High Acclaim Trading is based in Delhi, from where it has rapidly increased international operations in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
High Acclaim Trading is based in Delhi, from where it has rapidly increased international operations in recent years. A group of influential shareholders recently asked the finance director to review this international business. In turn, he asked Hari Chandrasan from the audit department to collect some data from company records for his presentation, stressing that he wanted to make an impact with his talk. At first Hari was worried by the amount of detail available. The company seemed to keep enormous amounts of data on all aspects of its operations. This ranged from transaction records for the movement of virtually every product handled by the company, to subjective management views that nobody ever formally recorded. Often, there seemed no reason for keeping the data and it was rarely summarised or analysed. Hari did a conscientious job of collecting and summarising data and felt that he had made considerable progress when he approached the finance director and handed over the results in the following table. He explained that 'This table shows some of our most important trading results. We trade in four main regions, and I have recorded eight key facts about the movements between them. Each element in the table shows the number of units shipped (in hundreds), the average income per unit (in dollars), the percentage gross profit, the percentage return on investment, a measure (between 1 and 5) of trading difficulty, potential for growth (again on a scale of 1 to 5), the number of finance administrators employed in each area, and the number of agents. I think this gives a good summary of our operations, and should give a useful focus for your presentation.' To Altica Arerice Asis Europe 85, 75, 14, 7, 3, 2, 20, 3 255, 170, 15, 9, 1, 3, 45, 5 334, 145, 10, 5, 2, 4, 55, 6 25, 60, 15, 8, 3, 2, 12, 2 60, 95, 8, 7, 2, 3, 35, 6 160, 80, 13, 7, 2, 2, 25, 4 From 105, 45, 12, 4, 4. 1, 15, 4 Atrica 45, 75, 17, 3, 4, 1, 15, 3 345, 115, 10, 7, 1, 4, 65, 5 America 85, 70, 8, 4, 5, 2, 20, 4 Asa 255, R5, ३, 3, 2, 4, 65, 7 405, 125, 8, 3, 2, 5, 70, 8 425, 120, 12, 8, 1, 4, 70, 7 Europe 100, 80, 10, 5, 4, 2, 30, 3 380, 105, 9, 4, 2, 3, 45, 5 555, 140, 10, 6, 4, 1, 10, 8 The finance director looked at the figures for a few minutes and then asked for some details on how trade had changed over the past 10 years. Hari replied that in general terms the volume of trade had risen by 1.5, 3, 2.5, 2.5, 1, 1, 2.5, 3.5, 3 and 2.5% respectively in each of the last 10 years, while the average price had risen by 4, 4.5, 5.5, 7, 3.5, 4.5, 6, 5.5, 5 and 5% respectively. The finance director looked up from the figures and said, 'To be honest I had hoped for something with a bit more impact. Could you work these into something more forceful within the next couple of days? Question: - If you were Hari Chandrasan how would you put the figures into a suitable format for the presentation? - Use payback method under investment appraisal for this study High Acclaim Trading is based in Delhi, from where it has rapidly increased international operations in recent years. A group of influential shareholders recently asked the finance director to review this international business. In turn, he asked Hari Chandrasan from the audit department to collect some data from company records for his presentation, stressing that he wanted to make an impact with his talk. At first Hari was worried by the amount of detail available. The company seemed to keep enormous amounts of data on all aspects of its operations. This ranged from transaction records for the movement of virtually every product handled by the company, to subjective management views that nobody ever formally recorded. Often, there seemed no reason for keeping the data and it was rarely summarised or analysed. Hari did a conscientious job of collecting and summarising data and felt that he had made considerable progress when he approached the finance director and handed over the results in the following table. He explained that 'This table shows some of our most important trading results. We trade in four main regions, and I have recorded eight key facts about the movements between them. Each element in the table shows the number of units shipped (in hundreds), the average income per unit (in dollars), the percentage gross profit, the percentage return on investment, a measure (between 1 and 5) of trading difficulty, potential for growth (again on a scale of 1 to 5), the number of finance administrators employed in each area, and the number of agents. I think this gives a good summary of our operations, and should give a useful focus for your presentation.' To Altica Arerice Asis Europe 85, 75, 14, 7, 3, 2, 20, 3 255, 170, 15, 9, 1, 3, 45, 5 334, 145, 10, 5, 2, 4, 55, 6 25, 60, 15, 8, 3, 2, 12, 2 60, 95, 8, 7, 2, 3, 35, 6 160, 80, 13, 7, 2, 2, 25, 4 From 105, 45, 12, 4, 4. 1, 15, 4 Atrica 45, 75, 17, 3, 4, 1, 15, 3 345, 115, 10, 7, 1, 4, 65, 5 America 85, 70, 8, 4, 5, 2, 20, 4 Asa 255, R5, ३, 3, 2, 4, 65, 7 405, 125, 8, 3, 2, 5, 70, 8 425, 120, 12, 8, 1, 4, 70, 7 Europe 100, 80, 10, 5, 4, 2, 30, 3 380, 105, 9, 4, 2, 3, 45, 5 555, 140, 10, 6, 4, 1, 10, 8 The finance director looked at the figures for a few minutes and then asked for some details on how trade had changed over the past 10 years. Hari replied that in general terms the volume of trade had risen by 1.5, 3, 2.5, 2.5, 1, 1, 2.5, 3.5, 3 and 2.5% respectively in each of the last 10 years, while the average price had risen by 4, 4.5, 5.5, 7, 3.5, 4.5, 6, 5.5, 5 and 5% respectively. The finance director looked up from the figures and said, 'To be honest I had hoped for something with a bit more impact. Could you work these into something more forceful within the next couple of days? Question: - If you were Hari Chandrasan how would you put the figures into a suitable format for the presentation? - Use payback method under investment appraisal for this study
Expert Answer:
Answer rating: 100% (QA)
1 In the table made by Hari Chandrasan although with the short time he managed to draw an informativ... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
Students also viewed these accounting questions
-
Often when a high diver wants to turn a flip in midair, she draws her legs up against her chest. Why does this make her rotate faster? What should she do when she wants to come out of her flip?
