Tire City Incorporated Tire City‚ Inc. is a rapidly growing retail distributor of automotive tires. Although they have 10 shops located throughout the Northeast region‚ the bulk of TCI’s inventory is managed at a central warehouse. During the last three years‚ sales have been growing at a compound annual rate in excess of 20%. With such a great reflection of their excellent service and customer satisfaction in their net income‚ TCI’s central warehouse is “bulging at the seams”. TCI has decided
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Tire City‚ Inc. (TCI) is a rising distributor of automotive tires in northeastern United States. Their distribution centers arelocated throughout eastern Massachusetts. Their tires are sold as on-demand bases with chain of 10 shops located all throughout eastern Massachusetts with a central warehouse outside Massachusetts. Due to this proximity of warehouse‚ TCI stores enjoyed just-in-time delivery with only 24 hours of lag time. Tire City‚ Inc. sales have grown at compounded annual rate in excess
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Tire City‚ Inc. Analysis As a lender‚ I would have no problem giving a loan to Tire City‚ Inc to help finance their growth for the following reasons. The first thing that is apparent is the annual revenue growth. It is expected to steadily increase by 5% in the coming years. This means that Tire City has strong operating cash flows to fund its day-to-day operations. Additionally‚ Tire City‚ Inc has improved in total asset turnover over the years‚ suggesting that they are indeed growing their
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Current Financial Health of Tire City Inc. Tire City‚ Inc. has been generating a stable profit during the period of 1993-1995. Sales income increased on average of 20% every year. Consistent profit margin of 5% and ROA of 12-13% have also contributed to the strong profitability of the company for the past three years. Along with the company’s growth in profitability‚ fixed asset turnover increased from 8.56 in 1993 to 8.93 in 1994‚ and to 9.65 in 1995‚ which facilitated the company to improve
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Tire City Case 1993 1994 1995 Notes-96 Multipli er 1996 Notes-97 Multipli er 1997 INCOME STATEMENT Net Sales Cost of Sales Gross Profit 16230 9430 6800 20355 11898 8457 staff projected 20% 23505 incr 58.1% 93‚ 58.5% 94‚ 13612 57.9% 95 9893 maintain same relationship to sales; 32% 93‚ 31.2% 94‚ 7471 31.8% 95 but "no depreciation on new expansion in 96 and expense on other assets should 213 remain the same % of S/T (Maturities of L/T) & L/T debt; 10.5% 93‚ 10.6% 94‚ 10.4% 94 95 2115 Rate (% of
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Backg Introduction Tire City‚ Inc is a growing distributor of tires in the Northeastern part of the United States. Tire City‚ Inc is positioned in eastern Massachusetts‚ southern New Hampshire and northern Connecticut. Tire City‚ Inc distributes its product through a chain of 10 stores and a central warehouse outside Worcester‚ Massachusetts. In the past three years‚ Tire City has grown at an annual compound rate of 20% which was attributed to its excellent reputation for service and
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Apple Inc. Kenya Jordan‚ Ashley Kirschmann‚ Etta Stewart‚ Leah Monego‚ Rodrigo Ramos ACC/280 March 27‚ 2011 Glenn Purcell Executive Summary for Apple‚ Inc. Company History Apple Inc. is a corporation that designs and manufactures computer hardware‚ software and other consumer electronic products. The company is known for the Macintosh personal computers‚ iTunes media applications and the iPod personal music players. Apple was founded in April 1976 by Steven Wozniak
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| Goodweek Tires‚ Inc. | A Case Study | | | | | Table of Contents: * Case Overview * Project Information * Capital Budgeting Analytical Measures * Forecasted Sales Numbers * Depreciation Schedule * Investment Cash Flows * Recommendation & Conclusion GOODWEEK TIRES INC. Case Overview Goodweek Tires‚ Inc. recently developed a new tire‚ SuperTread. This tire was meant to be ideal for drivers who do a lot of wet weather‚ off-roading‚ and normal freeway driving
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Joyable Inc. has raised over $8 million in Series. A venture funding to give people diagnosed with mental health issues such as social anxiety a new therapeutic option. San Francisco Company’s app gives users a series of interactive cognitive behavior therapy exercises. They can complete when they have time. This exercise can help them overcome social anxiety. There are many outcomes in doing this exercise‚ for example: going on a date or even speaking up at work. Going to see a therapist in person
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Executive Summary Tire City‚ Inc. has petitioned MidBank for a loan in order to expand their business‚ and build a new warehouse. Through the financial statement reporting and the numbers that have been presented to me‚ I believe that this is a sound investment. The growth percentage of 20 percent per year is conceivable‚ if business stays as it currently is. The amount of debt that would need to be financed for this expansion is palatable‚ and well within the normal ranges for these sort of projects
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