1. The lease or buy decision including whether to structure as an operating lease 2. The regular price of soup, whether or not to run an end-of-year promotion and target end-of year inventory level. 3. Whether or not to ask Dunwood to guarantee the account receivable. 4. Whether or not to reduce the end- of-year provision for bad debts due to recent strong collection experience. 5. Whehter or not to sell the different investments and, if the recommendation is not ot sell the mortgage-backed securities, how to value them on the end-of-year balance sheet assuming market conditions do not change. Given your recommendation, how much do you thing a potential buyer will offer based upon a valuation earnings multiple of ten times sustainable earnings, plus the value of cash and marketable investements onthe balance sheet. In the case, Philips questioned how far he should push the envelope. Why should he be concernced if all the actions you recommended are legal? Do you think the associated disclosures satisfy the SEC requirements that a company provides a narrative explanation of its financial statements that enable investors to see the company through the eyes of management? Submission Instructions: It's your responsibility to ensure that your assignments are submitted on time. "Losing connectivity" late Sunday night is NOT an excuse for failing to submit your work on time. Grading Rubric: Your assignment will be graded according 1. The lease or buy decision including whether to structure as an operating lease 2. The regular price of soup, whether or not to run an end-of-year promotion and target end-of year inventory level. 3. Whether or not to ask Dunwood to guarantee the account receivable. 4. Whether or not to reduce the end- of-year provision for bad debts due to recent strong collection experience. 5. Whehter or not to sell the different investments and, if the recommendation is not ot sell the mortgage-backed securities, how to value them on the end-of-year balance sheet assuming market conditions do not change. Given your recommendation, how much do you thing a potential buyer will offer based upon a valuation earnings multiple of ten times sustainable earnings, plus the value of cash and marketable investements onthe balance sheet. In the case, Philips questioned how far he should push the envelope. Why should he be concernced if all the actions you recommended are legal? Do you think the associated disclosures satisfy the SEC requirements that a company provides a narrative explanation of its financial statements that enable investors to see the company through the eyes of management? Submission Instructions: It's your responsibility to ensure that your assignments are submitted on time. "Losing connectivity" late Sunday night is NOT an excuse for failing to submit your work on time. Grading Rubric: Your assignment will be graded according
