...Financial Analysis First in this report, our team has prepared a detailed analysis of CanGo’s current financial condition, which included Income Statement and Balance Sheet reorganization and complete analysis of the company’s Financial Ratios. Next, we analyzed the impact of the anticipated 500% increase in Revenues on the company’s Income Statement. Lastly our team has prepared a detailed Cost Benefit Analysis, which includes our proposals to ultimately increase CanGo’s Cash Flow and Revenues, decrease Expenses and eventually increase the company’s Return on Equity by 8.17% and Net Income by $6,027,657. Balanced sheet and Income Statement reorganization: Simply the Best Consulting recommend reorganizing the current balance sheet for better read and faster analysis by adding rows for Current Assets, Fixed Assets, Current Liabilities, and Fixed Liabilities. We also suggest keeping the assets to the left side of the sheet and moving the Liabilities and Capital to the right. Implementing the above changes will make the company’s balanced sheet easier to read and analyze. With regards to the income statement, we recommend CanGo to make an additional line statement to reflect the total divisional revenues for the various departments and differentiate between the amounts of returns for each department. This will allow the company to analyze the departments better in terms of their sales and returns. The followings are the reorganized balanced sheet and income statement...
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...Go to the CanGo intranet found in the Report Guide tab under Course Home Use the financial statements from the most recent year to fill in the table below. You may find some formulae calling for an average, e.g., average inventory, average receivables. Because we only have the Balance sheet for one year, you can only use the one year number not an average. Assume interest expense is $0.00 Be sure to cite your references Ratio Formula (express the ratio in words) Detailed calculation (actual numbers from financial statements used for the calculation) Final number (final result of the detailed calculation) Explanation of why ratio is important Example: Term A/Term B (Term A divided by Term B) 1000/2000 .50 This is the explanation of the role of this ratio and why it is important Efficiency Ratio: Receivables Turnover Net Sales/Acct Receivable* 50,000,000/ 32,120,000 1.56 Measures how effective the company's credit policies are. A low ratio could be difficulty collecting or the company is too generous granting credit. The higher the ratio the better. Efficiency Ratio: Inventory Turnover Net Sales/ Total Inventory 9,000,000/ 32,000,000 0.28 Measure how efficiently the company is able to move its merchandise. Review of Industry norms and ratios to compare this company with others in the industry. Financial Leverage Ratio: Debt/Equity Ratio Total Liabilities/ Shareholder's Equity*** 94,900,000/ 141,000,000 67.30%...
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...Although CanGo is very successful in their market they have experienced some financial strains due to some of their financial decision making. In 2009 CanGo purchased an online gaming company paid partially with proceeds from IPO or initial public offering. The investment itself can be risky because at times it’s difficult to predict what the stock will do in its initial day of trading and in the near future, in addition most IPO’s are of companies going through a transitory growth period which are subject to additional uncertainty regarding their future values. The purchase of the online gaming company wasn’t really an investment CanGo had to make since their only profitable division is the online book sales division. This additional investment can potentially cause a strain on CanGo’s overall profitability if the online gaming division doesn’t pay for its initial investment. After reviewing CanGo’s financial balance sheet from 2009, something that sticks out is CanGo’s efficiency ratio. The efficiency ratio is calculated by dividing the net sales by the average accounts receivable. The calculation of this ratio is important because it measures CanGo’s efficiency on collecting on credit and collection policies. With this ratio the lower the better because it shows the expenses are low whereas the income and earnings are high. When calculating CanGo’s efficiency ratio: $33,000,000/$50,000,000=.66 or 66%. Generally an efficiency ratio of 50% or less is good, however...
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...Financial Information Assumptions Balance Sheet Income Statement Assumptions: At the beginning of 2009, CanGo purchased the online gaming company. This purchase was for cash, paid for through the proceeds of the IPO and results in goodwill. 90% of the online book sales comes from JIT, the other 10% through the inventory which CanGo possesses. 100% of the CD/DVD/MP3 come through CanGo inventory. The result is that 80% of ALL sales is JIT and 20% is inventory. There is one warehouse for shipping of books and one plant for manufacturing. There are three divisions: a CD/DVD/MP3 division, an online gaming division and a books division. All manufacturing takes place in the CD/DVD/MP3 division. The IPO took place at the beginning of 2009. The CD/DVDs were customized beginning in 2008. The MP3 players were built beginning in the start of 2009. The online gaming company was purchased for $30,000,000 and both Elizabeth and Andrew initiated the process. The company began in 2006, has a VC infusion in 2007 and 2008. It showed a profit in 2008 and 2009. Its only profitable division is the online book sales division. It has some type of international operations, hence the need for a "translation gain or loss" in owner's equity. It has an extraordinary loss from fire and a sale of a segment of its business in 2009. Balance Sheet ASSETS December 31, 2009 Cash $20,900,000 Marketable Securities $117,000,000 Accounts Receivable $33,000...
