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Assume that you have completed your plans and proformas for the next year of operations. Your proformas indicate that you will have $250,000 more cash than you think you will need.  Your proforma analyses of the environmental factors have indicated a possibility of a new competitor in your industry during the upcoming year.  What would you most likely do from the following list?  a. Give all the employees a bonus b. Purchase $250,000 of U.S. Treasury bills c. Purchase some replacement equipment that the plant manager needs d. Spend $250,000 more on research and development   B. What does the following scenario suggest to a company CEO? The company proformas for the upcoming year shows sales revenue growing by 2%, the average price received growing by .5%, and gross margin as a percentage growing by .5%. a. The average price is not increasing fast enough b. Marketing is doing a good job and production is not doing a good job c. Marketing and production are not working together

Assume that you have completed your plans and proformas for the next year of operations. Your proformas indicate that you will have $250,000 more cash than you think you will need.  Your proforma analyses of the environmental factors have indicated a possibility of a new competitor in your industry during the upcoming year.  What would you most likely do from the following list?  a. Give all the employees a bonus b. Purchase $250,000 of U.S. Treasury bills c. Purchase some replacement equipment that the plant manager needs d. Spend $250,000 more on research and development   B. What does the following scenario suggest to a company CEO? The company proformas for the upcoming year shows sales revenue growing by 2%, the average price received growing by .5%, and gross margin as a percentage growing by .5%. a. The average price is not increasing fast enough b. Marketing is doing a good job and production is not doing a good job c. Marketing and production are not working together

Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.3SD: Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling...
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A. Assume that you have completed your plans and proformas for the next year of operations. Your proformas indicate that you will have $250,000 more cash than you think you will need.  Your proforma analyses of the environmental factors have indicated a possibility of a new competitor in your industry during the upcoming year.  What would you most likely do from the following list? 

a. Give all the employees a bonus
b. Purchase $250,000 of U.S. Treasury bills
c. Purchase some replacement equipment that the plant manager needs
d. Spend $250,000 more on research and development
 

B. What does the following scenario suggest to a company CEO? The company proformas for the upcoming year shows sales revenue growing by 2%, the average price received growing by .5%, and gross margin as a percentage growing by .5%.

a. The average price is not increasing fast enough
b. Marketing is doing a good job and production is not doing a good job
c. Marketing and production are not working together
d. The CEO would want to look at the proforma cash flow statement
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