We believe PC Depot will be a great venture for Thompson Essay Example

We believe PC Depot will be a great venture for Thompson Essay Example We believe PC Depot will be a great venture for Thompson Essay We believe PC Depot will be a great venture for Thompson Essay In September, Barbara Thompson started PC Depot, a retail store for personal computers, with initial startup costs in the amount of $158,115 (Anthony, 2004, p.108). During the month various transactions occurred resulting in a net income for the month of September in the amount of $5,054. Financial transactions for the month of September have been recorded in the general journal, which also includes adjusting and closing entries. NC Gold has prepared the balance sheet and income statement for PC Depot for the month of September. A financial analysis of the balance sheet and income statement was conducted and areas of concern were identified. One area of concern for PC Depot is the amount of inventory they are carrying for a start up business. During the month of September, PC Depot purchased merchandise for inventory in the amount of $187,440 on credit from suppliers. Cost of sales for the month of September was $38,140 resulting in an ending inventory of $149,300. Another area of concern is the amount of debt PC Depot has incurred through bank loans in the amount of $100,000 and purchases from creditors in the amount of 187,440. NC Gold feels that PC Depot should focus on reducing inventory costs and reducing their short tem and long term debt. Some suggestions for reducing inventory costs include implementing the Just In Time or consignment method of inventory. Just In Time (JIT) is a comprehensive inventory and manufacturing control system in which no materials are purchased and no products are manufactured until they are needed (http://services.eliteral.com/glossary/glossary-of-quality-improvement-terms.php The JIT inventory method could eliminate financial risk. By keeping inventory stored for long periods, companies may experience high storage and investment costs and also obsolete inventory. These costs may hinder the companies profitability. For JIT to prove beneficial for PC Depot, the company needs to choose suppliers carefully. Companies may risk sales due to untimely deliveries or damaged merchandise by suppliers when using the JIT inventory method. Thompson needs to research and consider all possible suppliers when considering delivery on an as needed basis. Another option for PC Depot is the consignment method of inventory. Consignment inventory can be defined as goods placed at a customers location, with ownership of these goods remaining with the supplier. Payment is not made until the item is actually used. (Czarnecki, 2004, p. 24) By applying this method, PC Depot would not incur losses due to unused or unsold merchandise. The consignment method would eliminate upfront costs and allow PC Depot to maintain inventory on hand. The company would also be able to return unused inventory to the supplier within a reasonable amount of time. Dell Computers serves as an example of a company that uses consignment inventory. Dells Michael Gray credits the companys success to the low levels of inventory and says companies run risk of managing inventory that becomes obsolete (A Reminder, 2005). The consignment method of inventory, while potentially beneficial to PC Depot, requires proper management with suppliers. PC Depot must recognize the importance of relationships with suppliers who may make returning merchandise difficult. Czarnecki says, contracting with the vendor to keep track of inventory and allowing for return of supplies that are not used or are no longer current can help make this purchasing method more user-friendly (2004, p. 28). The amount of debt incurred by PC Depot to purchase inventory for the company is a major concern. Currently, Thompson is paying interest to creditors for inventory which is not being sold. Also, Thompson has a $100,000 bank loan at 15% interest which was used to start the business. In total PC Depot currently has $192,571 of combined debt. Considering the costs incurred to obtain inventory and how much inventory is currently being maintained, an alternative inventory control method such as JIT or consignment would work best for PC Depot. We recommend that for future inventory needs PC Depot establish a relationship with suppliers that can provide them inventory utilizing the JIT method. The JIT method is preferred over the consignment inventory method because it eliminates storage issues. If PC Depot were to use the consignment method of inventory, they may still incur costs associated with the housing and returning unused merchandise. NC Gold recommends that PC Depot reduce as much cost as possible by eliminating inventory overage. Thompson should also consider a line of credit as opposed to paying interest on the $100,000 bank loan. With a line of credit, Thompson will be able to borrow money as needed and pay interest only on the amount used. To accomplish this, Thompson should use the initial cash investment, paid-in capital, of $65,000 to pay towards the $100,000 note payable and utilize the line of credit when needed. Applying the standard 8% rate on a line of credit, Thompson would pay $4,800 in interest as opposed to $15,000 annually (moneycafe.com/library/prime.htm). We believe PC Depot will be a great venture for Thompson as evident by a net income of $5,054 for the companys first month of operations. We feel that our recommendations to reduce inventory costs and debt will be beneficial to PC Depot and provide them an opportunity to be more profitable in the future. Our findings and recommendations can be supported by the following financial exhibits.

