# JET2 Financial Analysis Task 5 Part II WGU

Powerful Essays
4017 Words
Grammar
Plagiarism
Writing
Score
JET2 Financial Analysis Task 5 Part II WGU
Custom Snowboards Inc.
Managing Capital & Financial Assets
05/10/2014
WGU JET2 Financial Analysis
Task 5, Part II - PASSED To: Chief Executive Officer (CEO) of Custom Snowboards Inc.
Subject: Report of historical data and recommendation on how to proceed with expansion plans to Europe.

European Expansion Historical Analysis

To make a decision about expansion to Europe, we must first analyze past performance as an indicator about future performance. A historical analysis was completed on the company’s past balance sheets.

Custom Snowboards Inc. has had increased net sales in the past three years. Net sales went up .23% in year 13 and .93% in year 14. Cost of goods sold (consisting of direct material, labor, and overhead) and in relation Gross Profit, also increased by the same percentages. Using the historical data, we use the trend analysis to determine what sales will be like in future years. The company’s trend analysis shows this increase in net sales and gross profit will continue well into year 17. Using base year 12, historical data shows an increase to 100.2% in year 13 and another .7% increase to 100.9% in year 14. Then to further review the upcoming year’s predictions, Custom Snowboards uses year 14 as the base year at \$6,955,200. Year 15 increases to \$7,163,856, a 3% increase. Year 16 slows slightly to \$7,094,304, down a percent from year 15 but still an increase of 2% from the base year. Year 17 shows net sales at 103.7% of the base year 14 earnings. This indicates the company has worthy cost control in revenue.

When reviewing European sales forecast for years 15-19, we see the same trend as with Custom Snowboards Inc. trend analysis. European net sales will increase from \$1,391,040 to \$2,423,748, or 74% during the 4 years. Using year 15 as the base year, in year 16, net sales are predicted to be 120%, 144% in year 17, 158% in year 18, and 174% in year 19.

Operating Expenses. The selling expenses that include

## You May Also Find These Documents Helpful

• Good Essays

As previously mentioned, this medical center is a vital contributor to its surrounding area. As such a large corporation, this medical facility has a wealth of waste produced to maintain current operations. This facility also utilizes a lot of finite resources in its daily operations such as power, and water. Although this company does consider its carbon footprint on society, current procedures demonstrate that this is low on the agenda. Many improvements are possible within this medical center. Some of these include, increased recycling, reduction of pollution, and increased energy efficiency.…

• 1918 Words
• 6 Pages
Good Essays
• Good Essays

3. Instead of sales of 10,000 pair of skis, revised estimates show sales volume at 12,500 pair. At this new volume, additional equipment, at an annual rental of \$10,000 must be…

• 535 Words
• 3 Pages
Good Essays
• Good Essays

Custom Snowboard, Inc. showed a small decrease of 3.40% in net sales from Year 13 to Year 14. This slight reduction can be attributed to the decline in the current economic situation. Even though sales have dropped, anticipated sales for years 15, 16, and 17 are expected to recover at a slight incline of 2 – 3.7% per year. Operating Expenses were reduced from \$782,800 for Year 13 to \$756, 200 for Year 14. This was in…

• 4785 Words
• 20 Pages
Good Essays
• Good Essays

The vertical analysis indicated similar strengths and weaknesses as the horizontal analysis. The weaknesses indicated are that the earnings before taxes decreased from 4.4% down to 0.9%. This is a significant drop and investors could definitely be concerned especially when combined with looking at the decreases in sales in profits from the horizontal…

• 2299 Words
• 10 Pages
Good Essays
• Good Essays

The purpose of this analysis is to determine whether or not the approval of sports betting would help Central increase gambling revenue. I will conduct this analysis by building a Decision Support (DSS) model that forecasts the proposed sports betting program’s financial situation for the next 10 years. This model will be used to provide proper reasoning for the approval or disapproval of the sports betting proposal; also I will use this model to support and explain my recommendation on the matter of sports betting.…

