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When evaluating any investment in a firm what is the key goal that you want to examine

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1. When evaluating any investment in a firm what is the key goal that you want to examine and;assess?;(10);2. Mayport Industries is a well-respected and high growth firm in the communications equipment;manufacturing industry. This is, and is expected to continue to be, a very strong growth industry.;Mayport is also well known for its highly efficient production & marketing operations. Over the;next 12 18 months, what would you expect Mayports needs and issues to be?;(10);3. After years of dominance by domestic firms in your industry, there are increasing signals of a;competitive shift. Notably, there is an increasing incursion of Southeast Asia firms, and they are;producing both a high caliber and lower cost product line. What are the implications for your firm;and its management AND what do you recommend the firm do?;(10);4. Elmer Corp. has approached your firm for a loan. They are pursuing a 5 yr loan intended to;support the expansion of their operations. Elmer Corp. is a very well established and a very;highly regarded firm in its industry. But it is a brand new customer for your firm and you have little;understanding of their business. Before preparing a full analysis, what key information do you;need to obtain & understand?;(5);5. What is the most important cash flow measure of any business? Why?;(10);6. You have been asked to provide business advice to a firm that is in a highly competitive but;mature industry environment. Despite their highly efficient operations and relatively tight cash;position, they very much want to boost their sales. They believe the best way to accomplish this is;to extend the required customer payment periods and are ready to pursue this course of action.;For your review: assess and evaluate this plan and its implications for the firm.;(10);7. Your firm has been asked to invest in a new, early stage firm. The firm is in a brand new industry;and, although the firm is still in its early stages, it believes it has a very promising new product.;Other new firms are also in this industry and also have their own new products. At this stage, long;term demand for products in this industry are expected to be strong.;You have been asked to evaluate this situation for your firm before they make any investment.;What are your recommendations and why?;(10);8. Corey & Jones Corp. is a well-established firm with a long term history of moderate but positive;performance. The firm produces high precision valves and has a very strong reputation with its;customers, who incorporate the valves into their products. Notably their regional marketing has;been very solid and reflects both their quality and their well-developed marketing and sales;relationships. Very importantly, repeat customers dominate the firms sales. However, the firm is;also in a highly competitive regional market, where competition is fierce, and annual sales have;stabilized at a relatively flat $5 million per year.;The Firm recognizes its need to expand and grow sales in order to further develop and sustain its;business. They realize that to accomplish this they must expand their customer base beyond the;current regional market. They also believe they have sufficient production capacity to support a;50% sales increase before any need to add new equipment.;You have been asked to review the firm, assess their plan, and provide recommendations for an;effective strategy to support the expansion.;(10);9. Sara Corp. is a well-established industrial component firm. Reflecting its history, the firm produces;to order and has a low fixed cost & high variable cost operational structure. The Firm now wishes;to move forward and pursue a very high growth strategy. You have been asked to review the firm;from a production perspective and then provide recommendations and guidance to its;management.;Question #10 involves the evaluation of Johnson Controls. Attached are copies of their Income;Statements & Balance Sheets that are to be used in your evaluations.;(10);10. Measure and assess the Cash Conversion Cycle for 2011 and 2012. What are the cycles;dynamics in 2011, 2012? What are the firms short-term needs? What are the longer term;considerations?;Johnson Controls;Income Statement;Balance Sheet;2011;1,200,000;795,000;405,000;2012;1,300,000;860,000;440,000;129,986;47,511;125,219;49,346;Total Curr Assets;Total Oper Expenses;177,497;174,565;Gross FA;Less Accum Deprec;EBIT;227,503;265,435;19,352;17,204;208,151;248,231;83,260;99,292;EAT;124,891;148,939;EACS;124,891;148,939;Sales;CGS;Gross Profit;Mktg, G&A;Depreciation;Interest Expense;EBT;Income tax;Common Dividends;55,000;2011;Net Fixed Assets;70,000;135,000;145,000;295,000;-;2012;75,000;110,000;110,000;Assets;Cash;A/R;Inventory;350,000;795,000 811,098;(395,000) (434,000);400,000;377,098;695,000;727,098;70,000;21,000;42,000;72,000;18,159;36,000;133,000;126,159;275,000;220,000;408,000;346,159;Common Stock;Ret Earnings;Total Equity;48,000;239,000;287,000;48,000;332,939;380,939;Total Liab & Equity;695,000;727,098;Total Assets;A/P;Notes Payable;Accruals;Total Curr Liab;LTD;Total Liabilities

 

Paper#26945 | Written in 18-Jul-2015

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