Can you complete this assignment as instructed by the Professor?
Case Analysis - Chapter 4 Start Assignment · Due Sunday by 11:59pm · Points 25 · Submitting a file upload Due: Sunday Complete the Mini Case from Chapter 4 (Hobby Horse Company, Inc.). To upload your completed work, click on the Submit Assignment button. Rubric Mini Case Study Mini Case Study Criteria Ratings Pts This criterion is linked to a Learning Outcome Analysis and Evaluation of Key Issues and Problems/Questions 10 to >9.0 pts Exceeds Expectations Presents an insightful and thorough analysis of all identified issues/problems; includes all necessary calculations. Answered all the questions. 9 to >8.0 pts Meets Expectations Presents a thorough analysis of most of the issues identified; missing some necessary calculations. Answered all the questions. 8 to >6.0 pts Partially Meets Expectations Presents a superficial analysis of some of the identified issues; omits necessary calculations. Does not answer all the questions. 6 to >0 pts Does Not Meet Expectations Presents an incomplete analysis of some of the identified issues; omits necessary calculations. Does not answer all the questions. 10 pts This criterion is linked to a Learning Outcome Recommendations on Effective Solutions/ Strategies/Answers 10 to >9.0 pts Supports diagnosis and opinions with strong arguments and well documented evidence; presents a balanced and critical view; interpretation is both reasonable and objective. Correct solutions to the questions are present. 9 to >8.0 pts Supports diagnosis and opinions with adequate reasoning and evidence; presents a somewhat balanced argument; demonstrates adequate engagement with ideas presented. Has most of the correct solutions to the questions. 8 to >6.0 pts Supports diagnosis and opinions with limited reasoning and evidence; presents a somewhat one-‐ sided argument; demonstrates little engagement with ideas presented. Has some of the correct answers to the questions. 6 to >0 pts Little or no action suggested and/or inappropriate solutions proposed to the issues in the case study. 10 pts This criterion is linked to a Learning Outcome Writing Mechanics Grammar, Spelling, Citation & Reference Formatting (if required) 5 to >4.5 pts Excellent writing with correct grammar and spelling; citations & references provided and formatted consistently when needed. 4.5 to >4.0 pts Good writing made with few grammar and spelling errors; citations & references made when needed, but may have some formatting errors. 4 to >3.0 pts Acceptable writing with occasional grammar and spelling errors; citations & references used rarely or with little/no formatting. 3 to >0 pts Unacceptable writing with regular grammar and spelling errors; citations & references not used at all when required. 5 pts Total Points: 25 MINICASE Ch. 4 Burchetts Green had enjoyed the bank training course, but it was good to be starting his first real job in the corporate lending group. Earlier that morning the boss had handed him a set of financial statements for The Hobby Horse Company Inc. (HH). “Hobby Horse,” she said, “has a $45 million loan from us due at the end of September, and it is likely to ask us to roll it over. The company seems to have run into some rough weather recently, and I have asked Furze Platt to go down there this afternoon and see what is happening. It might do you good to go along with her. Before you go, take a look at these financial statements and see what you think the problems are. Here’s a chance for you to use some of that stuff they taught you in the training course.” Mr. Green was familiar with the HH story. Founded in 1990, it had rapidly built up a chain of discount stores selling materials for crafts and hobbies. However, last year a number of new store openings coinciding with a poor Christmas season had pushed the company into loss. Management had halted all new construction and put 15 of its existing stores up for sale. Mr. Green decided to start with the 6-year summary of HH’s balance sheMINICASE Burchetts Green had enjoyed the bank training course, but it was good to be starting his first real job in the corporate lending group. Earlier that morning the boss had handed him a set of financial statements for The Hobby Horse Company Inc. (HH). “Hobby Horse,” she said, “has a $45 million loan from us due at the end of September, and it is likely to ask us to roll it over. The company seems to have run into some rough weather recently, and I have asked Furze Platt to go down there this afternoon and see what is happening. It might do you good to go along with her. Before you go, take a look at