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Can you help me with this case study? Your career is on track and you've been promoted to vice-president of operations of the Company, Incorporated.
Can you help me with this case study?
Your career is on track and you've been promoted to vice-president of operations of the Company, Incorporated. You are now directly in charge of several managers who oversee various aspects of production and service delivery. You quickly learn that this manager is highly upset about the way the company is making decisions in a few short weeks you've heard many Stains and complaints about hoe the company makes so much money, yet raises and bonus haven't been given cut in several years. Some suggest that the VP of finance and the owner/president are taking profits other than reinvesting in employees or the workplace. You realize that these disengaged and somewhat angry employees are not working anywhere near maximum efficiency or capacity so for the take of your job and the success of your department you decide to investigate. You start by talking to your fellow. First, the VP of HR confirms your suspicions, the precedent and Vice-President of Finance are old college buddies and are often off on their own. There are numbers of lavish vocations, expensive dinners and 3-4 hour lunches that no other employee is ever invited to join. You also learn that no one oversees full financial reports, except the President and VP of Finance. VP's and directors only ever get to see the expense reports for their own team. You realize that you already have most of the information to develop on estimated set of financial forms. You understand the big picture of business and know that you can operate effectively in isolation of other teams. the effect runs efficient operations first, you look over your own reports given to you by the previous VP of Operations. You see that in operations there are a fairly faced overhead expenses: Utilities are usually around $2000 per year, Lease expenses are $30,000, insurance is $4000, and salaries for managers in your department are $325,000. There is a sheet in your report that lists of depreciable equipment and notice that the total annual depreciation for lost year was $1500. You begin to gather information from managers. Form the sales team you learn that they bring in revenue in two categories, loosely referred to as primary and secondary. the primary sales revenue is $1, 980,000 and secondary sales is $900,000. You learn that the cost of sales (cost of goods sold) is 14% of primary and 8% of secondary. Overall cost of labor primary was $165,000 and secondary $31, 500. All sales team wage: are commission, which are a total of 15% of all sales. Related marketing expenses total $20,000. Other conversations reveal important information as well. the VP of HR informs you about salaries of $125,000 in the HR department and that they manage a benefits program that totals about $225,000 One of the bookkeepers' provider several important treats of the beginning of last year the cash balance was $425,000 and ended with $295, 030 or the end of the year payroll taxes is $97, 805 and while in the bookkeeper's office, you see the amortization schedule for last year (see below for the details). You decide to talk to the accountant that oversees bookkeeping for last details. the CEO who is the primary owner [with the most shares). does not earn a salary but rather takes a small portion of profit, which totaled $66, 277. Finance salaries $200.000, and they pay $201, 600 in sales tax. To address the overall question of where does the money go in this business, you will need to take the above information and construct a statement of profit & loss (income statement) of well as a statement of cash-flows for the past year. Only then will you be able to understand where the money goes. Do you think the owners and unfairly taking of the profits? What did you learn about where profit often goes? Your career is on track and you've been promoted to vice-president of operations of the Company, Incorporated. You are now directly in charge of several managers who oversee various aspects of production and service delivery. You quickly learn that this manager is highly upset about the way the company is making decisions in a few short weeks you've heard many Stains and complaints about hoe the company makes so much money, yet raises and bonus haven't been given cut in several years. Some suggest that the VP of finance and the owner/president are taking profits other than reinvesting in employees or the workplace. You realize that these disengaged and somewhat angry employees are not working anywhere near maximum efficiency or capacity so for the take of your job and the success of your department you decide to investigate. You start by talking to your fellow. First, the VP of HR confirms your suspicions, the precedent and Vice-President of Finance are old college buddies and are often off on their own. There are numbers of lavish vocations, expensive dinners and 3-4 hour lunches that no other employee is ever invited to join. You also learn that no one oversees full financial reports, except the President and VP of Finance. VP's and directors only ever get to see the expense reports for their own team. You realize that you already have most of the information to develop on estimated set of financial forms. You understand the big picture of business and know that you can operate effectively in isolation of other teams. the effect runs efficient operations first, you look over your own reports given to you by the previous VP of Operations. You see that in operations there are a fairly faced overhead expenses: Utilities are usually around $2000 per year, Lease expenses are $30,000, insurance is $4000, and salaries for managers in your department are $325,000. There is a sheet in your report that lists of depreciable equipment and notice that the total annual depreciation for lost year was $1500. You begin to gather information from managers. Form the sales team you learn that they bring in revenue in two categories, loosely referred to as primary and secondary. the primary sales revenue is $1, 980,000 and secondary sales is $900,000. You learn that the cost of sales (cost of goods sold) is 14% of primary and 8% of secondary. Overall cost of labor primary was $165,000 and secondary $31, 500. All sales team wage: are commission, which are a total of 15% of all sales. Related marketing expenses total $20,000. Other conversations reveal important information as well. the VP of HR informs you about salaries of $125,000 in the HR department and that they manage a benefits program that totals about $225,000 One of the bookkeepers' provider several important treats of the beginning of last year the cash balance was $425,000 and ended with $295, 030 or the end of the year payroll taxes is $97, 805 and while in the bookkeeper's office, you see the amortization schedule for last year (see below for the details). You decide to talk to the accountant that oversees bookkeeping for last details. the CEO who is the primary owner [with the most shares). does not earn a salary but rather takes a small portion of profit, which totaled $66, 277. Finance salaries $200.000, and they pay $201, 600 in sales tax. To address the overall question of where does the money go in this business, you will need to take the above information and construct a statement of profit & loss (income statement) of well as a statement of cash-flows for the past year. Only then will you be able to understand where the money goes. Do you think the owners and unfairly taking of the profits? What did you learn about where profit often goesStep by Step Solution
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