-
Ever since he was a kid, Carl Montague wanted to be a pro football player. When that didnt work out, he found another way to channel his natural competitive spirit: He bought a small auto parts store...
-
On January 1, 2008, Delhi Club Company purchased some equipment for $45,372 in cash. Delhi Club immediately leased the equipment; Delhi Club is the lessor. The lease contract calls for the receipt of...
-
5.8 LAB: Structuring data using scale() and MinMaxScaler() The hmeq_small dataset contains information on 5960 home equity loans, including 7 features on the characteristics of the loan. Load the...
-
On weekends during summer months, Eric Cart man rents jet skis at the beach on an hourly basis. Last week, Cart man rented jet skis for 20 hours per day at a rate of $50 per hour. This week, rentals...
-
What are the assembly costs/CY of each of the concrete systems in Figure 11.3? Figure 11.3 Project: Dunn Lumber Location: Seattle, WA Arch./Engr.: Flad CIP Concrete Description Interior Spot Footings...
-
A company manufactures geometrically similar airplane propellers up to \(4.0 \mathrm{~m}\) in diameter. Wind tunnel tests are run on geometrically similar propellers up to \(0.33 \mathrm{~m}\) in...
-
McMinville Corporation manufactures paper products. In 2007, the company purchased several large tracts of timber for $22 million with the intention of harvesting the timber rather than buying this...
-
Cost Accounting incl. Full vs. Variable Costing; Budgeting & Financial Planning 1. What is the impact of volume changes in planned capacity on overhead surcharges? How are planned capacity and...
-
Suppose that East-West airlines is a small airline that offers passanger air transportation between two major east coast cities, namely Boston and New York; two major west coast cities , namely San...
-
For the current year, LNS Corporation reported the following taxable income at the end of its first, second, and third quarters. Quarter-End First Cumulative Taxable Income $1,470,000 Second...
-
The use of restraints can a) keep a resident safe from falls. b) prevent physical outbursts. c) decrease aggressive behavior. d) cause depression. You are assisting a resident who has burned herself....
-
A space vehicle of mass 8,000 kg (including crew) when empty of fuel takes on 42,000 kg of fuel at a space station. It is released from the station with an initial speed of 2 m/s, and its rockets...
-
The 12V battery in your car operates a 25A car stereo. What is the resistance of this stereo system? A "2D" Maglite flashlight runs on 3.0V. What is the current through the bulb if resistance is 15 Q...
-
If a balloon is filled with 932.20 cubic meters of a gas (at 0 o C temperature and 1 Atm pressure). What is the mass of the gas (in kilograms) if its density is 0.08 kilograms per cubic meter? Round...
-
Logit models can be used to determine the probability of default of a company as a function of financial ratios. Default is a binary variable: Y = 1 if the firm defaults, Y=0 if it does not default....
-
Danford Products has dividends today, D0, of $2 per share, an expected growth rate of 9 percent per year to infinity, a beta of 1.40, kM = 13%, and kRF = 8%. a. What is the required rate of return?...
-
What key concerns must functional tactics address in marketing? Finance? POM? Personnel?
-
Helvatia GmbH is a Swiss company which is a wholly owned subsidiary of Corolli, a UK company. Helvatia GmbH was formed on 1 November 2005 to purchase and manage a property in Zürich in...
-
Constructive review of the regulators. Required: (a) Obtain a copy of the Financial Reporting Councils Annual Review. (b) Prepare a profile of the members of the ASB. (c) Comment on the strengths and...
-
Ham plc acquired 100% of the common shares of Burg plc on 1 January 20X0 and gained control. At that date the statements of financial position of the two companies were as follows: Notes: 1 The fair...
-
The risk that can be diversified away is best described as: A. beta risk. B. systematic risk. C. unsystematic risk.
-
Which of the following statement is not true: A. A company's beta does not change over time. B. The fundamental beta allows for potential of beta to change over time. C. An historical beta is...
-
An efficient portfolio, according to Markowitz, is all but which of the following: A. lowest risk for a given level of expected return. B. greatest expected return for a given level of risk. C....
Study smarter with the SolutionInn App