A Three-Page Double-Spaced 12-Font Financial Case Analysis Paper

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Ceres Gardening Individual Case Analysis

The focus of your analysis should be to help senior management to make an informed decision about how to address the problem or challenge they are currently facing. Be focused and concise, and make sure your Analysis is free of any spelling or grammatical errors and is professional and polished.

The case analysis should begin with a Title that specifies the type of document, the company, and the financial issue you are addressing. It should begin with an Executive Summary that states in the first paragraph the key problem(s) and your suggested solution(s) to the problem(about one page). Refrain from reviewing company history as the target audience of your analysis is Ceres senior management.

You will need to include around two additional pages of analysis which explain and defend your definition of the problem and your recommended solution to the problem. Any quantitative results or analysis should be presented in plain language directed to a non-technical reader and should be justified in attached appendices which derive and document the figures. In this case, at a minimum you must attach your completed forecasted financial statements to your analysis. Remember that the tables and appendices must be explained in the document; you must not require the reader to interpret any tables or formulas for themselves. They should fully understand those tables and appendices by reading your written explanation in the body of the analysis. The tables and appendices are there for reference only, if the reader would like to confirm or further explore the derivation or assumptions.

The analysis of Ceres Gardening should focus on forecasting the Income Statement, Balance Sheet and Statement of Cash Flows for years 2007-2009, as indicated on the Student Spreadsheet accompanying the case in your Coursepack. You will need to make, specify and explain your assumptions about sales growth, and the relationship between sales and Cost of Goods Sold and other relevant variables in the three financial statements. Use these forecasts to develop and explain the problem(s) Ceres Gardening management is facing, and to support and document your recommended solutions to the problem. To guide your analysis consider these questions:

How has the company grown through 2006? (e.g., What role did their marketing strategy play in its recent growth? What are its growth prospects in 2007 through 2009?

Is Ceres financially healthy? What parts of the financial statements might be a reason for confidence or a cause of concern? Focus on the most important of each of these.

Is their current Marketing Strategy sustainable? Define the strategy and explain. What role do the Inventory (including the leftover inventory of seeds held by the Garden Centers that did not sell the previous season) and Accounts Receivable accounts play in its success or failure?

Transportation Logistics Exercise Questions Ch5-7

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Dianara Loredon

LOG-125-0901

E. Bateh

Ch.5 Motor Carriers

December 2, 2019

Chapter 5 Exercise Questions

1. The motor carrier industry is probably the most visible segment of the transportation system in the United States. The motor carrier is also the most significant element of the U.S. freight transport industry. What factors account for the motor carrier’s visibility and significance?

2. The railroad industry played a significant role in the development and growth of many cities and geographic regions during the 19th century. What role, if any, have motor carriers played during the 21st century in terms of economic development?

3. Private carriage is more important in the motor carrier segment of our transportation industry than any of the other four major modal segments. What factors have contributed to private carriage becoming so prevalent in the motor carrier area?

4. The so-called local carrier is also almost unique to the motor carrier industry. Why?

5. Compare and contrast the TL segment of the motor carrier industry with the LTL segment in terms of infrastructure, cost structure, market structure, and operating characteristics.

6. What is the nature of intramodal and intermodal competition in the motor carrier industry? How have the motor carriers fared in terms of intermodal competition since 1980?

7. Describe the general service characteristics of motor carriers and explain how these service characteristics have contributed to the growth of the motor carrier industry.

8. The cost structure of the motor carrier industry is affected by its infrastructure (such as highways and terminals). Discuss the cost structure of motor carriers and how it is affected by the infrastructure. Should there be changes made in public policy with respect to the motor carriers’ use of public highways?

9. Describe how fuel and labor have impacted motor carrier cost structures and how they have altered motor carrier operations.

10. What are the major issues facing motor carriers in the 21st century? How should these issues be addressed?

Prepare a balance sheet

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Presented below is the trial balance of Scott Butler Corporation at December 31, 2014.