• 823 Words
• 4 Pages
Good Essays
• Good Essays

There are a few areas of concern when looking over Competition Bike’s budget for the upcoming year (Year 9). This budget estimates that 3,510 units will be sold. CB has just experienced a 15 % decline in sales, due to the economic situation. In year 8, CB sold 3,400 units. This flexible budget is allowing 110 more units be added into the mix. Although sales trends have remained consistent, despite the decline in sales from professional riders, it might be wise to not aim as high to make sure the recovery actually does occur. The sales forecast predicts that CB will recover over the next 3 years. CB estimates over \$100,000 more in cash and cash equivalents for year 9. This is, of course due to the increase in unit sales that is worked into the budget. It might be a better idea to underestimate rather than overestimate when it comes to cash on hand.…

• 1895 Words
• 8 Pages
Good Essays
• Powerful Essays

- Whether the growth and expansion strategy of the company in the international markets would be successful.…

• 4608 Words
• 19 Pages
Powerful Essays
• Powerful Essays

 Step (2): Corporate Financial System (IMPORTANT CONCEPT) Understand the corporate financial system, including the main players and…

• 1444 Words
• 6 Pages
Powerful Essays
• Powerful Essays

Evaluation Results Author: Fernando Alex Tambue Guiffo Evaluated by: Articulation Evaluation 10 (evaluator's name is not visible to author) Date Evaluated: 08/07/2015 05:38:46 PM (MDT) DRF template: Financial Analysis (GR, JET2­0513) Program: Financial Analysis (GR, JET2­0513)…

• 3265 Words
• 21 Pages
Powerful Essays
• Satisfactory Essays

We have decided to open a production plant in Europe to serve the market because of the high cost of transporting the products from our US plant. This report provides an evaluation of the attractiveness of moving our manufacturing operations to Spain.…

• 701 Words
• 3 Pages
Satisfactory Essays
• Satisfactory Essays

Robert Neal Chapter 2 & 3 Problems and Case Studies GM506: Strategic Financial Analysis Professor Zhenhu Jin Kaplan University September 30, 2014 Alleg, Inc. Balance Sheet December 31, 2012 Assets Current Assets: Cash \$13,000 Marketable Securities \$17,000 Accounts receivable \$26,000 Inventories \$30,000 Total Current Assets \$86,000 Plant and Equipment: Land and buildings \$57,000 Machinery and equipment \$125,000 Less: Accumulated depreciation \$182,000 Machinery and equipment 61,000 \$121,000 Intangibles: Goodwill \$8,000 Patents \$10,000 Liabilities & Stockholders Equity Current liabilities: Accounts Payable \$15,000 Current Maturities of long-term debt \$11,000 Total Current Liabilities \$26,000 Long-term liabilities: Mortgage Payable…

• 417 Words
• 4 Pages
Satisfactory Essays
• Satisfactory Essays

Access the SEC Web site: http://www.sec.gov/ . Write a one-page summary explaining the items that a financial analyst might find useful at this Web site.…

• 287 Words
• 2 Pages
Satisfactory Essays
• Satisfactory Essays

(iii) Analyze and discuss specific problems to associate with changes in accounting policies, and changes in accounting estimates and errors.…

• 314 Words
• 2 Pages
Satisfactory Essays
• Best Essays

This report is being produced to analyse the profitability and stability of Biddenden Vineyard using cash flows, NPV, BEP and various other methods to view the potential for investment. This report will also highlight the prospects of the company and make recommendations that would improve Biddenden Vineyard.…

• 806 Words
• 4 Pages
Best Essays
• Good Essays

Submit copies of the financial statements you’ve used, with the numbers you used in the ratios HIGHLIGHTED. Part of the assignment is choosing the right numbers with which to work.…

• 642 Words
• 2 Pages
Good Essays