Siegel Company manufactures a product that is available in both a deluxe model and a regular model. The company has manufactured the regular model for years. The deluxe model was introduced several years ago to tap a new segment of the market. Since introduction of the deluxe model, the company’s profits have steadily declined and management has become increasingly concerned about the accuracy of its costing system. Sales of the deluxe model have been increasing rapidly.
Manufacturing overhead is assigned to products on the basis of direct labor-hours. For the current year, the company has estimated that it will incur $6,088,700 in manufacturing overhead cost and produce 17,000 units of the deluxe model and 118,000 units of the regular model. The deluxe model requires 1.0 hours of direct labor time per unit, and the regular model requires 0.5 hour. Material and labor costs per unit are as follows:
| Model | ||||||
| Deluxe | Regular | |||||
| Direct materials | $ | 145 | $ | 105 | ||
| Direct labor | $ | 11 | $ | 7 | ||
Required:
1-a. Using direct labor-hours as the base for assigning manufacturing overhead cost to products, compute the predetermined overhead rate.
1-b. Using the predetermined overhead rate computed in 1-a above and other data from the problem, determine the unit product cost of each model.
2. Management is considering using activity-based absorption costing to apply manufacturing overhead cost to products. The activity-based system would have the following four activity cost pools:
| Activity Cost Pool | Activity Measure | Estimated Overhead Cost | |
| Purchasing | Purchase orders issued | $ | 233,100 |
| Processing | Machine-hours | 3,500,000 | |
| Scrap/rework | Scrap/rework orders issued | 804,600 | |
| Shipping | Number of shipments | 1,551,000 | |
| $ | 6,088,700 | ||
|
Expected Activity |
|||
| Activity Measure | Deluxe | Regular | Total |
| Purchase orders issued | 420 | 840 | 1,260 |
| Machine-hours | 20,000 | 30,000 | 50,000 |
| Scrap/rework orders issued | 600 | 480 | 1,080 |
| Number of shipments | 5,640 | 8,460 | 14,100 |
Determine the predetermined overhead rate for each of the four activity cost pools.
3. Using the predetermined overhead rates you computed in part (2), do the following:
a. Compute the total amount of manufacturing overhead cost that would be applied to each model using the activity-based absorption costing system. After these totals have been computed, determine the amount of manufacturing overhead cost per unit of each model.
b. Compute the unit product cost of each model (direct materials, direct labor, and manufacturing overhead).
In: Accounting
Smoky Mountain Corporation makes two types of hiking boots—the Xtreme and the Pathfinder. Data concerning these two product lines appear below:
| Xtreme | Pathfinder | |||||
| Selling price per unit | $ | 120.00 | $ | 87.00 | ||
| Direct materials per unit | $ | 63.30 | $ | 52.00 | ||
| Direct labor per unit | $ | 17.00 | $ | 10.00 | ||
| Direct labor-hours per unit | 1.7 | DLHs | 1.0 | DLHs | ||
| Estimated annual production and sales | 22,000 | units | 76,000 | units | ||
The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below:
| Estimated total manufacturing overhead | $ | 1,927,800 | ||
| Estimated total direct labor-hours | 113,400 | DLHs | ||
Required:
1. Compute the product margins for the Xtreme and the Pathfinder products under the company’s traditional costing system.
2. The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools (the Other cost pool includes organization-sustaining costs and idle capacity costs):
| Estimated Overhead Cost |
Expected Activity | |||||
| Activities and Activity Measures | Xtreme | Pathfinder | Total | |||
| Supporting direct labor (direct labor-hours) | $ | 703,080 | 37,400 | 76,000 | 113,400 | |
| Batch setups (setups) | 480,000 | 220 | 180 | 400 | ||
| Product sustaining (number of products) | 700,000 | 1 | 1 | 2 | ||
| Other | 44,720 | NA | NA | NA | ||
| Total manufacturing overhead cost | $ | 1,927,800 | ||||
Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system.
3. Prepare a quantitative comparison of the traditional and activity-based cost assignments.
repare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and "Percentage" answers to 1 decimal place.)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In: Accounting
A.) The equilibrium constant for the reaction A(g) ⇌ B(g) is 102 . A reaction mixture initially contains [A] = 18.6 M and [B] = 0.0 M. Which statement is true at equilibrium?
| The reaction mixture contains [A] = 18.4 M and [B] = 0.2 M. | |
| The reaction mixture contains [A] = 0.2 M and [B] = 18.4 M. | |
| The reaction mixture contains [A] = 1.0 M and [B] = 17.6 M. | |
| The reaction mixture contains [A] = 9.30 M and [B] = 9.30 M. |
B.) Determine the value of Kc for the following
reaction if the equilibrium concentrations are as follows:
[H2]eq = 0.14 M, [F
2]eq = 0.39 M, [HF]eq = 1.6
M.
