Question: 8. Understanding how efficiently your company is operating is important from an operations and finance perspective. The best way to measure operational efficiency through financial
8. Understanding how efficiently your company is operating is important from an operations and finance perspective. The best way to measure operational efficiency through financial statements is through working capital. Calculate working capital for Round 4 using the balance sheet for your calculation. How efficiently is your company operating? (Keep in mind, a good working capital ratio is between 1.2 and 2.0).
Round 1:
Product Name Cake Research & Development Performance 5.3 Size 5.3 Reliability 17,200 Region Kit Marketing - USA Price $31.00 Promo Budget $1,000 Sales Budget $1,000 Unit Sales Forecast 1500 Marketing - Germany Price 0.00 Promo Budget $0 Sales Budget $0 Unit Sales Forecast 0 Marketing - China Price 0.00 Promo Budget $0 Sales Budget $0 Unit Sales Forecast 0 Production Production Plant Location USA Production Order - USA 1,700 Production Order - Germany 0 Production Order - China 0 Capacity Change 0 Automation Next Round 3.0 Finance Stock Issue $0 Stock Retire $0 Dividend $2.87 Current Debt $9,300 Bond Issue $0 Bond Retire $6,600
Round 2:
Product Name Cake
Research & Development
Performance 5.9
Size 5.9
Reliability 17,200
Region Kit G C
Marketing - USA
Price $31.75
Promo Budget $1,300
Sales Budget $1,450
Unit Sales Forecast 1700
Marketing - Germany
Price 32.25
Promo Budget $1,200
Sales Budget $1,850
Unit Sales Forecast 550
Marketing - China
Price 0.00
Promo Budget $0
Sales Budget $0
Unit Sales Forecast 0
Production
Production Plant Location USA
Production Order - USA 1,775
Production Order - Germany 575
Production Order - China 0
Capacity Change 500
Automation Next Round 3.6
Finance
Stock Issue $0
Stock Retire $3,000
Dividend $0.00
Current Debt $10,400
Bond Issue $0
Bond Retire $0
Round 3:
Product Name Cake
Research & Development
Performance 6.3
Size 6.3
Reliability 17,000
Region Kit G
Marketing - USA
Price $33.50
Promo Budget $900
Sales Budget $1,200
Unit Sales Forecast 1300
Marketing - Germany
Price 32.00
Promo Budget $650
Sales Budget $1,550
Unit Sales Forecast 450
Marketing - China
Price 0.00
Promo Budget $0
Sales Budget $0
Unit Sales Forecast 0
Production
Production Plant Location USA
Production Order - USA 1,375
Production Order - Germany 575
Production Order - China 0
Capacity Change -450
Automation Next Round 4.5
Finance
Stock Issue $0
Stock Retire $3,300
Dividend $0.00
Current Debt $12,700
Bond Issue $0
Bond Retire $0
Round 4:
Product Name Cake
Research & Development
Performance 6.8
Size 6.8
Reliability 17,250
Region Kit G
Marketing - USA
Price $31.50
Promo Budget $1,900
Sales Budget $2,000
Unit Sales Forecast 1200
Marketing - Germany
Price 31.50
Promo Budget $1,000
Sales Budget $2,000
Unit Sales Forecast 350
Marketing - China
Price 0.00
Promo Budget $0
Sales Budget $0
Unit Sales Forecast 0
Production
Production Plant Location USA
Production Order - USA 1,400
Production Order - Germany 575
Production Order - China 0
Capacity Change 200
Automation Next Round 4.7
Finance
Stock Issue $7,400
Stock Retire $0
Dividend $0.00
Current Debt $2,300
Bond Issue $16,600
Bond Retire $0
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