Walker and Company

Instructions Required: Question #1What emphasis should Walker & Co. place on the children’s book line over the long term and why? | Question #2Assume that Ramsay is committed to publishing 9 new titles in the picture format, but the target number of titles for each of the other four formats (within the children’s book line) must still be set. What targets should be set for new titles for each of the remaining formats within the children’s book line in 1998 and why? | Question #3Complete Ramsay Walker’s profit plan for the children’s book line (Income Statement section of Exhibit 5 only). What are your working assumptions (limit to 3)? Which of these assumptions are critical to your analysis? Use the attached Excel spreadsheet which contains Exhibits 2,3,4, and 5. | Question #4Review the list of financial performance measures. What 3 measures or calculations could Ramsay use to manage the business and why? | Question #5Based on your analysis, prepare an agenda of the top three action items that Ramsay should discuss with George and Ted during their upcoming meeting? | Case Study: Walker and Company: Profit Plan Decisions Ramsey Walker faced important decisions in May 1997 as he walked to his meeting with George and Ted. From what he had learned at business school, he realized that the company should publish fewer titles in fewer segments. Fewer new titles would allow the company to lower its overhead expenses and improve margins. It would also allow the company to publish faster selling books, manage inventory better, and lower the asset base. He believed that the business would benefit by focusing more resources on making Walker and Company books stand out in the marketplace. Walker and Company was a medium sized book publisher that employed 31 people and 45 commissioned sales representatives. Founded in 1959 by