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Unformatted text preview: 0% of the total sales by the third year. 2.0 Company Summary
AMT is a computer reseller based in the Uptown area. It was founded as a consulting-oriented VAR,
became a reseller to ﬁll the market need for personal computers, and is emphasizing service and
support to differentiate itself from more price-oriented national chains.
2.1 Company Ownership
AMT is a privately-held C corporation owned in majority by its founder and president, Ralph Jones.
There are six part owners, including four investors and two past employees. The largest of these
(in percent of ownership) are Frank Dudley, our attorney, and Paul Karots, our public relations
consultant. Neither owns more than 15%, but both are active participants in management decisions.
2.2 Company History
AMT has been caught in the vise grip of margin squeezes that have affected computer resellers
worldwide. Although the chart titled Past Performance shows that we have had healthy growth in
sales, it also shows declining gross margin and declining proﬁts. The more detailed numbers in the
following table include other indicators of some concern:
The gross margin % has been declining steadily, as we see in the chart. Inventory turnover is getting
steadily worse. All of these concerns are part of the general trend affecting computer resellers. The
margin squeeze is happening throughout the computer industry worldwide. Page 2 SAMPLE PLAN: AMT, INC. SP2.5 Past Performance
Gross % (calculated)
Collection period (days)
Inventory turnover Prior Year
7 Balance Sheet
Other Short-term Assets
Total Short-term Assets
Total Long-term Assets
Total Assets Previous Year
6 Last Year
$1,026,551 Capital and Liabilit...
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This note was uploaded on 01/26/2014 for the course BUINESS 102 taught by Professor Unknown during the Winter '09 term at University of Phoenix.
- Winter '09