Short Case Scenario 7-1

question 80

Essay

Short Case Scenario 7-1
Alan Jackson is the founder and owner of Sky Scooters, a small manufacturing company located in San Jose, California. For years, Alan toyed with ideas for a motorized scooter. Seeing the success of the Segway scooter, Alan decided to act. Although his design, the Sky Cruiser, is not as well known as the Segway, it incorporates many of the same benefits. Adding to its appeal, the Sky Cruiser sells for almost $1,000 less than the Segway. Virtually all Sky Cruisers are sold through direct appeals on the QVC shopping network. Overwhelmed by recent demand, Alan has hired his sister, Colette. Colette, a recent business school graduate, has suggested that Alan consider a just-in-time production system. Alan wonders if this would be in his best interest.
-How might a process flow chart benefit the production process at Sky Scooters?

Understand the impact of the profit margin ratio and the asset turnover ratio on a company's return on assets.

Recognize the reporting requirements for income from continuing operations and income (loss) from discontinued operations.

Identify the correct treatment of gains or losses on disposal of a discontinued operation in financial statements.

Understand the dividend yield and its relation to net income and market price per share.

---

Definitions:

Adrenal Glands

Adrenal glands are small, triangular glands located on top of both kidneys that produce hormones like cortisol and adrenaline which help control heart rate, blood pressure, and other important bodily functions.

Lateral

Describing a position or direction towards the side of the body, away from the midline.

Medial

A term denoting a position closer to the midline of the body or a structure.

Retractable Penis

A characteristic of certain animals where the penis can be withdrawn into the body when not in use.