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Question - John has run his retail business for the past 20 year. He owns 30 retail stores located in different parts of the state. He is very conservative with his investments and does not make expenditures that do not have a clear financial payoff. He faces many problems in his business at different fronts. The profitability is declining, customers' satisfaction is at all time low levels, and managers have no clear idea of the inventory level and when to purchase more until the shelves are empty. John needs help and has hired you as a business analyst to help investigate why profitability has declined, what causes customers' dissatisfaction and why inventory levels are not managed well. John also wants you to critically analyze the existing systems and find solutions to all his business problems. After your initial investigation you determined that the existing Accounting Information Systems (AIS) is very old, inefficient, unreliable and the business processes and procedures are out of date. You believe that the solution to the problems is to redesign the existing system and the business processes using Business Process Management (BPM)
a. What are the challenges you might face in analyzing and redesigning the existing system?
b. What are your recommendations to John? How would you convince John to accept your recommendations knowing that he is a very conservative investor?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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