Southwest Airlines

Boeing Company is the largest manufacturer of commercial aircraft in the United States and is a major employer in Seattle, Washington. Explain why each of the following individuals or organiza-tions would be interested in financial information about the company. a. California Public Employees Retirement System, one of the world’s largest pension funds.b. China Airlines, a rapidly growing airline serving the Pacific Rim.c. Henry James, a real estate investor considering building apartments in the Seattle area.d. Boeing ’s management.e. International Aerospace Machinists, a labor union representing many Boeing employees.

From the case study, only respond to question #3

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S&S Air Goes International Mark Sexton and Todd Story, the owners of S&S Air, have been in discussions with a light aircraft dealer in Monaco about selling the company's planes in Europe. Jarek Jacho- wicz, the dealer, wants to add S&S Air to his current retail Mark and Todd have decided to ask Chris Guthrie, the com- pany's financial analyst, to prepare an analysis of the proposed international sales. Specifically, they ask Chris to answer the following questions. line. Jarek has told Mark and Todd that he feels the retail sales will be approximately €5.7 million per month. All sales will be made in euros, and Jarek will retain 5 percent of retail sales as a commission, which will be paid in euros. Because the planes will be customized to order, the first sales will take place in one month. Jarek will pay S&S Air for the order 90 days after it is filled. This payment schedule will continue for the length of the contract between the two companies. Mark and Todd are confident the…

Spiritual Airlines Spiritual Airlines is considering a proposal to initiate air service between Phoenix, Arizona and Las Vegas, Nevada. The route would be designed primarily to serve the recreating and tourist travelers that frequently travel between the two cities. By offering low-cost tourist fares, the airlines hope to persuade persons who now travel by other modes of transportation to switch and fly Spiritual on this route. In addition, the airline expects to attract business travelers during the hours of 7 a.m. to 6 p.m. on Mondays and Fridays. The fare price schedule or tariff would be designed to charge a higher fare during business-travel hours so that tourist demand would be reduced during those hours. The company believes that a business far of $75 one way during business hours and a fare of $40 for all other hours would result in the passenger load being equal during business-travel and tourist-travel hours. To operate the route, the airline would need two 120 passenger jet…

Spiritual Airlines Spiritual Airlines is considering a proposal to initiate air service between Phoenix, Arizona and Las Vegas, Nevada. The route would be designed primarily to serve the recreating and tourist travelers that frequently travel between the two cities. By offering low-cost tourist fares, the airlines hope to persuade persons who now travel by other modes of transportation to switch and fly Spiritual on this route. In addition, the airline expects to attract business travelers during the hours of 7 a.m. to 6 p.m. on Mondays and Fridays. The fare price schedule or tariff would be designed to charge a higher fare during business-travel hours so that tourist demand would be reduced during those hours. The company believes that a business far of $75 one way during business hours and a fare of $40 for all other hours would result in the passenger load being equal during business-travel and tourist-travel hours. To operate the route, the airline would need two 120 passenger jet…

Short-Term Financial Planning Case Study Analysis             Capstan Autos operated an East Coast dealership for a major Japanese car manufacturer. Capstan’s owner, Sydney Capstan, attributed much of the business’s success to its no-frills policy of competitive pricing and immediate cash payment. The business was basically a simple one- the firm imported cars at beginning of each quarter and paid the manufacturer at the end of the quarter. The revenues from the sale of these cars covered the payment to the manufacturer and the expenses of running the business as well as providing Sidney Capstan with good return on his equity investment.                By the fourth quarter of 2015 sales were running at 250 cars a quarter. Since the average sale price of each car was about $20,000, this translated into quarterly revenues of 250 x $20,000 – $5 million. The average cost to Capstan of each imported car was $18,000. After paying wages, rent, and other recurring costs of $200,000 per…

Gregg’s Shipping Supplies Ltd (GSSL) trades in the buying and selling of ship spares and has several branches within the Caribbean. Recently the company has seen a rapid increase in demand of its products across all branches and is therefore in need of additional financing to adequately boost its supply inventory. The corporate banking head of Bankers Choice Bank is requesting a full set of financial statements to ensure that granting the loan to GSSL would be financially feasible during a period when many businesses are facing financial challenges. The company financial year ends on June 30 each year and you have been tasked with the responsibility to prepare the financial information for the branch that is linked to your first name initial. Trinidad Branch Required:a) Prepare the necessary adjusting journal entries on June 30, 2022 b) Prepare the Adjusted Trial balance at June 30, 2022. c) Prepare the company’s multiple-step income statement for the period ending June 30, 2022 d)…

Gregg’s Shipping Supplies Ltd (GSSL) trades in the buying and selling of ship spares and has several branches within the Caribbean. Recently the company has seen a rapid increase in demand of its products across all branches and is therefore in need of additional financing to adequately boost its supply inventory. The corporate banking head of Bankers Choice Bank is requesting a full set of financial statements to ensure that granting the loan to GSSL would be financially feasible during a period when many businesses are facing financial challenges. The company financial year ends on June 30 each year and you have been tasked with the responsibility to prepare the financial information for the St. Kitts branch. 1. Prepare the Adjusted Trial balance at June 30, 2022.

ORANGE PRODUCTS INC. Orange Products Inc. is a producer of juice drinks in Florida, USA. Until now, the company has confined its operations and sales to the United States, but its CEO, Ray Jalkio wants to expand into the Pacific Rim. The first step is to set up sales subsidiaries in Japan and Australia. then to set a production plant in Japan, and finally to distribute the product throughout the Pacific Rim. The firm's CFO, Janet Jackson, is enthusiastic about the plan, but she is worried about the implications of the foreign expansion on the firm's financial management process. She has asked your group to develop a tutorial package that explains the basics of multinational financial management. The tutorial will be presented at the next management committee (ManCom) meeting. Consider the following exchange rates: US Dollar Required to buy one unit of Foreign Currency Japanese Yen Australian Dollar Number of units of Foreign Currency per US Dollar 109.89 1.316 0.0091 0.760 1. Orange…

Focus on ethics (Note: This case is based on an actual situation.) Stan Sewell paid $50000 for a franchise that entitled him to market software programs in the countries of the European Union. Sewell intended to sell individual franchises for the major language groups of Western Europe-German, French, English, Spanish and Italian. Naturally, investors considering buying a franchise from Sewell asked to see the financial statements of his business. Believing the value of the franchise to be $500000, Sewell sought to capitalise his own franchise at $500000. The law firm of St Charles & LaDue helped Sewell form a company empowered to issue 500000 ordinary shares. Solicitors suggested the following chain of transactions: 1 Sewell's cousin, Bob, borrows $500000 from a bank and purchases the franchise from Sewell. 2 Sewell pays the company $500 000 to acquire all its shares. 3 The company buys the franchise from cousin Bob. 4 Cousin Bob repays the $500 000 loan to the bank. In the final…