Prepare a worksheet of operations activities

Assignment Help Corporate Finance
Reference no: EM1343894

Harrison T. Wenk III is 43, married, and has two children, ages 10 and 14. He has a master's degree in education and teachers junior high school music in a small town in Ohio. Harrison's father passed away two months ago, leaving his only child an unusual business opportunity. According to his father's will, Harrison has 12 months to become active in the family food-catering business, Kare- Full Katering, Inc., or it will be sold to two key employees for a reasonable and fair price. If Harrison becomes involved, the two employees have the option to purchase a significant, but less than majority, interest in the firm. Harrison's only involvement with this business, which his grandfather established, was as an hourly employee during high school and college summers. He is confident that he could learn and perhaps enjoy the marketing side of the business, and that he could retain the long-time head of accounting/finance. But he would never really enjoy day-to-day operations. In fact, he doesn't understand what operations management really involves.

In 1991 Kare-Full Katering, Inc. had $3.75 million in sales in central Ohio. Net profit after taxes was $ 105,000, the eleventh consecutive year of profitable operations and the seventeenth in the last 20 years. There are 210 employees in this labor-intense business. Institutional contracts account for over 70 percent of sales and include partial food services for three colleges, six commercial establishments) primarily manufacturing plants and banks), two long -term care facilities, and five grade schools. Some customer location employs a permanent operations manager; others are served from the main kitchens of Kare-Full Katering. Harrison believes that if he becomes active in the business, one of the two key employees, the vice president of operations, will leave the firm.Harrison has decided to complete the final two months of this school year and then spend the summer around Kare-Full Katering - as well as institutions with their own food services - to assess whether he wants to become involved in the business. He is particularly interested in finding out as much as possible about operations. Harrison believes he owes it to his wife and children to fairly evaluate this opportunity.

1. Prepare a worksheet of operations activities that Harrison should inquire about this summer.

2. If you were Harrison, what would you do? Why

Reference no: EM1343894

Questions Cloud

Describing fields and options with user account set-up : Describe the fields and options associated with user account set-up.
Question on merger evaluation : ABC Incorporated shares are currently trading for $32 per share. The firm has 1.13 billion shares outstanding. In addition, the market value of the firm's outstanding debt is $2 billion.
Calculate the price of bond if ytm is given : Valuing Bonds: Syberboard has issued a bond with the following characteristics:
Why would elasticity of demand be important to you : Why would elasticity of demand be important to you in determining the products on which the taxes should be levied".
Prepare a worksheet of operations activities : Prepare a worksheet of operations activities that Harrison should inquire about this summer and if you were Harrison, what would you do
Rbocs in mfj to retain control of yellow pages : One way to provide additional revenues for the RBOCs in the MFJ was to retain control of the Yellow Pages.
Cash conversion : What account on the balance sheet would an organization refer to for cash conversion and why?
Calculating wacc for american express : American Express common stock has a beta of 1.4. If the risk free rate is 8 percent. If the expected market return is 16 percent and American Express has 20 million of 8% debt.
How industries in the us can produce thousands tons wheat : Industries in the US also Europe can produce only two goods, cars also wheat. For given resources also technological how. Industries in the US can produce 1000 tons of wheat if no cars are produced.

Reviews

Write a Review

 

Corporate Finance Questions & Answers

  Purpose the closing entries for the general journal

Closing entries for general journal - Purpose the closing entries for the general journal or close the revenue and expense columns.

  Calculate the betas of t-bills

Calculate the Betas of T-bills, S&P500 and the four competitors. Which one of these has the highest total risk (explain what total risk means)?

  Highest to lowest returns and risk

Which of the following lists correctly ranks investments from highest to lowest returns and risk (thus, the highest risk security should be shown first, the lowest risk securities shown last)?

  Evaluate the price of the policy

The price of the policy is $1,800. There is a 10% chance of having an accident in which the car is a total loss.

  Purpose a time line presenting after-tax operating cash flow

Effect of capital structure on companies value per share - purpose a time line presenting the after-tax operating cash flows

  Calculate the stock price of ibm

Calculate the stock price of IBM - Using the information of the present year to evaluate the current stock.

  Determine the interest expense

Determine the interest expense that Coley Co. will show with respect to these bonds in its income statement for the fiscal year ended September 30, 2009, assuming that the discount of $360,000 is amortized on a straight-line basis.

  Please analyze the financial condition of the company

Analysis of financial condition of a Company - Please analyze the financial condition of the company; under the following category: - profitability

  Geocentric approaches to staffing

Explain the polycentric, ethnocentric, and geocentric approaches to staffing.

  Preparing of single step and multi step income statements

Preparing of single step and multi step income statements given the revenue and expenses account balances and tax rate and prepare two income statements and the Retained Earnings Statement. Use the single-step format and multiple-step income formats.

  Evaluate share of the common stock

Which do you think will have the higher price (and why), a share of the preferred stock or a share of the common stock?

  Free or unused capacity of freezer of ice cream

Inventory Decisions - Free or unused capacity of freezer of ice cream How much unused freezer space (in gallons) is leftover from part "a"?

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