Assignment example

Please ensure that you write the formulas down

- You need submit an excel that shows your work
- You need submit your word doc that has the final summary
 Example
Description Amount
Sales 100,000,000
Transportation cost 6,000,000
Warehousing cost 1,500,000
Inventory carrying cost 15%
Cost of goods sold 45,000,000
Other operating cost 25,000,000
Average inventory 5,000,000
Accounts receivable 15,000,000
Cash 7,500,000
Net fixed assets 45,000,000
Interest 5,000,000
Taxes 20% of (EBIT – interest)
Liabilities 30,000,000
Long term liabilities 35,000,000
Stakeholders equity 45,000,000
Gross Profit Margin
• (Sales – COGS)/Sales
NET Profit Margin
• (EBIT – (Interest + Tax)/Sales
• EBIT = SALES – COGS – TOTAL OPERATING COST
• TOTAL OPERATING COST = TRANSPORTATION + WHSE+ INVENTORY CARRYING
COST+OOC

•
Transportation cost % revenue
• Transportation cost / sales
Warehouse cost % revenue
• Warehouse cost / sales
Return on Asset (ROA)
• Net Profit/Capital employed