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...Week 2 Team Project A meditation pool and platform I am going to oversee the design, permitting and construction process of a meditation pool and platform while maintaining an on schedule and within budget project. Team Members: Amy Boyd Project Manager Email address: amyboyd69@hotmail.com Gary Boyd Construction Coordinator Email address: garyboyd1@hotmail.com Denise Philhower Bookkeeper Email Address: mpurpleme78@hotmail.com Mary Boyd Government Liason/Permit Coordinator Email Address: Msboyd01@aol.com Think about what you love about being in the garden in terms of relaxing and offloading your stress. Take those memories and feelings and translate them into practical ideas of how you would like to see a meditation pool and platform aimed totally at relaxation and peace * Try to see this garden as an "outdoor room". It's a place where you'll go to relax, rest, and recline, so it will need to have features in it that you find comfortable, and comforting. PROJECT OBJECTIVE To construct a high-quality, meditation pool with a platform for a tranquil and relaxing place to visit within a budget of 65,000 . DELIVERABLES * A 320-square-foot meditation pool * A 3040 square ft. platform of brick pavers * With multiple 40 gallon planters scattered throughout the observation area with year round and seasonal foliage. MILESTONES * 1. Permits approved—July 15 * 2. Grading and site prep including compaction testing—July 20 weather permitting ...
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...Lewis Financial Analysis To ensure effective financial forecasting, an owner of a small business firm should have developed a complete set of projected financial statements. These projected financial statements, often times referred to as pro forma financial statements, assist in forecasting future levels of balance sheet accounts as well as profits and anticipated borrowing. Concurrently, projected financial statements become the small business owner's financial plan. (Vrouvas, 1999-2011) The significance of financial planning is that a firm's top leadership is afforded the ability to evaluate their company’s operating performance. Through evaluation and analysis of financial information, senior managers are able to determine how financials affect business decisions and corporate profitability. Additionally, external users of financial data, such as a lender, a customer or a supplier, are able to measure a company's financial healthiness by reviewing its operating data and informational assumptions used in preparing projected financial statements. The function of financial analysis is to provide a corporation's top leadership with information to examine financial statements for many purposes, such as its financial standing and company profitability based on annual reports. “Accurately and honestly communicating your company's strengths and weaknesses will help convince investors to throw their money behind your business.” (Vrouvas, 1999-2011) Having a financial analysis...
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... http://hwcampus.com/shop/busn-460-complete-class/ Week 1 DQ 1 Selling your team’s services to CanGo Week 1 DQ 2 Mission, Vision & Values Week 2 DQ 1 Planning a Technological Solution Week 2 DQ 2 Cost Benefit Analysis Week 3 DQ 1 Flow Charting Processes Week 3 DQ 2 Implementing Technology Week 4 DQ 1 Group vs Team Week 4 DQ 2 Matrixed Employee Environments Week 5 DQ 1 Performance Review Session Week 5 DQ 2 Status Reports Week 6 DQ 1 Corporate Decision Making Week 6 DQ 2 Weighing Decision Criteria Week 7 DQ 1 Corporate Ethics Tactics Week 7 DQ 2 Profit vs. Responsibility BUSN 460 Week 1 Team Name and Contract BUSN 460 Week 2 Analysis Report - Issues Report BUSN 460 Week 3 Individual Financial Analysis Report BUSN 460 Week 4 Analysis Report BUSN 460 Week 5 Analysis Report BUSN 460 Week 6 Analysis Report BUSN 460 Final Project Consulting CanGo Final Report BUSN 460 Senior Project Week 3 Individual Financial Analysis Report Individual Financial Analysis Report Conclude working on your Individual Financial Analysis Report, due this week. Note that this is not a team assignment. Be sure to include proper citations for all references you use. Go to the CanGo Intranet and pull the financial statements. Use these to fill out the table found in Doc Sharing labeled Financial Analysis Project, and submit to the Individual Financial Analysis Dropbox in Week 3 after making sure that you have added your last name at the beginning of the...