Instructions
Prepare a balance sheet at December 31, 2014, for Scott Butler Corporation. (Ignore incometaxes.)

Debit Credit
Cash $   197,000
Sales $ 8,100,000
Debt Investments (trading) (cost, $145,000) 153,000
Cost of Goods Sold 4,800,000
Debt Investments (long-term) 299,000
Equity Investments (long-term) 277,000
Notes Payable (short-term) 90,000
Accounts Payable 455,000
Selling Expenses 2,000,000
Investment Revenue 63,000
Land 260,000
Buildings 1,040,000
Dividends Payable 136,000
Accrued Liabilities 96,000
Accounts Receivable 435,000
Accumulated Depreciation-Buildings 152,000
Allowance for Doubtful Accounts 25,000
Administrative Expenses 900,000
Interest Expense 211,000
Inventory 597,000
Gain (extraordinary) 80,000
Notes Payable (long-term) 900,000
Equipment 600,000
Bonds Payable 1,000,000
Accumulated Depreciation-Equipment 60,000
Franchises 160,000
Common Stock ($5 par) 1,000,000
Treasury Stock 191,000
Patents 195,000
Retained Earnings 78,000
Paid-in Capital in Excess of Par 80,000
        Totals $12,315,000 $12,315,000

Prepare a balance sheet at December 31, 2014, for Scott Butler Corporation. (Ignore income taxes). (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

 

 

(Multiple Step and single-step) Webster Company ($000omited)

Administrate expense
Officers’ salaries     4900
Depreciated of office furniture and equipment 3960
Cost of sales good     60570
Rental revenue     17230
Selling expense
Transportation-out     2690
Sales Commissions     7980
Depreciation of sales equipment     6480
Sales     96500
Income Tax     9070
Interest Expense     1860

(Instructions)
a.     Prepare an income statement for the year 2014 using the multiple-step form. Common shares out-standing for 2014 total 40,550($000 omitted).
b.     Prepare an income statement for the year 2014 using the single step form
c.     Which one do you prefer? Disuses.

(Preparation of a Statement of Cash Flows) Presented below is a condensed version of the comparative balance sheets for Zubin Mehta Corporation for the last two years at December 31.
2007 2006
Cash $177,000 $ 78,000
Accounts receivable 180,000 185,000
Investments 52,000 74,000
Equipment 298,000 240,000
Less: Accumulated depreciation (106,000) (89,000)
Current liabilities 134,000 151,000
Capital stock 160,000 160,000
Retained earnings 307,000 177,000
Additional information:
Investments were sold at a loss (not extraordinary) of $10,000; no equipment was sold; cash dividends paid were $30,000; and net income was $160,000.
Instructions
1. Prepare a statement of cash flows for 2007 for Zubin Mehta Corporation.
2. Determine Zubin Mehta Corporation’s free cash flow.

Instructions
Prepare a balance sheet at December 31, 2014, for Scott Butler Corporation. (Ignore incometaxes.)

Debit Credit
Cash $   197,000
Sales $ 8,100,000
Debt Investments (trading) (cost, $145,000) 153,000
Cost of Goods Sold 4,800,000
Debt Investments (long-term) 299,000
Equity Investments (long-term) 277,000
Notes Payable (short-term) 90,000
Accounts Payable 455,000
Selling Expenses 2,000,000
Investment Revenue 63,000
Land 260,000
Buildings 1,040,000
Dividends Payable 136,000
Accrued Liabilities 96,000
Accounts Receivable 435,000
Accumulated Depreciation-Buildings 152,000
Allowance for Doubtful Accounts 25,000
Administrative Expenses 900,000
Interest Expense 211,000
Inventory 597,000
Gain (extraordinary) 80,000
Notes Payable (long-term) 900,000
Equipment 600,000
Bonds Payable 1,000,000
Accumulated Depreciation-Equipment 60,000
Franchises 160,000
Common Stock ($5 par) 1,000,000
Treasury Stock 191,000
Patents 195,000
Retained Earnings 78,000
Paid-in Capital in Excess of Par 80,000
        Totals $12,315,000 $12,315,000

