Question
1. Complete Supply Chain Finance Model and calculations I need to see how you are calculating. Construct a supply chain finance model and calculate the
1.Complete Supply Chain Finance Model and calculations
I need to see how you are calculating. Construct a supply chain finance model and calculate the profit margin; ROA; inventory turns; and transportation increase by 15%, warehousing increase by 15%, and inventory costs increase by 15% as a percentage of revenue for the following:
Sales = $200,000,000
Transportation cost = $12,000,000
Warehousing cost = $3,000,000
Inventory carrying cost = 30%
Cost of goods sold = $90,000,000
Other operating costs = $50,000,000
Average inventory = $10,000,000
Accounts receivable = $30,000,000
Cash = $15,000,000
Net fixed assets = $90,000,000
Interest = $10,000,000
Taxes = 40% of (EBIT Interest)
Current liabilities = $65,000,000
Long-term liabilities = $35,000,000
Stockholders equity = $45,000,000
Complete the Base column and then increase Transportation Costs, Warehouse Costs and Inventory Costs by 15% in the following 3 columns.
| Symbol | Base | TC 15% Increase | WC 15% Increase | IN 15% Increase |
Sales | S |
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Cost of Goods Sold | CGS |
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Gross Margin | GM=SCGS |
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Transportation | TC |
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Warehousing | WC |
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Inventory Carrying | IC=INW |
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Other Operating Cost | OOC |
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Total Operating Cost | TOC |
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Earnings before interest and taxes | EBIT |
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Interest | INT |
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Taxes | TX |
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Net Income | NI |
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Asset Deployment |
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Inventory | IN |
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Accounts Receivable | AR |
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Cash | CA |
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Fixed Assets | FA |
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Total Assets | TA |
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Ratio Analysis |
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Profit Margin | NI/S |
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Return on Assets | NI/TA |
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Inventory Turns/year | CGS/IN |
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Transportation as % of sales | TC/S |
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Warehousing as % of sales | WC/S |
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Inventory carrying as % of sales | IC/S |
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