Graded Homework

Assignment 1
1. Consider the following data from the past year at Topeka Manufacturing Incorporated and perform the
calculations below:
Financial Data
Dollar Amounts
Gross income
$26,240,000
Total sales
$25,324,000
Total credit sales
$19,785,000
Net income
$3,975,000
Cost of goods sold
$13,600,000
Total assets
$11,550,000
Average inventory
$3,875,000
Average receivables
$4,445,000
Compute the receivable turnover rate
Compute the inventory turnover ratio
Computer the asset turnover ratio
2. Consider the following fictitious data:
Comparison of Automobile Companies
Financial Data
Toyota (TM)
General Motors (GM)
Ford (F)
Income per
$14,695
$26,075
$40,982
employee
Revenue per
$856,669
$771,248
$886,305
employee
Receivables
12.8
16.7
17.7
turnover
Inventory
12.2
10.7
19.9
turnover
Asset turnover
0.7
.8
0.7

Industry
$18,545
$550,751
10.8
9.5
0.8

Compare the following data from Fiat Chrysler against the data presented above, and answer the questions below:
Financial Data
Chrysler(FCAU)
Income per
employee
Revenue per
employee
Receivables
turnover
Inventory
turnover
Asset turnover

$5,044
$707,044
2.4
7.9
0.7

a. What major conclusions can you draw from all of the data provided? Specifically, what organization appears to
be the most profitable and why?
b. How does the profitability of Fiat Chrysler compare against the other companies presented above?
c. What should Fiat Chrysler do based on its receivable turnover when compared against the other companies?
d. Comparing the inventory turnover from Fiat Chrysler to the other companies, what does this number imply, and
what should Fiat Chrysler consider to increase its productivity/efficiency?

3. Ford Motor Company in the production of cars subcontracts out the production of air cleaners to the Bochi
Corporation. In one specific production process, the machine can produce 500 air cleaners in 14 hours with two
employees.
a. What is their productivity?
b. Assume the two employees working with a production specialist can increase production to 600 air cleaners in
the same time period. What will be their new productivity?
c. What will be their unit increase in productivity per hour?
d. What will be their percentage change in productivity?
4. General Motors produced 3,412,714 automobiles in North America in 2014. To accomplish this, each laborer at
assembly plant worked 240 hours per month at a rate of $23.00 per hour. If the labor productivity at the plant is
2.03 automobiles per labor hour, how many laborers are employed by General Motors to produce these
automobiles?
5. Gino’s Pizza Incorporated produces pizzas for distribution to a regional area. Due to rising costs, the
organization is interested in improving and tracking efficiencies of production. Specifically, the organization
would like to determine the productivity of its operations, and if they are making improvements in production
by 4% per year. Use the following data to track increases in productivity: Labor, Raw Materials, Capital
Invested, and Energy.
Resources
2015
2016
Units produced
50,000
50,000
Labor (in hours)
15,000
12,750
Labor per hour
$9.75
$10.00
Raw Materials (units of materials)
2,500
2,250
Cost of Raw Materials
$67,500
$69,000
Capital invested ($)
$10,000
$12,000
Energy (kWh)
36,918
33,812
Labor per hour
$9.75
$10.00
Capital cost (as a percent of revenue) 2%
3%
Revenue
$350,000
$360,000
6. Using the data original presented for Gino’s Pizza Incorporated calculate the percent change in productivity for
one month last year versus one month this year, on a multifactor basis with dollars as the common
denominator.
7. Using the original data for Gino’s Pizza Incorporated, what was the return on investment for years 2015 and
2016?
8. JBW Insurance provides consulting services to a client base in the state of West Virginia. In the month of August
of 2016r JBW Insurance processed 169 claims. Based on the following data, what is the productivity per dollar?
What is the multifactor productivity?
JBL Insurance August 2016 Customer Activity Report
Labor
840 hours @ $26.66 per hour
Expendables
$350
Software rental
$1,666
Adjuster (Services rendered)
$5,300