Golf Challenge Corporation In the second year of business at Golf Challenge Corporation the company is struggling. The cost of their inventory is rising, and they are in grave danger of losing their bank loan (their prime source of financing) due to not meeting the required financial ratios agreed and set forth by the bank at the time the loan was given. The owner comes up with a solution, and figures that instead of using Last in-First out (LIFO) the company can use First in-First Out inventory cost system (FIFO) and meet their required financial ratios set forth by the bank. Ultimately, Golf Challenge Corporation should not submit documents to the bank using FIFO as opposed to their previous system LIFO in order to meet the bank requirements …show more content…
It is easy to see how it affects the corporation, a misguidance on their balance sheet will eventually catch up to them. If prices of their goods began to fall, they cannot keep changing their inventory system. The company will eventually have to show the higher priced goods as sold. Beyond the corporation it will affect the bank that gives the company the loan. The bank is being misled to believe that the company is grossing a higher net profit, thus the bank is expecting to be repaid the debt, even though the company may not be able to afford it. The stock holders of the corporation would be greatly affected if these numbers were to be published. From an investor standpoint, the company would look like a rapidly growing entity. They would have a decent gross profit, ultimately misleading any investors. The workers at Golf Challenge Corporation are affected. Their jobs and livelihoods are at stake. In the financial statements released while using FIFO the company looks like they can pay their employees, but this may not be the case. Furthermore, the owner is directly affected. It is the owner’s company that is in stake, but beyond that it is the owner who directly sent the financial statements to the bank. The ethical issue in this case lies on his …show more content…
This is an agreement that needs to be worked out between the owner and the loan officer. Simply manipulating the books is not going to help the company in the long run. Beyond this it is truly dishonest. The owner may need to look at the option of layoffs, an increase in prices, or a change of suppliers to compensate for the constantly rising costs. The owner needs to speak with the loan officer and show him that he has a reasonable plan to better his financial statements. Even if this plan involves laying off workers it is ethically more correct than not being able to pay the workers. Raising price should be considered also as the cost is rising, the price the consumer pays need to be raised. The bank may oversee not meeting the required financial ratios if they understand that the ratios are only bad because of the given inventory
Moncrief Company agreed to pay Jim Lester 20% of the gross profit made from the 2013 sales of the Zelenex. Between January 1, 2013 and December 28, 2013, Moncrief’s total available units for sale were, 50,000 units of Zelenex for $30.00 per unit ($1,500,000). Also in addition to the former activities, Moncrief sold 35,000 units for $60.00 per unit ($2,100,000). Moncrief Company uses periodic LIFO inventory method as a result, Jim Lester was to receive $210,000. (Textbook pg.469)
Financial Accounting Standards Board. (1985). Statement of Financial Accounting Standards No. 86. Norwalk. Retrieved April 7, 2014, from http://www.fasb.org/cs/BlobServer?blobkey=id&blobnocache=true&blobwhere=1175820922177&blobheader=application%2Fpdf&blobheadername2=Content-Length&blobheadername1=Content-Disposition&blobheadervalue2=189998&blobheadervalue1=filename%3Dfas86.pdf&blobcol=url
In 1864, Nemislo Guillot brought the first bat and baseball to Cuba. The island quickly adopted the sport and everyone became eager about creating a team. Nemislo Guillot with the help of his brothers, created the first baseball team called, Habana Base Ball Club in 1868. In 1878 the Cuban League was founded and consisted of three teams, Almendares, Habana and Matanzas. Today, baseball has become one of the most popular and played sport in Cuba. Due to the fact that baseball is already a well-known sport in Cuba, Rawlings should have no trouble entering this market.
You are hired as an assistant brand manager for a popular consumer product. One day in an emergency meeting, the brand manager informs the group that there is a problem with one of the suppliers and that he has decided to send you over to the manufacturing facilities to investigate the problem. When you arrive at the plant, you learn that a key supplier has become increasingly unreliable in terms of quality and delivery. You ask the plant manager why the plant doesn’t switch suppliers, because it is becoming a major problem for your brand. He informs you that the troubled supplier is his cousin, whose wife has been very ill, and he just can’t switch right now. What course of action should you take and why?