H2(g) + F 2(g) ↔ 2 HF(g)
| 3.4 × 10-2 | |
| 29 | |
| 8.7 × 10-2 | |
| 47 | |
| 2.1 × 10-2 |
C.) The equilibrium constant is equal to 5.00 at 1300 K for the reaction:
2 SO2(g) + O2(g) ↔ 2
SO3(g).
If initial concentrations are [SO2] = 3.60 M,
[O2] = 0.45 M, and [SO3] = 5.40 M, the system
is
| not at equilibrium and will shift to the left to achieve an equilibrium state. | |
| not at equilibrium and will remain in an unequilibrated state. | |
| at equilibrium. | |
| not at equilibrium and will shift to the right to achieve an equilibrium state. |
D.) The equilibrium constant, K p, equals 3.40 for the isomerization reaction:
cis-2-butene ↔ trans-2-butene.
If a flask initially contains 0.250 atm of cis-2-butene
and 0.165 atm of trans-2-butene, what is the equilibrium
pressure of each gas?
| P(cis-2-butene) = 0.0458 atm and P(trans-2-butene) = 0.156 atm | |
| P(cis-2-butene) = 0.0735 atm and P(trans-2-butene) = 0.250 atm | |
| P(cis-2-butene) = 0.0485 atm and P(trans-2-butene) = 0.165 atm | |
| P(cis-2-butene) = 0.0943 atm and P(trans-2-butene) = 0.321 atm |
E.) Consider the reaction SO2(g) + NO2(g) ↔ NO(g) + SO3(g) at 460°C. What is the equilibrium concentration of the SO3 if the initial concentrations are [SO2] = [NO2] = 3.00 x 10-3 M and [NO] = [SO3] = 4.00 x 10-2 M? The value of the equilibrium constant for the reaction is 85.0 at 460°C.
| 7.72 x 10-3 M | |
| 8.15 x 10-2 M | |
| 4.20 x 10-3 M | |
| 1.80 x 10-3 M | |
| 4.56 x 10-2 M | |
| 3.88 x 10-2 M |
In: Chemistry
Consider the following comparative balance sheets for the Midland Manufacturing Corporation.
| Midland Manufacturing Corporation | |||||
| Comparative Balance Sheets (in Millions of Dollars)* | |||||
| December 31, | December 31, | ||||
| Year 1 | Year 2 | ||||
| Assets | |||||
| Current assets: | |||||
| Cash | $ 4.4 | $ 0.6 | |||
| Accounts receivable, net | 7.4 | 7.6 | |||
| Inventories | 14.5 | 14.7 | |||
| Total current assets | $26.3 | $22.9 | |||
| Property and equipment | $80.6 | $114.8 | |||
| Less: Accumulated depreciation | 16.4 | 25.5 | |||
| Net property and equipment | $64.2 | $89.3 | |||
| Total assets | $90.5 | $112.2 | |||
| Liabilities and Stockholder's Equity | |||||
| Current liabilities: | |||||
| Accounts payable | $ 8.1 | $ 9.3 | |||
| Other current liabilities | 5.7 | 8.5 | |||
| Total current liabilities | $13.8 | $17.8 | |||
| Long-term debt | 18.1 | 31.1 | |||
| Deferred federal income taxes | $1.0 | $1.6 | |||
| Stockholders’ equity: | |||||
| Common stock | $ 3.3 | $ 3.3 | |||
| Additional paid-in capital | 27.9 | 27.9 | |||
| Retained earnings | 26.4 | 30.5 | |||
| Total stockholders’ equity | $57.6 | $61.7 | |||
| Total liabilities and stockholders’ equity | $90.5 | $112.2 | |||
| *Net income for the year ended December 31, Year 2, totaled $7.8 million; dividends paid during the same period totaled $3.7 million; $1.7 million of long-term debt was retired in Year 2; and fixed assets were sold during Year 2 for $0.7 million. | |||||
Prepare a statement of cash flows (using the indirect method) for the Midland Manufacturing Corporation for the year ending December Year 2, based on the comparative balance sheets shown above. Use minus sign to indicate cash outflows. Enter your answers in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answers to one decimal place.