these financial statements and see what you think the problems are. Here’s a chance for you to use some of that stuff they taught you in the training course.” Mr. Green was familiar with the HH story. Founded in 1990, it had rapidly built up a chain of discount stores selling materials for crafts and hobbies. However, last year a number of new store openings coinciding with a poor Christmas season had pushed the company into loss. Management had halted all new construction and put 15 of its existing stores up for sale. Mr. Green decided to start with the 6-year summary of HH’s balance sheet and income statement (Table 4.10). Then he turned to examine in more detail the latest position (Tables 4.11 and 4.12). 2019 2018 2017 2016 2015 2014 Net sales 3,351 3,314 2,845 2,796 2,493 2,160 EBIT −9 312 256 243 212 156 Interest 37 63 65 58 48 46 Taxes 3 60 46 43 39 34 Net profit −49 189 145 142 125 76 Earnings per share −0.15 0.55 0.44 0.42 0.37 0.25 Current assets 669 469 491 435 392 423 Net fixed assets 923 780 753 680 610 536 Total assets 1,592 1,249 1,244 1,115 1,002 959 Current liabilities 680 365 348 302 276 320 Long-term debt 236 159 297 311 319 315 Stockholders’ equity 676 725 599 502 407 324 Number of stores 240 221 211 184 170 157 Employees 13,057 11,835 9,810 9,790 9,075 7,825 Table 4.10 Financial highlights for The Hobby Horse Company Inc., year ending March 31 Net sales $3,351 Cost of goods sold 1,990 Selling, general, and administrative expenses 1,211 Depreciation expense 159 Earnings before interest and taxes (EBIT) −$ 9 Net interest expense 37 Taxable income −$ 46 Income taxes 3 Net income −$ 49 Allocation of net income Addition to retained earnings −$ 49 Dividends 0 Table 4.11 Income statement for The Hobby Horse Company Inc., year ending March 31, 2019 (figures in $ millions) Assets Mar. 31, 2019 Mar. 31, 2018 Current assets Cash and marketable securities $ 14 $ 72 Receivables 176 194 Inventories 479 203 Total current assets $ 669 $ 469 Fixed assets Property, plant, and equipment $1,077 $ 910 Less accumulated depreciation 154 130 Net fixed assets $ 923 $ 780 Total assets $1,592 $1,249 Liabilities and Shareholders’ Equity Mar. 31, 2019 Mar. 31, 2018 Current liabilities Debt due for repayment $ 484 $ 222 Accounts payable 94 58 Other current liabilities 102 85 Total current liabilities $ 680 $ 365 Long-term debt $ 236 $ 159 Stockholders’ equity Common stock and other paid-in capital $ 155 $ 155 Retained earnings 521 570 Total stockholders’ equity $ 676 $ 725 Total liabilities and stockholders’ equity $1,592 $1,249 Note: Column sums subject to rounding error. What appear to be the problem areas in HH? Do the financial ratios suggest questions that Ms. Platt and Mr. Green need to address? Case Analysis - Chapter 4 Start Assignment · Due Sunday by 11:59pm · Points 25 · Submitting a file upload Due: Sunday Complete the Mini Case from Chapter 4 (Hobby Horse Company, Inc.). To upload your completed work, click on the Submit Assignment button. R ubric Mini Case Study Case Analysis - Chapter 4 Start Assignment Due Sunday by 11:59pm Points 25 Submitting a file upload Due: Sunday Complete the Mini Case from Chapter 4 (Hobby Horse Company, Inc.). To upload your completed work, click on the Submit Assignment button. Rubric Mini Case Study BUS3710Hints for the MiniCases *indicates using Excel or building a table of the financial information could be helpful in your analysis Case #4* Your role is as Burchetts Green in this case. Review the three tables of financial data to get a clear picture of the financial status and trends. It may be helpful to do some ratio analysis on some key areas on things related to liquidity, debt and assets. Consider other items that could be an area of concern. Case #5 You can consider seeing where Mr. Road is today which would give you nominal income. You can then use the TVoM calculation to consider time and the cost of living adjustments needed for inflation (now estimated at 4%). You will want to consider current living expense, current travel and how these costs will increase. There is no indication that the investments or savings account figures will change, assuming no withdrawing so the amount those will earn stay the same. Will this work long-term based on life expectancy, can you offer any suggestions to Mr. Road? Case #7 You need to value the company under both investment plans and choose the best strategy. Rapid-Growth Scenario & Constant-Growth Scenario are your choices so familiarize yourself with what this means. Then determine the valuation based on each of the two scenarios and choose the best one. Case #9 The best way to