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...CANGO, INC ANALYSIS SENIOR PROJECT 2011 Final Report 10/16/2011 Christopher Planck Kesha Wilcoxson Ricci Cashwell Steven Thompson Table of Contents Item | Page # | Table of Contents | 2 | Executive Summary | 3 | SWOT | 4 | Market Analysis | 5-6 | Competitive Analysis | 6-7 | Financial Analysis | 7-10 | Financial Recommendations | 10-12 | Strategic Planning Recommendations/ Conclusion | 12 | Work Cited | 13 | Executive Summary Cango is an Internet startup that retails a variety of products and services, ranging from books and videos to online gaming services. To do away with the growing pains of a new e-business, there are numerous ideas on how Cango can be a long lived success in the online gaming industry. We will answer the following questions: * What should we do with the $130M received as a result of the IPO? * Should we go through with purchase of the Automated Storage & Retrieval System? * What should we do with the online...
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... http://hwcampus.com/shop/busn-460-complete-class/ Week 1 DQ 1 Selling your team’s services to CanGo Week 1 DQ 2 Mission, Vision & Values Week 2 DQ 1 Planning a Technological Solution Week 2 DQ 2 Cost Benefit Analysis Week 3 DQ 1 Flow Charting Processes Week 3 DQ 2 Implementing Technology Week 4 DQ 1 Group vs Team Week 4 DQ 2 Matrixed Employee Environments Week 5 DQ 1 Performance Review Session Week 5 DQ 2 Status Reports Week 6 DQ 1 Corporate Decision Making Week 6 DQ 2 Weighing Decision Criteria Week 7 DQ 1 Corporate Ethics Tactics Week 7 DQ 2 Profit vs. Responsibility BUSN 460 Week 1 Team Name and Contract BUSN 460 Week 2 Analysis Report - Issues Report BUSN 460 Week 3 Individual Financial Analysis Report BUSN 460 Week 4 Analysis Report BUSN 460 Week 5 Analysis Report BUSN 460 Week 6 Analysis Report BUSN 460 Final Project Consulting CanGo Final Report BUSN 460 Senior Project Week 3 Individual Financial Analysis Report Individual Financial Analysis Report Conclude working on your Individual Financial Analysis Report, due this week. Note that this is not a team assignment. Be sure to include proper citations for all references you use. Go to the CanGo Intranet and pull the financial statements. Use these to fill out the table found in Doc Sharing labeled Financial Analysis Project, and submit to the Individual Financial Analysis Dropbox in Week 3 after making sure that you have added your last name at the beginning of the...
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...Expert C Consulting – Team C 1/11/13 BUSN460 Senior Project Devry University Final Report – CanGo Business Proposal Professor Ghattas Table of Content Executive Summary………………………………………………………………………………3 SWOT Analysis…………………………………………………………………………………..3 Market Analysis…………………………………………………………………………………..6 Competitive Analysis……………………………………………………………………………..8 Financial Analysis…………………………………………………………………………….…..8 Strategic Planning Recommendations…………………………………………………………...11 Conclusion……………………………………………………………………………………….13 Works Cited……………………………………………………………………………………...14 Executive Summary – Lauren Harrison The main purpose of the following report is to provide CanGo with an innovative approach to not only capturing the online gaming market but to identify the main strengths and weaknesses that the company faces with their inner management structure. Expert C Consulting is dedicated to focusing on the core current and potential opportunities that are available to CanGo as an advantage over the e-commerce industry. We will also point out the many threats that exist in the e-commerce world and the online gaming industry. CanGo is a small company that in a short time has experienced a great deal of success and we want to help their company continue to earn the success that they deserve. We as a consulting firm are eager to establish CanGo with the necessary tools and strategies to build a solid business structure to handle the current operations of e-commerce and conquer the...
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...CanGo Business Analysis Team D DeVry University BUSN 460 October 14, 2011 Table of Contents Page EXECUTIVE SUMMARY............................................................................................................4 INTRODUCTION...........................................................................................................................5 SWOT ANALYSIS.........................................................................................................................6 FINANCIAL ANALYSIS...............................................................................................................7 Financial Strategic Recommendations...............................................................................8 MARKET ANALYSIS...................................................................................................................9 Market Strategic Recommendations................................................................................10 STRATEGIC PLANNING...........................................................................................................11 Planning Strategic Recommendations.............................................................................11 COMPETITIVE ANALYSIS.......................................................................................................13 Competitive Strategic Recommendations.......................................................................14 ...
