Project Overview

Gentry Inc. is a mid-sized tech firm (200 employees and $300 million in revenue) and has been privately held since the firm’s inception ten years ago. The organization’s board of directors is keen on expanding the operations globally to take advantage of a growing market. Based on reports from the research and development team, the organization can increase its profitability metrics by 15 to 25% if it expands the operations to China, Japan, and Germany. Becoming a multinational organization will not be easy. To finance this expansion, the board of directors has decided to take the organization public and issue some bonds to raise an additional $50 million. The research team has already determined that the organization meets the financial requirements outlined by the Securities Exchange Commission. The goal is to maximize the Initial Public Offering (IPO), and the leadership must efficiently manage the capital, measure the risk of the investments, and ensure the financial metrics are robust relative to similarly sized organizations.

Based on the concepts that you learned this week from the assigned videos and articles surrounding growth strategies for companies, make an initial assessment of whether Gentry should expand into China, Japan, and Germany all at one time or in a phased approach.

In your assignment, recall the strategies that you discussed in this module’s discussion questions about the different types of financial investments companies use for growth.

It is very important for the companies to define their growth strategy and how they will achieve their growth goals that is by using external financing like bonds and stocks or through internal funding. Mostly the companies grow using external funds by raising money through debt offering or stock offering.

Here is my discussion:

The two main type of financial investments that a company use are

1- Bonds It reduces their bottom line due to interest payments and debt repayments.

2- Stocks It doesn't affect the bottom line directly.

Three types of financing policies are

1- through internal funding

Advantages are there is no external funding required which means no debt repayment burden on the company.

Disadvantages are seriously reduce the company's cash position and their current ratios.

2- Debt offering

Advantages are no dilution of the ownership of the company.

Disadvantages are regular interest payments which reduces the bottom line.

3- Stock offering:

Advantages are no regular payments to the stock holders.

Disadvantages are dilution of ownership stake in the company.

Provide your recommendation in a 700-word paper with APA formatting.

Include the advantages and disadvantages of expanding with debt and equity (using the information that you learned in this module’s materials).

Assess and research the steps necessary to expand globally by finding articles in the book or

Modern Furniture Ltd competes in the modern furniture retail market alongside Adair’s, Harvey Norman and other major furniture retailers. The market is highly competitive prompting management to review working capital practices. Detailed below are relevant figures and ratios to assist you in evaluating Modern Furniture’s working capital management.

Working Capital Ratios                  2014                       2015                       2016                       2017

Accounts Receivable Days            30.0 days             38.6 days             44.0 days             51.0 days

Inventory Days                                  30.0 days             34.5 days             37.0 days             46.0 days            

Accounts Payable Days                  29.6 days             30.2 days             38.2 days             53.0 days

Note: Ratios are based on assuming end year figures are the average throughout the majority of the year

Extracts from Financial Statements

Cash on hand                                     0.35mill                                 0.3mill                   .01mill                   .005mill

Sales – all on credit                          15 mill                   14 mill                   15mill                    16mill

Accounts Receivable Balance      1.2 mill                  1.5 mill                  1.8 mill                  2.2 mill

Inventory                                            0.66 mill               0.79 mill               0.9 mill                  1.17mill

Cost of Goods Sold                          8.0 mill                  8.5 mill                  8.9 mill                  9.3 mill

Accounts Payable                             0.65mill                                 0.7 mill                  0.95 mill               1.35 mill

Budgeted Figures                           

Cash on hand                                     0.3 mill                  0.3 mill                  0.31 mill               0.32 mill

Accounts Receivable Balance      1.2 mill                  1.22 mill               1.28 mill               1.35 mill

Inventory Balance                            0.7 mill                  0.72 mill               0.78 mill               0.80 mill

Accounts Payable                             0.64 mill               0.65 mill               .70 mill                  0.71 mill

Accounts Receivable Terms         30 days                30 days                30 days                30 days

Accounts Payable Terms               45 days                 45 days                 45 days                 45 days

Industry Averages

Accounts Receivable Days            30.1 days             29.6 days             30.4 days             33.1 days

Inventory Days                                  30 days                 31 days                 33 days                 32.2 days

Accounts Payable Days                  30 days                 28.5days              17 days                 15 days

Review Modern Furniture’s working capital management performance utilizing the above information / benchmark figures / industry averages and budgets (250 words).

