Calculation Case Studies Samples For Students

Results of the analysis of the Cooper Processing Company case (Bowersox et al., 2013).
In order to get the data to calculate the ROA, we need to get all the necessary data. The detailed cost for the retail and foodservice channels.
For the employees cost, the retail have 40 employees and the food service 10. Considering 5.000.000,00 USD the values are:
Employee_Retail: 4.000.000,00 USD Employee_Foodservice: 1.000.000,00 USD

The calculation of the sales promotion cost, we consider that 100% of all the cost are considered in the retail channel:

Promotion_Retail: 8.000.000,00 USD Promotion_Foodservice: 0,00 USD
The cost of the order processing for each channel is proportional to the number of orders of ...

Part One:

a) Calculate the Weighted Average Cost of Capital
WACC: Weight of Debt* Cost of Debt(1-Tax rate) + Weight of Equity* Cost of Equity
WACC:[( 200000/400000)* 0.09(1-.22)] + [(200000/400000)* .15]
WACC: 0.0351+ .0300

WACC: 6.51%

*WACC that is also known as Cost of Capital will be used further to discount the cash flows of the company.
b)Calculation of Capital Allowance and Tax Payable on each project:

Project A:

Tax depreciation
Capital Allowance and tax liability
*Assuming that business loss for Year 1 will not be carry-forward to be offset from Year 2 profit and also there is no minimum ...

1. According to Welch I (2005), WACC or amply the weighted average cost of capital is a rate to the firm that shows the cost of capital of running that firm. It is a calculation of a firm’s cost of capital showing how each category is weighted proportionally showing the categories percentage of the total capital of running the firm. In the calculation of the WACC, all capital sources like stock (common and preferred), debentures, bonds, and other sources including short and long-term debt are incorporated in the calculation of WACC. It should also be noted that WACC is a rate which ...

Introduction

Midwest Office Products (MOP) is a regional distributor of office supplies and to institutions and commercial business organizations. MOP is known for its excellent customer service and responsiveness. MOP Management is concerned because the company just experienced its first loss in history, despite increased sales from the prior year. The company looked at its costs and the activities relevant to its business. The task is to develop a cost accounting system that will accurately reflect the relevant costs of MOP per order with respect to the number and types of activities, processes or transactions that transpire.

Answers to Questions

The first table shows an ...

1
The assessment of financial performance of the division managers in each subsidiary can be obtained by taking a difference between budgeted profits and actual profits in US dollars. It can be understood from the table provided below.
The table provided above summarizes the information regarding the actual and budget performance of each subsidiary in 2004 . All amounts are expressed in US dollars that are helpful in comparison among them. It can be seen from Table 1 that the subsidiary of Japan has performed below budgeted profits that in dollars but it might have increased its profits as compared ...

The Cooking Hut Company (CHC), a kiosk retailer, has never budgeted due to its nature as a start-up.  CHC is now reaching the point where operations are predictable enough that a budget would be helpful for planning purposes.    
Using spreadsheet software, prepare 2016 budget schedules & pro forma financials by quarter and in total, unless otherwise noted, based on the assumptions provided in this narrative.
You will submit one Excel workbook (or Google spreadsheet).  There should be only three worksheets in the workbook. Each worksheet is a stand-alone budget scenario: (#1) base case scenario, (#2) modify cash flow scenario, and ( ...

Stock Valuation of Northwest Savings Bank

Many people think that investing is merely the act of buying something on low and selling it in high, which makes the investment seem very easy. But it is truly a difficult task as one needs to understand if making an investment is worth the price paid for the security and determine if the investment is expensive or cheap.
Investment is a very crucial task and should be done with great care. Making investment seems easy, but earning a good return on investment is difficult. Therefore, investment should be done after analyzing the company or stock or any instrument on which ...

Question One

Based on the anthropometric indices provided, the weight status of the first client; Jacob would be considered normal weight. This can be determined through the calculation of the clients Body Mass Index. The calculation of Jacob’s Body Mass Index is shown below:

Weight: 140 pounds

Height: 5 Feet 3 Inches
The Body Mass Index is often calculated using the following formula:
Body Mass Index = Weight (in kilograms)/Height (in square metres)
Convert the anthropometric indices of the client to the required figures; weight to be in kilograms then height to be in metres.
1 pound is equal ...

