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Assignment: Compose a 500- to 750-word paper responding to questions 1, 2 and 3 of the Petmed Express, Inc Case on p. 144 (Ch. 4). Format your paper consistent with APA guidelines. Case 4.1 PetMed Express, Inc. Required 1. Using the Consolidated Statements of Cash Flows on page 145, prepare a summary analysis for the years ended March 31, 2004, 2003, and 2002. Analyze the cash flows for PetMed Express, Inc. for all three years. 2. Evaluate the creditworthiness of PetMed Express, Inc. based on only the cash flow statements. 3. What information from the balance sheet would be useful to a creditor in determining whether to loan PetMed Express, Inc. money? PetMed Express, Inc. and subsidiaries, d/b/a 1-800-PetMeds, is a leading nationwide pet pharmacy.The company markets prescription and nonprescription pet medications and health and nutritional supplements for dogs and cats direct to the consumer.The company offers consumers an attractive alternative for obtaining pet medications in terms of convenience, price, and speed of delivery. The company markets its products through national television, online, and direct mail advertising campaigns, which aim to increase the recognition of the “1-800-PetMeds” brand name, increase traffic on its Web site, acquire new customers, and maximize repeat purchases.* *Source: PetMed Express, Inc. Form 10-K, March 31, 2004.






Assignment: Compose a 500- to 750-word paper responding to questions 1, 2 and 3 of the Petmed Express, Inc Case on p. 144 (Ch. 4). Format your paper consistent with APA guidelines. Case 4.1 PetMed Express, Inc. Required 1. Using the Consolidated Statements of Cash Flows on page 145, prepare a summary analysis for the years ended March 31, 2004, 2003, and 2002. Analyze the cash flows for PetMed Express, Inc. for all three years. 2. Evaluate the creditworthiness of PetMed Express, Inc. based on only the cash flow statements. 3. What information from the balance sheet would be useful to a creditor in determining whether to loan PetMed Express, Inc. money? PetMed Express, Inc. and subsidiaries, d/b/a 1-800-PetMeds, is a leading nationwide pet pharmacy.The company markets prescription and nonprescription pet medications and health and nutritional supplements for dogs and cats direct to the consumer.The company offers consumers an attractive alternative for obtaining pet medications in terms of convenience, price, and speed of delivery. The company markets its products through national television, online, and direct mail advertising campaigns, which aim to increase the recognition of the “1-800-PetMeds” brand name, increase traffic on its Web site, acquire new customers, and maximize repeat purchases.* *Source: PetMed Express, Inc. Form 10-K, March 31, 2004.
Answered Same DayDec 20, 2021

Answer To: Need some assistance with this assignment. Document Preview: Assignment: Compose a 500- to 750-word...

David answered on Dec 20 2021
119 Votes
For the year 2002:
Net income was $ 825,413 which was computed on accrual concept of accounting. Inorder to
compute cash flows, non cash expenses were adde
d back and the important item was loss on
disposal of property and equipment which was of $314,332.The amount which was subtracted
was the amortization of deferred membership fee revenue.
The analysis of working capital reveals that the current assets like accounts receivable,
inventories, prepaid and other assets all have increased by significant amount and simultaneously
accounts payable and accrued expenses have also increased by significant amount. Working
capital adjustments resulted in a gross outflow of cash.
In investing activity we find that there was a purchase of property and equipment of $ 555,645
but significant amount of cash was realized from sale of property and equipment that is
$2,016,921 which gave cash inflow of $ 1,461,276.
In financing activity we find that the company paid huge amount due to its previous
commitments and to repay its existing debt. It was able to make such payment only because of
the cash proceeds available from the sale of property and equipment. It took a loan of $205.327.
The company had huge amount of loans and other commitments and it was able to satisfy them
by selling its assets. By selling its plant and equipment the company saved itself and paid back
its borrowings and other loan commitments. Inspite of such huge outflow, the company was able
to generate cash in the financial period under review.
For the year 2003:
The net income for the...
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