FINC 0300 Financial Management Assignment

Assignment Help Financial Management

Reference no: EM133102152

FINC 0300 Financial Management - University Of Manitoba

Case Study - America Coffee

It is January 1st, 2018. You are a senior analyst at America Coffee House Inc., (ACH), one of the leading coffee chains and wholesaler of coffee/bakery products in North America. The CEO of America Coffee House, Susan Matthews, has reached out to you to draft a report.

Purpose
You will review and analyze the mission statement, case information, and financial statements of America Coffee House. You will use the information from your review to develop a SWOT analysis with the purpose of seeking support for proposed investment projects. You will also prepare a notional UCC asset tax values continuity schedule to analyze the impact of capital equipment disposals.

How to Proceed

Prepare your preliminary business case report by analyzing financial and non-financial data from the case information provided below. You will need to undertake, and include, the following:

1. Create a title page with your author identification.

2. Review the information and financial statements provided below to gain an understanding of potential investment initiatives that would be supportable by management. Describe the intent of the mission statement from the annual report, and prepare a SWOT analysis (strengths, weaknesses, opportunities, and threats). Based on your SWOT analysis, assess and explain in detail if America Coffee House is currently delivering on its mission statement.

3. Conduct financial statement analysis using liquidity ratios, debt ratios, profitability, and asset utilization ratios (at least three for each type of ratio). Comment on each of the ratios and what they say about the company's performance over the last five years.

4. Prepare an assessment for each of the investment proposals included below, with a rationale that is aligned with the SWOT analysis and financial statement ratio analysis. Recommend if ACH should go forward with any of the proposed investments based on this analysis.

5. Prepare a basic income statement forecast for the subsequent fiscal year, using a percentage of sales approach and using information included in the materials below to support assumptions that correspond for each revenue and expense. Each line item (e.g., marketing expenses) should have a note and an explanation on how it was calculated.

6. The CEO also needs help understanding the tax consequences of the disposal of a freighting truck. Prepare a CCA schedule for tax depreciation of a freighting truck purchased three years ago on January 1, 2015 for $350,000 (assume Class 16 with CCA rate of 40% and half-year rule applying). Calculate the tax consequence if the truck were to be sold at the beginning of this year (i.e., end of 2017) for either $90,000 or $120,000. The truck is the only asset in the class. Utilize the average tax rate that America Coffee House had in the last five years in your analysis of the tax impact.

Format for Submission

- Your report narratives may be done in Word or Excel, but calculations and tables of values must be prepared in Excel with the amounts derived from actual formulas that use your variables, rounded to four (4) decimals or lower.

- The Excel tab worksheet must be print and presentation ready, formatted to print in 2 to 3 pages without page fragmentation of equations or tables between pages.

- It is permissible to break your report down using the questions listed above as headings.

APA style

Attachment:- Case Study.rar

Reference no: EM133102152

Questions Cloud

Calculate the net assets of xyz ltd : The cost of the acquisition is $1 600 000 plus associated legal costs of $80 000. Calculate the net assets of XYZ Ltd

Promote innovation in a team environment : Q1- Diversity amongst team members contributes to a team becoming and remaining innovative.

How much will she have at the end of the period : Shaikha is investing 374 today and will continue to do so at the beginning of each year for the next 9 years, How much will she have at the end of the period

Discuss the benefits and drawbacks of choice : QUESTION 1: Following its independence from Britain in 1963, Kenya embraced African Socialism. Why did the country choose this path? Discuss the benefits and dr

FINC 0300 Financial Management Assignment : FINC 0300 Financial Management Assignment Help and Solution, University Of Manitoba - Assessment Writing Service - understanding of potential investment

What various technologies optimize network performance : What various technologies optimize network performance?

Discuss contemporary issues in managing teams : Discuss contemporary issues in managing teams.

Defense of strategic philanthropy to company stockholders : What are some of the issues you might include in a defense of strategic philanthropy to company stockholders? Please Include references.

Prepare journal entries to record the transactions : Prepare journal entries to record the transactions, including the amortization expenses on 31 December 2021 (if applicable)

User Account

All Pages