Assignment: Financial Tools for Managers
Shark Tank: Wicked Good Cupcakes
Overview:
View the youtube videos: "Wicked Good Cupcakes Pitch (Shark Tank Season 4 Episode 23)" and "Wicked Good Cupcakes Update - Shark Tank" for an introduction to the product and company. We will use this Shark Tank success story as a case study thought out the course.
Instructions:
What we do not see in these clips is that Kevin O'Leary asked Traci and Dani for some select financial information about Wicked Good Cupcakes.
Consult the table below for the next set of questions:
|
|
2010
|
2011
|
|
Net sales
|
$69,400
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$78,200
|
|
Cost of goods sold
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$45,000
|
$50,200
|
|
Depreciation
|
$5,100
|
$6,100
|
|
Net Income
|
$13,000
|
$14,200
|
|
Finished goods inventory
|
$3,900
|
$2,900
|
|
Accounts receivable
|
$5,700
|
$8,700
|
|
Accounts payable
|
$3,900
|
$4,400
|
|
Net fixed assets
|
$40,400
|
$48,200
|
|
Year-end cash balance
|
$8,600
|
$13,500
|
Ignore data that is not presented above (changes in bad debt reserves, asset sales or write-offs, no financing cash flows, etc). From the above data answer the following:
1. During 2011 how much cash did Wicked Good Cupcakes collect from sales
2. During 2011 what was the cost of goods produced by the company?
3. Assuming that Wicked Good Cupcakes neither sold/salvaged assets during the year, what were the capital expenses during 2011?
4. Assuming that there were no financing cash flows during 2011, using the information from above, what was Wicked Good Cupcake's cash flow from operations in 2011?
5. Does your analysis of these selected financial data justify O'Leary's interest and partnership in Wicked Good Cupcakes? Explain.
6. Based on the analysis above; if you were a Shark Tank investor what would your offer be? Explain the rational for your offer.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.