4 Top Tips for the Common App Honors Section

4 Top Tips for the Common App Honors Section SAT / ACT Prep Online Guides and Tips When you’re applying to college, each part of your application counts. You want to maximize every opportunity to make yourself stand out from the thousands of other applicants vying for a spot at the school of your dreams. One of the many places you can distinguish yourself is in the Common App Honors section. In this article, we’ll talk about what the Honors Common App section is and how to maximize it to show your best work. What Is the Honors Common App Section? You can find the Honors section in the Education section of the Common App. The instructions for this section are simple: you can list up to five honors in 100 characters or less. You’ll need to indicate the name of the honor, the years you received it, and the level of the honor: school, state/regional, national or international.A school-level award means that only the students in your school could qualify for that award. A national-level award means that students in your country could qualify for that award. The larger the pool of potential applicants, the more impressive your award will seem. You’ll want to lead with your most impressive awards first. What Count as Honors for the Common App? You might be wondering what should be listed in the Common App honors section and what should be listed elsewhere - in your activities, for example. In general, honors that are tied to your extracurricular activities should be listed in the activities section, while those that aren’t connected to a specific activity should be listed in the honors section. For example, if you earn a varsity letter for the football team, you can put that in the activities section, because it’s directly related to an activity at school. If you’re a National Merit Semi-Finalist, on the other hand, you’ll want to include that in academic honors, since it doesn’t easily tie to a specific activity. 4 Tips for What to Include in the Honors Common App Section You don’t have a ton of room on the Common App to list and describe your honors, so you should keep it brief and use the space allotted as strategically as possible. Here are tips for what to include and how to write in the Common App honors section. #1: Lead With Your Most Impressive Achievements You should lead with your most impressive achievements and make sure that only the best honors make it onto your application. Don’t, for instance, include that you were voted â€Å"Most Likely to Forget When Graduation Is† by your peers- stick to real honors that you had to compete to get. #2: Describe the Award If It’s Unclear While national awards like National Merit are self-explanatory and obvious to the admissions committee, city or school-level awards might not be. Use the 100 characters of space to describe what it is and why isn’t important, like so: â€Å"Julius Caesar Award for the Highest Latin Score in All of Rome.† You should avoid using acronyms unless they’re widely recognizable (think SAT-level recognizable); otherwise, they’ll just confuse the admissions committee and take away from your achievement. #3: Indicate the Level of Competitiveness Show off! Use your character limit to show why the award was important. If you won money, say so! If you were selected as one out of 15,000, own it! The more competitive you make the prize (particularly for city and school level honors), the more your application will stand out. #4: Be Honest It should go without saying, but don’t lie on your application just to make yourself sound better. Not only is that a scummy thing to do, it can result in some serious punishments. You’re already a stellar applicant - focus on your real achievements, rather than your fake ones. Recap: Filling Out the Common App Honors Section The Common App honors section is a great place to call attention to your different achievements. Don't be shy - celebrate the hard work you've done and the recognition you've received for said hard work! What’s Next? Wondering how to prepare for your college interview? Check out this list of college interview tips to be sure you know exactly what to prepare for during your interview. Headed to an interview soon? This list of questions to ask a college interviewer will help you get the most out of your experience. Are you worried about standardized tests and their role in your college application? Read this article to find out when these tests might not matter for you.Also take a look at this list of colleges that don't require SAT scores. Want to build the best possible college application? We can help. PrepScholar Admissions is the world's best admissions consulting service. We combine world-class admissions counselors with our data-driven, proprietary admissions strategies. We've overseen thousands of students get into their top choice schools, from state colleges to the Ivy League. We know what kinds of students colleges want to admit. We want to get you admitted to your dream schools. Learn more about PrepScholar Admissions to maximize your chance of getting in.