From Dunkin Donuts to Just Dunkin! The famous American Donut’s brand is rebranding and closing stores across the world including Oman as its outlets have shut down for good. The demand for donuts in America is decreasing as customers preferring more healthy food with less sugar and fat.
The company’s brand CEO Mr. David Hoffmann said, “the rebranding comes as an effort to reshape the company’s strategic goals and focusing on drinks more than donuts.” While analyzing the company’s different products, the managers noticed that 60% of its revenue is coming from drinks like coffee while demand for donuts is declining.
The company redesigned its brand, and its stores making them look simpler. The company is also introducing new coffee experiences like nitro, cold brew, black...etc. The company will also introduce digital menu and drive through to fit the customers on the go lifestyle. The company will also reduce its employees as the new digital menus will eliminate the need of human employees, reducing the company’s costs.
Questions:
2. Explain, how the demographic environment is affecting the company? (250 words)
In: Operations Management
Kitty Company is planning its operations for next year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year?
| Last year's sales = S0 |
$200,000 |
Last year's accounts payable |
$50,000 |
|
| Sales growth rate = g |
40% |
Last year's notes payable |
$15,000 |
|
| Last year's total assets = A0* |
$127,500 |
Last year's accruals |
$20,000 |
|
| Last year's profit margin = PM |
20.0% |
Target payout ratio |
25.0% |
In: Finance
Kitty Company is planning its operations for next year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year?
| Last year's sales = S0 |
$200,000 |
Last year's accounts payable |
$50,000 |
|
| Sales growth rate = g |
40% |
Last year's notes payable |
$15,000 |
|
| Last year's total assets = A0* |
$127,500 |
Last year's accruals |
$20,000 |
|
| Last year's profit margin = PM |
20.0% |
Target payout ratio |
25.0% |
In: Finance
A company wants to get a bullet proof luxurious limousine for its CEO. The limousine would cost $1 million to buy. The limousine will be depreciated at a rate of $100,000 per year for tax purposes. Suppose the limousine could be sold off in five years for $500,000. Suppose also that the firm could alternatively sign a five-year operating lease for the limousine with lease payments of $150,000 per year. Each payment would be due at the beginning of the year. The company’s effective tax rate is 25 percent. The before –tax rate of borrowing is 8 percent. Cash Flows in $ Year 0 1 2 3 4 5 Initial Cost After tax lease payment Forgone tax shield Forgone salvage value Column Total (b). Determine Net Present Value of Leasing assuming payments are made annually and make a lease or buy decision.
In: Accounting
Assume you are the CEO of an U.S.-based e-commerce company that wants to expand internationally by exporting a product or service to one of the BRICS countries: Brazil, Russia, India, China, or South Africa. First, you should choose and describe the product or service you want to export. Second, you should evaluate the business environment in the chosen country and explain why you chose this country. Third, you should evaluate the market potential for your product/service in the chosen country. Be sure to specify the indicators (country indicators and market potential indicators) that you use to evaluate the market potential for your product/service in the chosen country. Fourth, you should develop a marketing plan to export your product/service to the chosen country. Be sure to specify the positioning strategy and target market, the pricing strategy, the distribution strategy, and the promotional strategy. Finally, you should develop a 2-slide executive summary (including detailed notes) that summarizes the key points of your international marketing plan.
In: Economics
Assume you are the financial controller of a new established
company. The CEO has asked your choice of accounting policy
regarding the measurement of intangible assets at the time of
recognition and after the acquisition.
Required:
State your choice of accounting policy regarding the measurement of
intangible assets at the time of recognition and after the initial
acquisition. Explain the reason (s) of your choice (s). You should
provide comments regarding the choice of accounting method.
In: Accounting
Short answer questions
Assume you are the financial controller of a new established company. The CEO has asked your choice of accounting policy regarding the measurement of intangible assets at the time of recognition and after the acquisition.
Required:
State your choice of accounting policy regarding the measurement of intangible assets at the time of recognition and after the initial acquisition. Explain the reason (s) of your choice (s). You should provide comments regarding the choice of accounting method.
In: Accounting
Assume you are the financial controller of a new established company. The CEO has asked your choice of accounting policy regarding the measurement of intangible assets at the time of recognition and after the acquisition.
Required:
State your choice of accounting policy regarding the measurement of intangible assets at the time of recognition and after the initial acquisition. Explain the reason (s) of your choice (s). You should provide comments regarding the choice of accounting method.
In: Accounting
Assume you are the CEO of an U.S.-based e-commerce company that wants to expand internationally by exporting a product or service to one of the BRICS countries: Brazil, Russia, India, China, or South Africa. First, you should choose and describe the product or service you want to export. Second, you should evaluate the business environment in the chosen country and explain why you chose this country. Third, you should evaluate the market potential for your product/service in the chosen country. Be sure to specify the indicators (country indicators and market potential indicators) that you use to evaluate the market potential for your product/service in the chosen country. Fourth, you should develop a marketing plan to export your product/service to the chosen country. Be sure to specify the positioning strategy and target market, the pricing strategy, the distribution strategy, and the promotional strategy. Finally, you should develop a 2-slide executive summary (including detailed notes) that summarizes the key points of your international marketing plan.
In: Economics
A new CEO was hired to revive the floundering Champion Chemical
Corporation. The company had endured operating losses for several
years, but confidence was emerging that better times were ahead.
The board of directors and shareholders approved a quasi
reorganization for the corporation. The reorganization included
devaluing inventory for obsolescence by $106 million and increasing
land by $5 million. Immediately prior to the restatement, at
December 31, 2018, Champion Chemical Corporation’s balance sheet
appeared as follows (in condensed form):
|
CHAMPION CHEMICAL CORPORATION Balance Sheet At December 31, 2018 ($ in millions) |
|||
| Cash | $ | 23 | |
| Receivables | 42 | ||
| Inventory | 234 | ||
| Land | 44 | ||
| Buildings and equipment (net) | 94 | ||
| $ | 437 | ||
| Liabilities | $ | 252 | |
| Common stock (336 million shares at $1 par) | 336 | ||
| Paid-in capital—excess of par | 69 | ||
| Retained earnings (deficit) | (220 | ) | |
| $ | 437 | ||
Prepare the journal entries appropriate to record the quasi reorganization on January 1, 2019. Record revaluation of inventory. Record revaluation of land. Record the entry to eliminate a portion of deficit against available additional paid in capital.Record the entry to eliminate the remainder of the deficit against common stock. Prepare a balance sheet as it would appear immediately after the restatement.
In: Accounting