Statement of the Problem

Ajax Manufacturing Company (Ajax) is a company engaged in the manufacturing of industrial products (herein referred to as Products A, B and C).

Ajax wishes to maintain an average gross margin of 35% across all its products by employing a traditional cost accounting method. This method adds the unit cost of raw materials, unit cost of labor, unit overhead costs computed by summing all overhead costs and then dividing by allocated labor hour use, and a 35% gross margin. This approach has earned the company varied results such that it has been able to sell 10,000 units of Product A at a ...

Calculating cost of equity using Gorden Model:

In the first section of this paper, we will calculate the cost of equity of Nike Inc. using the Gorden Model as part of which, recent dividend payment will be used for estimating the cost of equity multiple. Followed are the calculations:
Value of Stock: Current Dividend(1+Growth Rate)/ (Required Rate- Growth Rate)
58.02= 0.62/( Required Rate- 0.1209)
= 13.15%

Here:

Growth Rate= Compounded Annual Growth Rate for past 5 years
= (0.62/0.35)0.20- 1
= 12.09%
Therefore, following Gorden Model, we found that the cost of equity for Nike Inc is 12.09%. However, because of the limitations of Gorden Model, ...

The case dwells upon the purpose of the business and the basic criteria for its successful and sustainable development. The point that the authors are making is that any business should aim at attracting and retaining their clients. There are two ways to reach these goals. One way is to build a quality product and another is to deliver a service in a high-quality way. This means that the companies should not only focus on what, but how they deliver this experience to the clients.
With the above in mind, the authors suggest that business decisions should be based ...

I. Capital Structure Choices

Table 16 TI’s Statement of Current and Long-term Liabilities

Accounts Payable

Accrued Expenses

Deferred Revenues

Other Current Liabilities

Total Current Liabilities

Total Long Term Debt

Table 17 TI’s Statement of Shareholder’s Equity
Shareholder's Equity

Deferred Income Tax

Minority Interest

Other Long Term Liabilities

Total Long Term Liabilities

Total Liabilities

Common Shares Outstanding

Preferred Stock

Common Stock, Net

Additional Paid-in Capital

Retained Earnings

Treasury Stock

Other Shareholder's Equity

Shareholder's Equity

Total Liabilities & Shareholder's Equity

Figure 6 TI’s Debt and Equity Structure, 2007 to 2011

A. Capital Resources
Texas Instrument’s liquidity comes ...

Forecasting methods in health services

Forecasting is a mathematical prediction process that uses the data from the past records to predict the future outcomes. In the case of the health services, it uses the number of patients visiting a given health facility for a given period of time, like, say, for a whole year or a month in order to predict the estimated number of expected patients in the following year. This helps the health facility managers to make a prior plan of financial and material expenditure for the year or month to come.
In addition, forecasting helps to monitor the operational efforts in ...

A) Cost of Equity Calculation:

= Risk free rate+ Beta(market risk premium)
= 2.24+0.57(6.2)
= 5.78%

Calculative Notes:

a) Risk Free Rate:

30-year US treasury rate: 2.24%

b) Equity Risk Premium:

Duff and phelps equity risk premium: 6.2%

c) Beta: 0.57

B) Cost of Debt: 2.72%

For the purpose of calculation of cost of debt, we have assumed average of yield to maturity of existing bonds of the company.
c) Equity and Debt Weights:
D) Cost of Capital-On Book Value basis

E) Cost of Capital-On Market Value basis

Important to note, cost of capital based on market value is the most appropriate as it represents the appropriate risk involved within the company’s capital structure.

G) Equity and Asset Beta

Beta (asset) = Beta (equity) / [1+ [(1-t)*D/E]]
The above table indicates that amongst all ...

About the report

The objective of this report is to assist One-World Investment Consortium, who is planning to invest £150 million in Thomas Cook PLC, a British global travel company listed on the London Stock Exchange under the ticker sign of ‘TCG’. We duly understand the impact of our professional recommendation on Consortium’s final decision making related to investment, and therefore, we intend to be comprehensive in the approach our analysis.
As for the structure of this report, it will be a two-part report. In the first section of the report, we will evaluate the past 5 year(2007-2011) financial performance ...

