The analysis of the income statement shows the warehouse and inventory carrying

The analysis of the income statement shows the

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). The analysis of the income statement shows the warehouse and inventory carrying cost. The logistics manager should not overlook the numbers because they have an impact on the business decisions. Comparing the 2016 and 2017 shows that seven warehouses performed worse in 2017 compared to 2016 hence a decline in performance in 2017. The table below is a summary of the statistics. 2016 2017 5 Months through May 31 5 Months through May 31 Cost Per Unit 5 Months through May 31 5 Months through May 31 Cost Per Unit Difference
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4 CASE STUDY 4,080 35,890 $8.80 4,035 40,228 $9.97 $ (1.17) 3,061 27,915 $9.12 3,119 29,416 $9.43 $ (0.31) 14,621 131,618 $9.00 15,230 141,222 $9.27 $ (0.27) 1,005 8,600 $8.56 1,421 14,900 $10.49 $ (1.93) 980 8,883 $9.06 804 9,605 $11.95 $ (2.88) 11,431 109,690 $9.60 9,444 93,280 $9.88 $ (0.28) 4,028 36,021 $8.94 4,600 42,616 $9.26 $ (0.32) 2,331 23,232 $9.97 2,116 19,191 $9.07 $ 0.90 A Forecast of Expenditure Based on the numbers provided at Brant Company, the 2017 fiscal year is halfway to completion. The 2016 percentage shall be divided by the 2017 actual five months for the cost so that we come up with the projected cost for 2017. We shall then subtract the 2017 total projected from the first five months to find the remaining six months. 2016 Percentage 2017 actual 5 month Projected 2017 cost Remaining 6 Months Atlanta 23% 40,228 175,822 $135,594 Boston 44% 29,416 66,855 $37,439 Chicago 53% 141,222 266,457 $125,235 Denver 35% 14,900 42,571 $27,671 Fargo 54% 9,605 17,787 $8,182 Los Angeles 72% 93,280 129,197 $35,917 Portland 49% 42,616 86,442 $43,826 St. Louis 45% 19,191 42,837 $23,646 ROA is the percentage of the dollar amount invested and the profit thereof. To increase ROA, Brant Freezer should reduce the total cost of assets by reducing the level of inventory for every warehouse ( Pur, Jacova & Horak, 2015 ) . Also, the company can increase its revenue while lowering the assets. Reducing the expenses automatically increases revenue hence ROA. The following is the ROA calculation for the company. Net Profit ROA
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5 CASE STUDY Total Assets 580,283 17% 3,454,975 References Pur, D., Jacova, H., & Horak, J. (2015). An evaluation of selected assets and their impact on the declarative characteristic of ratio indicators in financial analyses. E+M Ekonomie A Management , (4), 132. doi:10.15240/tul/001/2015-4-010
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