Question

vorcester.e 1amodeareset Case sample answer.pdf Case #1-Iggy's Bread of the world Attached Files: g's Bread of The World docx (35.16 KB) Please answer each question with at least 2 paragraphs (3-4 sentences pe paragraph), doubped, 12 point fent, one inch margins Assignment Questions 1. Using Exhibit 1, please calculate and explain the following financial ratios for all years gven, explain the trend oreer to get a sense of how lgay's ls doing You can create a lable to summriee the calouaos a a Debt/equity b. Deblassets C. Profit margin (as %) d Gross margin (as %) e. What has happened to the profit margin since MacRae started at Igov's 2. Which roles should the Ivanovics hand over to their professional managmeam and whh should they rotain? 3. What effect did Igor's decision to bring in a new COO have on his blity nce company emplayees and product? 4 contrast the influence st les of Igor Ludmilla and M Rao How would you expect those sry es ba or gener? whe-responsble tor te d age me t-wp in s bet enu a·andth.hw ks?wh" would need to change for the three to complement one enothor spreposal and e problems that the anovics need to deal with in order te contiue to be succeid 5 Imagine you are a board member making two recoemendations to te What two of recommendations would you make? What are the pros and.cons of each Extra credit What has happened since this case sbudy wa weitee PiceProiodate Case #2 D Bella s pdf О 03.192 KO) Attached Files Please answer each question with at least 2 paragrepths,bced 2po rg Word TTell me what you want to do Paragraph 2Heading 3 TSubtiSubtle mEmphasis intense uneasy silence as tne Doara members trea to oecoe now to respona το MCHae s oemanas. gor and Ludmilla knew that whatever they decided, the future held no certainty for legy's aEdting Exhibit 1: Iggy's Financial Statements, 1994-1999 1994 1995 1926 1997 1998 1999 Income Statement Data Net revenue 1,000,000 2,500,000 | 3,000,000 4,000,000 4500,000 6,000,000 Cost of goods sold 570,000 1,700000 920,000 2520.000 ,195,00 ,000000 Labor 220,000 90 /00480.000 1,00040000 Other 350 000 800 000 17 840,0001049,0001,805,000 1740000 30,000 00 000 ,080,000480,000 ,30,000 2000000 1 Gross margin 190,000 375,000480,000 150,000 25,000 140000 Profit after taxes (PAT) Balance Sheet Data 90 c700,000 N/A 200,000 /250,000/$00,000 Current Assets 350,000 | ЗОО,000 I 300,000-mo001-poo N/A Net PP&E N/A Total Assets Long term debt Note: These figures are correct on a relative basi within and across years, but re and do not represent a legal statement of leev's Bread of the World'&nn

Answer 1

	1994	1995	1996	1997	1998	1999
Income Statement Data
Net revenue	1000000	2500000	3000000	4000000	4500000	6000000
Cost of goods sold	570000	1700000	1920000	2520000	3195000	4000000
Labor	220000	900000	1080000	1480000	1890000	2340000
Other	350000	800000	840000	1040000	1305000	17400000
Gross Margin	430000	800000	1080000	1480000	1305000	2000000
Profit after taxes	190000	375000	480000	150000	25000	140000
Balance sheet data
Current assets	0	200000	250000	500000	300000	700000
Net PP&E	0	350000	300000	3000000	3000000	3000000
Total Assets	0	550000	500000	850000	1000000	3700000
Long term debt	0	10000	15000	20000	150000	2000000
Debt/Equity	0	0.01852	0.03093	0.02410	0.17648	1.17647
Debt/assets	0	0.01818	0.03	0.02353	0.15	0.540541
Profit margin %	19	15	16	3.75	0.55556	2.333333
Gross margin %	43	32	36	37	29	33.33333

Profit Since 1994-1999 Profit after taxes 500000 300000 200000 100000 Profit margin since 1994-1999 Profit margin % 20 18 16 14 12 10

Excel Formula Sheet

	1994	1995	1996	1997	1998	1999
Income Statement Data
Net revenue	1000000	2500000	3000000	4000000	4500000	6000000
Cost of goods sold	570000	1700000	1920000	2520000	3195000	4000000
Labor	220000	900000	1080000	1480000	1890000	2340000
Other	350000	800000	840000	1040000	1305000	17400000
Gross Margin	430000	800000	1080000	1480000	1305000	2000000
Profit after taxes	190000	375000	480000	150000	25000	140000
Balance sheet data
Current assets	0	200000	250000	500000	300000	700000
Net PP&E	0	350000	300000	3000000	3000000	3000000
Total Assets	0	550000	500000	850000	1000000	3700000
Long term debt	0	10000	15000	20000	150000	2000000
Debt/Equity	0	=C14/(C13-C14)	=D14/(D13-D14)	=E14/(E13-E14)	=F14/(F13-F14)	=G14/(G13-G14)
Debt/assets	0	=C14/C13	=D14/D13	=E14/E13	=F14/F13	=G14/G13
Profit margin %	=B8/B3*100	=C8/C3*100	=D8/D3*100	=E8/E3*100	=F8/F3*100	=G8/G3*100
Gross margin %	=B7/B3*100	=C7/C3*100	=D7/D3*100	=E7/E3*100	=F7/F3*100	=G7/G3*100

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