Question
Joy Thomas, the supply chain analyst at York Toys Inc., is tasked to provide his Boss, Andrew Hall with a financial analysis of the company.
Joy Thomas, the supply chain analyst at York Toys Inc., is tasked to provide his Boss, Andrew Hall with a financial analysis of the company. Details of the company's operations for the year ending 2021 are provided in an excel file (click here for detailsDownload click here for details).
Based on your expertise, develop the following:
[4 pts] Balance sheet
[5 pts] Income statement
Using the results from the balance sheet and income statement, you are required to determine the following:
[2 pts] Return on Assets
[2 pts] Annual Inventory Turns
[2 pts] Transportation as a % of Sales
[2 pts] Profit Margin
[3 pts] Based on your understanding of the ratios' provide three recommendations to increase the return on assets within the context of this problem.
| Sales revenue | $3,500,000 |
| Transportation cost | $350,000 |
| Warehousing cost | $500,000 |
| Inventory carrying cost (% of average inventory value) | 20% |
| Cost of goods sold | $1,000,000 |
| Other operating expenses | $150,000 |
| Accounts receivables | $500,000 |
| Cash reserves | $1,250,000 |
| Net Fixed Assets (building, factory, warehouse) | $5,000,000 |
| Interest on long-term debts | 10% |
| Taxes (@25%) * | $1,250,000 |
| Accounts payables | $2,000,000 |
| Long term debt | $1,000,000 |
| Ending inventory | $200,000 |
| Beginning inventory | $750,000 |
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Cornerstones Of Managerial Accounting
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
4th Edition
978-0538473460, 0538473460