Once you have analyzed their performance, provide some strategies and recommendations to assist in improving any weaknesses in working capital management referring to the management of components of working capital including cash, inventory, accounts receivable and accounts payable. As part of your recommendations identify the associated potential benefits and costs of each recommendation? (250 word limit)

Answer All Questions:

Q1. Prepare the balance sheet for ALOMARI Delivery Service from the following alphabetical list of the accounts at December 31 amounts in dollars. (i need more details and more Explain) (use your own words don't copy and paste) (don't use handwritting)

Q2: The balances for the accounts of Lance’s Consulting Firm, Inc. for the year ended December 31 are shown below. Each account shown had a normal balance. (i need more details and more Explain) (use your own words don't copy and paste) (don't use handwritting)

Accounts payable                    $ 6,400            Wages expense                        $35,000

Accounts receivable                   7,000            Rent expense                               5,000

Cash                                        10,000            Retained Earnings                   68,700

Office Supplies                          1,000            Land                                        53,000

Building                                  99,000            Unearned Revenue                     7,000

Supplies expense                     15,000            Dividends                               20,000

Consulting Revenue               150,000            Common Stock                         12,900
Instructions: Calculate Net Income

Q3. Dolly Barton began Barton Office Services in October and during the month completed the following transactions: (i need more details and more Explain) (use your own words don't copy and paste) (don't use handwritting)
a. Invested $10,000 cash and $15,000 of computer equipment in exchange for common stock
b. Paid $500 cash for an insurance premium covering the next 12 months
c. Completed a word processing assignment for a customer and collected $1,000 cash
d. Paid $200 cash for office supplies
e. Paid $2,000 for October's rent.

Instructions: Prepare journal entries to record the above transactions. Explanations are unnecessary

Q4: ABC Company wishes to enter receipts and payments in such a manner that adjustments at the end of the period will not require reversing entries at the beginning of the next period.(i need more details and more Explain) (use your own words don't copy and paste) (don't use handwritting)

Instructions:

Record the following transactions in the desired manner and give the adjusting entry on December 31, 2017. (Two entries for each part.)

1. An insurance policy for two years was acquired on April 1, 2017 for $8,000.

2.   Rent of $12,000 for six months for a portion of the building was received on November 1, 2017.

A company produces gold picture frames. The cost per picture frame is:

Materials                                               $9

Packaging                                             $1

Decorations on the frame                       $5

Shipping and handling                           $1.5

Each worker earns $30,000 annually in salary and benefits. The number of workers changes based on the level of production. This means this is a variable cost.

The artist who creates the designs on the picture frames is paid $25,000 annually. Senior management are paid a total of $200,000 annually. Other annual costs are:

Taxes and Insurance                                          $17,000

Utilities                                                              $50,000

Rent                                                                $300,000

Miscellaneous Overhead Expenses                     $24,000

The following production is possible:

1. Using all this information complete the following table and answer the questions. It would be easier if you set this up in an Excel spreadsheet. When you are done, you must submit it as a Word document with your answers. You will use this table to answer questions 2 and 3.

Your first step is to identify which are fixed costs and which are variable costs. If you will have to keep paying the cost whether you produce 0 units of the product or 10,000 units, then it is a fixed cost. In the short run you have to keep paying it. In the long run you may be able to change these fixed costs. A variable cost changes based on how much of the product you produce. But the variable costs may not change all at the same time.

