File AutoSave off MGMT-6082-(01-02)-21F TOPIC SPECIFIC #2 - FINANCIAL ANALYSIS - Compatibility Mode Saved to this PC Search (Alt+0) Home Insert Draw Design Layout References Mailings Review View Help 12 A A Aa A E. E BIU x, x A- A Arial Paste Undo Clipboard F Font 5 Paragraph Enable Content SECURITY WARNING Macros have been disabled. Page 1 of 4 495 words English (United States) Accessibility: Unavailable 16C Mostly cloudy vaishnav thiruvarath Comments Share Find Heading 1 Heading 2 Normal No Spacing Replace Select Dictate Editor Reuse Files Styles Editing Voice Editor Reuse Files A supplier financial analysis is likely whenever a purchaser is attempting to reduce a pool of potential supply sources. If a supplier does not meet certain thresholds as defined by the purchaser, then the supplier will likely not move to the next level of consideration. Financial ratios are a key part of a supplier financial analysis. Of course, the key to a supplier financial analysis is a purchaser's ability to obtain reliable and complete financial data, which can be a challenge when evaluating closely or privately held corporations. Besides calculating and attempting to interpret the meaning of financial ratios, comparing ratio data can provide even greater insight into a supplier's financial condition. While no correct answers exist for financial ratios, a comparison of a supplier's ratios to published industry norms can help identify if further financial analysis is necessary. An analyst should also compare several years of supplier financial data, if available, to identify favorable or unfavorable trends. Another comparison involves comparing a supplier's ratios with specific competitors, which is likely when a purchaser has collected data from more than one supplier. Refer to the attached balance sheet and income statement figures from four possible suppliers: Kobold, Hancy, Tarret and LaRose Q1. For EACH of the four suppliers, calculate the following financial ratios and interpret these key financial ratios (refer to page 270 in 6th edition or page 274 in 7th Edition): A) Current ratio B) Debt to Equity ratio c) Return on equity D) Net profit margin E) Inventory turnover 99+ DFOCUS ENG IN 11:18 07-06-2022 100% AutoSave off MGMT-6082-(01-02)-21F TOPIC SPECIFIC #2 - FINANCIAL ANALYSIS - Compatibility Mode Saved to this PC Search (Alt+0) vaishnav thiruvarath File Home Insert Draw Design Layout References Mailings Review View Help Comments Share Arial 12 A A Aa A E - E- Paste BIU x, x A- A Undo Clipboard F SECURITY WARNING Macros have been disabled. Font 5 Enable Content Paragraph Styles Find Heading 1 Heading 2 Normal No Spacing Replace Dictate Editor Reuse Select Files Editing Voice Editor Reuse Files Page 1 of 4 495 words English (United States) Accessibility: Unavailable 16C Mostly cloudy from four possible suppliers: Kobold, Hancy, Tarret and LaRose Q1. For EACH of the four suppliers, calculate the following financial ratios and interpret these key financial ratios (refer to page 270 in 6th edition or page 274 in 7th Edition): A) Current ratio B) Debt to Equity ratio C) Return on equity D) Net profit margin E) Inventory turnover Q2. Indicate which supplier you would recommend as the strongest financially. Q3. Why? 99+ MGMT-6082 LA& INTERNATIONAL SOURCING FOCUS ENG 11:19 IN 07-06-2022 I 100% AutoSave off File Home Insert MGMT-6082-(01-02)-21F TOPIC SPECIFIC #2 - FINANCIAL ANALYSIS - Compatibility Mode Saved to this PC Search (Alt+0) vaishnav thiruvarath Draw Design Layout References Mailings Review View Help Table Design Layout Arial 12 ~A A Aa A E - E- Paste B I U ve x, x A - A Comments Share Find Heading 1 Heading 2 Normal No Spacing Replace Dictate Editor Select Reuse Files Undo Clipboard 5 SECURITY WARNING Macros have been disabled. Font 5 Paragraph Styles Editing voice Editor Reuse Files Enable Content MGMT-0062 MONT-952 INTERNATIONA Selected Supplier Celance Sheet Data (USS) For Period Fading December 31, 2018 SOURCING MONT-4042 INTERNATIONAL SOURCING Kobold T L LIABILITIES AND SHAREHOLDERS' EQUITY Kobold wwwww Nepable $11 Accounts payable $525. 