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Value Delivery Networks Assignment #3 Assignment #3 - Financial Analysis Exercise Given: Initial Markup Total Cost of Goods Sold Average Inventory at Cost Gross Sales

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Value Delivery Networks Assignment #3 Assignment #3 - Financial Analysis Exercise Given: Initial Markup Total Cost of Goods Sold Average Inventory at Cost Gross Sales Reductions Total Expenses Total Assets Net Worth/Owner's Equity 65% 55% $360,000 $3,200,000 $400,000 $600,000 $2,800,000 $900,000 Note - These are formal assignments and should be written up clearly and concisely. In addition to ANSWERING the question, students must note the "SO WHAT" or strategic TAKE-AWAY of their answer. Where necessary show ALL calculations or provide support. TO SUBMIT - remove all these instructions and just leave the prompts and your answers, below. Save the file with YOUR name and assignment # (eg:). 1. Do a SPM-attach the SPM model. 2. For each of the following - determine (SHOW ALL CALCULATIONS and comment on what these results MEAN): a. Profit Margin b. Asset Turnover c. Inventory Turnover d. Return on Assets e. Leverage sh (United States) IT Exercise3-Financial Analysis (Compatibility Mode) Developer Acrobat eferences Mailings Review View - A- AaRCINE Aalbec AaBCD ABCDe AaBb A. Normal No Spacing Heading 1 Heading 2 Title Sub Paragraph Styles f. Return on Net Worth g. If sales increase by 5%, what will be the change in asset turnover? h. If inventory accounts for 60% of total assets and this investment declines by 10%, what will be the change in return on net worth? i. If leverage increases by 50%, what will be the change in return on net worth? j. If cost of goods sold increases by 15%, what will be the change in profit margin? Data Formulas Review View Page Layout Arial 5 Wrap Text 10 A- A Home Insert * Cut Copy Paste Format 10 7 Merge & Cen T lili B U D31 X fx 1 H F G D E A B Strategic Profit Model for

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