# Supply Chain Finance Model ConstructionUsing the information provided, construct a supply chain finance model by calculating Profit & Loss (P&L) statements and Balance Sheets. Additionally, determine the appropriate financial ratios and measures such as profit margin, Return on Assets (ROA), inventory turns, and calculate transportation, warehousing, and inventory costs as a percentage of sales (revenues).### Key Financial Data:1. **Baseline Figures:** - **Sales:** $200,000,000 - **Transportation Cost:** $12,000,000 - **Warehousing Cost:** $3,000,0002. **Inventory and Operations:** - **Inventory Carrying Rate:** 0.3 - **Cost of Goods Sold (COGS):** $90,000,000 - **Other Operating Costs:** $50,000,000 - **Average Inventory:** $8,000,0003. **Current Assets:** - **Cash:** $15,000,000 - **Accounts Receivable:** $30,000,0004. **Fixed Assets:** - **Net Fixed Assets:** $90,000,0005. **Other Financial Data:** - **Interest Expense:** $10,000,000 - **Tax Rate:** 20% - **Current Liabilities:** $65,000,000 - **Long-term Liabilities:** $35,000,000### Instructions:- Utilize this dataset to perform financial analysis and model construction.- Compute profit margins and ROA.- Analyze inventory efficiency through inventory turnover ratios.- Evaluate the significance of transportation, warehousing, and inventory costs by assessing them as a percentage of total sales.This model will enable insights into financial stability and operational efficiency within the supply chain framework.

Supply Chain Finance is also called "Reverse Factoring". It helps a business in becoming more stable…

Using the attached spreadsheet, construct a supply chain finance model by calculating P&L and Balance Sheets and the appropriate ratios and measures and calculate the profit margin; ROA; inventory turns; along with transportation, warehousing, and inventory cost as a percentage of sales (revenues) for the following: Baseline Sales Transportation cost Warehousing cost Inventory carrying rate Cost of goods sold Other operating costs Average inventory Cash Accounts receivable Net fixed assets Interest Tax rate Current liabilities Long-term Liabilities $200,000,000 $12,000,000 $3,000,000 0.31 $90,000,000 $50,000,000 $8,000,000 $15,000,000 $30,000,000 $90,000,000 $10,000,000 20%² $65,000,000 $35,000,000

Using the attached spreadsheet, construct a supply chain finance model by calculating P&L and Balance Sheets and the appropriate ratios and measures and calculate the profit margin; ROA; inventory turns; along with transportation, warehousing, and inventory cost as a percentage of sales (revenues) for the following: Baseline Sales Transportation cost Warehousing cost Inventory carrying rate Cost of goods sold Other operating costs Average inventory Cash Accounts receivable Net fixed assets Interest Tax rate Current liabilities Long-term Liabilities $200,000,000 $12,000,000 $3,000,000 0.31 $90,000,000 $50,000,000 $8,000,000 $15,000,000 $30,000,000 $90,000,000 $10,000,000 20%² $65,000,000 $35,000,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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# Supply Chain Finance Model Construction

Using the information provided, construct a supply chain finance model by calculating Profit & Loss (P&L) statements and Balance Sheets. Additionally, determine the appropriate financial ratios and measures such as profit margin, Return on Assets (ROA), inventory turns, and calculate transportation, warehousing, and inventory costs as a percentage of sales (revenues).

### Key Financial Data:

1. **Baseline Figures:**
- **Sales:** $200,000,000
- **Transportation Cost:** $12,000,000
- **Warehousing Cost:** $3,000,000

2. **Inventory and Operations:**
- **Inventory Carrying Rate:** 0.3
- **Cost of Goods Sold (COGS):** $90,000,000
- **Other Operating Costs:** $50,000,000
- **Average Inventory:** $8,000,000

3. **Current Assets:**
- **Cash:** $15,000,000
- **Accounts Receivable:** $30,000,000

4. **Fixed Assets:**
- **Net Fixed Assets:** $90,000,000

5. **Other Financial Data:**
- **Interest Expense:** $10,000,000
- **Tax Rate:** 20%
- **Current Liabilities:** $65,000,000
- **Long-term Liabilities:** $35,000,000

### Instructions:
- Utilize this dataset to perform financial analysis and model construction.
- Compute profit margins and ROA.
- Analyze inventory efficiency through inventory turnover ratios.
- Evaluate the significance of transportation, warehousing, and inventory costs by assessing them as a percentage of total sales.

This model will enable insights into financial stability and operational efficiency within the supply chain framework.

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