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...Cango Financial CanGo Financial Analysis Report The success of a business depends on its ability to remain profitable over the long term, while being able to pay all its financial obligations and earning above average returns for its shareholders. This is made possible if the business is able to maximize on available opportunities and very efficiently and effectively use the resources it has to create maximum value for all involved stakeholders. One way the performance of a company can be measured on critical areas such as profitability, its ability to stay solvent, the amount of debt exposure and the effectiveness in resource utilization, is performing financial analysis where a set of ratios provides a snapshot of company performance and future prospects. Financial analysis is also a very useful technique that forms a basis for making key decisions about company operations. In addition to internal company members, these ratios are used by potential investors and shareholders to make investment decisions about the company. The investment ratios can be broken down into 4 key areas, efficiency, financial leverage, liquidity and profitability. Starting with efficiency, we have the inventory turnover and receivables turnover ratios. The inventory turnover ratio indicates how many times the company is able to turnover its inventory. In CanGo’s case, the ratio value is low, meaning that it is not effectively turning over its inventory, which also means it isn’t quickly and effectively...
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...CanGo Financial Income Statement Comparison of the years 2008 and 2009. In order to find out what division had the greater profits I choose to do a Comparison of CanGo Financial Statement from 2008 to 2009. In 2008 CanGo total revenue was $10,000,000, and increased to $50,000,000 in 2009. The 2008 Expenses which consisted of (CanGo’s On-line Gaming, AD & Sales, and other expenses) Total $9,600,000, which brought the overall all net before taxes to $400,000.00 but increased in 2009 to $8,440,000.00. At first glance one might conclude that is increase in performance was due to the acquisition of the on-line gaming division, whose revenue equaled the other two divisions combined (Books $7,000,000 and CD/MP3 $3,000,000) which gave us the total revenue of $10,000,000 for 2008. But is this true? Was online gaming the source of the increase in profits? Based on the financial data that was available in CanGo’s financial statement it clearly shows that the online books sales was the only profitable division with revenue of $15,000,000, Expenses at most $6,560,000 with a net of $8,440,000.00. Given the amount that the Books Sales Division has brought to the company I would recommend that the Book Sales be Prioritized over the other division. Because the market is becoming more and more dependent on mobile internet connections. Can Go needs to perform at a higher level than current ability. In order to progress further toward a wider geographical gap, Can Go should consider...
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...NewGen had the opportunity to review CanGo’s financial statement. The success of a business depends on its ability to remain profitable over the long term, while being able to pay all its financial obligations and earning above average returns. NewGen leveraged our knowledge of Investment rations, breaking our analysis down into four (4) key areas, efficiency, financial leverage, liquidity and profitability. Attached you will find our financial analysis summary matrix. 1. Efficiency Ratio We began with a look at your efficiency ratio, concentrating on your receivables turn over for the past year. This reflects the time between your sale and actual collection. If a company's Turnover Rate is significantly lower than industry norms, there could be an underlying reason such as poor collection methods, high-risk customers or low sales. With CanGo’s Efficiency Ratio for receivables turnover was at 1.51, there is room for improvement and a closer look needs to be performed to pinpointed where the problem lies. We next looked at CanGo’s Inventory Turnover as a measure of CanGo’s inventory management efficiency. In general, a higher value indicates better performance and lower value means inefficiency in controlling inventory levels; CanGo’s was 1.56. This lower inventory turnover ratio may be an indication of overstocking which may pose risk of obsolescence and increased inventory holding costs (Accounting Explained, 2012). 2. Financial Leverage Taking a look at CanGo’s equity...
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...strategic planning and many others to assist any organization with their needs. We invite business owners and organizations to choose our services and let us show you how we can help you enhance your business. Introduction CanGo’s executive management has contracted with The Manhattan Project Company to provide consulting services in order to understand how to grow its business. We have looked at some areas within the organization and found a few key areas that will assist the company in reaching its goals. SWOT Analysis Strengths: CanGo has turn out to be one of the fastest growing online small business companies. CanGo has different variety of products to offer. They have labeled themselves as “the customer”. By doing this it permits them to keep the question “what do we want” in the front position of the attentions all while concentrating on recognizing the consumer’s requirements and requests. The employees at CanGo showed robust commitment in supporting company’s goal. Staying competitive coupled with strong customer satisfaction is of high importance. Innovation is present that will help CanGo’s ability to maintain continuing growth. Weaknesses: Their advertising budget...
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