Running head: MINI CASE - CHAPTER 3 Mini Case - Chapter 3 Computron Industries – Jamison Analysis Mini Case - Chapter 3 Computron Industries‚ a manufacturer of electronic calculators‚ has been going through some growth over the course of the 2007 and 2008 years. Some components of this growth include new sales offices‚ additional plant capacity and a costly advertising campaign. However‚ execution of this growth is subpar‚ and has led to suppliers and lenders being paid late‚ bank complaints
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Case Overview Thomas Zimmermann‚ manager of the European Sales Division from Computron‚ has to give a reasonable bid to win the contract of 1000X digital computers to Konig & Cie AG (Germany)‚ which is the largest chemical company and comprises of 80% business for Computron in Germany in 2005-2006. Because there are conflicts between the company pricing policy and the bid requirements due to tough competition‚ we will explain in the following the strategic positioning that Thomas Zimmermann needs
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COMPUTRON INC. CASE I. Problem Identification: What bid price should Computron Inc. set‚ so that the Computron can achieve management’s profits target‚ match the customer’s requirement and be competitive with respect to the competitors? II. Alternatives: 1) Bid Price: $ 746‚880.00 within 20% offered by Digitex pricing of $ 622‚400. - Will sell less than factory cost of $ 768‚000‚ hence no profit and reduces cash flow required for future investments. - Computron will lose premium quality
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Executive summary The Computron‚ Inc. is facing problems regarding pricing the bid for Computron 1000X‚ future functioning of Frankfurt plant‚ impact on production due to current market breakdown. The main concern about Computron is that if the bid of 1000X should not higher than 20% of least bid to get the contract. It is strongly recommended to get the bid for functioning of new plant. Various issues regarding cutting down prices‚ bidding high or low and its pros-cons‚ current market situation
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0.8 0.5 0.9 1.0 Compared the current and quick ratios from 2009 to 2011 with the industry average‚ it can be easily indicated Computron has a weak liquidity position‚ especially in 2010. In 2011 it was improved and very close to industry average. We often think of ratios as being useful (1) to managers to help run the business‚ (2) to bankers for credit analysis and (3) to stock-holders
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Mini Case Chapter 3 A. Ratios are used to standardize numbers‚ facilitate comparisons‚ and highlight both weaknesses and strengths. In addition‚ ratios are important profit tools in financial analysis that help financial managers implement plans that improve profitability‚ liquidity‚ financial structure‚ reordering‚ leverage‚ and interest coverage. Managers use ratios to help them effectively run the business. Creditors use ratios for risk analysis. Equity investors use the ratios for
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CHAPTER 2 Integrative Problem Donna Jamison was recently hired as a financial analyst by Computron Industries‚ a manufacturer of electronic components. Her first task was to conduct a financial analysis of the firm covering the last two years. To begin‚ she gathered the following financial statements and other data. Balance Sheets 2010 2009 Assets Cash $ 52‚000 $ 57‚600 Accounts receivable 402‚000 351‚200 Inventories 836‚000 715‚200 Total current assets $1‚290‚000 $1
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Juan Ibarra 2/13/07 Professor Anu Vuorikoski Bus 173A - Intermediate Financial Management Chapter 8: mini case a. Why are ratios useful? What are the five major categories of ratios? Ratios are useful to evaluate a firm’s financial statements and one can also compare their performance with other firms‚ or the industry average. The five major categories for ratios are as follow: i. Liquidity Ratios: measures the liquidity of the firm’s current
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Chapter 7 Accounting for Financial Management ANSWERS TO BEGINNING-OF-CHAPTER QUESTIONS 7-1 The balance sheet shows the assets‚ along with the sources of funds used to acquire the assets‚ at a point in time‚ say 12/31/07. The income statement shows the sales and profits that were produced during an interval of time‚ say the year 2007. An individual would have assets‚ and a net worth‚ and a balance sheet would detail these holdings. The individual would also have income and expenses‚
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CHAPTER 2 Financial Statements‚ Cash Flow‚ and Taxes E ven in today’s era of financial crises‚ $14.6 billion is a lot of money. This is the amount of cash flow that Hewlett-Packard’s (HP) operations generated in 2008‚ up from $9.6 billion in 2007‚ despite the recession. The ability to generate cash flow is the lifeblood of a company and the basis for its fundamental value. How did HP use this cash flow? HP invested for the future by making over $11 billion in acquisitions. Other
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