575 5225 $129 Cash 36.9 335 386 T 5245 523 $70 540 Workbluber $1325 $106 $27.7 And pay and 34042 $13.5 3202 5139 $800 345 $580 31716 Tata $1,700 $1545 $017 Inventories $10677 575 $155 5135.4 Long-term del 512435 5241 Total current asseta 52106.1 5154 5738 5391.9 Shareholder equity $1,912 $172.5 5014 Inalcut 5730:4 52 570 TOTAL LIABILITIES $4,335 $380 $1,400 54570 5373.55 Gord $330 343 3146 3914 of a AND SHAMEHOLDERS EQUITY Total investments and other $10064 521 $215 31754 Property, plant, and $1.734.3 3125 5450 5412.5 TOTAL ASSETS $4,928 8353 $1,400 1979 INTERNATIONAL SOURCING MGMT 6082 (01-02)-21F Topic Specific Assignment #2 Module 05-Chapter 09 Supplier Financial Analysis A supply whenever purchasing to reduce a pool of potential supply sources. If a supplier does not mean defined by the purchaser, then the supplier willy not move to Financial rationaley part of a supplier financially. Of course, the ata, which can be challenge when using alously or privately held corporatio Desides calculating and attempting to internet the meaning of financial rati pering modes can aovide ever poter insight into pers to publicly a un hulp identyf ry. And should be corpore several yours of suppl ancial table, to Identity favorable or unfavorable and Ancher comparison involves comparing suppliers rata with specic competitors which is likely when a purchase has led data from more than one nippler. Refer to the attacked balanse sheet and income statement figures from four possible supplier: Kobold.ce. Terstand Lo GT. For EACH of the four suppliers, calculate the following ar ratios and interpret these key financial radice (refer to page 273 In edition or page 274 in Cction Al Current ratio Ricetto Equity ratio Cetty DNet profit margin Q2. Indicate which suppler you would recommend as the strongest Inancially. Q3. Why? MUMI FOCUS ENG IN 11:20 07-06-2022 Page 2 of 4 495 words English (United States) Accessibility: Unavailable 16C 99+ Mostly cloudy 50% Font AutoSave off File Home Insert MGMT-6082-(01-02)-21F TOPIC SPECIFIC #2 - FINANCIAL ANALYSIS - Compatibility Mode Saved to this PC. Draw Design Layout References Mailings Arial 12 A A Aa A Review View Help Table Design Layout E - E- Paste BIU x, x A- A Undo Clipboard F Search (Alt+0) vaishnav thiruvarath Comments Share Find Heading 1 Heading 2 Normal No Spacing 5 Paragraph Styles Replace Select Editing Dictate Editor Reuse Files Voice Editor Reuse Files SECURITY WARNING Macros have been disabled. Enable Content + INTERNATIONAE SOURCING Statement of Income Data (U.S. $ in millions) Year Ended December 31, 2019 Kobold Hancy Tarret LaRose Net sales $6,500 $550 $2,300 $1,355 Cost of goods sold $5,500 $407.5 $1,495 $948.5 Selling, general, and $475 $65 $570 $250 administrative expenses Interest expense $300 $12 $65 $55 Costs and expenses $6,275 $484.5 $2,130 $1,253.5 Income before income $225 $65.5 $170 $101.5 taxes Estimated taxes on $100 $28 $66.5 $55 income NET INCOME $125 $37.5 $103.5 $46.5 Page 4 of 4 495 words English (United States) Accessibility: Unavailable 16C Mostly cloudy 99+ ENG IN 11:21 07-06-2022 120%