DUE DATE: $22$ MARCH $2024$

QUESTION

$[40$ MARKS$]$

You work for a global shoe company called Shoes & Co$,$ and you are required to analyse the impact of the current supply chain design. Use the strategic profit model to perform the required analysis.

The company's financials are provided below with a $12\%$ corporate tax rate. Answer the following questions:

$1\mathrm{.}1$ Calculate the current ROA and ROE of the company.

$1\mathrm{.}2$ You believe you could reduce transportation cost by $10\%$ if you had management buy in calculate what a $10\%$ reduction would result in$.$

$1\mathrm{.}3$ Analyse findings in $1\mathrm{.}1$ and $1\mathrm{.}2$

$(15)$

$(10)$

$\backslash$table$[[$SHOES AND CO $($PTY$)$LTD$],[\backslash$table$[[$STATEMENT OF PROFIT S LOSS FOR THE YEAR$],[$CNDED $31$ DECEMECA $2022]]],[$SALES$,299,990],[$COST OF SALES,$179\mathrm{.}990],[$cROSS PAOFIT,$120,000],[$TRANSPORTATION$,29,993],[$WAaEHOUSE COSTS,$7,993],[$INVENTORY CAARYING COSTS,$3,999],[$OTHER OPERATING COSTS,$14,993],[$TOTAL OPERATING COSTS,$56,972],[$Earaings befere interest $8$ Tax,$63,028],[$interest$,3,000],[$Taxes$,9,004],[$Net inceme,$51,024]]$

$\backslash$table$[[$SHOES AND CO $($PTY$)$ LTD$],[$STATEMENT OF FINANCLLL POSTION FOR THE YEAR ENDED $31$ DECEMEE$2022],[$Assets$],[$Cash$,20,600],[$Account Recelvabies,$30,600],[$Inventory$,15,060],[$Total current assets,$65,000],[$Net foed assets,$120,000],[$Total assets,$185,000],[$Liabiuties$],[$Currem Liabilities,$65,600],[$Longtem debt,$35,600],[$Total Liabities,$100,000],[$Sharehoider equity,$400,000],[$Total liabities s equity,$$00,000$