Amalgamated Enterprises Is Planning to Purchase Some New Equipment

question 1

Essay

Amalgamated Enterprises is planning to purchase some new equipment.With this new equipment,the company expects sales to increase from $8,000,000 to $10,000,000.A portion of the financing for the purchase of the equipment will come from a $1,000,000 new common stock issue.The company knows that its current assets,fixed assets,accounts payable,and accrued expenses increase directly with sales.The company's net profit margin on sales is 8 percent,and the company plans to pay 40 percent of its after-tax earnings in dividends.A copy of the company's current balance sheet is given below.
Amalgamated Enterprises Balance Sheet
Prepare a pro forma balance sheet for Amalgamated for next year.

Recognize the various ways organizations can be structured, including by function, product, territory, process, or customer.

Explain the concept of centralization and decentralization in decision-making within organizations.

Understand the significance of formalization in an organization, including rules, policies, and procedures.

Explain the importance of organizational environments and how they impact organizational design and function.

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Definitions:

Job Specifications

Defined as the precise requirements and qualifications needed to perform a specific job, including duties, responsibilities, skills, and qualifications.

Job Analysis

The process of studying and collecting information about the duties, responsibilities, necessary skills, outcomes, and work environment of a particular job.

Strategic Approach

A planned method of action designed to achieve long-term goals or overall objectives.

Maximum Impact

The greatest possible effect or influence that an action, decision, or event can have on a situation or organization.