Where everybody is trying to find out the Metabical’s Current weight loss option as well their demand forecast. I found a few case studies regarding Metabical’s weight loss option. While the other discussing these issues in different cases or journals I could not find many lessons details about the other cases, Metabical’s. My aim, in this case, is to provide a clear idea about the Metabical’s cases of Weight option, forecasting demand and the pros and cons.
Current weight reduction medications can be delegated Prescriptive Drugs or Over-the-counter (OTC) cures. OTC Drugs were not as ...

1.
The calculation of the true value of the Tri Star program is developed using the Net Present Value concept which depends on of the future net cash flows of a project or company. The Tri-Star Program started in 1967 with the pre-production phase until 1971. After 1971 until 1977 is the production phase of the L-1011 Tri-Star program (HARRINGTON-CRESSMAN, 2015).
The true value of the program is the net present value that includes all the net cash flows in all the periods of the program, project or enterprise. Assuming a plan of 210 aircraft for the production phase, ...

What position should Jason Sterling take on European sovereign debt? Why? What are the advantages/disadvantages of using credit default swaps to profit from this crisis? What are the potential risks? Are there any lessons for Jason that can be gleaned from previous crises?
The aim of Jason Sterling is to assess novel information so that he has the ability to trade on prior to the trading close for the week period. This was because the growing debt crisis in the sovereignty of the Europe would be the hot topic or the primary notion that the leaders and representatives from ...

Stock Analysis: Macy’s

About the report
The report comprehensively discusses the discounted cash flow model and related assumptions used for calculating the intrinsic value of Macy’s stock. Since the objective of this report is to frame a prudent investment recommendation, we will also discuss the industry reports to forecast the future potential of the stock.

About the company

Founded in the year 1830, Macy’s is the largest department stores in the United States. The company has relied on multiple acquisitions over the years and has now united a conglomerate of regional brands under its flagship brands of Macy’s and Bloomingdale. Being one ...

Introduction

Decisions on new investments entails considering various aspects of a project. In that respect, the cost and return aspects of a project are key to an investor and there are various methods of analyzing the value expected from such projects. With that, capital appraisal is a crucial process for businesses and investors and this report presents an analysis of the Deluxe case that considers introducing a new range of clothes to address the market changes. Capital budget appraisal, referred to also capital budgeting primarily is a process facilitating firm’s investments determination concerns for both long-run and short-run. It ...

Keeping the body healthy and in shape is probably the big aim of everyone. However, all of those desires differ a lot on the gender, age and motivation basis. This assignment will demonstrate the analysis of two case studies. For both of them some recommendations and calculations will be given.

Anyways, some calculations are needed in order to get the entire picture of his body condition.

Secondly, Chad’s BMR is 1865.04
Finally, it is essential to implement the Karvonen formula in order to find out Chad’s target heart rate at 60% and 80%.
The answer looks as follows: Target HR (60%) = 131
Target HR (80%) = 148
At this point of time it is ...

Executive Summary

The case is regarding the recapitalization plan of Moe Miller, the new managing director at M&M Pizza. Miller is concerned about the stagnant share price of his company at around F$25 per share. Miller plans to issue F$500 million debt to repurchase shares.
He thinks that by repurchasing shares and changing the capital structure of his company would be beneficial to both the company as well as the shareholders. A higher proportion of capital to debt would result in lower cost of capital while share repurchase would result in higher share price due to higher dividend per ...

Section I Analysis of Statement of Operations

What is happening with the revenue?
There is not enough historical data to assess whether the revenue’s performance is good or bad. But if looking at how it affects income, the YTD shows that revenue is enough to cover allowances for doubtful accounts and operating expenses while the current month reported a net loss. As pointed out in the difficulties experienced by the hospital, it may be the increasing competition and excessive staff overtime, reflected in dwindling revenue (as % shows approximately 7% decline) and almost 5% addition in contractual allowances and salaries and wages.

What are allowances? Should these ever be a positive number? Why?

According to Fingers (2010), ...

MINI CASE

Calculation of the financial figures
For analysis of the project, the cash flow increment that is generated by the project must be calculated. Given that the networking money is built up before the sales, the first cash flow is dependent on this given cash outflow (Kirkpatrick, 2006). Therefore the first step is to calculate the sales. The total revenue is therefore given by the summation of the spot sales of the market and the price per every ton (Warburton, 2013). The yearly sales will be given as shown below.
The initial networking capital is calculated = 0.05*22,400,000=1, ...

