Question: Consider the information for two competitors in the same industryCompany A and Company Band then answer the following questions. Company A - All figures are
Consider the information for two competitors in the same industryCompany A and Company Band then answer the following questions.
Company A - All figures are in thousands
Net Income = $2,737; Sales Revenue = $69,495; Total Stockholder Equity = $10,953; Cost of Goods Sold = $51,320; Inventory = $8,309; PPE = $11,990; Accounts Receivable = $22,105
Company B - All figures are in thousands
Net Income = $1,910; Sales Revenue = $15,130; Total Stockholder Equity = $7,725; Cost of Goods Sold = $12,123; Inventory = $875; PPE = $3,295; Accounts Receivable = $8,013
- Calculate ROE, ART, INVT, and PPET (calculations should be included in an appendix after the references page).
- Judge which company is more efficient at using its assets.
- Hypothesize which company may have excess inventory.
- Explain which company is using its plant and equipment to its best advantage.
- Anticipate what C2C cycle time information may contribute to understanding inventory conditions in each company.
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