| Midland Manufacturing Corporation | |
| Statement of Cash Flows For the Year Ended December 31, Year 2 | |
| ($ millions) | |
| Cash Flows from Operating Activities: | |
| Net Income | $ |
| Adjustments to reconcile net income to net cash provided | |
| from operating activities | |
| Depreciation | |
| (Increase) decrease in current assets or liabilities | |
| Accounts receivable | |
| Inventories | |
| Accounts payable | |
| Other current liabilities | |
| Increase (decrease) in deferred taxes | |
| Total adjustments | |
| Net cash provided from (used by) operating activities | |
| Cash Flows from Investing Activities | |
| Proceeds from sale of facilities or equipment | |
| Capital expenditures | |
| Net cash used by investing activities | |
| Cash Flows from Financing Activities | |
| Proceeds from issuance of long-term debt | |
| Repayments of long-term debt | |
| Dividends paid | |
| Net cash provided from (used by) financing activities | |
| Net Increase (Decrease) in Cash | |
| Cash - Beginning of Year | |
| Cash - End of Year | $ |
In: Accounting
Resolve Example 6.20, except with the generation at bus 2 set to a fixed value (i.e., modeled as off of AGC). Plot the variation in the total hourly cost as the generation at bus 2 is varied between 0 to 200 MW in 5-MW steps, resolving the economic dispatch at each step. What is the relationship between bus 2 generation at the minimum point on this plot and the value from economic dispatch in Example 6.20? Assume a load scalar of 1.0
Example 6.20: PowerWorld Simulator case Example 6_20 uses a
five-bus, three-generator lossless case to show the interaction
between economic dispatch and the transmission system (see Figure
6.19). The variable operating costs for each of the units are given
by C1 = 10P1 + 0.016P 1 Square $yhr C2 =8P2 + 0.018P2 Square $yhr
C4 = 12P4 + 0.018P 4 Square $yhr where P1, P2, and P4 are the
generator outputs in megawatts. Each generator has minimum/maximum
limits of 100 <=P1 <=400 MW 150 <=P2 <= 500 MW 50 <=
P4 <=300 MW In addition to solving the power flow equations,
PowerWorld Simulator can simultaneously solve the economic dispatch
problem to optimally allocate the generation in an area. To turn on
this option, select Case Information, Aggregation,
Areas… to view a list of each of the control areas in a case (just
one in this example). Then toggle the AGC Status field to ED. Now
anytime the power flow equations are solved, the generator outputs
are also changed using the economic dispatchInitially, the case has
a total load of 392 MW with an economic dispatch of P1 =141 MW, P2
= 181, and P4 = 70, and an incremental operating cost, l, of 14.52
$?MWh. To view a graph showing the incremental cost curves for all
of the area generators, right-click on any generator to display the
generator’s local menu, and then select All Area Gen IC Curves
(right-click on the graph’s axes to change their scaling). To see
how changing the load impacts the economic dispatch and power flow
solutions, first select Tools, Play to begin the simulation. Then,
on the oneline, click on the up/down arrows next to the Load Scalar
field. This field is used to scale the load at each bus in the
system. Notice that the change in the Total Hourly Cost field is
well approximated by the change in the load multiplied by the
incremental operating cost. Determine the maximum amount of load
this system can supply without overloading any transmission line
with the generators dispatched using economic dispatch.
In: Electrical Engineering
1. conic memory is a type of memory that holds visual information for about half a second (0.5 seconds). To demonstrate this type of memory, participants were shown three rows of four letters for 50 milliseconds. They were then asked to recall as many letters as possible, with a 0-, 0.5-, or 1.0-second delay before responding. Researchers hypothesized that longer delays would result in poorer recall. The number of letters correctly recalled is given in the table.
| Delay Before Recall | ||
|---|---|---|
| 0 | 0.5 | 1 |
| 5 | 3 | 3 |
| 10 | 8 | 5 |
| 7 | 6 | 5 |
| 6 | 5 | 2 |
| 10 | 4 | 7 |
| 10 | 10 | 2 |
(a) Complete the F-table. (Round your values for MS and F to two decimal places.)
| Source of Variation | SS | df | MS | F |
|---|---|---|---|---|
| Between groups | 48 | 2 | 24 | ? |
| Within groups (error) | ? | 15 | ? | |
| Total | ? | 17 |
(b) Compute Tukey's HSD post hoc test and interpret the results.
