Dirt Bikes USA Running Case Study Bryan Gaine Melissa Kelly Brad Michels Erica Riley Table of Contents Management Analysis of a Business .....................................................................................4 Analyzing Financial Performance..........................................................................................5 Competitive Analysis .............................................................................................................7 Analyzing the Total Cost of Ownership (TCO) of Desktop Software Assets .......................8 New Customer Database Design ...........................................................................................9 Using Internet Tools to Increase Efficiency …show more content…
While costs have increased from $76,750,000 in 2003 to $97,870,000 in 2005, the gross margin have decreased from 33.2% in 2003 to 23.8% in 2005. The company is unfortunately in debt, but they have enough assets to cover it and will allow for the development of new products and information systems. Sales History 2001-2005 12000 Amount (in thousand dollars) 10000 8000 6000 4000 2000 0 2001 2002 2003 Years 2004 2005 Table 1: Dirt Bikes USA Sales History from 2001 to 2005 -5- Domestic vs. International Sales 2001-2005 10000 9000 Amount (in thousand dollars) 8000 7000 6000 5000 4000 3000 2000 1000 0 2001 2002 2003 Years 2004 2005 Domestic International Table 2: Domestic vs. International Sales from 2001 to 2005 Consolidated Statements of Income (in thousands) 2003 2004 2005 Revenue Net sales Cost of goods sold Gross profit/(loss) Gross margin Operating expenses Sales and marketing Engineering and product development General and administrative Total operating expenses Operating income/loss Other income/expense Interest income/expense Other income/(expense) Income before provision for income taxes Income taxes Net income/(loss) Net margin 61,529 41,072 20,457 33.2% 64,063 43,155 20,908 32.6% 60,144 45,835 14,309 23.8% 3,944 2,339 1,392 7,675 12,782 4,537 2,992 1,601 9,130 11,778 4,733 3,141 1,913 9,787 4,522 80 (3,080) 9,782 535 9,247 15% 175 (2,914) 9,039 1,729 7,310 11% 1,747 (6,254) 15 1,459
In reviewing the information available regarding Dirt Bikes’ operating system, there are a few recommendations that will help the organization improve their communication and costs. Starting with incorporating a local area network (LAN) would allow a better line of communication between each employee, as well as able to obtain information more efficiently. Building an intranet system will support the organization in allowing employees to access information stored from a central depository such as a database server. Dirt Bikes’ can also implement a Voice over IP system.
|SALES AND COST OF GOODS SOLD BY PRODUCT LINE | | | |Date: | | | |
BALANCE SHEET |Dec 1990 |Jan |Feb |Mar |Apr |May |June |July |Aug |Sept |Oct |Nov |Dec | |Cash |175 |556 |724 |175 |175 |175 |175 |175 |175 |175 |175 |175 |175 | |Accts receivable |2,628 |958 |234 |271 |270 |250 |250 |270 |1,603 |3,113 |3,580 |3,982 |3.063 | |Inventory |530 |948 |1,355 |1,749 |2,157 |2,564 |2,971 |3,365 |2,904 |2.314 |1,549 |697 |530 | |Net P/E |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 |1,070 | |Total Assets |4,403 |3,533 |3,383 |3,265 |3,672 |4,059 |4,466
Subtotal Less: 2 178 000 Work in process inventory, 31 December Cost of goods manufactured 48 000 $2 130 000 2 Maximus Manufacturing Ltd Schedule of Cost of Goods Sold for the year ended 31 December Finished goods inventory, 1 January Add: Cost of goods manufactured Cost of goods available for sale Finished goods inventory, 31 December Cost of goods sold $ 42 000 2 130 000 2 172 000 48 000 $2 124 000 4 3 Maximus Manufacturing Ltd Income Statement for the year ended 31 December Sales revenue Less: Cost of goods sold $2 526 000 2 124 000 Gross margin 402 000 Selling and administrative expenses 322 800 Profit before taxes 79 200 Income tax expense 30 000
550 1 794 2 724 2 779 2 946 3 123 3 310 3 508 3 719 NA NA NA NA 3,0% 59,2x 12,2x 33,7x NA NA NA NA Capital Expenditures 2011 0 4 610 Net Working Capital Accounts Cash (=as a % of Sales Revenue) Accounts
Dirt bikes can be a very fun recreational item to use for not just yourself but your family. There are many different options when it comes to choosing one. There are different brands, sizes, strokes, and manual or automatic. If you want to learn more about them and how to choose one, this reading will be very helpful to you.
