iCover Inc. A group of four UNM students decide to launch an iPhone cover company - iCover. These covers have strong lateral tension that almost doubles the force required to bend the iPhone. Company will outsource manufacturing to a diverse manufacturing firm- iMake and sell the covers online. There are two main options for distributing the covers: 1. Walmart.com 2. Amazon.com On average, Amazon and Walmart.com will charge fees equivalent of 10% of the sales. Customer will buy the product on one of these websites for a fixed price of $30. Goods posted for sale on both the websites are sold within a month of posting. Amazon will remit payments to the seller account in 60 days. While Walmart.com will remit payments in 30 days iMake- manufacturer of the covers- will produce covers according to the following sales schedule. Projected Unit Sales 2021 (000) January 10 February 20 March 50 April 100 May 100 June 100 July 100 100 August September 100 October 100 100 November e chegg.com/homework-help/questions-and-answers/icover-inc-group-lou = Chegg Books Study Writing Flashcards Math Solver Internships Projected Unit Sales 2021 000) January 10 February 20 March 50 April 100 May 100 June 100 July 100 August 100 September 100 October 100 November 100 December 100 COGS is 50% of the sales. You are planning to contract with the supplier to make payment 30 days after delivery. The company will stop operations at end of one year. Questions for Analysis 1. For each distributor, calculate the cash balance (Total inflows of cash-Total outfiows of cash) for each month for next one year. In the course video I show you the analysis for Amazon. Replicate the analysis for Walmart. Remember the only difference between the two is the extra month of accounts receivable. 2. Calculate the maximum cash shortfall? 3. Compare the two options- Walmart vs. Amazon and explain why there is difference between the two 4. Calculate the maximum cash shortfall for Amazon option if your supplier demands cash on delivery. This will reduce your Accounts payable from 30 days to zero. iCover Inc. A group of four UNM students decide to launch an iPhone cover company - iCover. These covers have strong lateral tension that almost doubles the force required to bend the iPhone. Company will outsource manufacturing to a diverse manufacturing firm- iMake and sell the covers online. There are two main options for distributing the covers: 1. Walmart.com 2. Amazon.com On average, Amazon and Walmart.com will charge fees equivalent of 10% of the sales. Customer will buy the product on one of these websites for a fixed price of $30. Goods posted for sale on both the websites are sold within a month of posting. Amazon will remit payments to the seller account in 60 days. While Walmart.com will remit payments in 30 days iMake- manufacturer of the covers- will produce covers according to the following sales schedule. Projected Unit Sales 2021 (000) January 10 February 20 March 50 April 100 May 100 June 100 July 100 100 August September 100 October 100 100 November e chegg.com/homework-help/questions-and-answers/icover-inc-group-lou = Chegg Books Study Writing Flashcards Math Solver Internships Projected Unit Sales 2021 000) January 10 February 20 March 50 April 100 May 100 June 100 July 100 August 100 September 100 October 100 November 100 December 100 COGS is 50% of the sales. You are planning to contract with the supplier to make payment 30 days after delivery. The company will stop operations at end of one year. Questions for Analysis 1. For each distributor, calculate the cash balance (Total inflows of cash-Total outfiows of cash) for each month for next one year. In the course video I show you the analysis for Amazon. Replicate the analysis for Walmart. Remember the only difference between the two is the extra month of accounts receivable. 2. Calculate the maximum cash shortfall? 3. Compare the two options- Walmart vs. Amazon and explain why there is difference between the two 4. Calculate the maximum cash shortfall for Amazon option if your supplier demands cash on delivery. This will reduce your Accounts payable from 30 days to zero
