Case 1-1 Ribbons and Bows - 1593 Words

INTRODUCTION Carmen Diaz, with a ten thousand dollar loan from two of her cousins, and one thousand dollars that she invested in equity, was able to open a specialty store called Ribbons an’ Bows, Inc, which was located in Coconut Grove, Miami, Florida. Four months after opening the business, Carmen’s relatives requested a financial report, which was part of the original business arrangement. Within a short time, Carmen had expanded the business, purchased small equipment, paid wages to a part-time employee, and by all outward indicators, had been running a flourishing business. As Carmen gathered the necessary information to prepare financial statements, she started to scrutinize the transactions and was somewhat perplexed. Carmen†¦show more content†¦Diaz has used is to order lesser inventory, more frequently. This would keep more cash in the business, which would allow Ms. Diaz to take some salary for herself and to set up a payment schedule for the business loan from her cousins. As noted by Sergeant (2009), it is best to keep minimal inventory on hand. Excessive inventory, whether materials needed to perform services or office supplies, ties up cash. More frequent orders would allow Ms. Diaz to order more accurately based on actual consumption rather than estimating needs over the longer term, using the principles of Just- In- Time (JIT) ordering. This alternative is dependent on shipping costs and order turn-around times as well as customer order lead times. 3 Another alternative is for Ms. Diaz to keep only samples in her store. Customers pay a 50 % deposit when they order the product and Ms. Diaz then orders the materials for that specific order. When the materials arrive, Ms. Diaz fabricates the product and subsequently, delivery and final payment take place. Again, she will use JIT principles to order only the materials for work that has been ordered. In the situation where particular products are standard or quick turnover items, an exception may be made to the no inventory rule. Again, the concept is that less cash is tied up in inventory and is available for a salary for Ms. Diaz and her loan repayment. SELECTION OF THE BEST SOLUTION The best solution is dependent on the mix of Ms. Diaz’sShow MoreRelatedCase 1-1 Ribbons and Bows Inc1702 Words   |  7 Pages1. FS as a tool in decision making on the point of view of: a. Shareholders Financial statements provide a view on the company’s financial changes within a specific reporting period and confirm its overall state. They give information such that they provide shareholders with a picture of how well the company is doing. These enable them to evaluate a stock’s worth and aid them in making stock-related decisions such as buying/selling/retaining which provide them further on the status of theirRead MoreEssay on Case 1-1 Ribbons an’ Bows, Inc1439 Words   |  6 PagesTable of Contents Issues 1 Facts 1 Analysis 3 Question 1 3 a. Report on the three-month operation of Ribbons an’ Bows, Inc. 3 b. Profit of the Company 4 c. The reason for the cash in the bank decline 5 Question 2 6 Question 3 8 Conclusions 9 Issues 1. a How would you report on the three-month operations of Ribbons an’ Bows, Inc., through June 30? b Was the company profitable? (Ignore income taxes.) c Why did its cash in the bank decline during the three-monthRead MoreRibbons and Bows859 Words   |  4 PagesCase 1-1 Table of Contents Issues†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦1 Facts†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..2 Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦4 Issues 1. Ribbons an’ Bows’ Finances a. How would one report on Ribbons an’ Bows Inc.’s three-month operations through June 30? b. Was Ribbons an’ Bows, Inc. profitable? (Ignoring income taxes) c. Why did Ribbons an’ Bows, Inc.’s cash in the bank decline during the three-month operatingRead MoreCase Solution Ribbons an Bows, Inc.1072 Words   |  5 PagesCase 1-1: Ribbons an’ Bows, Inc. Note: This case is unchanged from the Twelfth Edition. Approach This is an introductory case and it should be taught as an introductory case. There will be plenty of time in the course for the students to learn the correct form of financial statements and details of accounting standards. In short, the instructor should be prepared to allow a variety of formats for the financial statements and tolerate some â€Å"not quite correct† accounting. The instructorRead MoreBlue Ribbon Case Study3792 Words   |  16 PagesCase study Bleu riBBon CHoColates: How Can small Businesses aDaPt to a CHanGinG environment? Dawn r. Deeter-schmelz, rosemary P. ramsey, and Jule B. Gassenheimer Bleu Ribbon Chocolates is a small regional manufacturer of high-quality chocolate that sells its products via trade accounts, corporate-owned stores, and online/mail. Historically, the company has not engaged in strategic planning, as demand was greater than manufacturing capabilities. The trend toward healthier foods and the poorRead MoreAnalysis Of Brown Casual Shoes, A Second Generation Family Owned Company1602 Words   |  7 PagesAssignment 1: Case Analysis 1.0 Introduction Brown Casual Shoes, a second-generation family-owned company experiences a downward trend of their sales and has to expand its sales by entering the international market. The company needs to find cheaper ways to manufacture its shoes and decides to negotiate with Chung Sun Manufacturing in China. There are various different cultural and communication issues between the two countries which are identified in this report. 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They inform that the temperature of 696 K is the minimumRead MoreAr 670-1117328 Words   |  470 PagesArmy Regulation 670–1 Uniforms and Insignia Wear and Appearance of Army Uniforms and Insignia Headquarters Department of the Army Washington, DC 3 February 2005 UNCLASSIFIED SUMMARY of CHANGE AR 670–1 Wear and Appearance of Army Uniforms and Insignia This rapid action revision of 3 February 2005-o Updates figures throughout the regulation (throughout). o Clarifies the definition of unauthorized tattoos while wearing the class A uniform (chap 1). 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Freshen mattress/clean sheets- Strip sheets, mattress cover and comforter. Launder accordingly and wipe down mattress. If you like, spray mattress with