2. What is the lowest price you would be willing to start producing this new product? Be precise. Don’t round up to the nearest dollar. (1 mark)
3. If you were already committed to the fixed costs, how low could the price per picture frame fall before you would consider shutting down production? Remember, in the SHORT RUN, you have to keep paying your fixed costs whether you produce any picture frames or not. If you can cover your variable costs, then anything over that will reduce your fixed costs. You may be losing money in the short run but you are losing less money. (1 mark)

Financial Statements:

Reading and creating financial statements is very important in the finance world. Using the information below, please create an income statement and a balance sheet.  You may do so in a WORD or EXCEL document.

For the income statement be sure to have two columns Dollar Value and Percentage of Sales...For example. (Sales 10,000, Cost of goods sold (COGS) 4,000 should be expressed in the following way.)

Dollar Value % of Sales

Sales $10,000 100%

COGS (4,000) (40%)

Gross profits $6,000 60%

You will follow a similar approach with the balance sheet. In this case the two columns would be titled Dollar Value and Percentage of Total Assets. Remember that in order to "BALANCE" Assets must EQUAL Liability and Equity.

Ratios:

Complete a financial analysis. You are asked to calculate the financial ratios for the the year 2015. Afterward, define and interpret the financial ratios for 2015. In other words, what does the ratio tell you, what is it for W&T, and what does it tell you about the company itself (interpret)? (Hint: Page 140-141 has the ratios and equations you need; they are also on the outline I give you. ) You may put your analysis in the format below or create your own format as long as it is easy to read.

Compute financial ratios.

Financial ratios                           2015   

Current ratio                                                  

Acid-test ratio                                               

Days in receivables                      

Days in inventory                        

Operating return on assets        

Operating profit margin            

Total asset turnover                       

Fixed asset turnover   

Debt ratio                                     

Times interest earned                     

Return on equity           

Return on Assets

When you get ready to define and interpret you can do so in the following manner. (EXAMPLE: Alphabet (Google) has a current ratio of 3.96.

*****Current ratio measures a firm's degree of liquidity by comparing its current assets to its current liabilities. For Google, the company has $3.96 in current assets, for every $1 in short term debt.

CASH FLOWS AND FINANCIAL STATEMENTS AT SUNSET BOARDS, INC.

Sunset Boards is a small company that manufactures and sells surfboards in Malibu. Tad Marks, the founder of the company, is in charge of the design and sale of the surfboards, but his background is in surfing, not business. As a result, the company’s financial records are not well maintained.

The initial investment in Sunset Boards was provided by Tad and his friends and family. Because the initial investment was relatively small, and the company has made surfboards only for its own store, the investors haven’t required detailed financial statements from Tad. But thanks to word of mouth among professional surfers, sales have picked up recently, and Tad is considering a major expansion. His plans include opening another surfboard store in Hawaii, as well as supplying his “sticks” (surfer lingo for boards) to other sellers.

Tad’s expansion plans require a significant investment, which he plans to finance with a combination of additional funds from outsiders plus some money borrowed from banks. Naturally, the new investors and creditors require more organized and detailed financial statements than Tad has previously prepared. At the urging of his investors, Tad has hired financial analyst Christina Wolfe to evaluate the performance of the company over the past year.

After rooting through old bank statements, sales receipts, tax returns, and other records, Christina has assembled the following information:

Sunset Boards currently pays out 40 percent of net income as dividends to Tad and the other original investors, and it has a 21 percent tax rate. You are Christina’s assistant, and she has asked you to prepare the following:

1. An income statement for 2017 and 2018.

2. A balance sheet for 2017 and 2018.

3. Operating cash flow for each year.

4. Cash flow from assets for 2018.

5. Cash flow to creditors for 2018.

6. Cash flow to stockholders for 2018.

7. What are the limitations of financial statements?

ABC

ABC, Channel 6, is located in Eugene, Oregon, home of the University of Oregon’s football team. The station was owned and operated by George Wilcox, a former Duck (University of Oregon football player). Although there were other television stations in Eugene, ABC was the only station that had a weatherperson who was a member of the American Meteorological Society (AMS). Every night, Joe Hummel would be introduced as the only weatherperson in Eugene who was a member of the AMS. This was George’s idea, and he believed that this gave his station the mark of quality and helped with market share.

