Lesson 2 Assignment 2

Lesson 2 Assignment 2 - the cost of goods sold for the...

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Ashley B. Hilliard 258-10-0169 June 1, 2011 MG 615 Lesson#2, Assignment 2 Dirt Bikes, Part II Dirt Bikes USA sells 4 types of motorcycle: the Enduro 250, the Enduro 550, the Moto 300 and the Moto 450. From the year 2001 through the year 2005, the best overall performer in sales has been the Enduro 550, with total sales of $17.6 million for the five year period. The worst performer over the same period has been the Moto 450, with just $3.3 million in sales. For the five year period, the percentage of international to domestic sales is 8.9%. International sales were growing, relative to domestic sales. They saw the peak in 2003 at 9.9% and have been trending downward since that point. They are currently at their lowest point over the entire reporting period, at 8.2%. Sales revenues for Dirt Bikes USA are not growing steadily. The sales growth peaked in 2004 and declined by about 4.9% in 2005. The decline in international sales in that period was about 14.3% and the decline in domestic sales was about 4 %. The sales revenue is larger than
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Unformatted text preview: the cost of goods sold for the years 2003-2005, but by a shrinking amount each year. The company’s gross and net margins are both shrinking over this time period. The operating expenses are increasing over the period. The percentage of total assets to total liabilities lies within a 2 percent range for the period, from 54.53% - 56.16%, and the ratio of long term debt to total assets is fairly steady in the range of 6.66 – 6.70, so the company couldn’t be said to be heavily in debt. The amount of total assets would make it appear that the company can pay expenses and finance development of new products and information systems, but if you consider these activities as needing cash, the picture might not be as good. For 2005 total current assets minus inventory equals $20.07 million and total current liabilities for that year are $19.8 million, which is a pretty tight margin when it comes to developing new products and paying for information systems....
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This note was uploaded on 08/02/2011 for the course MIS 615 taught by Professor D.babbs during the Spring '11 term at Andrew Jackson.

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