On January 1, Year 1, the general ledger of a company includes the following account balances:

During Year 1, the following transactions occur:

7. Analyze the following features of a company financial condition:

a. What is the amount of profit reported for the month of January?

b. Calculate the ratio of current assets to current liabilities at the end of January.

c. Based a company financial profit and ratio of current assets to current liabilities, indicate whether a company financial appears to be in good or bad financial condition.

• Good

• Bad

Le Pete Bread Company is a national bakery-cafe concept with 1,380 Company-owned and franchise-operated bakery-cafe locations in 40 states and in Ontario, Canada. The company has grown from serving approximately 60 customers a day at its first bakery-cafe to currently serving nearly six million customers a week system-wide, becoming one of the largest food service companies in the United States. Sara Lee Corporation is a global manufacturer and marketer of high-quality, brand-name products for consumers throughout the world focused primarily on the meats, bakery and beverage categories. Selected financial information about each company follows:

Sara Lee Le Pete Bread Sales $ 10,793 million $ 1,353.5 million Net Income $ 527 million $ 86.8 million Return on Assets (ROA) 8.32 % 11.55 % Profit margin 7.05 % 6.45 % Asset turnover 1.18 % 1.79 Required:

Why is Sara Lee less profitable than Le Pete Bread? Return on assets and return on sales in the bakery industry are 4.85% and 8.16%, respectively. How do these two companies compare to their industry and what might explain any noted differences?

A soft drink bottling company just ran a long line of 12-ounce soft drink cans filled with cola. A sample of 32 cans is selected by inspectors looking for non-conforming items. Among the things the inspectors look for are paint defects on the can, improper seal, incorrect volume, leaking contents, incorrect mixture of carbonation and syrup in the soft drink, and out-of-spec syrup mixture. The results of this inspection are given here. Construct a c chart from the data.

Choose the correct c chart.

You have joined a northern mail order company selling winter coats. You have the coat sales by quarter for the last three years.

Year 1 Qtr 1, 24 Winter Coats Qtr 2, 12 Qtr 3, 20 Qtr 4, 36 Year 2 Qtr 1, 28 Winter Coats Qtr 2, 10 Qtr 3, 22 Qtr 4, 40 Year 3 Qtr 1, 32 Winter coats Qtr 2, 14 Qtr 3, 27 Qtr 4, 44

Use linear regression to forecast the total coats to be sold in year 4 in thousands. For the equation Y = aX + b give "a".   ____ (two decimals) Give "b" ____ (two decimals)

Give the forecast for the fourth year? ____ (two decimals)Next use the quarters to generate seasonal factors. Give the season factor for quarter one? ____ (two decimals)

Give the season factor for quarter two? _____ (two decimals)Give the season factor for quarter three? _____ (two decimals) Give the season factor for quarter four? ______ (two decimals) Give the forecasted sales for quarter one? ______ (All answers remaining to two decimals) Quarter two? ______Quarter three? ______Quarter four? _____

Lamplighter Company, the lessor, agrees to lease equipment to Tilson Company, the lessee, beginning January 1, 2016. The lease terms, provisions, and related events are as follows:

Required:

selling price implied by the lease is $148443.65.

I need help with the boxes that don't have green check marks in them.

Founded in 1964 as Clipper Trucking Co., within two
decades Spirit Airlines was chugging through the skies as
a tiny commercial airline connecting passengers between
Florida and the Midwest. Yet by the 2000s, Spirit was
near failure—a common story in the commercial airline
business—until seasoned aviation executive and merciless
cost-cutter Bill Franke stepped in in 2006 to buy the airline
and then did something remarkable. Franke had honed his
chops cutting costs as CEO of America West Airlines in the
1990s and was an early investor in ultra-low cost Ryan Air.
Despite his detractors, Franke, along with his CEO, Ben
Baldanza, put Spirit on a steadier (if frill-free) fl ight path,
making it not only one of the few post-9/11 success stories,
but also a trend-setter and model in a deeply challenged
industry.
While larger carriers have suff ered billions of dollars in
losses and bankruptcies, Spirit was fl ying high last year with
$289 million in earnings, 40 percent more per plane than any
other domestic airline. Th e company is currently valued at
about $1.63 billion, the same as U.S. Airways Group Inc., which
is about nine times larger in terms of traffi c. Despite its tiny
size—Spirit carries just 1 percent of the nation’s fl iers on its
40-jet fl eet—only two U.S. airlines have fared better: Southwest
(with 692 Boeing jets) and Alaska Air Group Inc. (with
122 aircraft). While many airlines continue to cancel services,
lay off employees, and cut corners to maintain minimal
profi tability, in 2011 Spirit’s revenue soared 37.1 percent over
the previous year. Th e airline also fl ew 15.2 percent more seats
and added multiple routes.
So how did Franke and Baldanza transform a company
once facing bankruptcy into the most profitable airline
in the United States? By doing everything that was once
deemed impossible, yet has since—thanks to Spirit’s
innovative example—become the industry standard. That
means offering the cheapest tickets in the business and
making everything—from water to boarding passes—a
la carte. Spirit was the first U.S. airline to reintroduce
a charge for checked luggage, which has since become
commonplace.
Spirit has found its niche—the traveler who is ultra-budget
conscious and is interested in little more than getting from
A to Z at the cheapest possible price. It’s that simple, and
Spirit doesn’t pretend to embody anything else—not comfort,
not convenience, not service. Spirit’s on-time performance
is among the worst in the industry; its legroom is negligible
at best, and (not surprisingly, considering its bare bones
approach to travel), it has suff ered more than a few PR
disasters in recent years. Th ese include irate, vocal customers
like Jerry Meekins, a 76-year-old Vietnam vet with terminal
cancer, who was denied a refund by Spirit after he was told by
doctors that he had only months to live and couldn’t fl y (and
so couldn’t use his ticket); and a 2010 pilot strike that saw the
airline grounded for 10 days.

