Services entered into three-year contractual agreement

Assignment Help Financial Management
Reference no: EM132058749

THIS IS BUSINESS LAW, REPRESENT THE PEOPLE IN THE QUESTION REGARDING THE FACTS IN THE CASE

FACTS: On January 1, 2015, Jackson Delivery Services entered into a three-year contractual agreement with Purple Rain Digital Company. Pursuant to the agreement, Jackson Delivery Services is required to deliver to all Best Buy stores on Tuesdays and Fridays of each week. Purple Rain Digital Company pays $1,000,000.00 per month to Jackson Delivery Services pursuant to the contract. Best Buy has a 10-year contract with Purple Rain Digital Company wherein pursuant to said contract, Best Buy pays Purple Rain Digital Company $15 million dollars a year for their products that are sold in exclusively in their stores. On October 1, 2015, a 30-day truck driver strike caused all delivery truck deliveries to cease for Jackson Delivery Services, so no deliveries were made. During the strike, Houston Delivery Services, aware of the strike, hired non-union drivers and contacted Purple Rain Digital Company to perform all deliveries during the strike only. On November 1, 2015, a day after the strike ceased, a severe snow storm caused a 30-day delay on all deliveries, meaning there were no deliveries in the month of November. On December 1, 2015, the roof at the Best Buy location at Arundel Mills Shopping Center collapsed and the store was closed until January 1, 2016. Therefore, between October 1, 2015 and December 31, 2015, no Purple Rain Digital Company products were sold.

1: You have been hired to represent Purple Rain Digital Company.

2: You have been hired to represent Jackson Delivery Services.

3: You have been hired to represent Best Buy.

4: You have been hired to represent Houston Delivery Services.

5: You have been hired to represent Arundel Mills Shopping Center.

Reference no: EM132058749

Questions Cloud

Your understanding of how leverage affects firm value : These questions are designed to develop your understanding of how leverage affects firm value.
Euro currency markets to set up money market hedge : Discuss how kilpatrick limited can use the euro currency markets to set up a money market hedge to insulate itself from the anticipated transaction exposure.
Preference interest rate for euro currency market determined : How is the preference interest rate for the euro currency markets determined?
The firms cost of equity before and after capital structure : By how much is the firms cost of equity before and after capital structure change respectively?
Services entered into three-year contractual agreement : FACTS: On January 1, 2015, Jackson Delivery Services entered into a three-year contractual agreement with Purple Rain Digital Company.
Futures contract to hedge against interest rate risk : Describe how Choat and Sons Limited can use short sterling interest rate futures contract to hedge against interest rate risk.
Encountered when using futures contracts : Explain two problems that may be encountered when using futures contracts.
What is interest rate risk : What is interest rate risk? Explain two types of interest rate risk that companies may be exposed to.
Principal and interest components of the first repayment : Calculate the principal and interest components of the first repayment.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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