Analysis of Competition Bikes Inc Term Paper Example | Topics and Well Written Essays - 1500 words

Analysis of Competition Bikes Inc - Term Paper Example Income Statement is one of the fundamental financial statement that provides results of revenues, earnings, and EPS (Earning Per Share). The income statement provides a consolidated view of the revenue a company earned, the expenses it incurred and its effect on the bottom line, i.e. the profit during a certain period of time. It is a mirror to the investors reflecting on company performance and its potential to perform. Essentially a company should be earning more than it is spending and thus signal profit earning opportunity to the investors. The horizontal analysis of the Income Statement of Competition Bikes Inc. would compare the performance of the company during the year 2006-2008. The following is a snapshot of the Income Statement of company during 2006-2008 along with its horizontal analysis. We have compared the Income Statement of 2007 keeping 2006 as the base year and then analyzed the performance of 2008 keeping 2007 as the year of reference. Horizontal Analysis of Incom e Statement 2006-2007 As we have mentioned earlier, there are two major sections of an Income Statement: Revenue, Expenses, and Profit. Revenue minus the expenses is the profit and we would look at the company’s change in revenue and overall expenses during the period of 2006-2008. As it is evident from the horizontal analysis of 2007 with 2006 as the base year, revenues have increased by 37.5% during the year 2006-2007 due to the increase in Net Sales by 33.3%, which shows that the company is strong in its area of operation. The Cost of Goods Sold also increased by 31.8%, which is very close to the percentage change of Sales during the year, thus indicating that it is not a negative sign. It is a concern for the company even if the profits are high when the increase in Cost of Goods Sold is not relative to the increase in Sales. A definite weakness for any company is its increasing expenses, specifically administrative expenses. The Selling expenses also increased during the year by 33% including the expense on advertising that increased by 37% and administrative expenses increased by 20.4%. A major chunk of the administrative expense is the expenditure on Research and Developed which increased by 37.5%. The company believes in bringing a superior product to the market that has quality as well as first movers advantage with it, and it provides the company a strong selling potential. Thus, the overall increase in the expenses was by 24%, which is not a positive sign for any company, specifically increment in administrative expenses exhibit operational inefficiencies as the company cannot justify the expenses with any particular expansion project. However, a more clear idea of selling and administrative expenses as compared to the sales would be evident in the vertical analysis of the company. The operating income of the company, which is the revenue minus expenses increased by 154.6% and the overall profit before income tax and the Net Earnings increase d by more than 300% showing abnormal but phenomenal growth. A horizontal analysis of year 2007 keeping 2006 as the base year reveals positive growth for the company in terms of Sales and the overall Net Earnings that shows that Competition Bikes Inc. is moving in the right direction and growing. The major strengths of the company lies in the increase in S

TOWER OF LONDON (LONDON) Essay Example | Topics and Well Written Essays - 3250 words

TOWER OF LONDON (LONDON) - Essay Example The Tower of London which is also known as ‘Her Majesty’s Royal Palace and Fortress’ is the royal palace of England which is made up of several buildings. The Tower of London was made in order to control and protect the whole city. The architecture is a complex that consists of several buildings and is surrounded by a moat and defensive walls. It is a significantly important landmark in London famous for the several features that it has. The White Tower was built in 1078 by William the Conqueror and was marked as a symbol of oppression which was imposed by the new elites. The castle has been used for many purposes from being a prison to a royal residence. One of its most important features is that its Jewel House houses the Crown Jewels which include symbols of royalty, a collection of crowns, swords, rings, and scepters. These historical items and the layers of history which is related to the Tower of London is what make it significant since it was built and till today (Cline 14). The Tower of London was built in 1066 by William the Conqueror and it holds immense universal value because of its cultural features and qualities. Its finest quality is its landmark setting in the City of London which is suitable for both controlling and protecting the city. It is set as a gateway to the capital and previously as the gateway to the Norman kingdom. Its location was chosen strategically at the north-end of Thames River and it serves as a separation point between the powerful monarchy and the developing capital city. The tower served a double role as a protection provider for the city through the defence walls and structure as well as the structure to control the citizens. The tower was a very tall building and it was the highest in its surrounding till the 19th century (Parnell 32). The tower also served as a symbol of Norman power as it was built to demonstrate the Norman power. The Tower significantly represents the Norman Conquest of the 11th century more than