ANALYSIS OF ISLAMIC BOND (SUKUK) MARKET OF DUBAI AND MALAYSIA

Analysis of Islamic Bond (Sukuk) Market of Dubai and Malaysia
Introduction
As the business has expanded all across the world due to rise of internalisation or globalisation, it has become necessary that both the sources of equity and debt capital must be obtained for financing operational activities. In this regard, experts in financial management designed different modes of finance in which issuance of bonds, in case of debt management, forms an integral position. However, these conventional form of bond issuance require trading based on interest rates and are not backed by any security.
Therefore, based on Islamic principles, a ...

Midland Energy is a global company, which operates in oil and gas exploration refining and marketing (R&M), and production (E&P) and petrochemicals sectors. The major objective of the financial strategy of midland is to invest in the projects that are valuable, to achieve an optimal structure for the capital, to fund the substation growth and repurchasing of shares that are undervalued. In addition, it is necessary to calculate the cost of capital if midland wants to meet all the objectives.
There is different level of risks for all the divisions of the midland, therefore a single corporate WACC cannot be ...

AES is a leading independent supplier of electricity in the world with more than $33 billion in assets. Rob Venerus, the director of Corporate Analysis and Planning group was faced with a task of calculating the capital cost of the business. Many financial information and results were collected from subsidiaries in June 2003. The manager was obligated to develop a methodology to use the data to determine the costs of capital significantly in valuation and for capital budgeting. The group was created to solve the financial crisis, current and future strategic challenges.
The global economic instability had adverse effects such as ...

- You are required to evaluate, the two options for the production of product Z.

Comment and advise Tony accordingly in the production of product Z.(25 marks)

Answer:
Assuming 40,000 production levels, the cost associated with both the options are as below:
It can be easily seen that the cost of producing 40,000 units is less in case of labor intensive option than the machinery option. For low production levels, it is recommended that labor intensive option is a better option.
However, as the production level goes up, machinery option covers up for the extra machine rental expense and at some level produces units at a lower cost ...

Economic evaluation involves the business aspect monitoring and analysis in a company. This analysis is intended to carry out comprehensive auditing of the profit and/or loss making aspects of the company. The end result is expected to put the management of the company in the know that theirs is a profit or loss making venture. During such evaluation, several aspects are considered especially the financial aspects. The analysis is intended to identify the various needs of the company and try to propose practical solutions to the identified needs of the company. Such solutions may include a change in the structure of the ...

Introduction

This is a calculation assignment, which is based on interpretation data given in other forms of presentations. There are many ways in, which the researchers wish to present their data collected from the field for faster communication of the message that is intended. Most of the statistical analysis of data features on the characteristics of data and how it varies from time to time depending on the variables that have been chosen. Data can be analyzed by drawing of graphs, charts, calculating using hypothesis tests and many more statistical techniques. In this calculation assignment, the major focus will be drawing ...

Meal Planning for Type II Diabetes Mellitus

As the Diabetes Education Centre dietitian, you must provide SG with dietary guidance.
- Based on the information presented develop a nutrition diagnosis for SG. Write this as a PES statement.
- Patient’s uncontrolled glucose and hyperglycemia is related to type 2 diabetes as evidenced by high fat and carbohydrates intake and abnormal laboratory results of Hb-A1C.
- At the risk of cardiovascular and hypertension related to excessive consumption of saturated fat and trans-fatty acid food and pre-packaged products as evidenced by high lipid profile including high total cholesterol, LDL-C and triglyceride level in laboratory results and ...

Introduction

DEA is the Data Envelopment Analysis. It is a non-parametric approach used in investigates for the assessment of production frontiers. It is used to assess the relative efficiency of various units, called DMUs in the language of DEA. DEA uses multiple inputs and outputs to estimate the efficiency and for benchmarking the best performing units.
The structure of the market economy is a concept with many aspects. In particular, the structure of the market economy can be characterized in terms of the competitive relationship, the degree of their development. There are several approaches to the study of the structure. In ...