(Assume alpha equal to 0.05. Round your answer to two decimal
places.)
The critical value is for each pairwise comparison.
c) Which of the comparisons had significant differences? (Select
all that apply.)
a. Recall following no delay was significantly different from recall following a one second delay.
b. Recall following a half second delay was significantly different from recall following a one second delay.
c. The null hypothesis of no difference should be retained because none of the pairwise comparisons demonstrate a significant difference.
d. Recall following no delay was significantly different from recall following a half second delay.
2. An educator wants to evaluate four different methods aimed at reducing the time children spend "off task" in the classroom. To test these methods, she implements one method in each of four similar classrooms and records the time spent off task (in minutes) in each classroom. The results are given in the table.
| Classroom Method | |||
|---|---|---|---|
| A | B | C | D |
| 2 | 4 | 4 | 3 |
| 5 | 1 | 4 | 4 |
| 1 | 1 | 0 | 4 |
| 1 | 3 | 5 | 4 |
| 2 | 5 | 4 | 2 |
| 0 | 4 | 5 | 5 |
| 4 | 2 | 6 | 2 |
| 4 | 1 | 4 | 3 |
| 3 | 0 | 0 | 0 |
(a) Complete the F-table. (Round your answers to two decimal places.)
|
Source of Variation |
SS | df | MS | F |
|---|---|---|---|---|
|
Between groups |
? | ? | ? | ? |
|
Within groups (error) |
? | ? | ? | |
| Total | ? | ? |
3. After computing a one-way within-subjects analysis of variance at a 0.1 level of significance, a psychologist begins to calculate a Bonferroni procedure. If she will make a 5 pairwise comparisons, what will be the testwise alpha?
In: Statistics and Probability
The following data represent petal lengths (in cm) for independent random samples of two species of Iris.
Petal length (in cm) of Iris virginica: x1; n1 = 35
| 5.1 | 5.9 | 6.4 | 6.1 | 5.1 | 5.5 | 5.3 | 5.5 | 6.9 | 5.0 | 4.9 | 6.0 | 4.8 | 6.1 | 5.6 | 5.1 |
| 5.6 | 4.8 | 5.4 | 5.1 | 5.1 | 5.9 | 5.2 | 5.7 | 5.4 | 4.5 | 6.4 | 5.3 | 5.5 | 6.7 | 5.7 | 4.9 |
| 4.8 | 5.7 | 5.2 |
Petal length (in cm) of Iris setosa: x2; n2 = 38
| 1.6 | 1.9 | 1.4 | 1.5 | 1.5 | 1.6 | 1.4 | 1.1 | 1.2 | 1.4 | 1.7 | 1.0 | 1.7 | 1.9 | 1.6 | 1.4 |
| 1.5 | 1.4 | 1.2 | 1.3 | 1.5 | 1.3 | 1.6 | 1.9 | 1.4 | 1.6 | 1.5 | 1.4 | 1.6 | 1.2 | 1.9 | 1.5 |
| 1.6 | 1.4 | 1.3 | 1.7 | 1.5 | 1.6 |
(a) Use a calculator with mean and standard deviation keys to calculate x1, s1, x2, and s2. (Round your answers to two decimal places.)
| x1 = | 1 |
| s1 = | 2 |
| x2 = | 3 |
| s2 = | 4 |
(b) Let μ1 be the population mean for
x1 and let μ2 be the
population mean for x2. Find a 99% confidence
interval for μ1 − μ2.
(Round your answers to two decimal places.)
| lower limit | 5 |
| upper limit | 6 |
(c) Explain what the confidence interval means in the context of
this problem. Does the interval consist of numbers that are all
positive? all negative? of different signs? At the 99% level of
confidence, is the population mean petal length of Iris
virginica longer than that of Iris setosa?
Because the interval contains only positive numbers, we can say that the mean petal length of Iris virginica is longer. Because the interval contains only negative numbers, we can say that the mean petal length of Iris virginica is shorter. Because the interval contains both positive and negative numbers, we cannot say that the mean petal length of Iris virginica is longer.
(d) Which distribution did you use? Why?
The Student's t-distribution was used because σ1 and σ2 are unknown. The standard normal distribution was used because σ1 and σ2 are unknown. The standard normal distribution was used because σ1 and σ2 are known. The Student's t-distribution was used because σ1 and σ2 are known.