Dirt Bikes’ management is concerned about how much money is being spent on communicating with people inside and outside the organization and obtaining information about developments in the motorcycle industry and the global economy. You have been asked to investigate how Internet tools and technology could be used to help Dirt Bikes’ employees communicate and obtain information more efficiently. Dirt Bikes provides Internet access to all employees who use desktop computers.
I think the one invention that helped me the most is a dirt bike because I always had to ride my friends house and I have to go through the woods and it’s real muddy back there so now I can just use my dirt bike to go through it. But there are some bad things about it because you have to fill up on gas every once in awhile.
Dirt Bikes USA is Dirt Bikes production company based in California. It was founded in 1991 by Carl Schmidt and Steven McFadden, two young but experienced bikers with engineering backgrounds who saw that dirt bikes were becoming very popular in the United States as both sporting and racing motorcycles.
One sunny day I woke up and got out of bed and went into my mom and dad's room. I say, “Can we go buy my Dirt bike now?”
Have you ever wanted to learn how to ride a dirt bike. If you do make sure you listen. I am going to teach you everything you need to know about riding one. They are fairly simple to ride, and the reasons for learning how to ride a dirt bike is it is fun and impressive.
The income statement is one of three financial statements that stock investors need to become familiar with (the other two are balance sheet and cash flow statement) (Loth, 2017). The income statement is created of four sections: sales or revenue, cost of goods or services sold, expenses, and net profit/loses. “Sales/revenues is how much revenue the company brought in by selling its products or services. Cost of goods/services sold is how much the company spent to purchase or produce the products or services it sold. Expenses is how much the company spent to keep the doors of the business open. Essentially, this includes all expenses except those spent specifically on the cost of goods or services sold. Net Profit or Loss: the "bottom line" that tells whether the company made a profit or operated at a loss” (Epstein,2014). This might lead you to the question of what the purpose of the income statement is? Once you understand the income statement you will understand how well a company is doing or not doing. In this paper, it will analyze the income statement of Ford Motor company from December 2010-2012.
Dirt bike racing is one of the most popular choices for thrill seekers. It appeals to people of all ages, so it is not surprising that most of the professional dirt bikers start at the early age of 4 or 5. When beginners start dirt bike racing, it is highly unlikely that they will get more than one or two feet off the ground when they hit a jump, and this experience is also necessary before attempting to get up to 10 feet in the air.
“Ugh I really wish I had the money to buy that dirt bike” I said as me and mymom argued about the things I want. My mom and I spent all day trying to figureout a way I could earn the money for the dirt bike I want. I spent hours thinkingon about what I could do to earn the money finally my mom came in andsuggested I should get a summer job.That’s it I could get a summer job to earn the money. I just need to figurewhat jobs I would qualify for, I need one that’s not to hard but also not to easy.My mom suggested I work for little ceasers , but I thought that wouldn’t pay wellso I was still thinking. Finally it hit me, I could mow and work on lawns, I thoughtwhy not it might help the community. It was finale I am mowing lawns for mysummer job.Why
YEAR 0 2009 1 2010 2 2011 3 2012 4 2013 5 2014 6 2015 7 2016 8 2017 9 2018 10 Initial Investment Gross Revenue 2 COGS 3 Add'l revenue Less: COGS Loan down payment 4 Loan repayment Depreciation Additional workers Land square required Moving cost 5 Operating Expenses Total Expenses Net Income Before Tax Income Tax Net Income After Tax After Tax Cash Flow ATCF Cummulative ATCF NPV through Year N