questions 1-3

Financial Exercise (20 points) ACME Power Tool Company financial statements INCOME STATEMENT 2020 Sales (12,000 units ES50/unit) $600,000 raw materials ($30/unit $360,000 labor (S3/unit) $36,000 scrap 150.33 per unit) $4,000 COGS $33.33/unit) $400,000 Gross Profit ($16.67 per unit) $200,000 warehousing $70,000 transportation 524.000 other expenses $6,000 EBIT $100,000 interest/taxes $50,000 Not Profit $50,000 ENDING BALANCE SHEET December 31, 2020 Assets Liabilities Cash $20,000 Current Liabilities $50,000 Accounts Receivable $30,000 Long Term Debt $50,000 Inventory $100,000 Total abilities $100,000 Current Assets $150,000 Net Fixed Assets $50,000 Shareholder Equity $100,000 Total Assets $200,000 Total Liabilities and Equity $200.000 N Instructions: Imagine you are a supply chain manager for this company and your base salary is 575,000 per year You participate in a bonus plan where the performance of the supply chain can earn you extra money Every point above the baseline ROA (25%) earns you a S2000 bonus While no questions here pertain to your bonus, please consider the motivation a supply chain manager would have to improve ROA Note: Consider each action in 37 as occurling in 2020 and affecting the financial statements presented Each action in 27 is independent and separate from other actions Questions and are worthpoint each Questions are worth points each 1. Baseline now becom On Assets (6) profit/ww 1) answer 2. Baseline Inventory turns-COGS/inventory 3. Must do an expedited delivery of 100 units costing additional $20 per unit in transportation costs Wil the company make or lose money on this transaction? 3) answer 4. Through good management practices you are able to double your inventory turns COGS remained the same, but inventory was cut in hall. Consider the effect this will have on ROA If no other numbers change, what will be the new ROA? 4) answer 5. Using a reverse auction, Purchasing is able to reduce raw materials by $0.25 per unit Consider how this will affect on. If no other numbers chanye, what will be the new ROA? 5) aner 6. Through more efficient packaging raw material cost is reduced by 5% and transportation expenses reduced by 10%. Consider the effect on ROA. If no other numbers change what will be the new ROA 6) anwer mind bine process, the company is able to convert Financial Exercise (20 points) ACME Power Tool Company financial statements INCOME STATEMENT 2020 Sales (12,000 units ES50/unit) $600,000 raw materials ($30/unit $360,000 labor (S3/unit) $36,000 scrap 150.33 per unit) $4,000 COGS $33.33/unit) $400,000 Gross Profit ($16.67 per unit) $200,000 warehousing $70,000 transportation 524.000 other expenses $6,000 EBIT $100,000 interest/taxes $50,000 Not Profit $50,000 ENDING BALANCE SHEET December 31, 2020 Assets Liabilities Cash $20,000 Current Liabilities $50,000 Accounts Receivable $30,000 Long Term Debt $50,000 Inventory $100,000 Total abilities $100,000 Current Assets $150,000 Net Fixed Assets $50,000 Shareholder Equity $100,000 Total Assets $200,000 Total Liabilities and Equity $200.000 N Instructions: Imagine you are a supply chain manager for this company and your base salary is 575,000 per year You participate in a bonus plan where the performance of the supply chain can earn you extra money Every point above the baseline ROA (25%) earns you a S2000 bonus While no questions here pertain to your bonus, please consider the motivation a supply chain manager would have to improve ROA Note: Consider each action in 37 as occurling in 2020 and affecting the financial statements presented Each action in 27 is independent and separate from other actions Questions and are worthpoint each Questions are worth points each 1. Baseline now becom On Assets (6) profit/ww 1) answer 2. Baseline Inventory turns-COGS/inventory 3. Must do an expedited delivery of 100 units costing additional $20 per unit in transportation costs Wil the company make or lose money on this transaction? 3) answer 4. Through good management practices you are able to double your inventory turns COGS remained the same, but inventory was cut in hall. Consider the effect this will have on ROA If no other numbers change, what will be the new ROA? 4) answer 5. Using a reverse auction, Purchasing is able to reduce raw materials by $0.25 per unit Consider how this will affect on. If no other numbers chanye, what will be the new ROA? 5) aner 6. Through more efficient packaging raw material cost is reduced by 5% and transportation expenses reduced by 10%. Consider the effect on ROA. If no other numbers change what will be the new ROA 6) anwer mind bine process, the company is able to convert