Do you need information about the petal length distributions?
Explain.
Both samples are large, so information about the distributions is needed. Both samples are large, so information about the distributions is not needed. Both samples are small, so information about the distributions is needed. Both samples are small, so information about the distri
In: Statistics and Probability
A beam is subjected to equal bending moments M = 6.5 kip-ft, as shown. The cross-section of the beam is also shown. The top rectangular area (1) has cross-section dimensions b1 x d1, as shown, where b1 = 6.5 in. and d1 =1.50 in. The left and right rectangular legs (2) and (3) are of dimensions b2 x d2 as shown, where b2=0.75 in. and d2=6.0 in. Determine: (a) the centroid location, the moment of inertia about the z axis, and the controlling section modulus about the z axis. (b) the bending stress at point H, which is located yH = 1.0 in. below the z centroidal axis. State whether the normal stress at H is tension or compression. (c) the maximum bending stress produced in the cross section. State whether the stress is tension or compression. Calculate the cross-sectional areas A1, A2, and A3 for areas (1), (2), and (3), respectively. Answers: A1 = in.2. A2 = in.2. A3 = in.2.
Part 2 Determine the location of the y direction centroids of areas (1), (2), and (3) with respect to the reference axis at the bottom of the cross-section.
Part 3 Determine the centroid location in the y direction for the beam cross-section with respect to the reference axis at the bottom of the cross-section.
Part 4 Determine the moment of inertia Ic1 for area (1) about its own centroid, y1.
Part 5 Determine the moment of inertia Iz1 for area (1) about the z centroidal axis of the cross-section.
Part 6 Determine the moment of inertia Ic2 for area (2) about its own centroid, y2.
Part 7 Determine the moment of inertia Iz2 for area (2) about the z centroidal axis of the cross-section.
Part 8 Determine the moment of inertia Ic3 for area (3) about its own centroid, y3.
Part 9 Determine the moment of inertia Iz3 for area (3) about the z centroidal axis of the cross-section.
Part 10 Determine the moment of inertia Iz for the cross-section about the neutral axis.
Part 11 Determine the section moduli Stop and Sbot of the cross-section. Note which one is the controlling section modulus.
Part 12 Determine the bending stress at point H (positive if tensile, negative if compressive).
Part 13 Determine the maximum bending stress produced in the cross section. Make a note on paper of whether the stress is tension or compression. Note that the maximum bending stress is the bending stress with the largest absolute value. However, report the answer here using the correct sign according to the flexure formula.
In: Mechanical Engineering
Exhibit 1: Table compares changes in key financial KPIs between 2008 and 2009, as follows:
| Exhibit 1: Select Income Statement and Balance Sheet Values ($MM) | ||
| Income Statement Accounts | 2008 | 2009 |
| Net sales | 65.0 | 86.3 |
| Expenses | ||
| Cost of goods sold | 29.0 | 38.9 |
| Sales, general and administrative | 10.1 | 14.0 |
| Research and development | 13.5 | 17.0 |
| Depreciation | 2.9 | 3.1 |
| Other expenses | 0.6 | 1.0 |
| Operating expenses | 56.1 | 74.0 |
| Interest expense | 2.4 | 3.0 |
| Taxes | 2.0 | 2.9 |
| Net earnings | 4.5 | 6.5 |
| Balance Sheet Accounts | 2008 | 2009 |
| Assets | ||
| Cash | 3.2 | 3.4 |
| Receivables | 3.0 | 4.0 |
| Inventory | 4.9 | 8.7 |
| Prepaid expenses | 4.8 | 6.1 |
| Current assets | 15.9 | 22.2 |
| Plant property and equipment | 28.5 | 32.9 |
| Other long term assets | 2.7 | 4.3 |
| Total long term assets | 31.2 | 37.2 |
| Total assets | 47.1 | 59.4 |
| Liabilities & Equity | ||
| Short term debt | 2.7 | 3.2 |
| Accounts payable | 2.3 | 3.0 |
| Accrued liabilities | 0.4 | 0.5 |
| Current liabilities | 5.4 | 6.7 |
| Long term debt | 17.2 | 21.7 |
| Owners equity | 24.5 | 31.0 |
| Total capitalization | 41.7 | 52.7 |
| Total liabilities & equity | 47.1 | 59.4 |
| Months of inventory | 2.028 | 2.690 |
| Cost of goods sold / sales | 0.446 | 0.451 |
| Long term debt / total capital | 0.412 | 0.412 |
Data gathered from table used to answer problem below:
1) Inventory growth rate = COGS/average inventory= 38.9/6.8= 5.72
average inventory = opening inventory + Closing inventory/2 = 4.9+8.7/2 = 6.8
2) Sales growth = CY sales - Py sales/py sales *100 = 38.9 - 29/29 * 100 = 34.1%
3) Net Working capital = Current liabilties - current assets = 6.7 - 22.2 = (15.5)
4) Days working capital = Avg working capital/sales revenue * 365 = 15.5/86.3*365 = 65.5 days
5) DIO= average inventory/COGS*365 = 6.8/38.9*365= 63.8 days
6) DSO= avg account recievable/sales*365 = 14.8 days
7) DPO= avg account payable/cogs * 365 = 2.075/38.9 * 365 = 19.4 days
8) CCC = DSO+DIO-DPO= 14.8+63.8-19.4= 59.2
Using the supporting data, provide an analysis of the current situation at SG. Identify the key symptoms and provide clear problem statements to identify the root causes that result in the symptoms and poor performance. Please use the course strategic framework tools, concepts, and Operations Rules for your analysis.
