FOR CASE PRESENTATION: (For the video)

Topic Outline
01 – Case Context (Angel’s POV)
02 – Problem Definition
03 – Analysis
04 – Decision

01 – Case Context
- Timeline of the company (shows what happen each year)

Vitarich Corporation/ First Farms Corporation Background

bFirst Farm Corporation has grown to become one of the Philippines' most
respected integrators and feed producers. Later, it expanded its service to include fresh
and freshly frozen food production, allowing it to serve a larger number of Filipinos
around the country.

1950s - The history of the First Farms Corporation may be traced back to
the 1950s, when brothers Francisco, Joselito, and Arturo Evangelista
established a modest animal feeds production plant in Caloocan with 15
employees.

1990s - The 1990s saw unusually robust growth, with revenues increasing
by more than 20% each year and net income and return on equity increasing
by nearly 50% per year.

1994 - Fresh and frozen chickens, processed meats, animal health

products, and feeds were among the company's product categories as of
1994. It boasted a workforce of over 1,700 people and was known as the
country's leading chicken integrator.
 1995 - In February 1995, FFC went public, raising P1.1 billion by selling
25% of its outstanding common stock to the public. The corporation had a
boom year at this year, with combined sales of P5.7 billion, up 44 percent
from the previous year's performance, and net income of P280 million, up 89
percent.

03 – Analysis (Balance Sheet)

1993 1994 1995
Inventories 584,400 702,429 1,505,746
Account Receivables 180,887 293,307 474,200

It shows here that every year, the number of inventories is increasing each year.
It just means that the production of goods is increasing every year so that the company
is growing. (Read the inventory)
In receivables, as the production increases, the number of receivables is
increasing too. And here is how the company works with the accounts receivables.

EFFICIENCY RATIOS 1993 1994 1995

Total Asset Turnover Ratio 1.72 2 1.46
AR Turnover Ratio 14.19 11.35 7.65
Inventory Turnover Ratio 4.56 5.13 3.48
Average Collection Period 25.38 31.73 47.03
Average Inventory Storage Period 78.97 70.17 103.4