Peak Roofing financials

Customer Profitability Analysis: Boston Depot sells office supplies to area corporations and organizations. Tom Delayne, founder and CEO, has been disappointed with the operating results and the profit margin for the last two years. Business forms are mostly a "commodity" business with low profit margins. To increase profit margins and gain competitive advantages, Delayne introduced "Desk-Top Delivery" service. The business seems to be as busy as ever. Yet, the operating income has been declining. To help identify the root cause of declining profits, he decided to analyze the profitability of two of the firm's major customers: Omega International (OI) and City of Albion (CA).According to the customer profitability analysis that Boston Depot conducts regularly, Boston Depot has the same amount of total sales with both OI and CA. However, the firm earns a higher gross margin and gross margin ratio from CA than those from the sales to OI, as demonstrated here:     Customer…

Restructuring a Segmented Income Statement Millard Corporation is a wholesale distributor of office products. It purchases office products from manufacturers and distributes them in the West, Central, and East regions. Each of these regions is about the same size and each has its own manager and sales staff. The company has been experiencing losses for many months. In an effort to improve performance, management has requested that the monthly income statement be segmented by sales region. The company’s first effort at preparing a segmented income statement for May is given below. The cost of goods sold and shipping expense are both variable. All other costs are fixed. Required: 1. List any weaknesses that you see in the company’s segmented income statement given above. 2. Explain the basis that is apparently being used to allocate the corporate expenses to the regions. Do you agree with these allocations? Explain. 3. Prepare a new contribution format segmented income statement for May.…

Closing an Unprofitable Department      Income (loss) from closure $(12,800)      Tipton One-Stop Decorating sells paint and paint supplies, carpet, and wallpaper at a single-store location in suburban Des Moines. Although the company has been very profitable over the years, management has seen a significant decline in wallpaper sales and earnings. Much of this decline is attributable to the Internet and to companies that advertise deeply discounted prices in magazines and offer customers free shipping and toll-free telephone numbers. Recent figures follow:                            Paint and Supplies      Carpeting             Wallpaper   Sales ...............       $380,000            $460,000             $140,000   Variable cost..........$228,000           $322,000            $112,000                     Fixed costs ... …........56,000                 75,000                 45,000                     Total costs ............$284,000            $397,000              $157,000…

Closing an Unprofitable Department    1. Income (loss) from closure $(12,800)     Tipton One-Stop Decorating sells paint and paint supplies, carpet, and wallpaper at a single-store location in suburban Des Moines. Although the company has been very profitable over the years, management has seen a significant decline in wallpaper sales and earnings. Much of this decline is attributable to the Internet and to companies that advertise deeply discounted prices in magazines and offer customers free shipping and toll-free telephone numbers. Recent figures follow:                          Paint and Supplies      Carpeting             Wallpaper  Sales ...............       $380,000            $460,000             $140,000 Variable cost..........$228,000            $322,000    $112,000                    Fixed costs ... 56,000                  75,000                   45,000                    Total costs ......$284,000              $397,000           $157,000              Operating (income…

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working capital and current assets management  PureCart Ltd. is a rapidly growing e-commerce company experiencing fluctuating demand and unpredictable supplier lead times. This uncertainty poses challenges for managing their working capital effectively. The following company financial information has been provided to you: Cost of goods sold (COGS): R120 000 Goods are sold at 20% on cost. All goods are sold on credit. All goods are purchased on credit. There is no opening and closing stock. Average inventory: R30 000 Accounts receivable: R40 000 Accounts payable: R25 000   Q3)Calculate the cash conversion cycle. Provide all formulas.

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two divisions: Northern and Southern. Individual stores are placed in one or the other divisio demographic changes in the Northern Division area have led to declining foot traffic and sal executives have been asking whether the chain should close those stores and focus on the recent income statement for the Northern Division follows. Lessing Toy and Hobby Northern Division For the Year Ending January 31 ($000) Sales revenue Costs Cost of goods sold Advertising Administrative salaries Sales commissions Rent and occupancy expense Allocated corporate support Total costs Net loss before tax benefit Tax benefit at 25% Net loss $ 12,540 $ 6,520 495 815 1,629 2,063 1,335 $ 12,857 $ (317) (79.25) $ (237.75) The CEO has asked for your thoughts on the decision to close the Northern Division stores. If the stores closed, neither total corporate support costs nor operations or costs of the Souther change. Required: a. Using the worksheet below, determine which revenues and costs are probably…