Calculate the proportion
of cash and marketable
investments as a
proportion of total assets
2. What do these companies state as a reason for this level of cash+investments?
ABT=the increase in cash generated by operating acti
Case analysis 30
6. Why has this slow buildup in accounts receivable occurred? Could it have been avoided? How? Please
This slow build up has occurred because the firm has not had any formal credit policy in
place. All sales were being made on fa
3. What is meant by the pure play approach to estimating the required return on an investment?
Pure play is when a company just focuses on a single line of business. When a company has many
divisions of business within its company, and they are trying to
1. Jack Brown realizes that the first thing he must do is compare the liquidity, leverage,
activity, and profitability ratios of the two companies. Using the income statement and
balance sheet data shown in Tables 1 4, prepare a detailed comparison report
1. Prepare a Pro Forma Statement showing the annual cash flows resulting from the Lazy Mower project.
Problem: Andres company has grown over the past five years, growth prospects have been
good, but there are no more funds available, and the suppliers could be a concern if they find out.
Andre needs outside financing to help with funds.
1. How does Quickf
Group #1 Case 2 Analysis
Question 1: How does Quickfixs average compound growth rate in sales compare
with its earnings growth rate over the past five years?
The average compound growth rate in sales over the past five years is increasing, and the
Case analysis 28
1. Even though sales have been increasing, why is Integrated Electronics in such a cash flow
They are in a crunch because the cash inflow and the cash outflow are not well balanced. The
highest sales more towards the end of the ye
2. Comment on Lisas preference of the Corporate Value Model. Based on her approach,
what would Citrus Glows selling price per share be if they were to issue 30 million
The Corporate Value Model that Lisa chose to use would be suited for them in th
Case analysis 27
7. Is Matt correct in stating that the main culprit is the firms production policy? Besides changing the
production levels per month, are there any other things that the firm can realistically do to boost
earnings per share?
Matt is right