Triton Capital Budgeting Report
Triton Capital Budgeting Report
Triton Capital Budgeting Report
Company 1
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Tutor
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Date
Capital Budgeting of Triton
Company 2
Table of Contents
Executive Summary...............................................................................3
Introduction............................................................................................4
Effects on value Added Items.................................................................4
Viability Analysis of Pipes Division and Bathroom Division.....................7
Financial Gearing based on a Payback Period........................................8
Factors that influence the Payback Period............................................10
The Importance of Strategic Aim..........................................................11
Financial Ratio Analysis and Budgetary Controls..................................12
Management Accounting Functions and Ethical Issues........................13
Conclusion............................................................................................14
References...........................................................................................15
Capital Budgeting of Triton
Company 3
Executive Summary
Introduction
Clearly, the above table indicates that there is the need for
strategic aim because the intangible assets play a vital role among all
the Tritons assets. This means that if the company does not take a
strategic aim approach, then it might lose most of these assets
knowing that value added of the products do not meet what is needed
in the market. Also, since the company is struggling to come out of the
recession, it is also important that such indications on a percentage of
assets are evaluated (Shinoda 2010). Secondly, it is agreeable that
Triton is not specialized. This is one obvious thing that is figured out
from the analysis making it one of the best when it comes to
determination of the best fit strategic aim of the company. The
divisions do not have enough tangible and intangible assets to
overcome the current recession facing the company; hence, it is vital
to consider strategic aim option to get the best results. Therefore, it
can be deduced that strategic of reducing financial gearing should be
on board for the success of the company and that investment in
modernization of programs such as those of tangible assets such as
equipment should be encouraged.
References
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Cohen, D.A. & Zarowin, P., 2010. Accrual-based and real earnings
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budgeting prac tices in the Jordanian industrial
corporations. International journal of commerce and
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Lemmon, M.L. & Zender, J.F., 2010. Debt capacity and tests of capital
structure theo ries.
Lukka, K. & Modell, S., 2010. Validation in interpretive management
accounting re search. Accounting, Organizations and Society, 35(4),
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Capital Budgeting of Triton
Company 18
Shinoda, T., 2010. Capital budgeting management practices in Japan: a
focus on the use of capital budgeting methods. Economic Journal of
Hokkaido University, 39, pp.39- 50.