Using the textbook: Contemporary logistics 12th edition

Please answer the following questions. SHOW ALL WORK (Using screen shots provided as information)

7) Using the 2012 Income statement and balance sheet to complete a strategic profit model.

8) Holding all other information constant, what would be the affect on ROA for 2013 if warehousing costs declined 10 % from 2012 levels

2012 2013 Units Shipped Warehouse Costs Units Shipped Warehouse Costs 5 5 5 Months 12 Months Months 12 Months Through Months Through 12 Months Through 12 Months 5 Months Through Jan-Dec May 31 Jan-Dec May 31 Jan-Dec May 31 Jan-Dec May 31 19500 5075 159650 36530 18000 4035 178000 40228 8100 4300 65620 28350 7200 3119 73000 29416 29100 15560 253150 133460 30000 15230 285000 141222 3750 1200* 29000 9200* 3100 1421 31000 14900 2730 1020 17200 9545 2000 804 17000 9605 Atlanta Boston Chicago Denver Fargo Los Angeles Portland St Louis 17650 9444 9230 11650 3940 2450 155450 74560 52250 112350 35650 24800 17000 9000 8000 176000 85000 56000 4600 2116 93280 42616 19191 5500 * Denver warehouse closed by strike 4-19 March 2012 Exhibit 3.A Income Statement 2012 $ 4,506,397 $ 906,350 $ 3,600,047 $ 723,560 $ 714,985 Sales COGS Gross Margin Tranportation Cost Warehousing Cost Inventory Carrying cost Other operating Cost Total operating cost Earnings before Interest and Taxes Interest Taxes Net Income $ 598,750 $ 355,689 $ 2,392,984 $ 1,207,063 $ 121,265 $ 72,560 $ 1,013,238 Exhibit 3.B Balance Sheet 2012 Assets Cash Accounts receivable Inventory Total current assets Net fixed assets Total assets Liabilities Current liabilities Long-term debt Total liabilities Shareholders Equity Total Liabilities and Equity $ 845,630 $ 325,450 $ 1,659,800 $ 2,830,880 $ 805,250 $ 3,636,130 $ 2,356,000 $ 235,640 $ 2,591,640 $ 1,044,490 $ 3,636,130 2012 2013 Units Shipped Warehouse Costs Units Shipped Warehouse Costs 5 5 5 Months 12 Months Months 12 Months Through Months Through 12 Months Through 12 Months 5 Months Through Jan-Dec May 31 Jan-Dec May 31 Jan-Dec May 31 Jan-Dec May 31 19500 5075 159650 36530 18000 4035 178000 40228 8100 4300 65620 28350 7200 3119 73000 29416 29100 15560 253150 133460 30000 15230 285000 141222 3750 1200* 29000 9200* 3100 1421 31000 14900 2730 1020 17200 9545 2000 804 17000 9605 Atlanta Boston Chicago Denver Fargo Los Angeles Portland St Louis 17650 9444 9230 11650 3940 2450 155450 74560 52250 112350 35650 24800 17000 9000 8000 176000 85000 56000 4600 2116 93280 42616 19191 5500 * Denver warehouse closed by strike 4-19 March 2012 Exhibit 3.A Income Statement 2012 $ 4,506,397 $ 906,350 $ 3,600,047 $ 723,560 $ 714,985 Sales COGS Gross Margin Tranportation Cost Warehousing Cost Inventory Carrying cost Other operating Cost Total operating cost Earnings before Interest and Taxes Interest Taxes Net Income $ 598,750 $ 355,689 $ 2,392,984 $ 1,207,063 $ 121,265 $ 72,560 $ 1,013,238 Exhibit 3.B Balance Sheet 2012 Assets Cash Accounts receivable Inventory Total current assets Net fixed assets Total assets Liabilities Current liabilities Long-term debt Total liabilities Shareholders Equity Total Liabilities and Equity $ 845,630 $ 325,450 $ 1,659,800 $ 2,830,880 $ 805,250 $ 3,636,130 $ 2,356,000 $ 235,640 $ 2,591,640 $ 1,044,490 $ 3,636,130