ABC Sporting Goods
Part 1- Complete the following ratio analysis for ABC sporting Goods Profit & Loss
Profit for 2006 was-86,318,
Profit for 2007 was-113,799
Profit for 2008 was-126,472
Profit for 2009 was-75,252
Profit for 2010 was-67,955
Between 2008-2009 ABC Loss 51,220
Between 2009-2010 ABC Loss 7,297
Return on sales was 7.52%
Return on Assets was 27.34%
Return on Net Worth was 83.69%
Quick Ratio was 0.48
Current Ratio was 1.59
Inventory turnover (gross sales divided by inventory) was 5.93
Assets to sales Ratio was 0.28
Total liabilities to net worth was 2.06
Part II Estimate the business value using BizStats. –Valuation Rule for Sporting Goods Store at BizStats.
These are the BizStats I found Profitable Sole
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Use the following formula:
Purchase price $100,000, down payment 20% or $20,000 which results in $80,000 being financed.
For $1,000 financed at 5%, the factor to calculate your monthly payment is .659955739. Therefore, for $80,000 your payment is $528 per month or $6,336 per year. (Rounded)
We now can calculate the free cash flow available to pay the loan amount. We can use the following formula:
Net Profit
+interest paid (use previous years amount from P&L)
+Depreciation and amortization
= Cash flow
For example, if we have $10,000 for our cash flow and our payments are $528 x 12 months = $6,336; then to calculate our DSC or debt service coverage ratio, we divide the Cash flow by the annual debt service or $10,000 / $6,336 =1.58x. If we borrowed $400,000 our monthly payment is $2,640 or $31,680 and if our cash flow is
3. Compute the unlevered free cash flow and the interest tax shields from 2008 to 2012 based on estimates provided in Exhibit 1 and Exhibit 6. (3 points)
| |finance the balance. How much will each monthly loan payment be if they can borrow the necessary funds for 30 years at 9% per |
National Stores started in 1962 by Joseph Fallas in a single downtown Los Angeles store as Fallas Paredes. The current CEO of National Stores is Joseph, son, Michael Fallas, who began to work as a stocker boy at the age five. The National Stores Inc., is a family-owned company headquartered in the Harbor Gateway of Los Angeles, California, they have more than 350 locations in twenty-two locations in Puerto Rico. The National Stores Inc. does business as Fallas Paredes Discount Stores, Factory 2-U, Conway, CW Price and Anna 's Linen 's by Fallas. Not only does this company have a wide selection of home goods and décor, but it also offers brand name and private label clothing for men, ladies, boys, girls, juniors, infants and toddlers along with lingerie, shoes and household items.
1) Establish the principal and interest amount of the monthly payment. Using the 30 year loan principal and interest amount of the payment is $1,150.92
b. Does the issue of branded vs. private label enter into this consideration? Why or why not?
Pam and Susan’s discount department stores with over 250 locations in the South. With the continuous success of the discount department stores and successful expansion through-out the south, Pam and Susan’s discount department stores are in process of determining their next location based on the various demographic data points that have been collected by the real estate company. The strategic priority for the company is to have a successful launch of the new store despite the prior, rather disappointing execution launch. Leadership has request for a team to develop a statistical formula that would assist and predict the revenue opportunity based on the demographic data points. To develop and test the formula and the analysis, we will use multiple regression formula that will help us to guide the leadership team with the best strategic decision for the next Pam and Susan’s discount department store.
By only making minimum payments it will take 60 more payments or 5 years to pay off the remaining balance. Interest will amount to $675. I attached a graph as follows: See graph on following page (calcxml, 2015).
Present day Federated consists of both Bloomingdale’s and Macy’s stores and operates in 34 states as well as Guam and Puerto Rico. While Bloomingdale’s and Macy’s provide both private and national brands and are similar in merchandising categories (men’s, women’s and children’s apparel, home décor, shoes, beauty, and accessories), they differ greatly in culture. Bloomingdale’s, being more upscale, targets consumers that are more concerned with trend and quality than they are price. Macy’s targets the more value oriented consumer and represents a broader Federated clientele. Macy’s represents 423 of the 459 Federated locations while Bloomingdale’s represents only 36 locations. Because I can
The next step was to calculate the free cash flows for the eleven-year period. In order to do so, we used to following formula: FCF = EBIT(1-tax) + depreciation - change in NWC – CapEx. From here, we used to WACC of 13.89% previously calculated, in order to find the present value of each FCF.
When comparing two different ways of shopping most people do not even think about the difference, they do both and not even realize it. In today's society people shop while at work, after work and on the weekends, whenever time permits. Stop and think how can I get more time in the day for family or just myself? The best way to figure that out with all the recourses we have is to go into a store and spend time looking through racks and waiting in endless lines to just purchase something. I compared going into a store verses online shopping; to see which one will save you time and money.
 Illustrates low prices and at the same time, not portray a cheap image to consumer.
The owner of the company has completed about 47% of the total questions from the categories of Governance, Worker, Community, Environment, and Customers. Based on the owner’s responses, the overall B Impact score for the company Adunnard Merchandise is 31.4 points, which is low compared against 277 Median Ordinary Business with 23 employees score for B Impact Report is 50.9 points.
I like this because it has a clear thesis statements and strong three reasons. The first paragraph introduces of the surveillance of retails by retail anthropologists and it claims a certain assertion that it is ethical and it can many benefits. Each body paragraphs stated the main points and used the MEAL plan successfully. This second paragraph suggests the main idea, “The first reason that surveillance benefit is bringing more convenience for consumer.” The convenience for consumer directed to the reducing the customer’s shopping time and the relating evidence support the idea. After the evidence, the writer thoroughly analysis. Especially, I liked the quote, “Thus, they just go straight to the store to grab what they needed and head to the pay counter. The time of a person spends in shopping mall is decreased which affects the slowly growth of businesses’ profit”, because I could relate to my shopping experience. This essay is effective argument essay with clear thesis statement, strong reasons and evidences to support the main ideas, and successfully followed the argumentative structure.
The recognized giants in today’s discount retail market are Wal-Mart, Sears, Roebuck and Company, and Target, and this paper compares Wal-Mart and Target. As the competition stiffens to capture market niches, these two organizations are heading for a showdown. This work demonstrates distinctive differences in company culture, promotion within the organization, lofty goal setting, and leadership styles between these two organizations. Although this paper shows a definite competitive advantage for the Wal-Mart organization, it will also demonstrate that Target
Being an upscale industry, Abercrombie and Fitch would appear to be a successful corporation. Although the company was once successful for a number of years, it’s apparent that there has been a significant decline in its overall appeal and how much revenue the company acquires each year. With just over 1,000 retail stores in the U.S., Canada, and Europe, Abercrombie and Fitch has thrived to be one of the most avid corporate extensions.