Mansfield Corporation had 2010 sales of $100 million. The balance

Mansfield Corporation (external funds requirement) (LO4) Mansfield Corporation had 2010 sales of $100 million. The balance sheet items that vary directly with sales and the profit margin are as follows:

	Percent
Cash	5%
Accounts receivable	15
Inventory	20
Net fixed assets	40
Accounts payable	15
Accruals	10
Profit margin after taxes	10%

The dividend payout rate is 50 percent of earnings, and the balance in retained earnings at the end of 2010 was $33 million. Notes payable are currently $7 million. Long-term bonds and common stock are constant at $5 million and $10 million, respectively.

a.    How much additional external capital will be required for next year if sales increase 15 percent? (Assume that the company is already operating at full capacity.)

b.    What will happen to external fund requirements if Mansfield Corporation reduces the payout ratio, grows at a slower rate, or suffers a decline in its profit margin? Discuss each of these separately.

c.    Prepare a pro forma balance sheet for 2011 assuming that any external funds being acquired will be in the form of notes payable. Disregard the information in part b in answering this question (that is, use the original information and part a in constructing your pro forma balance sheet).

 

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On January 1, 2010, Nobel Corporation acquired machinery at a cost of $800,000. Nobel adopted

On January 1, 2010, Nobel Corporation acquired machinery at a cost of $800,000. Nobel adopted the straight-line method of depreciation for this machine and had been recording depreciation over an estimated life of ten years, with no residual value. At the beginning of 2013, a decision was made to change to the double-declining balance method of depreciation for this machine.

The amount that Nobel should record as depreciation expense for 2013 is

Question 2 options:

	a)	$80,000.
	b)	$112,000.
	c)	$160,000.
	d)	none of the above.

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Aldo Renoldo drives his own car on company business. His employer reimburses him for

Aldo Renoldo drives his own car on company business. His employer reimburses him for such travel at the rate of 36 cents per mile. Aldo estimates his fixed cost per year such as taxes, insurance and depreciation to be $2052.  The direct and variable costs such as gas, oil and maintenance average about 14.4 cents per mile. How many miles must he drive each year to break even?



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Mojo Plastics Company deposits all receipts and makes all payments by check. The following information is available from the cash records:

Bank reconciliation.
Mojo Plastics Company deposits all receipts and makes all payments by check. The following information is available from the cash records:

MARCH 31 BANK RECONCILIATION

 

Balance per bank	$26,746
Add: Deposits in transit	2,100

 

Deduct: Outstanding checks

(3,800)

 

Balance per books

$25,046

 

 

Month of April Results

 

Per Bank

Per Books

 

Balance April 30		$27,995	$27,355
April deposits		11,784	13,889
April checks		11,100	10,080

 

April note collected (not included in April deposits)		3,000	-0-
April bank service charge		35	-0-
April NSF check of a customer returned by the bank

 

(recorded by bank as a charge)

900

-0-

Instructions

(a)	Calculate the amount of the April 30:

 

	1.	Deposits in transit Solution Deposits in transit =? Deposits in transit = $13,889 –[$11,784-$2,100] Deposits in transit = $4,205
	2.	Outstanding checks Solution Outstanding checks =? Outstanding checks = $10,080-[$11,100-$3,800] Outstanding checks = $2,780

 

(b)	What is the April 30 adjusted cash balance? Show all work. Solution Balance per bank at April 30 $27,995 Add: Deposits in transit 4,205   Deduct: Outstanding checks   (2,780)   Adjusted cash balance at April 30 $29,420

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Case 16: "Sara Lee Corporation in 2011: Has its retrenchment Strategy been Successful?," by Arthur Thompson and John E. Gamble, C243–C256

Module 4 Case Study Assignment

 

The case study assignment for Module 4 draws on the following case study in your  textbook:

Case 16: "Sara Lee Corporation in 2011:  Has its retrenchment Strategy been Successful?," by Arthur Thompson and John E. Gamble, C243–C256

 

 

Read the case and then respond to the case questions given below. (See "A Guide to Case Analysis" for further guidance on written case analysis.)

 

In addition to using the Sara Lee case study provided in the textbook, research the company further to find any relevant events that have transpired since the writing of the case study. Use the company's Web site, Internet search engines such as Google, online data services, or other sources to locate the latest articles about the company including press releases and current financial information. Be sure to cite all sources according to APA guidelines (see also Documentation Rules and Citation Styles).

 

Note: For assistance with analyzing the financial data in this case, Table 4-1 on pages 94-96 of your textbook is a useful reference.

 

Please limit your analysis to four pages, double-spaced.

 

 

Case Questions

 

1. What strategy has Sara Lee used to grow its business?

2. Why is Sara Lee retrenching?  How is it determining what units to retrench?

3. Examine the financial results in Exhibits 1, 2, 4, 5, and 6, and determine how the company   has been doing by calculating profitability, liquidity, leverage and activity ratios.  Based on these ratios what is your assessment of the company’s performance?  Justify your answer.

4. Which ones of the five generic strategies has Sara Lee used for Hanesbrands, North American Foodservice, International Beverage, International Bakery and International Household and Body Care?

 

LO 4.1, 4.3, 4.4, 4.5, 4.6

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Case 12: "Google's Strategy in 2010," by John E. Gamble, C174–C193.

Module 3 Case Study Assignment

The case study assignment for Module 3 draws on the following case study in your  textbook:

Case 12: "Google's Strategy in 2010," by John E. Gamble, C174–C193.

 

Read the case and then respond to the case questions given below. (See "A Guide to Case Analysis" for further guidance on written case analysis.)

 

In addition to using the Google case study provided in the textbook, research the company further to find any relevant events that have transpired since the writing of the case study. Use the company's Web site, Internet search engines such as Google, online data services, or other sources to locate the latest articles about the company including press releases and current financial information. Be sure to cite all sources according to APA guidelines (see also Documentation Rules and Citation Styles).

 

Note: For assistance with analyzing the financial data in this case, Table 4-1 on pages 94-96 of your textbook is a useful reference.

 

Please limit your analysis to four pages, double-spaced.

 

 

Case Questions

 

1.       Explain Google’s business model. 

2.       Examine the financial reports in the case to determine the company’s profitability, liquidity, leverage and activity ratios (key financial information is given in Exhibits 4 and 5).  Based on these ratios what is your assessment of the company’s performance?  Justify your answer.

3.      Perform a SWOT analysis of Google. 

4.      Describe Google’s value chain.  What is the source of the company’s competitive advantage?

 

LO3.1, 3.2, 3.3, 3.4, 3.

Crafting & Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases, 18/e

---

 

ISBN: 0078112729

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