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

Compare diversifiable and nondiversifiable risk, Compare diversifiable and ...

Compare diversifiable and nondiversifiable risk. Which do you think is more important to financial managers in business firms? Diversifiable risk is able to be dealt with by of

Explain gresham’s law, Explain Gresham’s Law. Answer:  Gresham’s law cons...

Explain Gresham’s Law. Answer:  Gresham’s law considers to the phenomenon that bad (abundant) money drives good (scarce) money out of circulation. This type of phenomenon was fre

Perpetual-floating rate bonds-index and linked bonds, Explain the following...

Explain the following term: Perpetual bonds, Floating rate bonds, Index-linked bonds and Callable bonds. Perpetual bonds (also termed as consols) are never mature. This

Cash management and inventory management, I am facing some problems in my a...

I am facing some problems in my assignment of Cash Management and Inventory Management. Can anybody suggest me the proper explanation for it?

What is accumulated depreciation, Q. What is Accumulated Depreciation? ...

Q. What is Accumulated Depreciation? Accumulated Depreciation - Total DEPRECIATION pertaining to an ASSET or group of assetsfrom the time the assets were placed in services unt

Define differences between foreign bonds and eurobonds, Describe the differ...

Describe the differences between foreign bonds and Eurobonds.  Also discuss why Eurobonds make up the lions share of the international bond market. Answer:  The two segments of t

Financial management issue, Harrelson Inc. currently has $750,000 in accoun...

Harrelson Inc. currently has $750,000 in accounts receivable, and its days sales outstanding (DSO) is 55 days. It wants to reduce its DSO to 35 days by pressuring more of its custo

Explain the pricing-to-market phenomenon, Explain the pricing-to-market phe...

Explain the pricing-to-market phenomenon. Answer: The pricing-to-market abbreviated as PTM refers to the phenomenon that similar securities are priced in a different way for diff

Explain the structure of financial systems, Explain the structure of financ...

Explain the structure of financial systems In direct finance borrower-spenders borrow funds straight from lenders in the financial markets by selling them securities. In indire

Explain the significance of financial analysis, Question 1 What are the li...

Question 1 What are the limitations of management accounting? Question 2 Explain the significance of financial analysis Question 3 What are the advantages of the value a

Write Your Message!

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