DATE: October 27‚ 2014 SUBJECT: New Heritage Doll Company The New Heritage Doll Company is a growing company within the U.S. toy and game industry‚ with two proposals to strengthen future growth‚ but only the resources to dedicate themselves to one according to the capital budgeting committee. Match My Doll Clothing line has lower initial costs‚ but projects lower operating profit. Design Your Own Doll‚ on the other hand‚ has double the initials costs‚ but shows much higher revenues along with
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New Heritage Doll Company 1. Describe and compare the business rationales for each of the two project proposals under consideration. Which do you feel is the more compelling? Project 1: Match My Doll Clothing Line Expansion Expand the successful Match My Doll Clothing Line to include matching all-season clothing for tween girls and their dolls. Pros: Current popularity will enable company to maintain premium prices. Company could take advantage of off-peak discounts offered by some suppliers
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Where do you work and what kind of impact does your job or business has on you? For me‚ I previously owned a pawn shop in Albany. In this frenzied business there is someone always trying to sell you something. You have to work quickly and efficiently‚ because the environment is very fast paced. You need a few employees to maintain the flow of traffic coming into your business. You have to log down every transaction with each customer you do business with‚ This in itself takes up a big part
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New Heritage Doll New Heritage Doll Company: Capital Budgeting MGT 6060 20 September 2011 Overview Two business proposals from the Production division of the New Heritage Doll Company are being considered for submission to the capital budgeting committee. Only one proposal will be submitted. The proposals are: Match My Doll Clothing Line Expansion and Design Your Own Doll. A systematic process will be used to determine which proposal to recommend. Criteria Include: 1. Comparison of the
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New Heritage Doll Case Analysis 3/29/2013 Introduction Emily Harris is the Vice president of New Heritage Doll Company’s production division. In mid-September of 2010 she was trying to decide on project proposals for the company’s capital budget meeting in October. Of the proposals presented to her‚ two of them stood out based on their innovation and ability to strengthen the division’s product lines. The first project‚ Match My Doll Clothing Line Expansion (MMDC)‚ would extend the
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Exhibit 1 Selected Operating Projections for Match My Doll Clothing Line Expansion 2010 Revenue Revenue Growth Production Costs Fixed Production Expense (excl depreciation) Variable Production Costs Depreciation Total Production Costs Selling‚ General & Administrative Total Operating Expenses Operating Profit 2011 4‚500.00 2012 6‚860.00 52.44% 0.00 1‚250.00 575.00 2‚035.00 152.20 2‚762.20 1‚155.00 575.00 3‚403.80
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New Heritage Doll 1. Compute the Free Cash Flows for the years 2010 to 2020 for both projects See excel File attached. Assumptions: * We assumed the required working capital in table 2 and 3 is the amount required in 2010‚ for further years we computed the WCR based on the ratio’s of minimum cash balance‚ number of days sales outstanding‚ inventory turnover and days payable outstanding (deducting the depreciation as instructed) * We assumed the SG&A and fixed production costs were project specific
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New Heritage Doll Company: Capital Budgeting In mid-September of 2010/ Emily Harris‚ vice president of New Heritage Doll Company’s production division‚ was weighing project proposals for the company’s upcoming capital budgeting meetings in October. Two proposals stood out based on their potential to strengthen the division’s innovative product lines and drive future growth. However‚ due to constraints on financial and managerial resources‚ Harris knew it was possible that the firm’s capital budgeting
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Does it make sense for Apex to attain full compliance with SOX? And why or why not? I agree with Apex to attain full compliance with SOX. As you know about Apex is private company and will be seeking for new external funding to expansion into a new segment of the printing sector therefore‚ the new investors are needed for them because they have to access capital market to raise money for the expansion to a lot invest in equipment as well as substract inventory and adding more promotional costs
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Index Executive summery………………………………………………………………………………………….…1 Introduction……………………………………………………………………………………………………….2 Case analysis Match My Doll Clothing……………………………..……………………….……….….………….2 Design Your Own Doll………………………………………………………………………………..3 Comparison……….…………………………………………………………………………..….………4 Additional Questions………………….………………………………………………………………………5 Recommendations……………………………………………………………………………………………..5 Appendix Appendix 1: calculation formulas‚ definitions and assumptions………………
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