In 1982, Ely Reeves Callaway had bought his small wedge and putter golf business and called it Hickory Stick USA and created clubs that were enjoyable for the average golfer. He called these clubs the Demonstrably Superior and Pleasingly Different (DSPD) clubs. This was a code he had always lived by. The family of Ely Callaway are not involved with the company today because he was told to choose his successor, and had chose Ron Draqpeau. He is a man who only shared the same vision and thought of golf, but also had the skills as a leader to continue his wonderful golf company. The goal was to make a good product and tell the truth about the game. In those days Ely would provide them to his customers personally in the back of his Cadillac. He made sales calls and talked to pros, amateurs, and those who came to be known as an average golfer. Finally, Hickory Stick USA came to be knows as Callaway Hickory Stick U.S.A, and not too long after that, Callaway Golf.
The case study, `Will GM 's Strategic Plan Lead to Success,` is about how the company General Motors Co. Plans to overcome financial deficits, ensure growth within the company, and remain competitive in the automotive industry. To help with overcoming financial deficits, GM was apart of the bailout, which assisted GM in relieving themselves of almost $40 billion dollars of debt. This restructuring gave GM an advantage over other automakers. Most other automotive businesses, that did not participate in the bailout, still have billions of dollars of debt they must repay in addition to competing with its adversaries.(Kinicki & Williams, 2013). GM made many cutbacks to ensure growth within the company. The reduced the amount models that are in production. They have recognized that some changes need to be implemented with global production in order to remain ahead.
From its initial existence R&D and innovative products had been the lifeline of CGC. When Callaway bought into the company his first initiative was to develop original products. Innovation and superior performing products are important in golf because equipment is thought to have a significant impact on player performance. Moreover, innovation was important because CGC had to be the technological leader to sell its products at premium price and continue to exceed customer expectations. The industry was also characterized as being driven by new product development because manufacturers were trying to bet each other to the next "best club" so CGC had to manufacture products that were differentiated from its own existing products as well as those of its competitors.
In this assignment, both control in the workplace and work satisfaction dimensions will be analysed at length. Relating them both to the case study of the Sports Direct Company and other relevant organisational theories; such as scientific management. Sports Direct was founded in 1982 by Michael Ashley in Maidenhead. In 18 years, ‘Mike’ Ashley expanded internationally opening stores in Belgium, and just seven years later listed his company on the London stock exchange. It was that listing that really kick-started Sports Directs’ exponential growth. 2 years later in 2009, Sports Direct established market leadership after their sales exceeded £1.0bn (Sports Direct, no date given). This information presents Mike Ashley as an entrepreneurial genius,
Callaway Golf Company began to take form in 1983, after Ely Reeves Callaway Jr. sold Callaway Vineyard and Winery for a $9 million dollar profit. Shortly after the sell of the winery, Callaway ventured in to the golf equipment industry and bought 50 percent of Hickory Stick USA. Callaway knew from the very beginning that this company’s profits were limited as long as the product line wasn’t changing. “Callaway noticed that most golf equipment had changed very little since the 1920s and believed that , due to the difficulty of the game of golf, recreational golfers would be willing to invest in high-tech, premium-priced clubs if such clubs could improve their game by being more forgiving of a less-than-optimum swing.” (Thompson, c205) Callaway then purchased the company outright and changed the name to Callaway Hickory Stick USA and then hires Richard Helmstetter as the companies’ chief club designer. With the help of five aerospace engineers, Helmstetter developed line of clubs that was set apart form competing brands by its technological innovation. In 1988, the S2H2 was launched as well as another name change to Callaway Golf Company. In 1992, sales are more than double recent years and Callaway Golf Company goes public and begins trading on the NYSE. Throughout the 90’s, Callaway leads the golf equipment industry with ongoing new lines of clubs and eventually adds golfing apparel. Donald Dye, Callaway’s new CEO, took the much of the blame for the downturn in Callaway Golf Company. Dye was ultimately responsible for initiatives that took managements focus off golf clubs. The company’s financial and market performance suffered immensely in 1998 causing Ely Callaway to return to rebuild the company. The textbook states on page c208, “Ely Callaway’s first efforts upon his return to active management at Callaway Golf were to ‘direct resources---talent, energy, and money--- in an ever-increasing degree toward the creation, design, production, sale and service of new and better products.’” In Callaway’s turnaround strategy, he initiated a restructuring program and operational improvements. By the end of 1998, Callaway’s strategies allowed the company to regain it s technological leadership.
