Fdaf

In: Film and Music

Submitted By strenger
Words 322
Pages 2
Introduction:

* Andre Pires opened automobile store (Quickfix Auto Parts) 5 years ago * Worked as a technician, parts department manager for over 15 years * Doubled his store size by the third year * Worried about past two years (net income had been negative and cash flow decreased) * Wanted to improve this situation before suppliers found out * Hired a student from the finance department of university´s business school to find arguments for the bank to get loan in the future

1. How does Quickfix´s average compound growth rate in sales compare with ist earnings growth rate over the past five years?

Compound growth rate in sales:

Net salest+1-Net sales(t)Net sales(t) =annual growth rate in sales

2001 to 2002: = 0.0917 2002 to 2003: =0.191 2003 to 2004: =0.12 2004 to 2005: =0.16

9.17+19.1+12+164 = 0.141 average annual growth rate in sales

The average annual growth rate is 14.1%

earnings growth rate:

Net incomet+1-Net income(t)Net income(t)

2001 to 2002: =0.374 2002 to 2003: =-0.907 2003 to 2004: =-8.73 2004 to 2005: = 0.994

Net income decreased from 16634$ to -102$ 2.Which statements should Juan refer to and which ones should he construct so as to develop a fair assessment oft he firm´s financial condition?Explain why?

* Balance sheet picture of a company * refer to balance sheet and income statement shows revenue the company earned * shows financial strenght * make comparisons with similar firms * cash flow statement where cash comes from, where spent

3. What calculations should Juan do in ordert o get a good grasp of what is going on with Quickfix´s performance?

* Coverage ratios * Profitability * Liquidity * Leverage * DuPoint Analysis * shows what affected the profitability of the company

4. Juan knows that he should…...

Similar Documents

Fdaf

...Ethics Reasoning Assignment – Lehman Brothers Relating Questions to Rubrics 1. Describe the situation at LB from an ethics perspective. What’s your opinion of what happened here? Rubric: Ethical Sensitivity or Awareness  Able to sieve out, recognize and identify ethical issues and risks in the case scenario  Recognizes ethical issues and their implications, including potential consequences to various stakeholders  Identifies aspects of the case situation that are likely to lead to a conflict of interest situation and/or making it susceptible to ethical risks2 (this rubric dimension overlaps the first 2). st You should pinpoint the unethical practices, actions and behaviour in LB (1 part of the qn).Then, discuss nd the implications and consequences for stakeholders resulting from these unethical acts (2 part of qn). 2. Could anything be done differently at Lehman Brothers to prevent what happened? Explain. Rubric: Ethical knowledge, understanding and Judgement  Able to raise pertinent questions or clarify relevant information to obtain a clearer understanding and/or form an appropriate judgment of the issues involved in the case scenario  Addresses relevant and incisive questions and the extent to which a clear understanding and judgment of the issues involved in the case scenario are exemplified with supporting illustrations  Proposes and discusses the ethical notions of rights, duty, utility, virtue, or justice and fairness in resolving the problems or issues Here,......

Words: 469 - Pages: 2

Fdaf

...Why has Madonna experienced sustained success over the past two decades? 1. Vision. Madonna has demonstrated a clear commitment to super-stardom goal that was pursued with single mindedness throughout her career. Other dimensions of her life have been either subordinated to or absorbed within her career goals. Rather than wait for industry trends, she has acted to shape the world around her. 2. Deep understanding of consumers and the industry environment. Madonna has developed her strategy through a deep and insightful appreciation of customers and the music industry. Critical to her continuing success has been a deep understanding of the ingredients for sustaining popular appeal. The frequent reinvention of her style and sound has reflected an acute awareness of changing styles, social norms and attitudes in a fast clock-speed industry. 3. Leveraging competences and addressing weaknesses. Madonna has been able to exploit her abilities to develop and project her image and to exploit emerging trends, while protecting areas of weakness. Her weaknesses have been more than compensated for by her use of an extensive network of support personnel, including musicians, technologists, producers, dancers, and designers. Her personal relationships have often been important in building her career. 4. Consistent Implementation. Without consistent implementation, even the best strategies are unlikely to succeed. Madonna has surrounded herself with individuals and......

Words: 328 - Pages: 2

Abuse This Method If You'D Prefer to Copy and Paste Your Paper Into a Form.

...abcdefgads fsa fdsfdsa fdaf asdfdfsdafdsafas fas fads fasdf sadfdsafsafasdfsf sf afsadfdsfdsafdsafdafa Use this method if you'd prefer to copy and paste your paper into a form. Use this method if you'd prefer to copy and paste your paper into a form. Use this method if you'd prefer to copy and paste your paper into a form. Use this method if you'd prefer to copy and paste your paper into a form. Use this method if you'd prefer to copy and paste your paper into a form. Use this method if you'd prefer to copy and paste your paper into a form. v Use this method if you'd prefer to copy and paste your paper into a form. v v vUse this method if you'd prefer to copy and paste your paper into a form.vv v v Use this method if you'd prefer to copy and paste your paper into a form. Use this method if you'd prefer to copy and paste your paper into a form. Use this method if you'd prefer to copy and paste your paper into a form. Use this method if you'd prefer to copy and paste your paper into a form. Use this method if you'd prefer to copy and paste your paper into a form. Use this method if you'd prefer to copy and paste your paper into a form. Use this method if you'd prefer to copy and paste your paper into a form.v Use this method if you'd prefer to copy and paste your paper into a form.Use this method if you'd prefer to copy and paste your paper into a form.Use this method if you'd prefer to copy and paste your paper into a form. Use this method if you'd......

Words: 500 - Pages: 2