In: Accounting
Exhibit 1: Table compares changes in key financial KPIs between 2008 and 2009, as follows:
| Exhibit 1: Select Income Statement and Balance Sheet Values ($MM) | ||
| Income Statement Accounts | 2008 | 2009 |
| Net sales | 65.0 | 86.3 |
| Expenses | ||
| Cost of goods sold | 29.0 | 38.9 |
| Sales, general and administrative | 10.1 | 14.0 |
| Research and development | 13.5 | 17.0 |
| Depreciation | 2.9 | 3.1 |
| Other expenses | 0.6 | 1.0 |
| Operating expenses | 56.1 | 74.0 |
| Interest expense | 2.4 | 3.0 |
| Taxes | 2.0 | 2.9 |
| Net earnings | 4.5 | 6.5 |
| Balance Sheet Accounts | 2008 | 2009 |
| Assets | ||
| Cash | 3.2 | 3.4 |
| Receivables | 3.0 | 4.0 |
| Inventory | 4.9 | 8.7 |
| Prepaid expenses | 4.8 | 6.1 |
| Current assets | 15.9 | 22.2 |
| Plant property and equipment | 28.5 | 32.9 |
| Other long term assets | 2.7 | 4.3 |
| Total long term assets | 31.2 | 37.2 |
| Total assets | 47.1 | 59.4 |
| Liabilities & Equity | ||
| Short term debt | 2.7 | 3.2 |
| Accounts payable | 2.3 | 3.0 |
| Accrued liabilities | 0.4 | 0.5 |
| Current liabilities | 5.4 | 6.7 |
| Long term debt | 17.2 | 21.7 |
| Owners equity | 24.5 | 31.0 |
| Total capitalization | 41.7 | 52.7 |
| Total liabilities & equity | 47.1 | 59.4 |
| Months of inventory | 2.028 | 2.690 |
| Cost of goods sold / sales | 0.446 | 0.451 |
| Long term debt / total capital | 0.412 | 0.412 |
Data gathered from table used to answer problem below:
1) Inventory growth rate = COGS/average inventory= 38.9/6.8= 5.72
average inventory = opening inventory + Closing inventory/2 = 4.9+8.7/2 = 6.8
2) Sales growth = CY sales - Py sales/py sales *100 = 38.9 - 29/29 * 100 = 34.1%
3) Net Working capital = Current liabilties - current assets = 6.7 - 22.2 = (15.5)
4) Days working capital = Avg working capital/sales revenue * 365 = 15.5/86.3*365 = 65.5 days
5) DIO= average inventory/COGS*365 = 6.8/38.9*365= 63.8 days
6) DSO= avg account recievable/sales*365 = 14.8 days
7) DPO= avg account payable/cogs * 365 = 2.075/38.9 * 365 = 19.4 days
8) CCC = DSO+DIO-DPO= 14.8+63.8-19.4= 59.2
Using the supporting data, provide an analysis of the current situation at SG. Identify the key symptoms and provide clear problem statements to identify the root causes that result in the symptoms and poor performance. Please use the course strategic framework tools, concepts, and Operations Rules for your analysis.
In: Accounting