TASK 1 – Problem SetAttached Files:James Madison was
brought in as assistant to Computron’s chairman, who had the task of getting
the company back into a sound financial position. Madison must prepare an
analysis of where the company is now, what it must do to regain its financial health,
and what actions to take. Your assignment is to help her answer the following
questions, using the recent and projected financial information shown next.
Provide clear explanations, not yes or no answers.
Why are ratios useful? What
three groups use ratio analysis and for what reasons?
Calculate the profit margin,
operating profit margin, basic earning power (BEP), return on assets
(ROA), and return on equity (ROE). What can you say about these
ratios?
Calculate the inventory
turnover, days sales outstanding (DSO), fixed assets turnover, and total
assets turnover. How does Computron’s utilization of assets stack up
against other firms in its industry?
Calculate the current and
quick ratios based on the projected balance sheet and income statement
data. What can you say about the company’s liquidity position and its
trend?
Calculate the debt ratio,
liabilities-to-assets ratio, times-interest-earned, and EBITDA coverage
ratios. How does Computron compare with the industry with respect to
financial leverage? What can you conclude from these ratios?
Calculate the price/earnings
ratio and market/book ratio. Do these ratios indicate that investors
are expected to have a high or low opinion of the company?
Use the extended DuPont
equation to provide a summary and overview of Computron’s projected
financial condition. What are the firm’s major strengths and
weaknesses?
What are some potential
problems and limitations of financial ratio analysis?
What are some qualitative
factors analysts should consider when evaluating a company’s likely future
financial performance?
Submit your answers in a Word and/or Excel document.TASK 2 – Marketing Project Proposal The group will
write-up their proposed idea for their International Marketing Plan in a 3 – 5 paged paper that will
be submitted at the end of the day. The purpose of the Proposal to ensure
that the group is on the right path of success to complete the
project. The group will work on their idea and tentative
supplemental pieces for the plan. The final plan will be submitted at the end
of the semester. This tells you some
of the parameters you need to meet for the Marketing Plan. The following
are other pieces you need to ensure you include:
What is the PRODUCT you wish
to introduce?
What are the PRICES you want
to charge and/or the including a discussion of what the profit looks like
you intend to make
What PROMOTIONS do you intend
to use to get your Marketing message across to your target market?
What PLACE/DISTRIBUTION
methods do you intend to use to get your product to the masses?
Who is the target market?
Why?
What specific methods of
distribution do you want to use? Do you want to have a storefront?
Online presence? Both? Direct Sales?
Depending on the
International City/Country you plan to target, why did you pick that area
for that particular product? Why that target market?
Where do you plan to be
headquartered?
Everything needs to be
specific and spelled out directly.
Requirements: 5-6 pages
