Encore Wire Corporation

Encore Wire Corporation

            This is a Delaware corporation situated in Texas that is involved in the low-cost manufacturing of building wires and cables. This company is a recognized supplier of building wire for interior electrical wiring in commercial and industrial buildings, apartments and manufactured housing (Baumard et al, 2013). The company depends on wholesale electrical distributors as their principal customers.  The products of Encore Wire Corporation are sold through independent manufacturers’ representatives all over the United State and through lesser extend in its own direct in-house marketing efforts.

Encore Company’s strategy is to expand its share of the building wire market majorly through improving the level of customer service and adding new products to the market its customers to buy (Bertrand, 2013). Its strategy will; definitely hold and attract new customers into the market hence increasing their sales. The company strives to work on its strategy together with the aim of ever emphasizing on the low-cost production (Branson, 2014). Encore depends mainly on copper and aluminum as the principle raw materials to manufacture its products (Bertrand, 2013). A good example of product line that uses copper and aluminum as a conductor include; NM-B cable mainly used in interior wiring homes, UF-B cable used to conduct power underground to outside lighting and finally THIN/THWN-2 used as feeder, circuit and branch wiring in commercial buildings among many others.

Encore Wire Corporation is an organized company that values down its property at the end of each trading period. All the details are analyzed and the information from the final financial statement such as balance sheet and income statement is then used by management to make decisions (Baumard et al, 2013). Considering the latest Encore Balance Sheet, the current assets recorded are; Cash amounting to $79,152, net Receivables totaling &186,065, Inventories amounting to $95,254 and the prepaid expenses ($9,684). These items refer to the property of the company that can be assessed before the fixed assets.

Encore Corporation determines the value of its inventory at the end of every trading period. The commonly used method of revaluation are the FIFO and LIFO. FIFO stands for First IN First Out. In this method of revaluation, the items that are purchased first are accounted first (Baumard et al, 2013). On the hand, LIFO which stands for Fist In Last Out are put in consideration. The company uses these two criteria to plan on the purchase of new raw materials. According to Branson (2014), the current liabilities that were included in the latest Encore Balance sheet are; the account receivables also known as the debtors which amounted to $ 294,243, the short term debt and other current liability items of which all recorded a zero balance at the end of the year. However, Encore Company recorded a long- term debt at the end of its last trading period ending 31^st December, 2015. The long- term debt amounting to 3.22B in 2015.  According to Baumard et al, (2013), this is a consumer based long-term debt that involved the road and building construction in New York. According to the Attorney General, the company also purchases consumer debts a relatively discounted prices from original debtor and from there it becomes a debtor.

Encore Company consist of two main types of stockholders; the common and the preferred stockholders. According to Bertrand (2013), common stock is issued by the company and it involves shareholders share profits through dividends and capital appreciation. These kind of stockholders are given rights to vote according to the shares owned (Tchotourian, 2012). However, common stockholders do not always have the same proportion of ownership because buying of shares is unlimited (Carò et al, 2014). The common stock has potential for profits through capital gain. The shares’ sales may be more or less than the original value. On the other hand, preferred stockholders is less volatile in comparison with the common stockholders. They have less potential for profit and do not have voting rights. This stock has claims to company’s assets and therefore can purchase shares back at any time for any reason but at an acceptable price.

References

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Baumard, T. L. M., Thomas, A. G., & Busfield, J. J. C. (2013). Evaluation of the tearing energy   in a radial tyre. Constitutive Models for Rubber VIII, 377.

Bertrand, S. (2013). A control strategy for high-speed running within unknown environments for    a 3D bipedal robot (Doctoral dissertation, Versailles-St Quentin en Yvelines).

Branson, D. M. (2014). Alternative Entities in Delaware-Reintroduction of Fiduciary Concepts by           the Backdoor?. A chapter in.

Carò, F., Polkinghorne, M., & Douglas, J. G. (2014). Stone Materials Used for Lintels and            Decorative Elements of Khmer Temples. Metropolitan Museum Studies in Art, Science,            and Technology, 2, 51.

Tchotourian, I. (2012). RSE, Développement durable et gouvernance d’entreprise Un jeu d’acteurs          et de structures… ad hominem ou ad libitum du marché?.