Using a spreadsheet computer software program, construct a supply chain finance model and calculate the profit margin;
Question:
Using a spreadsheet computer software program, construct a supply chain finance model and calculate the profit margin; ROA; inventory turns; and transportation, warehousing, and inventory costs as a percentage of revenue for the following:
Sales = $200,000,000
Transportation cost = $12,000,000
Warehousing cost = $3,000,000
Inventory carrying cost = 30%
Cost of goods sold = $90,000,000
Other operating costs = $50,000,000
Average inventory = $10,000,000
Accounts receivable = $30,000,000
Cash = $15,000,000
Net fixed assets = $90,000,000
Interest = $10,000,000
Taxes = 40% of (EBIT – Interest)
Current liabilities = $65,000,000
Long-term liabilities = $35,000,000
Stockholder’s equity = $45,000,000
Step by Step Answer:
Supply Chain Management A global Logistics Perspective
ISBN: 978-1305859975
10th edition
Authors: John J. Coyle, C. John Langley, Jr. Robert A. Novack, Brian J. Gibson