Golf. A sport that started out with just a wooden stick and ball, is now a very well know game by many people all around the globe. The sport that also just started out as a way to mess around has become a job for some of the people and is making some golfers millions of dollars each year. A sport that many people spend their whole lives playing or watching used to not be exactly what is today. Even though golf is a very well known sport now, golf has been around for hundreds of years and is played by people all over the world. The sport of golf has been dated all the way back to years before 1,000 and has kept growing exponentially ever since. According to the International Golf Federation, they have 144 different countries a part of the organization, leaving out 51. The game of golf is played at many different levels all the way from junior tournaments, all the way to professional events. The evolution of the sport of golf is made up of a couple main things. These two main things are how golf got its start, and what has changed about the game.
...ncreasing the capital So ( Falsely ) the books looked very good the business is ending up making money and again the trial balance and the account equation are correct
In “Bank Debt” alternative, a sum of $3.5 million will be injected to the company through bank loans. However, the company will have to pay an additional amount of $33,750 in interest and a principal payment of $300,000 to the bank annually over the course of 7 years. Net income will come to $489,187.50 and EPS will be 0.49.
The human race has inhabited this planet for only a small window in the geological time scale, however, the advances and changes in lifestyle that humans have made throughout the course of history are amazing. The field of technology is by the far the most interesting aspect of human societal growth because it is our ability to build these products that separates from the other species we share this planet with. It is hard to believe that at one point there was no electricity, no telephone, no internet or even no cars, but humans have developed all of these technological innovations which improve and facilitate our way of life. With all these new inventions and magical miracle products it is possible to loose track of what really makes this planet so special and that is the environment which surrounds us each day. Are these new technological ideas harmful to the environment? Is the rapid growth and development of such technologies so quick that we have no idea how the products will affect the environment 5 years from now, let alone 25 years from now? The preeminent and most beneficial technologies are those which are environmentally safe and consider the consequences of their usage. By developing technologies that have a positive effect on the environment we are ensuring the existence of the human race and other species long after we have died.
Today I watched the European Open 2013 Disc golf tournament on Youtube. This tournament took place on August 13, 2013 in Europe. The competitors were Paul McBeth, Will Schusterick, Dave Feldberg, and Jeremy Koling. In the beginning of the tournament Paul threw a 302 and got very close to the birdie. Both Dave and Jeremy hit trees on their first throws and Dave gets near the birdie on his throw. On his third throw Dave is the first person to land his disk in the birdie and Jeremy gets the birdie on his fourth throw. The announcers state that Jeremy is one of the best forehand throwers in the world and that out of the four contestants he is the only one that prefers to throw forehand. The announcers
Golf tourism is spreading rapidly all over the world in places like Asia and Mexico. Although most people who play the sport of golf play because of its interaction with nature, what most golfers do not realize or consider is the damaging environmental impact on the sport. The booming golf trade throughout the world creates a haven for golfers and a nightmare for environmentalists. According to members of the Malaysia-Based Asia-Pacific People’s Environment Network, golf development is becoming one of the most unsustainable and damaging activities to people and the environment (TED Case Studies, 1997).