Because the company is interested in increasing production at Shanghai from 1,300 units to 2,800 units, it is recommended that the distribution patter be altered. Instead, 1500 units should be sent from Shanghai to Warehouse 2. Shuzworld H should transfer 300 units to Warehouse 1, and 1,800 units to Warehouse 3, totaling 2100 units. Twenty-two hundread units should still be moved from Shuzworld F to Warehouse 1. Although the supply increased by 1,500 units, this revised distribution pattern would cost the company only $13,400.
In 2008, for every dollar of assets owned by Berry‟s Bug Blasters, they sold $1.68 worth of goods and services. Profit margin: By dividing net income by sales revenue we can determined that the profit margin for Berry‟s Bug Blasters is 6.58% Return on Assets: Asset ratio multiplied by Profit Margin. ROA can help us determine how profitable Berry‟s Bug Blasters is compared to total assets. To analyze ROA, divide Net Income by Total Assets. Berry‟s Bug Blasters had a 25.52% Return on assets.
M/B= Market price per share/ Book value per share Market price per share = $75/ share Book value per share= Common equity/ shares outstanding = $6 billion/ 800 million shares = $6 billion/ .8 billion shares= 7.5 M/B = $75/ 7.5 = 10 (3-4) Price/Earnings Ratio: A company has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0. What is its P/E ratio? P/E= Price per share/ Earnings per share Earnings per share = EPS= 1.50 Price per share = cash flow per share * price/ cash flow ration= $3 * 8 = $24 P/E = 24 / 1.50 P/E = 16 (3-5) ROE: Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $100 million and it has total assets of $50 million. What is its ROE?
Shuzworld needs to make a decision on which choice would be more economical: Refurbishing or reconditioning the equipment that is already being used, possibly buying new equipment, or possibly outsourcing the products to China. The cost of reconditioning is fixed at $50,000. On top of that there is a variable cost that is $1000 per every 1,000 shoes that are being produced. If brand new equipment is bought the fixed cost sits at $200,000 with an added variable cost which is $500 for each 1,000 units. If the choice of outsourcing is chosen then there are not any fixed costs.
* Of the $18400 Rhodes made in mortgage payments last year, $8000 was interest. The income statement lists 2008 interest paid as $32000, which means that there are other debts that required payments of $24000. If possible, accelerating payback on these loans can be very beneficial in the long run. * At industry average levels, wages of a similar business would be approximately $79000, or $11000 lower. * Wages, advertising and rent total %23.1 of sales in the average business, leaving %1.9 of sales for property taxes, interest, utilities, depreciation and other expenses.
The Goals are to increase occupancy rates, focus on business travellers and provide at least a 15% after tax return on any proposed investment. Operating profit for the banks must be at least 11% of revenue per year. We need to improve occupancy rates and attract more business travelers to GR Hotels given the funding and profitability constraints. There are 3 alternatives for GR Hotels. First, we can convert GR Hotels to an upscale hotel.
For the year 2007 the ratio was less than 1 meaning it needed to liquidated it marketing securities in that year, to pay bills. In year 2008, the ratio increased over one and hence there was not a need to liquidate its securities. * Acc receivable turnover ratio = Net credit Sales/ Average accounts receivable Acc receivable turnover 2008 = $875,250/ (($84,120+$128,420)/2) =8.24 times Average collection period = 360days/ 8.24 = 44 days We would need to know the credit policy of the company to determine if this collection period is reasonable. * Inventory turnover = Cost of goods sold/ Average inventory Inventory turnover 2008 = $542,750/ (($96,780+$135,850) = 4.67
How do you reconcile the difference in stock performance between FedEx and UPS over two time periods of pre and post 2004 (entry into China)? What expectations do you have for future stock performance? The stock performance between FedEx and UPS changed drastically before and after the entry into China. Both of the company’s prices steadily increased as the talks in China began. Slightly after, FedEx’s share price began increasing at a high rate of five times faster than UPS’s share price.
China’s Merchandise World Trade, 1979-2006 ($ billions) Year 1979 1980 1985 1990 1995 2000 2005 2006 Exports 13.7 18.1 27.3 62.9 148.8 249.2 762.0 969.1 Imports 15.7 19.5 42.5 53.9 132.1 225.1 660.1 791.5 Trade Balance -2.0 -1.4 -15.3 9.0 16.7 24.1 101.9 177.6 Source: International Monetary Fund, Direction of Trade Statistics, and official Chinese statistics. In addition to the data cited above, some highlights of China’s rapid economic rise and current level of economic development are reflected in the following data: ! China’s GDP as a percentage of world GDP rose from 4.5% in 1984 to 16.3% in 2006.5 Foreign direct investment in China rose from $109 million in 1979 to over $72 billion 2005, making it the largest destination for FDI among developing countries and the third-largest overall FDI destination after the United States and the United Kingdom.6 According to the U.S. Commerce Department, China’s middle class (defined as per capita income over $8,000) currently totals 200 ! ! 5 6 Based on purchasing power parity measurements.
Currently, CMS Energy financial perspective defined by the profit margin is at 7.20%. The shareholder value is defined by the dividends that are paid to the shareholders who are currently at 55.00%. By including the Mega Meter into the daily operations, stock prices would rise from 2.82 per share because of the advantages that using this meter with the prevention of