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Read from bottom to top :) thank you. Proporzo Inc. Comparative Income Statement Outlet Prop Comparative Income Statement Proporzo Comparative Balance Sheet Case Study Assignment
Read from bottom to top :) thank you.
Proporzo Inc. Comparative Income Statement Outlet Prop Comparative Income Statement Proporzo Comparative Balance Sheet Case Study Assignment Scenario You are a recently hired college graduate working for Monsoon Pictures, a studio that produces full-length motion pictures and several television shows for both streaming and theatrical release. Recently, at a meeting, the CEO of the company introduced an idea proposed by the Board of Directors to purchase a prop company to vertically integrate and save money on the props used in production. This would give Monsoon a way to control costs and control the props used from project to project. In addition, Monsoon would be able to use the investment in the prop company to diversify and sell props to other studios to generate more cash flows that could be used to offset the cost of high-cost feature productions. You and your team have been tasked with evaluating two options, Proporzo Company and Stock Props. It is important that you evaluate the companies on many levels and make a recommendation as to which company would make the best investment choice for Monsoon. Be sure you document your evidence as to why you are suggesting to the board of directors. Outlet Prop APPENDIX B GRADING RUBRIC You will be evaluated on several key components to this case study. You must write a 5-to-8page paper AND include an Excel Workbook with your calculations. In conclusion you must make a final recommendation and back it up with your analysis. An attached rubric is included in this document for you to assess your paper. Items to Include 1. SWOT analysis of each company 2. Discussion on the financial position of the company a. Vertical Analysis (Excel) b. Horizontal Analysis (Excel) i. Trend Analysis (Excel) c. Key Ratio Analysis 3. Recommendation backed up by the evidence listed above About Company: Proporzio started off as a family business and has grown over the last two decades. Proporzio has been known for their high-quality, completely customized prop production and independent spirit. Company Background Proporzio was founded in 1982 by George and Margert Boyle in Vista California. George, a graduate from the University of California, began making props for fellow students in college and continued to do so upon graduation. Initially the shop began out of the couple's garage but as Proporzio found success after working on notable independent and large studio films. The couple incorporated in 1989 and secured a facility to house operations. The company currently employs George and Margaret, the couple's two adult children, as well as three full-time artists. They offer complete customized props and have a solid reputation. They offer customizable options from set pieces, costumes, as well as some animatronics. They offer prop weapons, liquids, gases, and other effects often used in production. The company is small and cannot mass produce multiple items and orders are often waitlisted. The company has contracts with a few major studios and is a favorite of some of the directors. They are a smaller shop and face fierce competition from other independent prop creators as well as larger and studio-owned companies. The Boyle family is interested in selling the establishment so that it may continue to provide props, but Margaret and George Boyle are hoping to retire. The company's financial information is included for the past three years to aid you in your analysis of the company. Assume all sales are on credit, there is no preferred stock, it is not publicly traded and is considered a closely held corporation. The only shares outstanding are between the family members at 100 shares. COMPANY: OUTLET PROP About Company: Outlet prop is a mass producer of film and theater props. They are known for expediency and availability of a wide variety of common props. Company Background Outlet Prop was established in 1992 and incorporated in that same year. This company is known for the mass production of props used in films and theater. The company uses the same production process to mass produce items such as set pieces, generic costumes, fake weaponry, and others that can be reused from film to film. The company currently employs 12 full-time employees as well as a manager, accountant, contract lawyer and administrative assistant. The company was initially scheduled to be sold to another film production company, but the sale fell through with the Covid 19 pandemic. The company is in a competitive market and primarily competes in price and quantity production. Turnaround time for the props is generally quick for productions that need items immediately. They carry a large amount of buffer inventory to meet the spontaneous demand of producers. The company has a few existing contracts with film production companies but is known for impromptu orders that need to be filled quickly. The company does not offer customizable options and only a limited number of offerings. One thing of note is that the Outlet Prop company has had small lawsuits and a larger lawsuit recently owing to mechanical failures resulting in financial damage to film productions. These litigations have been accounted for in the other income and expenses categories. The company is not publicly traded nor considered to be closely held. There are 3000 shares of common stock outstanding. There are no preferred shares of stock. Assume all sales are on credit. The company's financial information for the last three years is attachedStep by Step Solution
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