[ADMS 4250] - Midterm Exam Guide - Comprehensive Notes for the exam (28 pages long!)

491 views28 pages

mauvescorpion249

7 Feb 2017

School

York University

Department

Administrative Studies

Course

ADMS 4250

Professor

Alexander Rusetski

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

Perceptual mapping: ideal tool to visualize differences between products on the market. Semantic scales: data is collected on various attributes of products or brands. Multidimensional scaling (mds) underlying major dimensions that explain several variables simultaneously. Meaningful facial expression finer segmentation when: customized offerings are possible, customer is diverse preference (perception/attitudes) Most meaningful variable: demographics, purchase behavior/customer life stage to physically identify customer groups. Stability our time. variable variables that explain customer response/significant observable difference. Category pop"s product has everything you want/ it includes all the interest of the buyer. *pod"s should be desirable & deliverable from firms. Anchoring pod"s - attributes (5 blades), benefits (smooth shave), values (freedom, love). Positioning statement to (target group and need) our (brand) is (concept or frame of reference) that (point of difference). Innovations: transformational ( create new market), substantial (new products with existing needs), incremental (modification than the competitor. Focus what they are buying (suv not mid size suv).

Related Questions

A large loss occurred in 2017 at Transpire Inc in Canterbury, rather than the expected profit. As a result, its stakeholders are concerned about the firmâs performance.

You are hired as the new Chief Financial Officer and are given the task of getting the company back into a sound financial position. Transpireâs 2016 and 2017 balance sheets and income statements, together with projections for 2018, are shown in the following tables. The tables also show the 2016 and 2017 financial ratios, along with industry average data. The 2018 projected financial statement data represent the best projection for 2018 results, assuming that some new financing is arranged to get the company âover the humpâ and back on track.

You must prepare an analysis of where the company is now, what it must do to regain its financial health, and what actions should be taken.

Table 1. Transpire Inc. Balance Sheets

Assets

2016

2017

2018e

($â000)

Cash

8,000

7,482

15,000

Short-Term Investments

48,600

20,000

71,632

Accounts Receivable

351,200

652,160

878,000

Inventories

715,200

1,287,360

1,816,480

Total Current Assets

1,123,000

1,967,002

2,781,112

Gross Fixed Assets

491,000

1,202,950

1,220,000

Less: Accumulated Depreciation

146,200

263,160

383,160

Net Fixed Assets

344,800

939,790

836,840

Total Assets

1,467,800

2,906,792

3,617,952

Liabilities And Equity	2016		2017			2018e
		($â000)		($â000)		($â000)
Accounts Payable	145,600		324,000		359,800
Notes Payable	200,000		701,800		301,000
Accruals	135,000		284,960		380,000
Total Current Liabilities	480,600		1,310,760		1,040,800
Long-Term Debt	323,432		1,000,000		600,000
Common Stock	460,000		536,800		1,680,936
Retained Earnings	203,768		59,232		296,216
Total Equity	663,768		596,032		1,977,152
Total Liabilities And Equity	1,467,800		2,906,792		3,617,952

Table 2. Transpire Inc. Income Statements

	2016			2017		2018e
		($â000)		($â000)		($â000)
Sales	4,432,000			5,834,400	8,035,600
COGS excluding depreciation	2,864,000			4,980,000	5,800,000
Depreciation	18,900			116,960	120,000
Other Expenses	340,000			720,000	612,960
Total Operating Costs	3,222,900			5,816,960	6,532,960
EBIT	1,209,100			17,440	1,502,640
Interest Expense	62,500			176,000	80,000
EBT	1,146,600		-	158,560	1,422,640
Taxes (40%)		458,640		-		569,056
Net Income	687,960		-	158,560	853,584

Table 3 Transpire Inc. other data

Stock Price ($)	85.00		60.00	78.00
Shares (units)	100,000		100,000	250,000
Earnings per Share ($)	6.88	-	1.59	3.41
Dividend per Share ($)	0.22		-	0.22
Tax Rate (%)	40.00		40.00	40.00
Book Value per Share ($)	6.638		5.960	7.909
Lease Payments ($)	40,000		40,000	40,000

Table 4 Transpire Inc. Ratio Analysis

	2016		2017	2018e	Industry
	2016		2017	2018e	Average
					Average
Current Ratio (X)	2.34		1.50	2.67	2.00
Quick Ratio (X)	0.85		0.52	0.93	1.00
Inventory Turnover (X)	4.00		3.87	3.19	5.00
Average Age of Inventory (days)	91.15		94.35	114.31	45.00
Average Collection Period (days)	28.92		40.80	39.88	30.00
Average Payment Period (days)	18.56		23.75	22.64	60.00
Fixed Asset Turnover (X)	12.85		6.21	9.60	8.00
Total Asset Turnover (X)	3.02		2.01	2.22	2.50
Debt Ratio (X)	0.55		0.79	0.45	0.35
Debt to Equity Ratio (X)	1.21		3.88	0.83	0.80
Times Interest Earned (X)	19.35		0.10	18.78	25.00
Gross Profit Margin (%)	35.38		14.64	27.82	28.00
Operating Profit Margin (%)	27.28		0.30	18.70	17.00
Net Profit Margin (%)	15.52	-	2.72	10.62	12.00
Return on Total Assets (%)	46.87	-	5.45	23.59	30.00
Return on Equity (%)	103.64	-	26.60	43.17	35.00
Price/Earnings (P/E) Ratio (X)	12.36	-	37.84	22.84	10.00
Market/Book Value Ratio (X)	12.81		10.07	9.86	7.00

1.Discuss the major strengths and weaknesses of the firm using the results of Du Pont analysis as projected for 2018.

2.Perform a common size analysis and percent change analysis. What do these analyses tell you about Transpire? What actions should be taken to improve its overall financial position?

3. What are some potential problems and limitations of financial ratio analysis?

chocolateswan854

[ADMS 4250] - Midterm Exam Guide - Comprehensive Notes for the exam (28 pages long!)

Document Summary

Get access

Related Documents

ADMS 4250 Study Guide - Final Guide: Avoidance Speech, Psychographic, Brand Equity

Business Administration 2257 Lecture Notes - Lecture 6: Net Profit, Fixed Asset, Net Income

MKT 300 Study Guide - Midterm Guide: Current Value, Private Label, Beia

Related Questions