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Awo Supermarket is a trusted brand with over 10-year legacy of delivering the best value at quality merchandise for its patrons, through its main shop
Awo Supermarket is a trusted brand with over 10-year legacy of delivering the best value at quality merchandise for its patrons, through its main shop located at Ferna. The supermarket is owned by four siblings who share equity and assets of the business equally among themselves. Since its inception, Awo Supermarket has focused on providing customers with unbeatable prices, which is reinforced through the variety of products available in the shop. During the 2020 Covid 19 pandemic, the shop expanded its activities by opening an online store, and adapting to meet the needs of its customers in Tema and across the country by delivering their orders directly to their doorsteps. The shop. established relationships with some of the world's leading companies like Samsung, Apple, Dell, HP etc. to distribution their products in the country. At the close of the financial year the management perceived they have made some significant gains when they look at their book. The following are excerpts from their books: Total Revenue 72,452,000, Cost of Goods Sold 52,181,000, Net Income 278,000, Total Stockholder Equity 38,984,000, Total Assets 160,636,000, Interest Expense 141,000, Accounts Payable 21,821,000, Goodwill 2,655,000 Cost of delivery goods to the consumer GH$2,174,000 etc. since opening the online store and entering into the international relationship, management has been using Distributor Storage with Carrier Delivery to deliver customers' orders, a distribution method which management thinks the transportation component is too costly. Management decided to accept orders from a communities where they can get more than 10 orders in a day.
Using the above information answer the following questions
1. Determine the supply chain profitability of Awo supermarket in the year 2020?
Imark
2. In percentage term determine the return on equity of the supermarket shares?
marks
3. Calculate the supermarket return on assets using a tax rate of 17%
2marks
4. Is the supermarket accounts payable turnover (APT) favourable?
5marks
5. With a diagram explain Distributor Storage with Carrier Delivery currently being used by Awo Supermarket
Smarks
6. Recommend an appropriate distribution network to replace the Distributor Storage with Carrier Delivery currently in use by the supermarket to reduce the cost of transportation. Sketch the recommended distribution network and explain it.
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