Case Questions
Questions for Consideration When Preparing Cases
Riley Supply
1. Use a spreadsheet program such as excel. Keep all numbers for a particular year in the same column.
2. Prepare two indirect statements of cash flows. One for 2004-2005 and one for 2005-2006.
3. Calculate common sized income statements for each year.
4. Calculate all financial ratios. Use “A Basic Set of Financial Ratios” from Desire2Learn as a guide.
5. Identify the major factors influencing Riley’s cash flow. Use the cash flow statements along with the common sized income statements and ratios.
6. What is the length of Riley’s cash conversion cycle? How long does it take for Riley to go from spending cash to receiving it? Why?
7. What are the implications of Riley’s cash flow for the financing needs of the firm.
Panera Bread Co.
1. Use Excel to compile Indirect Statement of Cash Flows, Common-Size Income Statement and Financial Ratios for each year.
2. How do you assess the strength of Panera’s marketing?
3. What have been the key drivers for Panera’s cash flow from operations?
4. Is this company liquid?
5. Is this an asset intensive business? Why or why not?
6. Is the leverage risk high?
7. What is the source of Panera’s profitability? Is it good?
California Choppers
Ignore exhibits 1, 2 and 5 in the case. Use the set of ratios and the definitions for those ratios that we have discussed in class. Any data needed for industry comparisons must be generated by you.
1. Do the standard set of analytics: common-size income statements, indirect statements of cash flows, and financial ratios for all years.
2. What was California Choppers condition in 2000? How has it changed over the six year period?
3. Have all of the company’s initiatives been successful?
4. How would you evaluate the human resource aspects of the company?
Wiegandt GmbH Cologne
1. Although the case is titled Wiegandt, it is really about two other companies. Your analysis should be about Haefren Baum. Confine your
Riley Supply
1. Use a spreadsheet program such as excel. Keep all numbers for a particular year in the same column.
2. Prepare two indirect statements of cash flows. One for 2004-2005 and one for 2005-2006.
3. Calculate common sized income statements for each year.
4. Calculate all financial ratios. Use “A Basic Set of Financial Ratios” from Desire2Learn as a guide.
5. Identify the major factors influencing Riley’s cash flow. Use the cash flow statements along with the common sized income statements and ratios.
6. What is the length of Riley’s cash conversion cycle? How long does it take for Riley to go from spending cash to receiving it? Why?
7. What are the implications of Riley’s cash flow for the financing needs of the firm.
Panera Bread Co.
1. Use Excel to compile Indirect Statement of Cash Flows, Common-Size Income Statement and Financial Ratios for each year.
2. How do you assess the strength of Panera’s marketing?
3. What have been the key drivers for Panera’s cash flow from operations?
4. Is this company liquid?
5. Is this an asset intensive business? Why or why not?
6. Is the leverage risk high?
7. What is the source of Panera’s profitability? Is it good?
California Choppers
Ignore exhibits 1, 2 and 5 in the case. Use the set of ratios and the definitions for those ratios that we have discussed in class. Any data needed for industry comparisons must be generated by you.
1. Do the standard set of analytics: common-size income statements, indirect statements of cash flows, and financial ratios for all years.
2. What was California Choppers condition in 2000? How has it changed over the six year period?
3. Have all of the company’s initiatives been successful?
4. How would you evaluate the human resource aspects of the company?
Wiegandt GmbH Cologne
1. Although the case is titled Wiegandt, it is really about two other companies. Your analysis should be about Haefren Baum. Confine your