Warf Computers has decided to proceed with the manufacture and distribution of the virtual keyboard (VK) the company has developed. To undertake this venture‚ the company needs to obtain equipment for the production of the microphone for the keyboard. Because of the required sensitivity of the microphone and its small size‚ the company needs specialized equipment for production. Nick Warf‚ the company president‚ has found a vendor for the equipment. Clapton Acoustical Equipment has offered to
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Warf Computers Financial Performance Analysis Prepared by Angus Jones & Partners‚ LLC Agenda Company overview Company direction & new product info Company financials Balance Sheet Income Statement Cash Flow Analysis Ratio Analysis Expansion plan analysis Overall recommendations Angus Jones & Partners‚ LLC Company Summary Founded 15 years ago Small initial investment to start company The same group of investors has supplied the limited additional funds needed by the company in the
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WARF COMPUTERS‚ INC. Financial Analysis Hirra Zahir‚ Marcus Vaughn‚ Alejandro Romero‚ Kevin Zabihi WARF COMPUTERS | Statement of Cash Flows | 2012 | ($ in thousands) | | | | | | | | | | Operations | | | | | | | | | Net income | | | | | $ | 896 | | Depreciation | | | | | | 191 | | Deferred taxes | | | | | | 130 | | Change in assets and liabilities | | | | | | | | Accounts receivable | | | | | (37) | | | Inventories
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Bonnie Davis Week One Assignment One January 17‚ 2012 Table One Warf Computer Statement of Cash Flows Operations | | Net Income | $742 | Depreciation | $159 | Deferred Taxes | $109 | Changes in assets and liabilities | | Accounts receivables | -$31 | Inventories | $14 | Accounts payable | $17 | Accrued expenses | -$99 | Other | -$9 | Total cash flow from operations | $902 | | Investing Activities | | Acquisition of fixed assets | -$786 | Sale of
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within six months. In order to run advanced analytical software for the preparation of the drug‚ it needs to acquire mainframe computer. Now the decision needs to be taken to either lease or buy the mainframe computer. SOLUTION 1: As a CFO of Bonnesante Research company‚ by taking my colleagues opinion into consideration‚ I have decided to lease the mainframe computer for 18 months instead of buying it.. The reason being is that the loan options were proposing significantly higher outflows and
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To Buy or to Lease? The Risk. Malaysia Airlines decision to lease whether a capital or operating rather than buying the asset arise because of the risk decision and the decision made in the upper management. When making the decision to buy or to lease the company must not only consider the financial implications of the options including the value of the money but consideration must also be given to long-term strategic priorities. It is important to understand the implications and the risks posed
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Analyzing Lease vs. Buy Dec To buy or not to buy is the question for many companies acquiring assets for their business. Equipment and other assets are extremely important when a company is trying to get off the ground in a new business. The chief executive officer would have to ask how would we finance the equipment needed‚ pay back investors‚ and make the company profitable for all. This new biotech company is seeking financial remedies in becoming a profitable company
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whether or not to lease or buy‚ he or she needs to know the purchase cost‚ the lease cost‚ as well as the interest rate of a loan that will be used to purchase the item. The residual value of the item also must be known up front to help determine if leasing is the better option. When determining whether to lease or buy‚ the cash flow for both should be compared so the best decision can be made. Below is a chart on lease vs buy. (www.smartcomputing.com; Retrieved November 6‚ 2006) Lease/Buy Cash Flow -
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financing‚ and part for the decision that needs to be addressed is buying or leasing. In this paper we will look at the differences between buying and leasing a new automobile. Automobiles In America‚ cars have become a way of life‚ and most people could not live without one. They have also become the second largest financial commitment that most people will make‚ outside of buying a house‚ and for some people‚ there car will cost more then their house (Bauldings‚ 2004). Lease Versus Buying Obviously
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Introduction The cash flow at Warf Computers‚ Inc. is as follows: Operations Net Income $896 Depreciation $191 Deferred Taxes $13 Changes in assets and liabilities Accounts receivables -$37 Inventories -$17 Accounts payable $20 Accrued expenses -$118 Other -$11 Total cash flow from operations $937 Investing Activities Acquisition of fixed assets -$786 Sale of fixes Assets $139 Total cash from investing activities -$647 Financing Activities Retirement of long term debt -$98
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