The director of a large regional reference laboratory was reviewing the service’s performance over the past year. The laboratory had gross revenues of $3,500,000. Some of the business was to managed care plans and to large-volume users that resulted in a discount of $350,000, which was $25,000 more than anticipated due to intense competition. The cost of providing the lab testing was $1,400,500, which was $250,000 higher than expected. Direct costs for salaries was $870,000. What was the product mix variance experienced by the laboratory service? What was the price variance?Laboratory business ...

The current paper examines the issues of strategic management accounting including stages of strategic management process, the roles of management accounting, concept of opportunity costs, concept of relevant and irrelevant costs, cost classification and practical application of breakeven analysis. Besides, it contains examples illustrating some of the above listed concepts. The claims are supported with relevant arguments; the examples reflect the issues associated with running business in contemporary market environment. Each task is divided into sections related to different parts of each question. Each part of the question contains appropriate conclusions.

Main Stages of Strategic Management Process

According to ...

Importance of capital budgeting process

The capital budgeting process facilitates the financial management duty of allocation of finances and decision making on investment choices. With limited amounts of capital, financial managers are required to advise on the most appropriate business investment opportunity to pursue. The capital budgeting process suffices for the identification of the best alternative for investment. Through the capital budgeting process, financial managers are able to compute the expected cash flows in various investment options. Through the discounting methods, they are able to accurately estimate the expected cash flows and settle on the most profitable in consideration of the market dynamics such ...

Introduction

Cost, Insurance and Freight (CIF) is the price invoiced by a seller including the insurance of cargo, and all other charges incurred up to the destination port. During shipping of goods, there are challenges incurred when preparing the CIF quote. The main challenge is to ensure that all the necessary costs are included. Many of the cost items are readily available to the seller while the transporter prepares the others. Therefore, a description of the goods and their specifications must be accurate during the preparation of the CIF (Billings, 2003). All measures taken must be in standard form.

Jim Mason could ...

Statement of the Problem

Ajax Manufacturing Company (Ajax) is a manufacturing company that wishes to an average gross margin of 35% across its products. It sets its prices using a traditional cost accounting method and then adding a 35% mark up. Management has found this approach to be puzzling, with the actual results differing from the projected results. Case in point is the significant decrease in volume sold of Product B despite the reduction in selling price and the absence of competition in Product C market despite a computed higher-than-expected margin.

The company modified its cost accounting approach by doing the following: allocating labor hours for units ...

Statement of the Problem

1. Destin Bras Products Co. (Destin) founded by Steve Abbott, John Scott and Roland Guidry and is a local success story in Destin, Florida and is in the business of producing valves, pumps and flow controllers.
2. Destin is facing stiff competition. Currently Destin’s revenues come from valves (24%) earning the company a 35% gross margin, pumps (55%) which has been observed to be weakening to a gross margin of only 22% and flow controllers (21%) even after increasing prices by 12.5% have not been attacked by competitors. With no technical patents or other advantages, Destin has no idea how ...

Statement of the Problem

What steps should Destin Bras Products Co. (Destin) take to address the current loss in market share due to a sharp decline in the price of competitors? How could Destin remain profitable in all of its market segments?
This is the question that the management of Destin, a local producer of valves, pumps and flow controllers is asking. What do the competitors know or how are they doing their business such that they remain profitable despite a significantly lower selling price. Destin is very competitive despite not having any design advantages, nor would any competitor so technical superiority is out of ...

Statement of the Problem (1 page)

Mueller-Lehmkuhl GmbH (MLG) is a German producer of apparel fasteners. In 1982, it formed a joint venture with the German subsidiary of the Atlas group, an American multinational for the purpose of benefiting from MLG’s technological superiority and access to other markets through the Atlas subsidiary. However, the effect of the joint venture essentially was the limiting of MLG’s markets to Europe and Africa.
MLG is one of the major competitors in the very mature European market for apparel fasteners. Its market share is currently 17% (although three other firms have about the same market share), taking a slightly ...

The paper discusses the ethical concerns for the Citicorp building case. Engineering profession, like any other profession, is governed by a code of ethics. Ethics refers to a set of accepted moral standards to be followed by members of a certain group. Therefore, ethics in engineering profession is a set of values to be followed by engineers. The Citicorp building case brings various ethical issues of concern. These include following the structural design, respects of rights in structural design, taking responsibility for corrective measures, satisfaction of quality assurance regulations, and use of recommended materials (Harris, Pritchard, and Rabins).

Firstly, the design engineer (LeMessurier) ...