The following four companies compete in a certain industry In total, these 4 companies make up 75 of the total market for their industry A B C D Revenue $1,000 $3,000 $5,000 $7,500 COGS 500 1,650 2,800 5,250 Gross Profit 500 1,350 2,200 2,250 Net Income 200 450 500 375 Total Assets 1,600 5,000 10,000 6,250 D would like to have a more competitive product cost and net income How much of a COGS (Cost of Goods Sold) reduction (with the same level of revenue) would D have to achieve in order to achieve a profit margin equal to Company A $562 $750 $1,125 $375 A company which has the following working capital ratios Days in Accounts Receivables 15 Days in Inventory 15 Days in Payables 30 Cash Operating Cycle 0 Is most likely to be generating cash to operate the business by Paying its vendors promptly while collecting from its customers even more quickly Tying up minimal levels of cash in inventory, while paying its vendor before collecting payment from customers Borrowing cash to fund high levels of inventory on hand Borrowing Cash while it waits 2 months to collect payment from its customers Collecting payment from customers within a week of invoicing them The following four companies compete in a certain industry In total, these 4 companies make up 75 of the total market for their industry A B C D Revenue $1,000 $3,000 $5,000 $7,500 COGS 500 1,650 2,800 5,250 Gross Profit 500 1,350 2,200 2,250 Net Income 200 450 500 375 Total Assets 1,600 5,000 10,000 6,250 How much more revenue would Company B have to generate with their current asset level, to achieve Ds asset turnover ratio ($500) $125 No chage B already is achieving an asset turnover ratio equal to D $3,000 Rachel Rowe feels that there is a market niche for software that helps entrepreneurs file for a patent Surveying the features and prices of legal forms already in the market, Rachel believes that a price of $200 would be about right for such software At that price, she estimates that 2,000 copies could be sold each year To design, develop, produce and service this software, an investment in assets of $800,000 would be required Rachel desires a 20 return on her investment, or return on assets (ROA) Given these data, the target cost per unit to create, sell, and service the software should be $80 $120 $200 $40 Acme, Inc competes in Segment 4 of the industry value chain Acme's financial data compared to Segment 4 is as follows (millions) Acme, Inc Segment 4 Revenue $300 $12,000 Gross Profit 100 3,600 Net Income 15 360 Total Assets 150 4,000 Acme management should focus on Group of answer choices Improving Gross Margins Improving Net Margins Improving Asset Turns Improving Return on Assets Under which of the following combinations will Return on Assets (ROA) always decrease Revenues Expenses Assets Decrease Increase Increase Increase Decrease Decrease Decrease Decrease Decrease Increase Increase Increase

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The following four companies compete in a certain industry. In total, these 4 companies make up 75% of the total market for their industry A

The following four companies compete in a certain industry. In total, these 4 companies make up 75% of the total market for their industry

	A	B	C	D
Revenue	$1,000	$3,000	$5,000	$7,500
COGS	500	1,650	2,800	5,250
Gross Profit	500	1,350	2,200	2,250
Net Income	200	450	500	375
Total Assets	1,600	5,000	10,000	6,250

D would like to have a more competitive product cost and net income. How much of a COGS (Cost of Goods Sold) reduction (with the same level of revenue) would D have to achieve in order to achieve a profit margin equal to Company A?

$562
$750
$1,125
$375

A company which has the following working capital ratios:

Days in Accounts Receivables 15

Days in Inventory 15

Days in Payables 30

Cash Operating Cycle 0

Is most likely to be generating cash to operate the business by:

Paying its vendors promptly while collecting from its customers even more quickly.
Tying up minimal levels of cash in inventory, while paying its vendor before collecting payment from customers.
Borrowing cash to fund high levels of inventory on hand.
Borrowing Cash while it waits 2 months to collect payment from its customers.
Collecting payment from customers within a week of invoicing them.

The following four companies compete in a certain industry. In total, these 4 companies make up 75% of the total market for their industry

	A	B	C	D
Revenue	$1,000	$3,000	$5,000	$7,500
COGS	500	1,650	2,800	5,250
Gross Profit	500	1,350	2,200	2,250
Net Income	200	450	500	375
Total Assets	1,600	5,000	10,000	6,250

How much more revenue would Company B have to generate with their current asset level, to achieve Ds asset turnover ratio?

($500)
$125
No chage. B already is achieving an asset turnover ratio equal to D.
$3,000

Rachel Rowe feels that there is a market niche for software that helps entrepreneurs file for a patent. Surveying the features and prices of legal forms already in the market, Rachel believes that a price of $200 would be about right for such software. At that price, she estimates that 2,000 copies could be sold each year. To design, develop, produce and service this software, an investment in assets of $800,000 would be required. Rachel desires a 20% return on her investment, or return on assets (ROA). Given these data, the target cost per unit to create, sell, and service the software should be: