nike’s historical perspective, the word “Nike” is derived ...

Abstract

This paper has three purposes. The first is to briefly explain the important relationship some key concepts have to the financial statements. The second is to provide a brief explanation of the financial statements’ format. The third purpose is to illustrate examples of accounts that exist within the asset, liability, and stockholder’s equity categories by use of a table.

Concepts Important to Financial Statements

Generally Accepted Accounting Principles (GAAP) Maintaining the consistency and reliability of financial statements within various business industries and sectors is important to prospective investors and creditors who rely on the data presented in the financial statements. This consistency is accomplished ...

CDH520- Sharmeen Sultana

As complex as the world of accounting is, so is the various accounting statements. Hence, it is of extreme importance to understand as what each accounting statement means and what purpose does it serve. Some of the basic accounting statements are discussed for your convenience: General Ledger: These are the central repository of all the accounting information of a company that summarizes all the transaction held by the company. In simple words, it is a complete summarized record of all the accounting transactions so posted under the double-entry accounting system under which each accounting transaction affects two financial items, one ...

According to the case presented in this case scenario, there is avoidance of legal requirement to have redemption. Clara has presented her current year’s tax returns and it seems there are some unusually abnormally in her tax return. She reported a large capital gain in her stock redemption in 2011. This was due to an irregularity made during the redemption process. Clara did not avail herself during the family during the redemption process. This affected the whole process of exchange treatment, where she was supposed to avail herself for a completion of the termination. The analysis of the returns reveals ...

Balance Sheet:a)What components of stockholders' equity do each of the companies disclose?

Referring to the balance sheet of both the companies, below is the information relating to stockholder equity: Meiji Holdings: The company during 2013, has total stockholder equity of $3242.84 Million with the components of stockholder equity as follows: - Common Stock(Authorized and Issued) - Capital Surplus - Retained Earnings - Treasury Stock(at cost)

General Mills Inc:

Noted from the balance sheet of the company for the year 2013, the total stockholder equity of the company was reported to be $3242.84 Million with the component of stockholder equity as follows: - Common Stock(par ...

Interactions between the Environment, Technology, and Human Resources in the Organisation

Introduction Casual Togs faces the challenge of establishing advantage in a highly competitive environment amidst the various problems and issues that affect the company’s operations, performance, and outcomes. Henceforth, this discussion is an analysis of Casual Togs’ circumstances based on developments in the external environment and tensions within the internal environment. This discussion also explores other aspects of the organisation such as issues concerning technology and human resources. The objective of analysing Casual Togs is to determine the interactions between the environment, technology, and human resources in the organisation that affect management and organisational performance. Doing so ...

History and background of the Retailer

Amazon.com was set up in 1994. Jeff Bezos takes the credit for the establishment of the company with its base in Seattle. The company began as a bookseller over the internet. As time went by, Amazon grew in size and eventual market share making it one of the largest e-commerce business enterprises. The company eliminated the need for its clients to travel to actual bookstores and purchase reading material. They could do this over the internet. After establishment in 1994, the company made its first online sale in May 1995.

Corporate Mission Statement

The corporate mission of the company is to be the ...

Part I.

It goes without saying that reliable and objective financial reporting is vital for any business entity. Adequate financial reporting is important in order to be able to track, analyze and implement changes in business operations. In addition, financial reporting gives managers the opportunity to take appropriate measures if financial performance of a company does not meet the expectations. Most of the financial reporting in the world is conducted according to one of the two standards - United States Generally Accepted Accounting Principles (US GAAP) and International Financial Reporting Standards (IFRS). Understanding both approaches is extremely important in international business and ...

Company Information

i) NAME OF COMPANY:

The company we are analyzing is Under Armour ii) INDUSTRY - What, specifically, does your company do:

The company is engaged in the business of sports clothing, accessories and is leading supplier of casual wear and sports wear. Company also engaged in footwear business in 2005.iii) What is the address of your firm? Under Armour is headquartered both in USA and Europe. In US, company is based in Maryland and in Europe the headquarters are based in Amsterdam. For Maryland headquarters following is the complete address of the company: 1020 Hull Street

Baltimore, Maryland 21230

iv) Does your firm have a web site? If so, what is the address? Attach a copy of the home page ...

Introduction

Corporate governance in strategic management entails a framework of rules and regulations with which the management uses to enhance accountability and transparency in dealing with the company’s stakeholder relationships. Stakeholders of the company include shareholders, suppliers, employees, management, the community, and the government. Each stakeholder has its own set of rights and expectations from the day-to-day activities of the business. By observing the needs and interests of each stakeholder, one engages in Corporate Social Responsibility where not only the interests of the firm are at hand but also the societal, economic, and environmental interests.

What is CSR?

Corporate social Responsibility is a strategic ...

