Based on Anthony''s Orchard financial data, Financial Management

Assignment Help:
Question #1: Review the Anthony’s Orchard case study in the unit resources.
Consider the following assumptions:
• The company, according to Anthony’s Orchard Strategic Plan, is hoping to purchase an apple press in order to start a new line of prepared apple products—apple juice.
• The company estimates this new product offering will generate an additional $95,000 net income per year and estimated cash flows of $90,000 per year. The cost of the apple press will be $950,000 and this expenditure, as shown in the budgeted cash flow statement, is expected to take place in the fourth quarter of 2012.
• The apple press is expected to have a seven-year life and no salvage value.
• The company requires a 10% return on investment for new capital investments and the company uses a cost of capital of 8%.
• The company’s revenue goal for 2015 is $25 million.
• Assume a minimum 12% gross margin on revenue.

Answer the following:
• Do you think the company’s revenue goal of $25 million by 2015 is realistic?

• Explain how purchase of the apple press might affect the company’s revenue goals. Based on this information, explain whether Anthony’s Orchard should invest in the apple press. Support your response with relevant information provided in the case study, the previous year’s financials for 2010, the current year’s financials for 2011 and the budgeted year’s financials for 2012.

• Draft budgeted financial statements from 2012 to 2015 under both options that provide a realistic assessment of expected revenues and costs, and explain how you have arrived at these budgeted figures.

Question #2: Visit the Anthony’s Orchard case study in the unit resources. Review again the current and historical financials. Consider that one of the company’s key goals in its strategic plan is to exceed revenue of $25 million dollars by the year 2015.

• Explain the potential value of a BSC to Anthony’s Orchard. Describe specific ways that the introduction of a BSC can contribute to this organisation.

• Develop a BSC that is aligned to the key goal in the strategic plan, i.e. exceeding revenue of $25 million dollars by 2015. Develop, quantify and justify suitable key performance measurement criteria for Anthony’s Orchard in each of these four key areas:
o Financial
o Customer
o Internal Business Processes
o Learning and Growth

Question #3: In this Individual Assignment, you will suggest an approach to address these concerns. You will propose strategies the company could implement to move from its current status towards its goals for 2015 using the processes of gap analysis and benchmarking.

Review the media in the unit resources.
1. Conduct a gap analysis for Anthony’s Orchard. This should include:
o A statement of where the organisation wishes to be by 2015 (use financial data for this, such as targeted revenues and/or profit)
o A comparison of the current financial state of the organisation and the desired state by the end of fiscal year 2015
o Your suggestion for ways the company can bridge the gap identified in your comparison above

2. Devise a benchmarking review for Anthony’s Orchard. To do this, discuss recommended strategies and measures that will be useful to measure progress towards the objective in your gap analysis.

Related Discussions:- Based on Anthony''s Orchard financial data

Explain about the term- contingent liabilities, Explain about the term- Con...

Explain about the term- Contingent liabilities Under IAS 37 provisions, contingent assets and contingentliabilities, contingent liabilities aren't recognised in the financia

Outsourcing, Outsourcing Outsourcing is referring to purchase of parts ...

Outsourcing Outsourcing is referring to purchase of parts from outside suppliers. Outsourcing is the external acquisition of services or components used in the production of go

Show repayment of principal, Your company is preparing to borrow $1,750,000...

Your company is preparing to borrow $1,750,000 on a 3-year, 10%, annual payment, fully amortized term loan. What fraction of the payment made at the end of the second year will sho

Operating cycle, discuss the applicability of an operating cycle of a veget...

discuss the applicability of an operating cycle of a vegetable growing business

Sensitivity analysis, A division of Saron plc is considering introducing a ...

A division of Saron plc is considering introducing a new product.  The product is the result of work undertaken by the division's research and development department - the expendit

What is risk aversion, What is risk aversion? If common stockholders are ri...

What is risk aversion? If common stockholders are risk averse, how do you explain the fact that they often invest in very risky companies? Risk aversion is the tendency to evad

Standard & poor’s analyze in determining the credit rating, What factors do...

What factors does Standard & Poor’s analyze in determining the credit rating it assigns a sovereign government? Answer: In rating a sovereign government, Standard & Poor’s anal

Implementing systems effectively, Implementing Systems Effectively: Muc...

Implementing Systems Effectively: Much of the accounting process has been taken over by office automation systems. Whereas once the vast majority of bookkeeping and reporting t

Economic order quantity, annual uasage of stock 100,000units carrying ...

annual uasage of stock 100,000units carrying cost per unit of stock RM2 order cost RM250 question there is a constraint arising from the floor space of the

Determine the net present value, The following information pertains to Fair...

The following information pertains to Fairways Driving Range, Inc.: The company is considering operating a new driving range facility in Sanford, FL. In order to do so, they wi

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd