| Goodweek Tires‚ Inc. | A Case Study | | | | | Table of Contents: * Case Overview * Project Information * Capital Budgeting Analytical Measures * Forecasted Sales Numbers * Depreciation Schedule * Investment Cash Flows * Recommendation & Conclusion GOODWEEK TIRES INC. Case Overview Goodweek Tires‚ Inc. recently developed a new tire‚ SuperTread. This tire was meant to be ideal for drivers who do a lot of wet weather‚ off-roading‚ and normal freeway driving
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CASE STUDY ON GOODWEEK TIRES‚ INC. 1.0 INTRODUCTION Capital budgeting is the process of identification of opportunities‚ estimation of cash flow to be generated by the project‚ evaluating and selecting from among the alternative courses of actions and implementing the investment project with proper follow-up. Hence‚ Managers must carefully select those projects which promise the greatest future return. How well managers make these capital budgeting decisions
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Tire City‚ Inc. (TCI) is a rising distributor of automotive tires in northeastern United States. Their distribution centers arelocated throughout eastern Massachusetts. Their tires are sold as on-demand bases with chain of 10 shops located all throughout eastern Massachusetts with a central warehouse outside Massachusetts. Due to this proximity of warehouse‚ TCI stores enjoyed just-in-time delivery with only 24 hours of lag time. Tire City‚ Inc. sales have grown at compounded annual rate in excess
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Tire City Incorporated Tire City‚ Inc. is a rapidly growing retail distributor of automotive tires. Although they have 10 shops located throughout the Northeast region‚ the bulk of TCI’s inventory is managed at a central warehouse. During the last three years‚ sales have been growing at a compound annual rate in excess of 20%. With such a great reflection of their excellent service and customer satisfaction in their net income‚ TCI’s central warehouse is “bulging at the seams”. TCI has decided
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Tire City‚ Inc. Analysis As a lender‚ I would have no problem giving a loan to Tire City‚ Inc to help finance their growth for the following reasons. The first thing that is apparent is the annual revenue growth. It is expected to steadily increase by 5% in the coming years. This means that Tire City has strong operating cash flows to fund its day-to-day operations. Additionally‚ Tire City‚ Inc has improved in total asset turnover over the years‚ suggesting that they are indeed growing their
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[pic] [pic] ERODE - 638 052. PERISTALTIC SELF-INFLATING TYRE SYSTEM (A self inflating tyre system for automobiles using a peristaltic pump) PRESENTED BY R.PRAVEEN KUMAR (26ME71) P.VIGNESH (26ME108) 3rd year mechanical
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Information Systems areers in Accounting A Career in Information Systems Have you ever heard the sayings “knowledge is power” or “information is money”? When people talk about accounting‚ what they are really talking about is information. The information used by businesses‚ as well as the technology that supports that information‚ represents some of the most valuable assets for organizations around the world. Very often‚ the success of a business depends on effective creation‚ management‚ and
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Current Financial Health of Tire City Inc. Tire City‚ Inc. has been generating a stable profit during the period of 1993-1995. Sales income increased on average of 20% every year. Consistent profit margin of 5% and ROA of 12-13% have also contributed to the strong profitability of the company for the past three years. Along with the company’s growth in profitability‚ fixed asset turnover increased from 8.56 in 1993 to 8.93 in 1994‚ and to 9.65 in 1995‚ which facilitated the company to improve
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mojor rolle in powering vehicles to move a vehicle’s tires play an even more integral role in the overall performance of the vehicle‚ as it dictates its handling‚ traction‚ ride‚ comfort and fuel consumption; as it is the main component that interacts with the surface being driven on (Rezna‚ 2008). Thus if the condition of the tires is improper the performance of the vehicle will be affected. One negative tire condition that can occur is low tire pressure/ under inflation. According to the Webster’s
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Detailing Snow Tires Now that summer is over and it continues to get colder‚ some are plagued with questions as to how their “sporty” vehicle will handle the frigid temperatures and more importantly the ice and snow that follows. Due to todays economic distress‚ many are forced to rely on one vehicle year round. Unfortunately not everyone has the same taste in transportation. While it may be acceptable to have a truck or SUV for some‚ others prefer the sportiness and handling of a roadster
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