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SCENARIO 1 - YATES MOTORS Yates Motors is a family owned and operated car dealership, which means the Yates are directly involved in day -
SCENARIO YATES MOTORS
Yates Motors is a family owned and operated car dealership, which means the Yates are directly involved in daytoday operations and know many of their customers on a firstname basis. They are committed to the promise of something better and that's exactly why they've been satisfying customers for over years. Yates Motors is about more than selling cars. Management and staff are committed to offering a total customer care experience, from purchase to ongoing maintenance of the customer's vehicle. In addition to the GMC showrooms, the dealership includes an extensive Parts and Service Department, a stateoftheart Body Shop, and a fullservice Auto Cleaning and Detailing Centre. As well, financing can be handled on the premises.
MISSION STATEMENT
The Yates Promise:
To be the leading provider of automotive sales and service in Central Ontario
To provide superior customer care through honesty, integrity and respect.
To provide our employees with a safe and positive workplace
To be a responsible business member of our community.
History
The Yates automotive story began in when Mr George Yates opened his first Auto Repair facility in Barrie. George Yates Jr and Peter Yates began working with their father while still quite young, and became involved on a fulltime basis after graduating from university. In George Yates Sr and his sons began selling GM automobiles. In after their fathers retirement, the Yates brothers opened up their cleaning and detailing centre. Since that time, several of George Yates grandchildren have also joined the company.
When you come to the dealership you will find a sq ft GMC dealership and service department. The building features spacious showrooms, large, comfortable waiting areas, and customer work centers with internet access. The Yates Motors team is committed to giving back to the community that has supported them for over years. Longtime supporters of countless local charities and community events, the family's efforts have assisted close to charitable groups in recent years.
Part Internal Sources of Funding
Part Budget
Part The Expansion
PART INTERNAL SOURCES OF FUNDING
The management of Yates Motors is considering investing $ to purchase a Hyundai dealership and expand operations in Barrie. Last years financial figures are as follows:
Prior Year Financials
Revenues
Total Expenses
Net income
Next year the company expects sales to increase by due to the expansion. The return on sales is expected to fall to due to the initial set up costs.
Management also expects there to be changes in the working capital accounts on the balance sheet.
Due to increased sales with the new dealership, average accounts receivable is expected to increase to $ a total increase of $ on last year.
Again due to the expansion, Yates expects to take on more inventory next year. They expect it to increase by $ to $
Assets
Current assets
Cash
Accounts Receivable
Inventory
Total current assets
Long term Assets
Building
equipment
TOTAL ASSETS
Liabilities and Equity
Current liabilities
Accounts Payable
Working Capital Loan
Total Current liabilities
Long term debts
TOTAL DEBTS
Shareholders Equity
Common Shares
Retained earnings
TOTAL SHAREHOLDERS EQUITY
TOTAL SHAREHOLDERS EQUITY and LIABILITIES
Questions
What was the companys return on total assets last year? marks
How much cash will internal operations provide ie what is generated by net income and changes in AR inventory etc. marks
How much will the company have to raise from external sources to continue with an investment of in capital assets? marks
Materials and Resources
Assignment Steps
Evaluation Breakdown
MATERIALS AND RESOURCES
Software: Microsoft Word, Excel
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