Body Shop International Case Summary the Body Shop International Case Is an Interesting Case Study Into the Miscommunication of Owners and Stockholder Interests with Regard to Financial Conditions. Anita Roddick, the

Suggested Questions for the Case Analysis on Krispy Kreme Doughnuts

1. What can the historical income statements (case Exhibit 1) and balance sheets (case Exhibit 2) tell you about the financial health and current condition of Krispy Kreme Doughnuts, Inc.?

2. How can financial ratios extend your understanding of financial statements? What questions do the time series of ratios in case Exhibit 7 raise? What questions do the ratios on peer firms in case Exhibits 8 and 9 raise?

3. Is Krispy Kreme financially healthy at year-end 2004?

4. In light of your answer to question 3, what accounts for the firm’s recent share price decline?

5. What is the source of intrinsic investment value in this company? Does this source appear on the financial statements?

Due July 18 (Mon)

Advance Assignment for the Case Analysis on the Body Shop International

* Work through the exercises in this case, first using pencil and paper, and then using your personal computer. Then follow the directions in the case to make the three-year forecast, and prepare responses to the questions posed at the end of the case.

* The Microsoft Excel spreadsheet file supports your analysis and saves a few keystrokes in formatting and entering data for the final exercise of the case.

Due July 19 (Tue)

|

|

|

|

|

|

|

|

|

Body Shop International Case Summary

The Body Shop International case is an interesting case study into the miscommunication of owners and stockholder interests with regard to financial conditions. Anita Roddick, the founder of The Body Shop had no financial experience and thought that all she needed to do was expand her business and the financing would take shape as she developed her business. While Anita’s product concept of a natural skin-care line was good; her lack of experience in financial matters took its toll on her business.

The growth expansion of the firm was too rapid and sales,...