Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Cost of Goods Sold

CGS

Gross Margin

GM=SCGS

Transportation

TC

Warehousing

WC

Inventory Carrying

IC=INW

Other Operating Cost

OOC

Total Operating Cost

TOC

Earnings before interest and taxes

EBIT

Interest

INT

Taxes

TX

Net Income

NI

Asset Deployment

Inventory

IN

Accounts Receivable

AR

Cash

CA

Fixed Assets

FA

Total Assets

TA

Ratio Analysis

Profit Margin

NI/S

Return on Assets

NI/TA

Inventory Turns/year

CGS/IN

Transportation as % of sales

TC/S

Warehousing as % of sales

WC/S

Inventory carrying as % of sales

IC/S

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Global Corporate Finance A Focused Approach

Authors: Kenneth A. Kim

1st Edition

9814335827, 9789814335829

More Books

Students also viewed these Finance questions

Question

mple 10. Determine d dx S 0 t dt.

Answered: 1 week ago