In addition to being a member of AMS, Joe was also the most popular person on any of the local news programs. Joe was always trying to find innovative ways to make the weather interesting, and this was especially difficult during the winter months when the weather seemed to remain the same over long periods of time. Joe’s forecast for next month, for example, was that there would be a 60% chance of rain every day, and that what happens on one day (rain or shine) was not in any way dependent on what happened the day before.

One of Joe’s most popular features of the weather report was to invite questions during the actual broadcast. Questions would be phoned in, and they were answered on the spot by Joe. Once a 10-year-old boy asked what caused fog, and Joe did an excellent job of describing some of the various causes.

Occasionally, Joe would make a mistake. For example, a high school senior asked Joe what the chances were of getting 15 days of rain in the next month (30 days). Joe made a quick calculation:

(60%) x (15 days / 30 days) = (60%) (1/2) = 30%

Joe quickly found out what it was like being wrong in a university town. He had over 50 phone calls from scientists, mathematicians, and other university professors, telling him that he had made a big mistake in computing the chances of getting 15 days of rain during the next 30 days. Although Joe didn’t understand all of the formulas the professors mentioned, he was determined to find the correct answer and make a correction during a future broadcast.

Discussion Questions

1. What are the chances of getting 15 days of rain during the next 30 days?

2. What do you think about Joe’s assumptions concerning the weather for the next 30 days?

Note : Answers should be in Word format

You are to write an essay, including an introduction and conclusion, using the sections
below as a guide with a word count of 1250 words (+/- 10%).

Case Study
Andrew is a 69 year old gentleman of Italian heritage, who has come into hospital for a
below knee amputation due to complications from his Type 2 Diabetes (18 years post
diagnosis). He is retired and lives with his wife of 40 years and his daughter, son in law
and their three young children in a three bedroom house in the outer suburbs of
Sydney. He has failing eyesight and has not had a job for the past 15 years due to his
health problems. He is currently taking medication to help manage his blood sugar
(Metformin), however his blood sugars continue to be very high. Andrew does not like
taking his medication as he finds it expensive and does not believe it helps him maintain
his blood sugars within a healthy range. He believes there is nothing he can do to
manage his blood sugar levels and that the amputation was a natural progression of the
disease state. He infrequently takes his blood sugars, and does not see the point in
attending frequent doctor appointments again due to the cost.
Andrew’s son in law is the only one who brings an income into his household, and this
must support Andrew, Andrew’s wife, his daughter and their children. With limited
resources, it is important that Andrew keeps his medical bills as low as possible. The
family does enjoy spending time together and enjoy celebrating and connecting over
meals. His son-in-law usually joins Andrew in an evening after the family meal to drink
wine and smoke cigars. Both men find this an important time to connect and relax after
a long day. Andrew socialises very infrequently with anyone else outside of his family,
as his failing health and eyesight prevents him from being able to drive anymore.
Use the case study provided to answer Section A and Section B.
Section A explores the dimensions of patient centred care and Section B is a
comparative discussion about biomedical and social model of care in relation to the case
study supported by scholarly references.

Introduction: (125 words)

Section A: (500 words)
Referring to the case study, identify the seven dimensions of patient centred care and
how you could utilise the dimension/s to provide holistic, therapeutic care to Andrew.

Section B: (500 words)
Compare and contrast to the biomedical model of health and explain how Andrew’s
psychosocial health could benefit applying a social model of health care.
Conclusion: (125 words)

From the information below prepare, in proper accounting form the, Income Statement, Balance Sheet, and Statement of Changes in Owners’ Equity, and Statement of Cash Flows for 2016 and 2017.

In your Income Statement Calculation, include Subtotals for EBITDA, EBIT, and EBT in addition to Net Income. You must submit your answers in either a MS Word or an MS Excel file.