Cambridge Software Corporation: 1. If Cambridge software corporation could offer only one version: Cambridge Software should offer Industrial version where maximum willingness to pay is $600 as shown in Table 3 this version has the highest net total contribution of $14305000. In the tables1, 2 and 3calculations are done for net contribution taking into account segment development cost and production development costs. Also for student segment only 60% of selling price is taken into account because the sales are done through college bookstores, where the commission of bookstore is 40%. Pricing can be done so that target segments buy the product.
With the current high operating cost (Operating costs: Revenue = 0.93) it is not a surprise that the EBIT is only 3.7% of total Revenues while Net income account only for 0.5%. We also did ratio analysis of Tottenham Hotspurs to further analyze its financial performance. • The Company has a Current Ratio of 0.75 and Acid Test Ratio of 0.73. Both these ratios are quite high implying that the company may have difficulties in meeting future obligations given that they have higher Current liabilities (£64.40 million) when
What is this firm’s free cash flow for the year? (2 points) Increase in NFA: $50 Increase in NWC: $20+$45=$65 FCF=NOPAT-increase in NFA-increase in NWC=$400-$50-$65=$285 (3) The four key elements of a good corporate strategy that has the potential to create substantial shareholder value are: (4 points) Good strategy must think more expansively about the right scope. Can typically distinguish the firm sharply from its competition. Match opportunities to capabilities and core competencies. Corporate focus (4) Describe how the four key elements of the Value Sphere interact to create value ( don’t just list the four elements—describe how they interact): (4 points) There are four elements of Value Sphere: Strategy, Resource acquisition & allocation, Performance metrics, People & organization culture.
This indicator is increasing dramatically by almost 11 days in two years, because of increase of Collection and Inventory days by 16 and minor increase of Payables days by 5 (Exhibit 2 and 3). The change in Working Capital (Exhibit 4) very clearly presents the greater increase of receivables than payables, which means that the company pays faster than its customers pays to the company. Therefore, additional source of financing should be found. Further, it is worth mentioning that debt-to-equity ratio increased in this period from 0.82 to 2.65. As a result, it is very easy to understand that the main source of financing the operations of the company are loans and other type of debts (Exhibit 5 and 6).
Besides this deal the thirteen participated banks pays a fee of 150.000 dollar to advise Anacomp in the development in the project. RTS has only a risk of six million, Anacomp wears the risk of
Analysis of Texas Instruments 2007 – 2011 Financial Statements Masud Alam Texas A&M University – Commerce Financial Statement Analysis, ACCT 575 - 01W Spring 2013 INTRODUCTION Purpose: The purpose of this paper is to perform a comprehensive financial statement analysis of two publicly traded companies and to come up with a recommendation of whether investing in any of these two companies would be a sound financial decision. The two companies that are in discussion are Texas Instruments (TI) and Intel Corporation (INTC). In this report, TI is considered as the main company and INTC is considered as the competitor company. Both these companies belong to Semiconductor Industry. Analysis approach: In this report, five years (2007-2011) financial statements data and various financial ratios of these two companies are compared and analyzed.
The cost of sales is the major expense account, and makes up 84.4% of all operating expenses. Total Asset Turnover Ratio The total asset turnover ratio, or sales generated per dollar of assets, has been increasing slightly since 2008, at 1.0, to 2009, at 1.03 to 2010, at 1.06 (Apple 2008, 2009, 2010). This trend suggests a gradual increase in efficiency at converting assets to sales revenue.
C. accounting profits produced. D. increase in total sales produced. 3. Assume your firm has an unused machine that originally cost $75,000, has a book value of $20,000, and is currently worth $25,000. Ignoring taxes, the correct opportunity cost for this machine in capital budgeting decisions is: A.
If the sold out concert was a per capita contract instead, you would increase the paid tickets to 19,500 and get rid of the fixed-fee cost and instead account for a cost for every paying customer. If ALLTEL wanted to earn $180,000 after tax, they would have to pay a per
A person may spend a few years of their life paying their loans off from college but in the end it is worth every penny spent. In 2007, the U.S. Census Bureau’s median earnings for full-time workers at least 25 years old are shown as followed: high school diploma, $32, 500; associate’s degree, $42,000; bachelor’s degree, $53,000; master’s degree, $63,000; and professional degrees, $100,000+. By looking at those numbers, I would have to say that a college degree should be at the top of anyone’s priority list. Without a college degree, a person is limited to what kind of job he/she can hold. With the way the world is changing, most jobs out there are requiring a college degree to even be qualified for the job.