http://www.vancouversun.com/business/Toyota+sales+decline+Ford+surges/3766246/story.html
Summary:
The article I read mentions that the Toyota Canada Inc. declines in the October sales in the aftermath of recalls. Toyota vehicles is separated from Lexus and Scion. They are losing money since the recalls, Toyota only sold 247 Scions in the first full month of sales. so they are planning to expand the Scion dealership in order to compensate the decline. Toyota sales are dipped 12.4 per cent compare to the sales in 2009. On the other hand, Ford surges by the time Toyota is declining. Ford is more profitable compare to Toyota. Ford increases 8 per cent in the October sales. It actually increases 20 per cent compare to 2009.
Connection:
The connection to chapter two is the plan of investment by looking the financial statement of a company. Financial statement shows whether the company is profitable or not. For example, after you looked at the financial statement of Toyota, you will noticed that this is not a good company to invest because the financial statement from the past to present is showing that Toyota's profit is declining. In contrast, Ford is a good company to invest because it is profitable and it has the potential of making a bigger profit.
Reflection:
The recalls of Toyota vehicles caused a huge impact of the direction of Toyota, it's profit is declining until now. As a investor, I would not invest to Toyota because Toyota is not that reliable as before after the recalls. Many people do not want to buy Toyota's vehicles. It decreases the profit of Toyota. If you invest Toyota at this time, you will actually lose money. On the other hand, this is a good opportunity for the investment of Ford because the profit of Ford is increasing rapidly, If you invest to Ford now, you will actually make a lot of money within a short period.
Friday, November 5, 2010
Wednesday, September 29, 2010
FAC 12 Ch 1 - Airline industry rebounding: IATA
Link: Airline industry rebounding: IATA
Summary
The article I read mentions that the airline industry has rebounded faster than expected from the economic recession in 2008 to 2009.The International Air Transport Association reported that the profit will be $8.9 million on the revenue of $560 million. Air Canada has been losing money during the first six months of 2010. On the other hand, Rival WestJet Airlines has been profitable, and it earned $34.8 million in the first half of 2010. moreover, the quick recovery of Asian economy helps boost the demands for airplane, indirectly stimulating the airline industry in North America. However, IATA predicts that there will be a decline in profit among the airline industry because of the slow-down of government stimulus spending and the high unemployment rates. In addition, as the crude oil price increases, the whole airline industry's expenses will rise correspondingly.
Connection
The connection to chapter one is the importance of financial statements. Financial statements are elaborate reports that summarize the financial position and activities of businesses. Financial statement can be used to determine your financial situation in the past or present, it is also a good predictive material for the users of financial statement because it shows you all the relative financial information of the business. In this case, the revenue of the two Canadian airlines increased respectively on accounting of a quick economic recovery from the global recession. All this information can be obtained from the companies' financial statements and used to predict the outlook of the companies. Another connection to the textbook is the operating activities of business. A large portion of revenue comes from operating activities. The global recession affects the demand for airplanes during 2008-2009, resulting in less profit from operating activities. however, in 2010 , West Jet and Air Canada both had increased revenue on account of the higher demand for air transportation.
Reflection
This article were telling and predicting the performance based on the financial information that is showed on the financial statement from the management. If the financial statement is poor, the prediction of the analysis will not be accurate. On the other hand, the financial statement was done really well, the prediction will be good and the management can make right decisions to the problem of the analysis that they have predicted.
Summary
The article I read mentions that the airline industry has rebounded faster than expected from the economic recession in 2008 to 2009.The International Air Transport Association reported that the profit will be $8.9 million on the revenue of $560 million. Air Canada has been losing money during the first six months of 2010. On the other hand, Rival WestJet Airlines has been profitable, and it earned $34.8 million in the first half of 2010. moreover, the quick recovery of Asian economy helps boost the demands for airplane, indirectly stimulating the airline industry in North America. However, IATA predicts that there will be a decline in profit among the airline industry because of the slow-down of government stimulus spending and the high unemployment rates. In addition, as the crude oil price increases, the whole airline industry's expenses will rise correspondingly.
Connection
The connection to chapter one is the importance of financial statements. Financial statements are elaborate reports that summarize the financial position and activities of businesses. Financial statement can be used to determine your financial situation in the past or present, it is also a good predictive material for the users of financial statement because it shows you all the relative financial information of the business. In this case, the revenue of the two Canadian airlines increased respectively on accounting of a quick economic recovery from the global recession. All this information can be obtained from the companies' financial statements and used to predict the outlook of the companies. Another connection to the textbook is the operating activities of business. A large portion of revenue comes from operating activities. The global recession affects the demand for airplanes during 2008-2009, resulting in less profit from operating activities. however, in 2010 , West Jet and Air Canada both had increased revenue on account of the higher demand for air transportation.
Reflection
This article were telling and predicting the performance based on the financial information that is showed on the financial statement from the management. If the financial statement is poor, the prediction of the analysis will not be accurate. On the other hand, the financial statement was done really well, the prediction will be good and the management can make right decisions to the problem of the analysis that they have predicted.
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