Reconciliation Income Statement

For the year ended 31 Dec 2011 . Profit as per GAAP $1,000,000 Add Inventory (realizable) 190,000 Deducted impairment loss 6,000 Gain from sale and lease back 150,000 Total income 1,346,000 Deduct Inventory (historical) (152,000) Impairment loss (5,000) Net Income (IFRS) 1,189,000

Reconciliation Statement of Stockholder’s Equity

For the year ended 31 Dec 2011 .

Stockholder’s equity as per GAAP $8,000,000

Add

Revaluation gain 720,000

Intangible assets fair value adjustment 1,000 Total 8,721,000 Deduct

Development cost capitalization adjustment (120,000)

Stockholder’s equity as per IFRS 8,601,000 Notes The addition of ...

Ethical leadership is an approach to management in an organization that requires the person in-charge to uphold a preset code of moral conduct as an example for other members of the organization to emulate. Scholarly interest in ethical leadership within organizations has increased since 2010 (Soneinshen, 2009). This is attributed to the emergence of a new approach to corporate governance that highlights the need for public accountability. In the field of nursing, ethical leadership has also been a subject of various studies due to the increasing number of medical employees’ misconduct since 2005 (Valentine, Godkin, Page & Rittenburg, 2009). The implementation of ethical ...

Accounting Ratio Analysis of Abercrombie & Fitch Co

Introduction Abercrombie & Fitch Co. is a company that was incorporated in 1996 in Delaware. The company operates various retail stores selling a wide array of products, including: graphic t-shorts, casual sportswear apparel, woven and jeans pants, sweaters, shorts, personal care products and accessories for women, men and kids. This paper calculates various accounting ratios from Abercrombie & Fitch Co. latest financial statements which were for the financial year ended 29th January 2012 to facilitate investment decision making.

Test of Liquidity

Current Ratio = Current Assets/ Current liabilities = 1,488,775/705,353 = 2.11

The current ratio of 2.11 implies that the company can pay its maturing obligations using current assets 2.11 times.

Acid test Ratio = [Current Asset – Inventories]/Current Liabilities = [1,488,775-569, ...

Introduction

The International House of Pancakes is a large company in the hospitality sector where its major operations are carried out through franchises. It is owned by the Dine Equity company which also owns other subsidiaries in the hospitality sector. Financial ratios are used by internal and external users to judge the financial health of the company.

Liquidity Ratios

Current Ratio (2010) = Current Assets = 325,720 = 1.68 Current Liabilities 193,353 (2009) = Current Assets = 337, 144 = 1.3

Current Liabilities 257, 967

Acid Test Ratio (2010)= (Current Assets- Inventory) = 325,720- 11,977 = 1.623 Current Liabilities 193,353 (2009) = (Current Assets- Inventory) = 337, ...

Task

Introduction Accounting is a very important subject both to the followers of the profession and also to all institutions that carry on business. For any financial statements to make sense they must be prepared in a standardized manner, allowing for quick comparison between the financials of a company in different periods, the company and other players in the industry, a company in different countries etc. This requires the adoption of standards that will allow for this to be possible. The International Accounting Standards Board prepares and issues the International Financial Reporting Standards (IFRS) that have been widely adopted by accountants the ...

Importance of Utilitarian Benefits over Moral Justice

In my own judgment, the possible utilitarian benefits of building the Caltex plant were not more important than the violations of moral law and justice. Building the Caltex in deed seemed to present more benefits for the discriminated groups in the country. Caltex insisted that its expansion in South Africa actually benefitted the economic conditions of blacks because it followed the Sullivan Principles of 1977 (Ashford University). These principles were a set of six guidelines which served as a policy which the companies would follow to promote equal treatment between their black, colored, and white employees. In addition, statistics indicated that ...

Annual Report (Year ended December 31 2010, Numbers in millions)

Operating Profit as a % of Sales:

Operating Profit= $6,658 Sales= $128,954 $6,658/$128,954=0.0516=5.2%

Net Profit as a % of Sales:

Net Profit=$6,561 Sales=$128,954 $6,561/$128,954=0.0508=5.1%

Return on Equity:

Net Profit=$6,561 Total Stockholder’s Equity= ($673) $6,561/($673)=(9.74)=(974%)

Current Ratio:

Current Assets=$48,875 Current Liabilities= $60,206 $48,875/$60,206=0.8

Debt to Equity Ratio:

Total Liabilities=$165,360 Total Stockholder’s Equity= ($673) $165,360/($673) = (245.7) Ford Motor Company has a negative financial leverage because of the negative stockholder’s equity. This negative debt ratio indicates that the company ...

Abstract

This is a comprehensive analysis on the M&A actions of Merrill Lynch and Bank Of America. This analysis incorporates the strategic examination of the different features that shaped synergies involving these two companies, putting them as the ideal constituents for a likely merger. This analysis also enlightens on the assorted features of M&A and the approaches of Mergers and Merger incorporation procedure. This analysis clarifies Merger as a procedure, which is well planned for the improvement of both the companies involved in it.

Introduction

The Bank of America is among the world's leading monetary establishments, providing individual customers, minute, middle market ...