Case Study

Answer 1-6

Case Study Overview You were hired by the Widget manufacturing company, and since you recently graduated with a degree in logistics and supply chain management, your boss is hoping that you can help answer some questions that the president of the company has been asking. The Income Statement and Balance Sheet for 2019 were provided to you, along with shipping and warehouse costs for 2018 and 2019. Create a Professional Video Presentation With the provided information and the list of questions below, produce a 2-3 minute professional video presentation to present to the company president. Use 'Studio' with PowerPoint slides to create your presentation. Review the information on the Presentation Guide for assistance. Shipping and Warehouse Costs 2018 and 2019 Shipping and Warehouse Costs 2018 2018 2019 2019 Units Shipped Warehouse cost Units Shipped Warehouse Cost Chicago 16,540 $ 156,830 17,562 $ 178,000 7,562 $ 63,417 8,562 $ 65,263 Atlanta 27,506 $ 246,315 28,263 $ 265,856 Denver 15,685 $ 151,975 16,585 $ 176,000 Tampa 15,621 $ 150,623 15,562 $ 152,365 San Antonio 12,658 $ 136,856 12,563 $ 145,256 Bakersfield 9,526 $ 72,632 10,125 $ 78,526 11,526 $ 119,563 10,956 $ 120,636 New York Seattle Income Statement Income Statement 2019 Sales $ 3,958,555 $ 925,632 Cost of goods sold Gross Margin Transportation cost Warehousing cost Inventory carrying cost Other operating costs $ 3,032,923 $ 2,317,915 $ 658,562 $ 725,632 $ 577,456 $ 356,265 Total operating cost Earnings before interest and taxes $ 715,008 $ 111,000 $ 72,000 $ 532,008 Interest Taxes Net Income Balance Sheet Balance Sheet 2019 Assets Cash $ 708,562 Accounts Receivable $ 362,235 Inventory $ 1,592,356 Total Current Assets $ 2,663,153 Net Fixed Assets Total Assets Liabilities $ 823,653 $ 3,486,806 Current Liabilities $ 1,726,333 Long-term Debt $ 423,365 Total Liabilities $ 2,149,698 Shareholders' Equity $ 1,456,235 Total Liabilities and Equity $ 3,605,933 Questions Questions to be addressed 1. What is the cost per unit shipped for each of the warehouses and highlight the warehouse with the best performance for 2018 and for 2019? 2. What is the difference in cost per unit for each of the warehouses and make sure to highlight the warehouse with the best and worst performance for each year? 3. Show the percentage difference in cost per unit for each of the warehouses and highlight the warehouse with the best and worst performance for each year. 4. Your boss told you that your company needs to close one warehouse so you need to recommend to the president which warehouse should be closed based on performance and justify. 5. Use the Income Statement and Balance Sheet and complete a Strategic Profit Model for the company to show the president. 6. What would have been the effect on ROA for 2019 if Transportation cost had been reduced by 10%? Produce an updated Strategic Profit Model for the company? Notes To calculate the Total Expenses add total operating cost + Interest + Taxes Net Profit Margin and ROA should be in % Other Current Assets = Cash