Yet Baldanza seems unphased: “We just want to have the
lowest price. Th at drives almost every other decision in the
company: how many seats to have in the airplane, what times
of day to fl y, the kinds of cities we fl y to, and so on.”
With Spirit’s enviable balance sheet, it’s likely that more
airlines will get on board with the nickel-and-diming scheme.
It may be bad news for consumers, but it’s good news to
airlines that are struggling to make a profi t in uncertain
times.

1. Spirit’s number one goals seems to be “the lowest-price airline ticket.” Is this a S.M.A.R.T Goal? Explain.

2. Will this strategic goal continue to be successful for Spirit? Why or Why Not?

3. If you were the CEO of Spirit, what goals would you add to ensure that the company prospers in the long run?

A multiple regression model is to be constructed to model the time spent using the internet per week among internet users. The explanatory variables are age, hours spent working per week and annual income.

Data has been collected on 30 randomly selected individuals:

a.) Find the multiple regression equation using all three explanatory variables. Assume that x₁ is age, x₂ is hours working per week and x₃ is annual income. Give your answers to 3 decimal places.

y^ = _____ + _______age + ________ hours working + ________ annual income

b.) At a level of significance of 0.05, the result of the F test for this model is that the null hypothesis (is) (is not) rejected.

c.) The value of R² for this model, to 3 decimal places, is equal to __________

d.) The value of s for this model, to 3 decimal places, is equal to _________

e.) The least significant explanatory variable in this model is:

a.) age
b.) hours working per week
c.) annual income

f.) Construct a new multiple regression model by removing the variable annual income. Give your answers to 3 decimal places.

The new regression model equation is:

y^ = ________ + _________ age + ________ hours working

g.) In the new model compared to the previous one, the value of R² (to 3 decimal places) is:

a.) increased
b.) decreased
c.) unchanged

h.) In the new model compared to the previous one, the value of s (to 3 decimal places) is:

a.) increased
b.) decreased
c.) unchanged

i.) The better model is the:

a.) original model
b.) reduced model

CASE 13.1 Wash & Dry, lnc.

Wash & Dry (WD) is a small manufacturing company with annual revenues for 2015 reaching $10 million. Located in Bellefonte, PA, WD produces various types of laundry and personal soaps as well as an array of paper products, such as paper towels and napkins. The unique nature of WDs products have allowed it to grow from a start-up in 2010 with revenues of $1 million to where it is today. WDs products are totally sustainable and command a higher price than competitors in the markets they serve. Their products are sold through both mass merchandisers as well as specialty retailers. WD manufactures it products in two plants in Bellefonte: one dedicated to the soap line and one to paper products. From these two plants, finished products are transported to their distribution center located in Harrisburg, PA. From there, mixed shipments of soap and paper are sent to the retailer distribution centers where they are sorted and mixed with other products going to retail stores' As a relatively small company¡ WD had a very unsophisticated set of key performance indicators (KPIs). At the plant, the KPI was "did we make what we were scheduled to make today'' At the DC, the KPI was 'did we ship what we were supposed to ship today.” Although these two KPIs seemed to work in the past, WDs growth and pressure from its retail customers for better service made it necessary for WD to consider developing a more comprehensive set of KPIs.

CASE QUESTIONS

l. If you were hired as a consultant to develop these KPIs for WD, how would you assess what KPIs they should be measuring? In general, what areas of service and cost would these KPIs address? Be sure to include both internal and customer KPIs'

2. What KPIs would you recommend for the manufacturing facility? why?

3. What KPIs should be used at the distribution center? Why?

4. How would you measure the revenue and profit impacts of these new KPIs?

iKiwi wants to be able to analyse sales information from all its stores so that any opportunities to increase revenue can be identified and acted on. They also want to be able to track product returns for quality control purposes. You are the Chief Knowledge Officer and have been asked to create two Data Warehouses:

1. Create a Data Warehouse schema (with one central table and at least four lookup tables) that iKiwi can use to monitor sales performance. Provide some context for your schema. 2. Create another Data Warehouse schema (with one central table and at least four lookup tables) to monitor products returned by customers. Provide some context for your schema.

1, Which of these is NOT a component of the Business Model?

A) The value proposition

B) The target market

C) the competition

2, Wang, Digital, Data General, Prime, and other computer companies were all created in northeastern Massachusetts! They felt that computing was professional and not personal. Computers were to be controlled by operators and not end-users. These minicomputer makers failed to see how the microcomputer would make computing ubiquitous. None of them exist today. We refer to their reason for failure as:

A) Utterly unsound economics

B) A business concept blind spot

C) An inability to compete with larger customers

D) Loss of key leadership when the founders retired.

D) the revenue sources

E) all of the above are components of the business model.