Prepare a balance sheet at December 31, 2014, for Scott Butler Corporation. (Ignore income taxes). (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

 

 

(Multiple Step and single-step) Webster Company ($000omited)

Administrate expense
Officers’ salaries     4900
Depreciated of office furniture and equipment 3960
Cost of sales good     60570
Rental revenue     17230
Selling expense
Transportation-out     2690
Sales Commissions     7980
Depreciation of sales equipment     6480
Sales     96500
Income Tax     9070
Interest Expense     1860

(Instructions)
a.     Prepare an income statement for the year 2014 using the multiple-step form. Common shares out-standing for 2014 total 40,550($000 omitted).
b.     Prepare an income statement for the year 2014 using the single step form
c.     Which one do you prefer? Disuses.

(Preparation of a Statement of Cash Flows) Presented below is a condensed version of the comparative balance sheets for Zubin Mehta Corporation for the last two years at December 31.
2007 2006
Cash $177,000 $ 78,000
Accounts receivable 180,000 185,000
Investments 52,000 74,000
Equipment 298,000 240,000
Less: Accumulated depreciation (106,000) (89,000)
Current liabilities 134,000 151,000
Capital stock 160,000 160,000
Retained earnings 307,000 177,000
Additional information:
Investments were sold at a loss (not extraordinary) of $10,000; no equipment was sold; cash dividends paid were $30,000; and net income was $160,000.
Instructions
1. Prepare a statement of cash flows for 2007 for Zubin Mehta Corporation.
2. Determine Zubin Mehta Corporation’s free cash flow.

FINA 6910 Week 2

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Sheet1

Problem 6.3 Derek Tosh and Yen-Dollar Parity
Derek Tosh is attempting to determine whether US/Japanese financial conditions are at parity. The current spot rate is a flat ¥89.00/$, while the 360-day forward rate is ¥84.90/$. Forecast inflation is 1.100% for Japan, and 5.900% for the US. The 360-day euro-yen deposit rate is 4.700%, and the 360-day euro-dollar deposit rate is 9.500%.
a. Diagram and calculate whether international parity conditions hold between Japan and the United States.
b. Find the forecasted change in the Japanese yes/U.S. dollar (¥/$) exchange rate one year from now.
Assumptions Value
Forecast annual rate of inflation for Japan 1.100%
Forecast annual rate of inflation for United States 5.900%
One-year interest rate for Japan 4.700%
One-year interest rate for United States 9.500%
Spot exchange rate (¥/$) 89.00
One-year forward exchange rate (¥/$) 84.90
a.
Approximate Form
Forecast change in
Forward rate as spot exchange rate Purchasing
an unbaised ↔ ↔ ↔ ↔ power
predictor (E) (Dollar expected to weaken) parity (A)
↕ ↕
↕ ↕ ↕
↕ ↕ ↕
↕ ↕ ↕
↕
Forward premium ↕ Forecast difference
on foreign currency International in rates of inflation
Fisher Effect (C)
(Japanese yen at a premium) ↕ (US higher than Japan)
↕
↕ ↕ ↕
↕ ↕ ↕
↕
Interest rate ↔ ↔ Difference in nominal ↔ ↔ Fisher
parity (D) interest rates effect (B)
(higher in United States)
As is the always the case with parity conditions, the future spot rate is implicitly forecast to be equal to the forward rate, the implied rate from the international Fisher effect, and the rate implied by purchasing power parity. According to Yazzie’s calculations, the markets are indeed in equilibrium — parity.
b.
Spot exchange rate (¥/$) 89.00
One-year forward exchange rate (¥/$) 84.90
Forcasted change in exchange rates
(Current Spot Rate – Forward Exchange