Calculate the bounce Essay Example | Topics and Well Written Essays - 1250 words

Calculate the bounce - Essay ExampleThere are 49 employees, with a total monthly payroll output of 101,400. Each employee, on average, earns 2069 monthly or 24,828 yearly. However, bonus amount should be based on pay figures. Employees are used to receiving 70,000 in commissions, therefore bonus should be more equal to this figure in which they have become accustomed in set up to improve motivation and performance incentives.Analysis methodology should consider current objectives, such as whether the business is looking to invest or, possibly, expand the company which impart require summarizeitional expenditures. Questions should be asked such as whether owners equity, for the investor stakeholder, should be considered prior to paying a bonus.There is one important factor to consider In 2008, the company agreed to 16.5 million in goods in exchange for 50 percent of the company, giving the business these goods for a period of one year. This agreement raise inventory assets in th e company, which only improves its position for growth or perhaps access to new credit. The current global accounting standards would identify these goods or perhaps depreciate their value over time, however its rising liquidity from the goods exchange makes the company stronger at the accounting level. Therefore, bonus should not be reduced as current profit levels remain unchanged even with the new 50/50 ownership. The goods received are still part of the companys inventory. emolument in 2009 was 7.72 million. There was no cash balance from 2008 to consider as profit was used to expand sales for 2009. With this in mind, if the company divided the inviolate profit among the 49 employees, it would be calculated asHowever, this is far outside of industry norms and equates to more than the employees are used to receiving with their sales commission and would not add to the business cash balance, which is strategically