StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Aurora Textile Company - Essay Example

Cite this document
Summary
This is evident from the fact that in the year 2000, the company was forced to close four manufacturing facilities. It was performed as a measure to minimize the manufacturing expenses and fit the textile company in…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.3% of users find it useful
Aurora Textile Company
Read Text Preview

Extract of sample "Aurora Textile Company"

due: Aurora Textile Company Aurora Textile has performed poorly over the last for years. This is evident from the fact that in the year 2000, the company was forced to close four manufacturing facilities. It was performed as a measure to minimize the manufacturing expenses and fit the textile company in the textile market that was becoming small (Bruner, Eades & Schill 313). Reviewing the consolidated income statement for the year ended December 30, 1999-2002, it is clear that the company net sales reduced from $245,908 in 1999 to $147,503 in 2002 (Bruner et al. 318). The same is true for raw material cost, the cost of conversion and gross margin.

The operating profit in 2002 was $445 which is relatively low compared to $6,234 in 2001 and $4,109 in 2000. The company’s sales are affected by stiff competition from cheap imported yarns from Asia industries that flooded the U.S market. In addition, the profit margins are affected by the liability related to customer returns. The customer returns saw the textile company loose between 5 to 7.5 times more on revenue in reimbursements (Bruner et al. 314).In order for Aurora Textile Company to survive in the competitive market, there is a need to modernize their operations and cut costs (Bruner et al. 313). The proposal by to invest in a new machine Zinser 351 will improve the company’s performance and help to reduce the production expenses.

The machine would reduce maintenance and power costs amounting to $0.03/lb, and customer returns equal to $0.077/lb based on conversion costs for 2002 (Bruner et al. 316). The purchase of Zinser 351 reduces the rate of customer returns that is critical during the period the WTO lifted the ban on quotas in January 2005. When the company makes more money, then it will attract more investments by the shareholders that will help Aurora Textile industry to operate and survive in the competitive market.

Work citedBruner, Robert F, Ken M. Eades, and Michael J. Schill. Case Studies in Finance: Managing forCorporate Value Creation. , 2014. Print.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Aurora Textile Company Essay Example | Topics and Well Written Essays - 250 words”, n.d.)
Aurora Textile Company Essay Example | Topics and Well Written Essays - 250 words. Retrieved from https://studentshare.org/finance-accounting/1690219-aurora-textile-company
(Aurora Textile Company Essay Example | Topics and Well Written Essays - 250 Words)
Aurora Textile Company Essay Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/finance-accounting/1690219-aurora-textile-company.
“Aurora Textile Company Essay Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/finance-accounting/1690219-aurora-textile-company.
  • Cited: 1 times

CHECK THESE SAMPLES OF Aurora Textile Company

U.S .Virgin Islands

In 1672, the Danish West India company occupied Saint Thomas.... The United States Virgin Islands are a group of islands situated in the Caribbean and are part of the United States.... he main islands of the U.... Virgin Islands are the Saint Croix, Saint John and Saint Thomas.... dditionally,there is also a historically Water Island,though it is much smaller,surrounded by many other minor islands....
3 Pages (750 words) Research Paper

Significant Impact on the Population of London

The paper "Significant Impact on the Population of London" focuses on the major economic, social, and technological forces influencing the city of London.... It also attempted to demonstrate the main impacts these forces had on the city, including its population among others.... hellip; Various impacts came are as a result of migration because of economic and social forces in London....
7 Pages (1750 words) Essay

Gender Normativity in Aurora Floyd; How Variances in Gender Behavior Illustrate Societal Norms

aurora Floyd is a character designed to upset gender norms, scandalize the locals, and yet to somehow be loved by all.... Through the comparison of these two women, and by looking at how they were treated and thought of in their society, the reader is able to draw a clear understanding of the gender norm of femininity during the time of Mary Elizabeth Bradden, and her novel, aurora Floyd. … In Bradden's novel, the reader is first introduced to aurora's parents, a wealthy man and a poor actress....
3 Pages (750 words) Essay

Auroras - Northern and Southern Lights

In the northern hemisphere they are referred to as the northern lights or aurora borealis, and in the southern hemisphere they are referred to as the southern lights or aurora australis.... The subject of these auroras and related issues such as the aurora borealis and aurora australis are of great significance and importance, and in order to come to a clearer and more knowledgeable understanding of these issues, the related information must be addressed thoroughly....
8 Pages (2000 words) Essay

International Labor Organisation

Even if a company has managed to guess what its customers want right, it does not make the decision making in wear manufacturing easier.... Obviously, there are two ways a company can take to improve its chances of hitting the bull's eye of customers' popularity.... Of course, the second path is better for Jossey Menswear since it leads to full-price sales proportion increasing, while keeping the production volumes the same, or even lower than before, which increases profits for the company....
9 Pages (2250 words) Essay

How can We Conserve Biodiversity on a Global Scale Using Evidence from Evolution in Deep Time

This paper "How can We Conserve Biodiversity on a Global Scale Using Evidence from Evolution in Deep Time" discusses the human and environmental factors that can significantly affect the extinction of some of the plants, animals, micro-organisms, and the ecosystem among others.... hellip; Biodiversity, derived from the word 'biological diversity', is a very broad concept that is referring to a variety of plants and animal species, micro-organisms, forest and the ecosystem (Australian Government, 2009)....
8 Pages (2000 words) Literature review

Ethical Issues in Retail Sector

The UK clothing and textile sector have recorded a significant decline since the turn of the 19th century.... However, the 1990s were period of greater change for the industry as major players such as Marks and Spencer ended demand for supply from UK clothing and textile manufacturers shifting to importing over 70 percent of supplies from developing countries (Tait, 2000; Gereffi and Memedovic, 2003)....
8 Pages (2000 words) Term Paper

Key Concepts of Final Simulation

This paper outlines product technology, the success of the company, adequate security, and the main limited limitations and barriers of the company.... he company of my choice is Walmart, Wal-mart operates in the retail industry, Wal-mart is the largest retailer in the world, two brothers Sam started Wal-mart and bud Walton in AR in 1962 Wal-Mart operates internationally in fourteen foreign countries but the domestic environment for Wal-mart is the USA....
8 Pages (2000 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us